20-F - STKH - Equibles

UNITED

STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549

FORM

20-F

(Mark One)

☐ REGISTRATION

STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

☒ ANNUAL

REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For

the fiscal year ended December 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date

of event requiring this shell company report

For

the transition period from __________ to __________

Commission

file number 001-40173

Steakholder

Foods Ltd.

(Exact name of Registrant as specified in its charter)

N/A

(Translation of Registrant’s name into English)

Israel

(Jurisdiction of incorporation or organization)

5David Fikes St., P.O. Box 4061****Rehovot 7638205 Israel

(Address of principal executive offices)

ArikKaufman### +972-73-332-2853info@steakholderfoods.com

5

David Fikes St., Rehovot 7638205 Israel

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities

registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered

| American Depositary Shares, each representing 100 ordinary shares, no par value per share | STKH | The Nasdaq Stock Market LLC | | Ordinary shares, no par value per share | ⸺ | The Nasdaq Stock Market LLC* | | * | Listed not for trading or quotation purposes, but only in connection with the registration of American Depositary Shares representing such ordinary shares pursuant to the requirements of the Securities and Exchange Commission. The American Depositary Shares are registered under the Securities Act of 1933, as amended, pursuant to a separate registration statement on Form F-6 (File No. 333-253915). | | --- | --- |

Securities

registered or to be registered pursuant to Section 12(g) of the Act.

None

(Title of Class)

Securities

for which there is a reporting obligation pursuant to Section 15(d) of the Act.

None

(Title of Class)

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report. As of December 31, 2023, the registrant had outstanding 251,756,047 ordinary shares, no par value.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No ☒

Note — Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☒

| | | | | Emerging growth company | ☒ |

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on the attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☒	International Financial Reporting Standards as issued by the<br>International Accounting Standards Board	☐	Other ☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. ☐ Item 17 ☐ Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

TABLE

OF CONTENTS

INTRODUCTION

PART<br> I		1
ITEM<br> 1.	Identity<br> Of Directors, Senior Management And Advisers	1
ITEM<br> 2.	Offer<br> Statistics And Expected Timetable	1
ITEM<br> 3.	Key<br> Information	1
ITEM<br> 4.	Information<br> On The Company	27
ITEM4A.	Unresolved<br> Staff Comments	39
ITEM<br> 5.	Operating<br> And Financial Review And Prospects	40
ITEM<br> 6.	Directors,<br> Senior Management And Employees	46
ITEM<br> 7.	Major<br> Shareholders And Related Party Transactions	62
ITEM<br> 8.	Financial<br> Information	63
ITEM<br> 9.	The<br> Offer And Listing	64
ITEM<br> 10.	Additional<br> Information	65
ITEM<br> 11.	Quantitative<br> And Qualitative Disclosure On Market Risk	72
ITEM<br> 12.	Description<br> Of Securities Other Than Equity Securities	72
PART<br> II		74
ITEM<br> 13.	Defaults,<br> Dividend Arrearages and Delinquencies	74
ITEM<br> 14.	Material<br> Modifications To The Rights Of Security Holders And Use Of Proceeds	74
ITEM<br> 15.	Controls<br> And Procedures	74
ITEM<br> 16.	[reserved]	75
ITEM<br> 16A.	Audit<br> Committee Financial Expert	75
ITEM<br> 16B.	Code<br> Of Ethics	75
ITEM<br> 16C.	Principal<br> Accountant Fees And Services	75
ITEM<br> 16D.	Exemptions<br> From The Listing Standards For Audit Committees	76
ITEM<br> 16E.	Purchases<br> Of Equity Securities By The Issuer And Affiliated Purchasers	76
ITEM<br> 16F.	Change<br> In Registrant’s Certifying Accountant	76
ITEM<br> 16G.	Corporate<br> Governance	76
ITEM<br> 16H.	Mine<br> Safety Disclosure	77
ITEM<br> 16I.	Disclosure<br> Regarding Foreign Jurisdictions that Prevent Inspections	77
ITEM<br> 16J	Insider<br> Trading Policies	77
ITEM<br> 16K	Cybersecurity	77
PART<br> III		79
ITEM<br> 17.	Financial<br> Statements	79
ITEM<br> 18.	Financial<br> Statements	79
ITEM<br> 19.	Exhibits	80
SIGNATURES		81

INTRODUCTION

CertainDefinitions

In this Annual Report on Form 20-F, unless the context otherwise requires:

●	references<br> to “Steakholder Foods,” the “Company,” “us,” “we” and “our” refer to<br> Steakholder Innovation Ltd. (formerly MeaTech MT Ltd. and MeaTech Ltd.) from its inception until the consummation of the January<br> 2020 merger described herein, and Steakholder Foods Ltd. (formerly MeaTech 3D Ltd.) (the “Registrant”), an Israeli company,<br> thereafter, unless otherwise required by the context;
●	references<br> to “ordinary shares,” “our shares” and similar expressions refer to the Registrant’s ordinary shares,<br> no nominal (par) value per share;
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●	references<br> to “ADS” refer to the American Depositary Shares listed on the Nasdaq Capital Market (“Nasdaq”) under the<br> symbol “STKH,” each representing ten ordinary shares of the Registrant;
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●	references<br> to “dollars,” “U.S. dollars,” “USD” and “$” are to United States Dollars;
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●	references<br> to “NIS” are to New Israeli Shekels, the currency of the State of Israel;
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●	references<br> to the “Companies Law” are to Israel’s Companies Law, 5759-1999, as amended; and
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●	references<br> to the “SEC” are to the United States Securities and Exchange Commission.
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Forward-LookingStatements

This Annual Report on Form 20-F contains forward-looking statements concerning our business, operations and financial performance and condition as well as our plans, objectives and expectations for our business operations and financial performance and condition. Any statements that are not historical facts may be deemed to be forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms including “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, but these are not the only ways these statements are identified. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. You should not put undue reliance on any forward-looking statements. Unless we are required to do so under U.S. federal securities laws or other applicable laws, we do not intend to update or revise any forward-looking statements. Readers are encouraged to consult the Company’s filings made on Form 6-K, which are periodically filed with or furnished to the SEC.

Forward-looking statements contained in this prospectus include, but are not limited to:

●	our<br>estimates regarding our expenses, future revenue, capital requirements and needs for additional financing;
●	our<br> expectations regarding the success of our cultured meat manufacturing technologies we are developing, which will require significant<br> additional work before we can potentially launch commercial sales;
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●	our<br> research and development activities associated with technologies for cultured meat manufacturing, including three-dimensional meat<br> production, which involves a lengthy and complex process;
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●	our<br> expectations regarding the timing for the potential commercial launch of our cultured meat technologies;
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●	our<br> ability to successfully manage our planned growth, and any future acquisitions, joint ventures, collaborations or similar transactions;
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●	the<br> competitiveness of the market for our cultured meat technologies;
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●	our<br>ability to enforce our intellectual property rights and to operate our business without infringing, misappropriating, or otherwise violating<br>the intellectual property rights and proprietary technology of third parties;
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●	our<br>ability to predict and timely respond to preferences for alternative proteins and cultured meats and new trends;
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●	our<br>ability to attract, hire and retain qualified employees and key personnel;
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●	security,<br>political and economic instability in the Middle East that could harm our business, including due to the current war between Israel and<br>Hamas; and
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●	other<br>risks and uncertainties, including those listed in “Item 3. —Key Information—Risk Factors.”
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PART

ITEM1.	Identity Of Directors, Senior Management And Advisers

Not applicable.

ITEM2.	Offer Statistics And Expected Timetable

Not applicable.

ITEM 3.	Key Information

A.Selected Financial Data

[Reserved]

B.Capitalization and Indebtedness

Not applicable.

C.Reasons for the Offer and Use of Proceeds

Not applicable.

D.Risk Factors

Ourbusiness is subject to various risks, including those described below. You should carefully consider the risks and uncertainties describedbelow and in our future filings with the SEC. If any of the following risks are realized, our business, financial condition, resultsof operations and prospects could be materially and adversely affected. Additionally, risks and uncertainties not currently known tous or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, results of operationsand/or prospects.

Summaryof Risks Associated with our Business

Our business is subject to a number of risks of which you should be aware. You should carefully consider all the information set forth in this Annual Report on Form 20-F and, in particular, should evaluate the specific factors set forth in the sections titled “Risk Factors”. Our business, financial condition or results of operations could be materially adversely affected by any of these risks. Among these important risks are, but not limited to, the following:

RISKS

RELATED TO OUR FINANCIAL CONDITION AND LIQUIDITY REQUIREMENTS

●	We<br> expect to continue incurring significant losses for the foreseeable future.
●	We<br> may require substantial additional funds to complete our research and development activities.
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●	There<br> is substantial doubt as to whether we can continue as a going concern.
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●	Raising<br> additional capital may cause dilution to our existing shareholders or restrict our operations.
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RISKS

RELATED TO OUR BUSINESS AND STRATEGY

●	We<br> have a limited operating history to date.
●	The<br> research and development associated with alternative protein manufacturing is a lengthy process.
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●	We<br> intend to engage in future acquisitions, joint ventures or collaborations, which may not<br> be successful.
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●	We<br> may not be able to successfully manage our planned growth, and if the market does not grow<br> as we expect, we may not achieve sustainable revenues.
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●	Business<br> or economic disruptions may have an adverse impact on our business.
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RISKS

RELATED TO COMPETITION AND COMMERCIALIZATION OF OUR TECHNOLOGIES

●	We<br> are an early-stage company with an unproven business model.
●	We<br> may suffer reputational harm due to issues with products manufactured by our licensees.
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●	Failure<br> to improve our technologies may adversely affect our ability to continue to grow.
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●	We<br> may face difficulties if we expand our operations into new geographic regions.
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●	Consumer<br> preferences for alternative proteins in general are difficult to predict and may change.
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●	We<br> have no manufacturing experience or resources, and we may have issues in obtaining raw materials.
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●	Litigation<br> or legal proceedings, government investigations or other regulatory enforcement actions could<br> subject us to civil and criminal penalties or otherwise expose us to significant liabilities.
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RISKS

RELATED TO OUR OPERATIONS

●	We<br> expect that a small number of customers will account for a significant portion of our revenues,<br> and we may be exposed to the credit risks of our customers.
●	If<br> we are unable to attract and retain qualified employees, our ability to implement our business<br> plan may be adversely affected, and we may not be able to enforce covenants not to compete<br> under applicable employment laws.
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●	Insurance<br> policies may not fully cover the risk of loss to which we are exposed.
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●	Our<br> business, reputation and operations could suffer in the event of information technology system<br> failures or a cybersecurity incident.
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●	Food<br> safety and food-borne illness incidents may materially adversely affect our business.
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RISKS

RELATED TO GOVERNMENT REGULATION

●	Products<br> utilizing our technologies will be subject to regulations that could adversely affect our<br> business and results of operations.
●	Any<br> changes in, or failure by our supplier to comply with, applicable laws, regulations or policies<br> could adversely affect our business.
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RISKS

RELATED TO OUR INTELLECTUAL PROPERTY AND POTENTIAL LITIGATION

●	If<br> we are unable to obtain and maintain our intellectual property rights, we may not be able<br> to compete effectively in our markets.
●	Intellectual<br> property rights of third parties could adversely affect our ability to successfully commercialize<br> our products and may prevent or delay our development and commercialization.
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●	Patent<br> policy and rule changes could increase uncertainties and costs.
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●	We<br> may be involved in lawsuits to protect or enforce our or third party intellectual property<br> rights.
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●	Our<br> articles of association provide that unless we consent to an alternate forum, the federal<br> district courts of the United States shall be the exclusive forum of resolution of any claims<br> arising under the Securities Act.
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RISKS

RELATED TO OUR OPERATIONS IN ISRAEL

●	Political,<br> economic and military conditions in Israel could have an adverse impact on our business.
●	We<br> are exposed to fluctuations in currency exchange rates.
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●	Enforcing<br> a U.S. judgment against us and our executive officers and directors, or asserting U.S. securities<br> law claims in Israel, may be difficult.
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●	Our<br> articles of association provide that unless we consent otherwise, the competent courts of<br> Tel Aviv, Israel shall be the sole and exclusive forum for substantially all disputes between<br> the Company and its shareholders under the Companies Law and the Israeli Securities Law.
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●	Your<br> rights and responsibilities as our shareholder will be governed by Israeli law, which may<br> differ in some respects from the rights and responsibilities of shareholders of U.S. corporations.
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●	Our<br> articles of association and Israeli law could prevent a takeover that shareholders consider<br> favorable and could also reduce the market price of our ADSs.
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RISKS RELATED TO OWNERSHIP OF THE ADSs

●	The<br> ADS price may be volatile, and you may lose all or part of your investment.
●	We<br> have never paid dividends on our share capital, nor do we intend to pay dividends for the<br> foreseeable future.
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●	ADS<br> holders may not receive the same distributions or dividends as those we make to the holders<br> of our ordinary shares.
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●	ADS<br> holders do not have the same rights as our shareholders.
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●	ADS<br> holders may be subject to limitations on transfer of their ADSs.
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●	We<br> follow certain home country corporate governance practices instead of certain Nasdaq and<br> Exchange Act requirements.
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●	If<br> we are a “passive foreign investment company” for U.S. income tax purposes, there<br> may be adverse tax consequences to U.S. investors.
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●	If<br> we are a controlled foreign corporation, there could be adverse U.S. income tax consequences<br> to certain U.S. holders.
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RISKS

RELATED TO OUR FINANCIAL CONDITION AND LIQUIDITY REQUIREMENTS

Weexpect to continue incurring significant losses for the foreseeable future and may never become profitable.

We have experienced net losses in every period since the inception of our predecessor entity, Steakholder Innovation Ltd., or Steakholder Innovation. We anticipate that we will continue to incur significant losses for the foreseeable future as our operating expenses and capital expenditures increase substantially due to our continued investment in our research and development activities and as we hire additional employees over the coming years. These activities may prove more expensive than we anticipate. We incur significant expenses in developing our technologies. Accordingly, we may not be able to achieve or sustain profitability, and we expect to incur significant losses for the foreseeable future.

Steakholder Innovation commenced food technology development operations in September 2019, and we continue to be in stages of development of our technologies. As a result, we have not generated any revenues since inception of our food technology operations, and we cannot guarantee whether or when we will commence generating revenue from operations. We may not be able to develop the technology for manufacturing food production machines, or successfully commercialize our technologies. In addition, there is no certainty that there will be sufficient demand to justify the production and marketing of our food production machines. The market for alternative proteins may be small or may not develop.

If our food production machines do not gain wide market acceptance, we will not be able to achieve our anticipated growth, revenues or profitability and we may not be able to continue our business operations.

Wemay require substantial additional funds to complete our research and development activities and, if additional funds are not availableon acceptable terms or at all, we may need to significantly scale back or cease our operations.

A significant portion of our research and development activities has been financed by the issuance of equity securities. We believe that we will continue to expend substantial resources for the foreseeable future as we work to develop our technologies. These expenditures are expected to include costs associated with research and development, manufacturing and supply, as well as general operating expenses. In addition, other unanticipated costs may arise.

There is no certainty that we will be able to obtain funding for our research and development activities when we need it, on acceptable terms or at all. A lack of adequate funding may force us to reduce or cease all or part of our research and development activities and business operations. Our operating plan may change because of factors currently unknown to us, and we may need to seek additional funds sooner than planned, through public or private equity or debt financings or other sources, such as strategic collaborations. Such financing may result in dilution to shareholders, imposition of debt covenants and repayment obligations, or other restrictions that may adversely affect our business. In addition, we may seek additional capital due to favorable market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans.

Our future capital requirements depend on many factors, including:

●	our<br> progress with current research and development activities;
●	the<br> number and characteristics of any products or manufacturing processes we develop or acquire;
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●	the<br> expenses associated with our marketing initiatives;
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●	the<br> timing, receipt and amount of milestone, royalty and other payments from future customers<br> and collaborators, if any;
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●	the<br> scope, progress, results and costs of researching and developing future products or improvements<br> to existing products or manufacturing processes;
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●	any<br> lawsuits related to our products or commenced against us;
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●	the<br> expenses needed to attract, hire and retain skilled personnel;
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●	the<br> costs associated with being a public company in the United States; and
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●	the<br> costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing intellectual<br> property claims, including litigation costs and the outcome of such litigation.
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If our estimates and predictions relating to any of these factors are incorrect, we may need to modify our operating plan. Additional funds may not be available to us when needed on acceptable terms, or at all. If adequate funds are not available to us on a timely basis, we may be required to delay, limit, reduce or terminate our manufacturing, research and development activities or other activities that may be necessary to generate revenue and achieve profitability.

Thereis substantial doubt as to whether we can continue as a going concern.

Our consolidated financial statements as of December 31, 2023 contain an explanatory paragraph that states that our recurring losses from operations raise substantial doubt about our ability to continue as a going concern. Our financial statements do not include any measurement or presentation adjustment for assets or liabilities that might result if we would be unable to continue as a going concern. We have incurred operating losses since inception, have not generated any revenues and have not achieved profitable operations. Our net loss, accumulated during the development stage through December 31, 2023, totaled approximately USD 69.8 million, and we expect to continue to incur substantial losses in future periods while we continue our research and development activities.

Raisingadditional capital may cause dilution to our existing shareholders, restrict our operations or require us to relinquish rights to ourtechnologies.

Until such time, if ever, we can generate substantial product revenues, we expect to finance our cash needs through equity offerings, debt financings, government contracts, government and/or other third-party grants or other third-party funding, marketing and distribution arrangements and other collaborations, strategic alliances and licensing arrangements. We will require substantial funding to fund our anticipated commercialization efforts and fund our operating expenses and other activities. To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership interest will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a shareholder. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we are unable to obtain funding on a timely basis, we may be required to significantly curtail our research or development program, or a part thereof, which would adversely impact our potential revenues, results of operations and financial condition.

RISKS

RELATED TO OUR BUSINESS AND STRATEGY

Wehave a limited operating history to date and our business prospects will be dependent on our ability to meet a number of challenges.

Our business prospects are difficult to predict due to a lack of operational history, and our success will be dependent on our ability to meet a number of challenges. We are focused on developing commercial technologies to manufacture alternative foods without the need for animal butchery. If we are unable to successfully develop our alternative protein manufacturing technologies, we may not be able to achieve our anticipated growth, revenues or profitability and we may not be able to continue our business operations.

Because we have a limited operating history and we are in stages of development, you may not be able to evaluate our future prospects accurately. Our prospects will be primarily dependent on our ability to successfully develop food production machines, and market these to our customers. If we are not able to successfully meet these challenges, our prospects, business, financial condition and results of operations could be adversely impacted.

Weare wholly dependent on the success of our food manufacturing technologies, and we have limited data on the performance of our technologiesto date.

We do not currently have any products or technologies approved for sale and we are still in stages of development. To date, we have limited data on the ability of our technologies to successfully manufacture alternative proteins, towards which we have devoted substantial resources. We may not be successful in developing our technologies in a manner sufficient to support our expected scale-ups and future growth, or at all. We expect that a substantial portion of our efforts and expenditures over the next few years will be devoted to the development of technologies designed to enable us to market industrial-scale food production machines. We cannot guarantee that we will be successful in developing these technologies on the timeline we expect or at all. If we are able to successfully develop our technologies, we cannot ensure that upon commercialization our technologies will achieve market acceptance. Any such delay or failure would materially and adversely affect our financial condition, results of operations and prospects.

Wemay engage in future acquisitions, joint ventures or collaborations, which may increase our capital requirements, dilute our shareholders,cause us to incur debt or assume contingent liabilities, and subject us to other risks. We may not realize the benefits of these acquisitions,joint ventures or collaborations.

We may evaluate various acquisitions and collaborations, including licensing or acquiring complementary technologies, intellectual property rights, or businesses. Any potential acquisition, joint venture or collaboration will entail numerous potential risks, including:

●	increased<br> operating expenses and cash requirements;
●	the<br> assumption of additional indebtedness or contingent liabilities;
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●	assimilation<br> of operations, intellectual property and products of an acquired company, including difficulties<br> associated with integrating new personnel;
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●	the<br> diversion of our management’s attention from our existing programs and initiatives<br> in pursuing such a strategic merger or acquisition;
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●	retention<br> of key employees, the loss of key personnel, and uncertainties in our ability to maintain<br> key business relationships;
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●	risks<br> and uncertainties associated with the other party to such a transaction, including the prospects<br> of that party and their existing technologies; and
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●	our<br> inability to generate revenue from acquired technologies or products sufficient to meet our<br> objectives in undertaking the acquisition or even to offset the associated acquisition and<br> maintenance costs.
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In addition, if we undertake acquisitions, we may utilize our cash, issue dilutive securities, assume or incur debt obligations, incur large one-time expenses and acquire intangible assets that could result in significant future amortization expense.

Moreover, we may not be able to locate suitable acquisition or collaboration opportunities and this inability could impair our ability to grow or obtain access to technologies that may be important to the development of our business.

Ourexisting potential collaborations, or any future collaboration arrangements that we may enter into, may not be successful, which couldsignificantly limit the likelihood of receiving the potential economic benefits of the collaboration and adversely affect our abilityto develop and commercialize our product candidates.

We have entered into collaborations with partner organizations, and may enter into future collaborations under which our collaborators may provide funding and other resources for developing and commercializing our alternative protein manufacturing technologies. We expect to enter into additional collaborations to access additional funding, capabilities and expertise in the future. Our existing collaborations, and any future collaborations we enter into, may pose a number of risks, including the following:

●	collaborators<br> may not perform or prioritize their obligations as expected;
●	collaborators<br> may not pursue development and commercialization of any of our alternative protein manufacturing<br> technologies or may elect not to continue or renew development or commercialization, changes<br> in the collaborators’ focus or available funding, or external factors, such as an acquisition,<br> that divert resources or create competing priorities;
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●	collaborators<br> may provide insufficient funding for the successful development or commercialization of our<br> alternative protein manufacturing technologies;
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●	collaborators<br> could independently develop, or develop with third parties, products or technologies that<br> compete directly or indirectly with our products or alternative protein manufacturing technologies<br> if the collaborators believe that competitive products are more likely to be successfully<br> developed or can be commercialized under terms that are more economically attractive than<br> ours;
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●	alternative<br> protein manufacturing technologies developed in collaborations with us may be viewed by our<br> collaborators as competitive with their own products or technologies, which may cause collaborators<br> to cease to devote resources to the development or commercialization of our products;
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●	a<br> collaborator with marketing and distribution rights to one or more of our products or technologies<br> that achieve regulatory approval may not commit sufficient resources to the marketing and<br> distribution of any such product;
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●	disagreements<br> with collaborators, including disagreements over proprietary rights, contract interpretation<br> or the preferred course of development of alternative protein manufacturing technologies,<br> may cause delays or termination of the research, development or commercialization of such<br> technologies, may lead to additional responsibilities for us with respect to such technologies,<br> or may result in litigation or arbitration, any of which would be time-consuming and expensive;
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●	collaborators<br> may not properly maintain, protect, defend or enforce our intellectual property rights or<br> may use our proprietary information in such a way as to invite litigation that could jeopardize<br> or invalidate our intellectual property or proprietary information or expose us to potential<br> litigation;
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●	disputes<br> may arise with respect to the ownership of intellectual property developed pursuant to our<br> collaborations;
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●	collaborators<br> may infringe, misappropriate or otherwise violate the intellectual property rights of third<br> parties, which may expose us to litigation and potential liability;
●	collaborations<br> may be terminated for the convenience of the collaborator and, if terminated, the development<br> of our alternative protein manufacturing technologies may be delayed, and we could be required<br> to raise additional capital to pursue further development or commercialization ;
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●	future<br> relationships may require us to incur non-recurring and other charges, increase our near-<br> and long-term expenditures, issue securities that dilute our existing shareholders, or disrupt<br> our management and business; and
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●	we<br> could face significant competition in seeking appropriate collaborators, and the negotiation<br> process is time-consuming and complex.
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If our collaborations do not result in the successful development of our products, or if one of our collaborators terminates its agreement with us, we may not receive any future research funding or milestone, earn-out, royalty or other contingent payments under the collaborations. If we do not receive the funding we expect under these agreements, our development of our alternative protein manufacturing technologies could be delayed and we may need additional resources to develop our technologies. If one of our collaborators terminates its agreement with us, we may find it more difficult to attract new collaborators and the perception of us in the business and financial communities could be adversely affected. All of the risks relating to product development, regulatory approval and commercialization described in this report apply to the activities of our collaborators.

Wemay not be able to successfully manage our planned growth.

We expect to continue to make investments in our alternative protein manufacturing technologies. We expect that our annual operating expenses will continue to increase as we invest in further research and development activities and, ultimately, sales and marketing efforts and customer service and support resources for future customers. Our failure to expand operational and financial systems in a timely or efficient manner could result in operating inefficiencies, which could increase our costs and expenses more than we had planned and prevent us from successfully executing our business plan. We may not be able to offset the costs of operation expansion by leveraging the economies of scale from our growth in negotiations with our suppliers and contract manufacturers. Additionally, if we increase our operating expenses in anticipation of the growth of our business and this growth does not meet our expectations, our financial results will be negatively impacted.

If our business grows, we will have to manage additional product design projects, materials procurement processes, and sales efforts and marketing for an increasing number of products, as well as expand the number and scope of our relationships with suppliers, distributors and end customers. If we fail to manage these additional responsibilities and relationships successfully, we may incur significant costs, which may negatively impact our operating results. Additionally, in our efforts to be first to market with new products with innovative functionality and features, we may devote significant research and development resources to products and product features for which a market does not develop quickly, or at all. If we are not able to predict market trends accurately, we may not benefit from such research and development activities, and our results of operations may suffer.

As our future development and commercialization plans and strategies develop, we expect to need additional managerial, operational, sales, marketing, financial and legal personnel. Our management may need to divert a disproportionate amount of its attention away from our day-to-day activities and devote a substantial amount of time to managing these growth activities. We may not be able to effectively manage the expansion of our operations, which may result in weaknesses in our infrastructure, operational mistakes, loss of business opportunities, failure to deliver and timely deliver our products to customers, loss of employees and reduced productivity among remaining employees. Our expected growth could require significant capital expenditures and may divert financial resources from other projects, such as the development of additional new products. If our management is unable to manage our growth effectively, our expenses may increase more than expected, our ability to generate and/or grow revenue could be reduced, and we may not be able to implement our business strategy.

Ifthe market does not grow as we expect, we may not achieve sustainable revenues.

The marketplace for alternative protein manufacturing plants, which we expect to be our primary market, is dominated by methods that do not involve three-dimensional printing technology. If the market does not broadly accept three-dimensional printing of alternative protein as an alternative for conventional meat harvesting, or if it adopts three-dimensional printing based on a technology other than our proprietary technology, we may not be able to achieve a sustainable level of revenues, and our results of operations would be adversely affected as a result. Additionally, alternative proteins may be more expensive than conventional meat. If the price of alternative proteins remains high, this may limit the consumer demand for, and market acceptance of, products manufactured using our technologies, and we may never be able to compete successfully or generate sufficient revenue or sustained profitability.

Businessor economic disruptions or global health concerns may have an adverse impact on our business and results of operations.

The COVID-19 pandemic negatively impacted the global economy, disrupted consumer spending and global supply chains, and created significant volatility and disruption of financial markets. Many countries around the world, including in Israel, implemented significant governmental measures to control the spread of the virus, including temporary closure of businesses, restrictions on travel and the movement of people, and other material limitations on the conduct of business. The extent of the impact of future disruptions, such as another pandemic, on our business and financial performance, including our ability to execute our near-term and long-term business strategies and initiatives in the expected time frame, are uncertain and cannot be predicted.

RISKS

RELATED TO COMPETITION AND COMMERCIALIZATION OF OUR TECHNOLOGIES

Weare an early-stage company with an unproven business model, which makes it difficult to evaluate our current business and future prospects.

We have no established basis to assure investors that our business strategies will be successful. We are dependent on unproven technologies and we have no basis to predict acceptance of our technologies by potential licensees and their customers. The market for printed alternative proteins is new and untested. As a result, the revenue and income potential of our business and our market are unproven. Further, because of our limited operating history and stage of development, and because the market for alternative proteins is relatively new and rapidly evolving, we have limited insight into trends that may emerge and affect our business. We may make errors in predicting and reacting to relevant business trends, which could harm our business.

Wemay not be able to compete successfully in our highly competitive market.

The alternative protein market is expected to be highly competitive, with numerous brands and products competing for limited retailer shelf space, foodservice and restaurant customers and consumers. For us to compete successfully, we expect that the alternative proteins printed using our technologies will need to be competitive in taste, ingredients, texture, ease of integration into the consumer diet, nutritional claims, convenience, brand recognition and loyalty, product variety, product packaging and package design, shelf space, reputation, price, advertising and access to restaurant and foodservice customers.

Generally, the food industry is dominated by multinational corporations with substantially greater resources and operations than we. We cannot be certain that we will successfully compete with larger competitors that have greater financial, marketing, sales, manufacturing, distributing and technical resources than we do. Conventional food companies may acquire our competitors or launch their own competing products, and they may be able to use their resources and scale to respond to competitive pressures and changes in consumer preferences by introducing new products, reducing prices or increasing promotional activities, among other things. Competitive pressures or other factors could prevent us from acquiring market share or cause us to lose market share, which may require us to lower prices, or increase marketing and advertising expenditures, either of which would adversely affect our margins and could result in a decrease in our operating results and profitability. We cannot assure you that we will be able to maintain a competitive position or compete successfully against such sources of competition.

Wemay suffer reputational harm due to real or perceived quality or health issues with products manufactured by our customers using ourtechnology.

Any real or perceived quality or food safety concerns or failures to comply with applicable food regulations and requirements, whether or not ultimately based on fact and whether or not involving us, or even merely involving unrelated manufacturers, could cause negative publicity and reduced confidence in our company, or the industry as a whole, which could in turn harm our reputation and sales, and could adversely impact our business, financial condition and operating results. There can be no assurance that products manufactured by our customers will always comply with regulatory standards. Although we expect that our customers will strive to manufacture products free of pathogenic organisms, these may not be easily detected and cross-contamination can occur. We cannot assure you that this health risk will always be preempted by quality control processes.

We will have no control over the products manufactured by our customers, especially once they are purchased by consumers, who may prepare these products in a manner that is inconsistent with directions or store them for excessive periods of time, which may adversely affect their quality and safety. If the products manufactured by our licensees are not perceived as safe or of high quality, then our business, results of operations and financial condition could be adversely affected.

The growing use of social and digital media increases the speed and extent that information or misinformation and opinions can be shared. Negative publicity about cultured meats produced using our technologies could seriously damage our reputation.

Failureto improve our technologies may adversely affect our ability to continue to grow.

In order to continue to grow, we expect we will need to continue to innovate by developing new technologies or improving existing ones, in ways that meet our standards for quality and will enable our customers to manufacture products that appeal to consumer preferences. Such innovation will depend on the technical capability of our staff in developing and testing product prototypes, including complying with applicable governmental regulations, and the success of our management and sales and marketing teams in introducing and marketing new technologies. Failure to develop and market new technologies may cause a negative impact on our business and results of operations.

Additionally, the development and introduction of new technologies requires substantial research, development and marketing expenditures, which we may be unable to recoup if the new technologies do not lead to products that gain widespread market acceptance. If we are unsuccessful in meeting our objectives with respect to new or improved technologies, our business could be harmed.

Wemay face difficulties if we expand our operations into new geographic regions, in which we have no prior operating experience.

We intend to commercialize our technologies in numerous geographical markets. International operations involve a number of risks, including foreign regulatory compliance, tariffs, taxes and exchange controls, economic downturns, inflation, foreign currency fluctuations and political and social instability in the countries in which we will operate. Expansion may involve expanding into less developed countries, which may have less political, social or economic stability and less developed infrastructure and legal systems. It is costly to establish, develop and maintain international operations and develop and promote our brands in international markets. As we expand our business into other countries, we may encounter regulatory, legal, personnel, technological and other difficulties that increase our expenses and/or delay our ability to become profitable in such countries, which may have an adverse impact on our business and brand.

Consumerpreferences for alternative proteins are difficult to predict and may change, and, if we are unable to respond quickly to new trends,our business may be adversely affected.

Our business is focused on the development and marketing of alternative protein manufacturing technologies. Consumer demand for the alternative proteins manufactured using these technologies could change based on a number of possible factors, including dietary habits and nutritional values, concerns regarding the health effects of ingredients and shifts in preference for various product attributes. If consumer demand for our products decreases, our business and financial condition may suffer. Consumer trends that we believe favor sales of products manufactured using our technologies could change based on a number of possible factors, including a shift in preference from animal-based protein products, economic factors and social trends. A significant shift in consumer demand away from products manufactured using our technologies could reduce our sales or our market share and the prestige of our brand, which would harm our business and financial condition.

Wehave limited manufacturing experience and resources and we expect we will incur significant costs to develop this expertise or need torely on third parties for manufacturing.

We have limited manufacturing experience. In order to develop and commercialize our technologies, we will need to develop, contract for or otherwise arrange for the necessary manufacturing capabilities. We may experience difficulty in obtaining adequate and timely manufacturing capacity for our proprietary alternative protein printers and blends. Even if we develop or obtain the necessary manufacturing capacity, if we fail to comply with regulations, to obtain the necessary licenses and knowhow or to obtain the requisite financing in order to comply with all applicable regulations and to own or lease the required facilities in order to manufacture products, we could be forced to cease operations.

Ourlimited manufacturing capabilities are nascent, and if we fail to effectively develop manufacturing and production capabilities, ourbusiness and operating results and our brand reputation could be harmed.

If we are unable to develop manufacturing capacity to commence cultivated meat production, we may not be able to expedite our market entry or develop an industrial process for cultivating and producing real meat cuts. Additionally, there is risk in our ability to effectively scale production processes, if developed, to optimize manufacturing capacity for specific products and effectively manage our supply chain requirements, which involves accurately forecasting demand for each of our products and inventory needs in order to ensure we have adequate available manufacturing capacity for each such product and to ensure we are effectively managing our inventory. Our forecasts may be based on multiple assumptions that may cause our estimates to be inaccurate and affect our ability to obtain adequate manufacturing capacity (whether our own manufacturing capacity or co-manufacturing capacity) and adequate inventory supply in order to meet the demand for our products, which could prevent us from developing our industrial process and harm our business and prospects.

However, if we overestimate our demand and overbuild our capacity or inventory, we may have significantly underutilized assets, experience reduced margins, and have excess inventory which we may be required to write-down or write-off. If we do not accurately align our manufacturing capabilities and inventory supply with demand, if we experience disruptions or delays in our supply chain, or if we cannot obtain raw materials of sufficient quantity and quality at reasonable prices and in a timely manner, our business, financial condition and results of operations may be adversely affected.

Ifdeveloped, our manufacturing and production operations will be subject to additional risks and uncertainties.

The interruption in, or the loss of operations at, our pilot facility, which may be caused by work stoppages, labor shortages, strikes or other labor unrest, production disruptions, product quality issues, local economic and political conditions, restrictive governmental actions, border closures, disease outbreaks or pandemics (such as COVID-19), the outbreak of hostilities, acts of war, terrorism, fire, earthquakes, severe weather, flooding or other natural disasters at one or more of these facilities, could delay, postpone or reduce production of some of our products, could impede our ability to develop an industrial process for cultivating and producing real meat cuts or could otherwise have an adverse effect on our business, results of operations and financial condition until such time as such interruption is resolved or an alternate source of production is secured.

Becausewe rely on a limited number of third-party suppliers, we may not be able to obtain raw materials on a timely basis or in sufficient quantitiesat competitive prices to produce our products or meet the demand for our products.

We rely on a limited number of vendors, a portion of which are located internationally, to supply us with raw materials. Our financial performance depends in large part on our ability to arrange for the purchase of raw materials in sufficient quantities at competitive prices. We are not assured a continued supply or pricing of raw materials. Any of our other suppliers could discontinue or seek to alter their relationship with us. We could experience similar delays in the future from any of our suppliers. Any disruption in the supply of raw materials would have a material adverse effect on our business if we cannot replace these suppliers in a timely manner, on commercially reasonable terms, or at all.

In addition, our suppliers manufacture their products at a limited number of facilities. A natural disaster, severe weather, fire, power interruption, work stoppage or other calamity affecting any of these facilities, or any interruption in their operations, could negatively impact our ability to obtain required quantities of raw materials in a timely manner, or at all, which could materially increase our cost and delay our timeline, and have a material effect on our business and financial condition.

Events that adversely affect our suppliers of raw materials could impair our ability to obtain raw material inventory in the quantities at competitive prices that we desire. Such events include problems with our suppliers’ businesses, finances, labor relations and/or shortages, strikes or other labor unrest, ability to import raw materials, product quality issues, costs, production, insurance and reputation, as well as local economic and political conditions, restrictive U.S. and foreign governmental actions, such as restrictions on transfers of funds and trade protection measures, including export/import duties and quotas and customs duties and tariffs, adverse fluctuations in foreign currency exchange rates, changes in legal or regulatory requirements, border closures, disease outbreaks or pandemics (such as COVID-19), acts of war, terrorism, natural disasters, fires, earthquakes, flooding, severe weather, agricultural diseases or other catastrophic occurrences. We continuously seek alternative sources of raw materials to use in our products, but we may not be successful in diversifying the raw materials we use in our products.

If we need to replace an existing supplier, there can be no assurance that supplies of raw materials will be available when required on acceptable terms, or at all, or that a new supplier would allocate sufficient capacity to us in order to meet our requirements, fill our orders in a timely manner or meet our strict quality standards.

Litigationor legal proceedings, government investigations or other regulatory enforcement actions could subject us to civil and criminal penaltiesor otherwise expose us to significant liabilities and have a negative impact on our reputation or business.

We operate in a constantly evolving legal and regulatory framework. Consequently, we are subject to heightened risk of legal claims, government investigations or other regulatory enforcement actions. Although we have implemented policies and procedures designed to ensure compliance with existing laws and regulations, we cannot assure you that our employees, temporary workers, contractors or agents will not violate our policies and procedures. Moreover, a failure to maintain effective control processes could lead to violations, unintentional or otherwise, of laws and regulations. Legal claims, government investigations or regulatory enforcement actions arising out of our failure or alleged failure to comply with applicable laws and regulations could subject us to civil and criminal penalties that could materially and adversely affect our product sales, reputation, financial condition and operating results. For example, in November 2020, the Israel Securities Authority, or ISA, initiated an administrative proceeding against us claiming negligent misstatement regarding certain immediate and periodic reports published by our predecessor (Ophectra) during the years 2017 and 2018, prior to the merger with MeaTech. These reports relate to Ophectra’s activities prior to establishment of the settlement fund in connection with the merger. In April 2021, following negotiations with the ISA, we agreed to settle the matter for NIS 0.7 million ($0.2 million). The settlement is subject to approval of the ISA’s Enforcement Committee.

RISKS

RELATED TO OUR OPERATIONS

Weexpect that a small number of customers will account for a significant portion of our revenues, and the loss of one or more of thesecustomers could adversely affect our financial condition and results of operations.

We do not expect to generate revenue in the short or medium term. If we are able to generate revenue, we believe that we will do so through three primary streams: (i) selling alternative protein manufacturing machines, including three-dimensional printers; (ii) brokering the supply of materials needed in the manufacturing process; and (iii) providing consulting and implementation services to customers. These streams may arise in the context of product co-development. Under this model, we initially expect to derive a significant portion of our revenues from a few customers. Our financial condition and results of operations could be adversely impacted if any one of these customers interrupt or curtail their activities, fail to pay for the services that have been performed, terminate their cultured meat operations, or if we are unable to enter into agreements with new customers on favorable terms. The loss of customers could adversely affect our financial condition and results of operations.

Wemay be exposed to the credit risks of our customers, and nonpayment by these customers and other parties could adversely affect our financialposition, results of operations and cash flows.

We may be subject to risks of loss resulting from nonpayment by our customers. Any material nonpayment by these entities could adversely affect our financial position, results of operations and cash flows. If customers default on their obligations to us, our financial results and condition could be adversely affected. Some of these customers may be highly leveraged and subject to their own operating and regulatory risks.

Ifwe are unable to attract and retain qualified employees, our ability to implement our business plan may be adversely affected.

The loss of the service of our employees, such as Mr. Arik Kaufman, our Chief Executive Officer, would likely delay our achievement of product development and other business objectives, as we may not be able to find suitable individuals to replace them on a timely basis, if at all. In addition, any such departure could be viewed in a negative light by investors and analysts, which may cause the price of our securities to decline. Although we have employment agreements with our key employees, these employees could terminate their employment with us at any time on relatively short notice. We do not carry key man life insurance on any of our executive officers.

Recruiting and retaining qualified scientific, manufacturing and sales and marketing personnel will also be critical to our success. We may not be able to attract and retain these personnel on acceptable terms given the competition among high technology and life sciences companies for similar personnel. We also experience competition from universities and research institutions in attracting and retaining scientific personnel. In addition, we rely on consultants and advisors, including scientific advisors, to assist us in formulating our research and development and commercialization strategy. Our consultants and advisors may be employed by employers other than us and may have commitments under consulting or advisory contracts with other entities that may limit their availability to us.

Underapplicable employment laws, we may not be able to enforce covenants not to compete.

Our employment agreements generally include covenants not to compete. These agreements prohibit our employees, if they cease working for us, from competing directly with us or working for our competitors for a limited period. We may be unable to enforce these agreements under the laws of the jurisdictions in which our employees work. For example, Israeli courts have required employers seeking to enforce covenants not to compete to demonstrate that the competitive activities of a former employee will harm one of a limited number of material interests of the employer, such as the secrecy of a company’s confidential commercial information or the protection of its intellectual property. If we cannot demonstrate that such an interest will be harmed, we may be unable to prevent our competitors from benefiting from the expertise of our former employees or consultants and our competitiveness may be diminished.

Weare exposed to a risk of substantial loss due to claims that may be filed against us in the future because our insurance policies maynot fully cover the risk of loss to which we are exposed.

We are exposed to the risk of having claims seeking monetary damages being filed against us, for example with regard to securities-related claims. In the event that we are required to pay damages for any such claim, we may be forced to seek bankruptcy or to liquidate because our asset base and revenue base may be insufficient to satisfy the payment of damages and any insurance that we have obtained may not provide sufficient coverage against potential liabilities.

Ourbusiness and operations would suffer in the event of information technology system failures, including security breaches.

Despite the implementation of security measures, our internal computer systems and those of our contractors and consultants are vulnerable to damage from computer viruses, unauthorized access, natural disasters, terrorism, war and telecommunication and electrical failures. While we have not experienced any such system failure, accident or security breach to date, if such an event were to occur and cause interruptions in our operations, causing our business to suffer. To the extent that any disruption or security breach were to result in a loss of or damage to our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability and the further development of our product could be delayed.

Acybersecurity incident, other technology disruptions or failure to comply with laws and regulations relating to privacy and the protectionof data relating to individuals could negatively impact our business, our reputation and our relationships with customers.

We use computers in substantially all aspects of our business operations. We also use mobile devices, social networking and other online activities to connect with our employees, suppliers and co-manufacturers. Such uses give rise to cybersecurity risks, including security breaches, espionage, system disruption, theft and inadvertent release of information. Our business involves the storage and transmission of numerous classes of sensitive and/or confidential information and intellectual property, including suppliers’ information, private information about employees and financial and strategic information about us and our business partners. Further, as we pursue new initiatives that improve our operations and cost structure, potentially including acquisitions, we may also be expand and improve our information technologies, resulting in a larger technological presence and corresponding exposure to cybersecurity risk. If we fail to assess and identify cybersecurity risks associated with new initiatives or acquisitions, we may become increasingly vulnerable to such risks. Additionally, while we have implemented measures to prevent security breaches and cyber incidents, our preventative measures and incident response efforts may not be entirely effective. The theft, destruction, loss, misappropriation, or release of sensitive and/or confidential information or intellectual property, or interference with our information technology systems or the technology systems of third parties on which we rely, could result in business disruption, negative publicity, brand damage, violation of privacy laws, loss of customers, potential liability and competitive disadvantage all of which could have a material adverse effect on our business, financial condition or results of operations.

In addition, we are subject to laws, rules and regulations in the United States, the European Union and other jurisdictions relating to the collection, use and security of personal information and data. Such data privacy laws, regulations and other obligations may require us to change our business practices and may negatively impact our ability to expand our business and pursue business opportunities. We may incur significant expenses to comply with the laws, regulations and other obligations that apply to us. Additionally, the privacy- and data protection-related laws, rules and regulations applicable to us are subject to significant change. Several jurisdictions have passed new laws and regulations in this area, and other jurisdictions are considering imposing additional restrictions. Privacy- and data protection-related laws and regulations also may be interpreted and enforced inconsistently over time and from jurisdiction to jurisdiction. Any actual or perceived inability to comply with applicable privacy or data protection laws, regulations, or other obligations could result in significant cost and liability, litigation or governmental investigations, damage our reputation, and adversely affect our business.

Disruptionsin the worldwide economy may adversely affect our business, results of operations and financial condition.

The global economy can be negatively impacted by a variety of factors such as the spread or fear of spread of contagious diseases (such as the COVID-19 pandemic), man-made or natural disasters, actual or threatened war, terrorist activity, political unrest, civil strife and other geopolitical uncertainty. Such adverse and uncertain economic conditions may impact consumer demand for alternative proteins, which may in turn impact manufacturer and retailer demand for our technologies. In addition, our ability to manage normal commercial relationships with suppliers may suffer. Consumers may shift purchases to lower-priced or other perceived value offerings during economic downturns as a result of various factors, including job losses, inflation, higher taxes, reduced access to credit, change in government economic policy and international trade disputes. In particular, consumers may reduce the amount of alternative proteins that they purchase in favor of conventional meat, which may have lower retail prices, which could indirectly affect our results of operations. Manufacturer and retailers may become more conservative in response to these conditions and seek to delay commencing alternative protein manufacturing operations or reduce existing operations. Our results of operations will depend upon, among other things, the financial condition of our business customers and our ability to supply them with the means to manufacture products that appeal to consumers at the right price. Decreases in demand for the products manufactured by our customers would put downward pressure on margins and would negatively impact our financial results. Prolonged unfavorable economic conditions or uncertainty may result in end consumers making long-lasting changes to their discretionary spending behavior on a more permanent basis, which may likewise have an indirect adverse effect on our sales and profitability.

Foodsafety and food-borne illness incidents may materially adversely affect our business by exposing us to lawsuits, product recalls or regulatoryenforcement actions, increasing our operating costs and reducing demand for our product offerings.

Selling food for human consumption involves inherent legal and other risks, and there is increasing governmental scrutiny of and public awareness regarding food safety. Unexpected side effects, illness, injury or death related to allergens, food-borne illnesses or other food safety incidents caused by products we sell, or involving our suppliers or co-manufacturers, could result in the discontinuance of sales of these products or our relationships with such suppliers or co-manufacturers, or otherwise result in increased operating costs, regulatory enforcement actions or harm to our reputation. Shipment of adulterated or misbranded products, even if inadvertent, can result in criminal or civil liability. Such incidents could also expose us to product liability, negligence or other lawsuits, including consumer class action lawsuits. Any claims brought against us may exceed or be outside the scope of our existing or future insurance policy coverage or limits. Any judgment against us that is more than our policy limits or not covered by our policies or not subject to insurance would have to be paid from our cash reserves, which would reduce our capital resources.

The occurrence of food-borne illnesses or other food safety incidents could also adversely affect the price and availability of affected ingredients, resulting in higher costs, disruptions in supply and a reduction in our sales. Furthermore, any instances of food contamination or regulatory noncompliance, whether or not caused by our actions, could compel us, our suppliers, our distributors or our customers, depending on the circumstances, to conduct a recall in accordance with FDA regulations, comparable state laws or foreign laws such as those of the European Union and the United Kingdom. Food recalls could result in significant losses due to their costs, the destruction of product inventory, lost sales due to the unavailability of the product for a period of time and potential loss of existing distributors or customers and a potential negative impact on our ability to attract new customers due to negative consumer experiences or because of an adverse impact on our brand and reputation. The costs of a recall could exceed or be outside the scope of our existing or future insurance policy coverage or limits.

In addition, food companies have been subject to targeted, large-scale tampering as well as to opportunistic, individual product tampering, and we, like any food company, could be a target for product tampering. Forms of tampering could include the introduction of foreign material, chemical contaminants and pathological organisms into consumer products as well as product substitution. FDA regulations require companies like us to analyze, prepare and implement mitigation strategies specifically to address tampering (i.e., intentional adulteration) designed to inflict widespread public health harm. If we do not adequately address the possibility, or any actual instance, of intentional adulteration, we could face possible seizure or recall of our products and the imposition of civil or criminal sanctions, which could materially adversely affect our business, financial condition and operating results.

Non-compliancewith environmental, social, and governance, or ESG, practices could harm our reputation, or otherwise adversely impact our business,while increased attention to ESG initiatives could increase our costs.

Companies across industries are facing increasing scrutiny from a variety of stakeholders related to their ESG and sustainability practices. Certain market participants, including institutional investors and capital providers, are increasingly placing importance on the impact of their investments and are thus focusing on corporate ESG practices, including the use of third-party benchmarks and scores to assess companies’ ESG profiles in making investment or voting decisions, and engaging with companies to encourage changes to their practices. Unfavorable ESG ratings could lead to increased negative investor sentiment towards us or our industry. If we do not comply with investor or shareholder expectations and standards in connection with our ESG initiatives or are perceived to have not addressed ESG issues within our company, our business and reputation could be negatively impacted and our share price could be materially and adversely affected, as well as our access to and cost of capital.

While we may, at times, engage in voluntary initiatives (such as voluntary disclosures, certifications, or goals, among others) or commitments to improve the ESG profile of our company and/or products, such initiatives or achievements of such commitments may not have the desired effect and may be costly.

In addition, we may commit to certain initiatives or goals but not ultimately achieve such commitments or goals due to factors that are both within or outside of our control. Moreover, actions or statements that we may take based on expectations, assumptions, or third-party information that we currently believe to be reasonable may subsequently be determined to be erroneous or be subject to misinterpretation. Even if this is not the case, our current actions may subsequently be determined to be insufficient by various stakeholders, and we may be subject to investor or regulator engagement on our ESG initiatives and disclosures, even if such initiatives are currently voluntary. In addition, increasing ESG-related regulation, such as the SEC’s climate disclosure proposal, may also result in increased compliance costs or scrutiny.

Expectations around a company’s management of ESG matters continues to evolve rapidly, in many instances due to factors that are out of our control. To the extent ESG matters negatively impact our reputation, it may also impede our ability to compete as effectively to attract and retain employees or customers, which may adversely impact our operations.

RISKS

RELATED TO GOVERNMENT REGULATION

Weexpect that products utilizing our technologies will be subject to regulations that could adversely affect our business and results ofoperations.

The manufacture and marketing of food products is highly regulated. We, our suppliers and customers, may be subject to a variety of laws and regulations. These laws and regulations apply, directly or indirectly, to many aspects of our business, including the manufacture, composition and ingredients, packaging, labeling, distribution, advertising, sale, quality and safety of food products, as well as the health and safety of our employees and the protection of the environment.

We are focused on developing novel, proprietary three-dimensional printers to print structured food. We do not intend to manufacture, distribute and sell branded end products for consumer consumption.

For the reasons discussed below, we ourselves do not expect to be directly regulated by the FDA for United States compliance purposes but will apply FDA’s food contact substance standards or analogous foreign regulations when developing our three-dimensional printers. Specifically, we intend to sell our production machines, as well as provide associated products and services to food processing and food retail companies through a B2B model. From a regulatory perspective, in the United States, we expect companies manufacturing products that include cultured meat to be subject to regulation by various government agencies, including the FDA, the USDA, the U.S. Federal Trade Commission, or FTC, Occupational Safety and Health Administration and the Environmental Protection Agency, as well as the requirements of various state and local agencies and laws, such as the California Safe Drinking Water and Toxic Enforcement Act of 1986. We likewise expect these products to be regulated by equivalent agencies outside the United States by various international regulatory bodies.

As the manufacturer of machines used to produce food, including cultured meat, and consistent with the Federal Food, Drug and Cosmetic Act, Federal Meat Inspection Act, and Poultry Products Inspection Act, we believe we will not be directly regulated by the FDA or USDA. Rather, we believe the regulatory obligation falls on our customers to ensure that all food produced using our products is wholesome and not adulterated. Consistent with food industry norms, we expect that our customers will therefore request assurances from us that our products are suitable for their intended use from an FDA regulatory perspective. Therefore, we plan to apply FDA food safety standards when developing our three-dimensional printers as a means of assuring our customers that our printers are safe for their intended use and will not result in the production of adulterated food. In particular, we plan to apply applicable food contact substance requirements, such as those of the FDA, when developing our three-dimensional printers as a means of assuring customers using our technology that our printers are safe for their intended use and will not result in the production of adulterated food. If we are unable to provide regulatory compliance assurance to our customers, we expect that our ability to commercialize our production technology would be adversely impacted.

The manufacturing of cultured meat, for which we are developing pipeline technologies, is expected to be subject to extensive regulations internationally, with products subject to numerous food safety and other laws and regulations relating to the sourcing, manufacturing, composition and ingredients, storing, labeling, marketing, advertising and distribution of these products. In addition, enforcement of existing laws and regulations, changes in legal requirements and/or evolving interpretations of existing regulatory requirements may result in increased compliance costs and create other obligations, financial or otherwise, that could adversely affect our business, financial condition or operating results. In addition, we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act, or FCPA, and similar worldwide anti-bribery laws, which generally prohibit companies and their intermediaries from making improper payments to officials or other third parties for the purpose of obtaining or retaining business. While our policies mandate compliance with anti-bribery laws, our internal control policies and procedures may not protect us from reckless or criminal acts committed by our employees, contractors or agents. Violations of these laws, or allegations of such violations, could disrupt our business and adversely impact our results of operations, cash flows and financial condition.

Anychanges in, or changes in the interpretation of, applicable laws, regulations or policies of the USDA, state regulators or similar foreignregulatory authorities that relate to the use of the word “meat” or other similar words in connection with alternative proteinproducts could adversely affect our business, prospects, results of operations or financial condition.

The USDA, state regulators or similar foreign regulatory authorities, such as Health Canada or the Canadian Food Inspection Agency, or CFIA, or authorities of the EU or the EU member states (e.g., European Food Safety Authority, or EFSA), could take action to impact our ability to use the term “meat” or similar words, such as “beef”, to describe the products our printers will produce. In addition, a food may be deemed misbranded if its labeling is false or misleading in any particular way, and the USDA, CFIA, EFSA or other regulators could interpret the use of the term “meat” or any similar phrase(s) to describe our alternative protein products as false or misleading or likely to create an erroneous impression regarding their composition. In the U.S., USDA will develop new labeling requirements for foods under its jurisdiction produced through cell culture technology as noted in an Advance Notice of Proposed Rulemaking, or ANPR, published in September 2021.

Failureby our raw materials suppliers to comply with food safety, environmental or other laws and regulations, or with the specifications andrequirements of our products, may disrupt our supply of products and adversely affect our business.

If our suppliers fail to comply with food safety, environmental or other laws and regulations, or face allegations of non-compliance, their operations may be disrupted. In the event of actual or even alleged non-compliance, we might be forced to find an alternative supplier and we may be subject to lawsuits related to such non-compliance by our suppliers. As a result, our supply of raw materials could be disrupted or our costs could increase, which would adversely affect our business, results of operations and financial condition. The failure of any supplier to produce products that conform to our standards could adversely affect our reputation in the marketplace and result in economic loss. Additionally, actions we may take to mitigate the impact of any disruption or potential disruption in our supply of raw materials, including increasing inventory in anticipation of a potential supply or production interruption, may adversely affect our business, results of operations and financial condition.

RISKS

RELATED TO OUR INTELLECTUAL PROPERTY AND POTENTIAL LITIGATION

Ifwe are unable to obtain and maintain effective patent rights for our products, we may not be able to compete effectively in our markets.If we are unable to protect the confidentiality of our trade secrets or know-how, such proprietary information may be used by othersto compete against us.

Since September 2019, we have sought patent protection for certain of our products, systems, processes, designs and applications. Our success depends in large part on our ability to obtain, maintain, monitor and enforce patent and other intellectual property protection in the United States and in other countries with respect to our proprietary technology and new products.

We seek to protect our proprietary position and sustain our competitive advantage by filing patent applications in the United States and in other countries. Patent prosecution in the United States and the rest of the world is uncertain, expensive and time consuming, and we may not be able to file and prosecute all necessary or desirable patent applications at a reasonable cost or in a timely manner in all the necessary locations. It is also possible that we will fail to identify patentable aspects of our research and development output before it is too late to obtain patent protection.

We have a growing portfolio of 16 patents and provisional and non-provisional pending patent applications, with a robust pipeline. These are filed with the U.S. Patent and Trademark Office, or USPTO, the World Intellectual Property Organization, or WIPO, and when the time comes, in various patent offices around the world, such as Israel, China, Japan, Europe, Canada, and South Korea. Three of the pending patent applications were filed through the Paris Convention Treaty, or PCT. We cannot offer any assurances about which, if any of the pending patent applications will issue, the scope of protection of any such patent or whether any issued patents will be found invalid and/or unenforceable or will be threatened by third parties. Any successful opposition to these patents or any other patents owned by or licensed to us after patent issuance could deprive us of rights necessary for the successful commercialization of any new products that we may develop.

Further, there is no assurance that all potentially relevant prior art relating to our patent applications has been found, which can invalidate a patent or prevent a patent from issuing from a pending patent application. Even if patents are successfully issued, and even if such patents cover our products, third parties may challenge their validity, enforceability, or scope, which may result in such patents being narrowed, found unenforceable or invalidated. Furthermore, even if they are unchallenged, our patent applications and any future patents may not adequately protect our intellectual property, provide exclusivity for our new products, or prevent others from designing around our claims. Any of these outcomes could impair our ability to prevent competition from third parties, which may have an adverse impact on our business.

If we cannot obtain and maintain effective patent rights for our products, we may not be able to compete effectively, and our business and results of operations would potentially be harmed.

Ifwe are unable to maintain effective proprietary rights for our products, we may not be able to compete effectively in our markets.

In addition to the protection afforded by any patents currently owned and that may be granted, historically, we have relied on trade secret protection and confidentiality agreements to protect proprietary know-how that is not patentable or that we elect not to patent, processes and helpful devices that are not easily known, knowable or easily ascertainable, and for which patent infringement is difficult to monitor and enforce and any other elements of our product development processes, that involve proprietary know-how, as well as information or technology that is not covered by patents. However, trade secrets can be difficult to protect. We seek to protect our proprietary technology and processes, in part, by entering into confidentiality agreements with our employees, consultants, scientific advisors, and contractors. We also seek to preserve the integrity and confidentiality of our data, trade secrets and intellectual property by maintaining physical security of our premises and physical and electronic security of our information technology systems, as well as implementing various standard operating procedures designed to maintain that integrity. Agreements or security measures may be breached, and we may not have adequate remedies for any breach. In addition, our trade secrets and intellectual property may otherwise become known or be independently discovered by competitors.

We cannot provide any assurances that our trade secrets and other confidential proprietary information will not be disclosed in violation of our confidentiality agreements or that competitors will not otherwise gain access to our trade secrets or independently develop substantially equivalent information and techniques. Also, misappropriation or unauthorized and unavoidable disclosure of our trade secrets and intellectual property could impair our competitive position and may have a material adverse effect on our business. Additionally, if the steps taken to maintain our trade secrets and intellectual property are deemed inadequate, we may have insufficient recourse against third parties for misappropriating any trade secret.

Intellectualproperty rights of third parties could adversely affect our ability to successfully commercialize our products, and we might be requiredto litigate or obtain licenses from third parties in order to develop or market our product candidates. Such litigation or licenses couldbe costly or not available on commercially reasonable terms.

At this stage, and in the future it is inherently difficult to conclusively assess our freedom to operate without infringing on third party rights. Our competitive position may be adversely affected if existing patents or patents resulting from patent applications issued to third parties or other third-party intellectual property rights are held to cover our products, systems and processes or elements thereof, or our manufacturing or uses relevant to our development plans. In such cases, we may be limited, or not be in a position to develop or commercialize products or our product candidates unless we successfully pursue litigation to nullify or invalidate the third party intellectual property right concerned, or enter into a license agreement with the intellectual property rights’ holder, if available on commercially reasonable terms. There may also be pending patent applications that should they result in issued patents, could be alleged to be infringed by our new products. If such an infringement claim should be brought and be successful, we may be required to pay substantial damages, royalties, be forced to abandon our new products or seek a license from any patent holders. No assurances can be given that a license will be available on commercially reasonable terms, if at all.

It is also possible that we have failed to identify relevant third party patents or applications. For example, U.S. patent applications filed before July 8, 2019 and certain U.S. patent applications filed after that date that will not be filed outside the United States remain confidential until patents issue. Patent applications in the United States and elsewhere are published 18 months after the earliest filing for which priority is claimed, with such earliest filing date being commonly referred to as the priority date. Therefore, patent applications covering our new products or platform technology could have been filed by others without our knowledge. Additionally, pending patent applications which have been published can, subject to certain limitations, be later amended in a manner that could cover our platform technologies, our new products or the use of our new products. Third party intellectual property right holders may also actively bring infringement claims against us. We cannot guarantee that we will be able to successfully settle or otherwise resolve such infringement claims. If we are unable to successfully settle future claims on terms acceptable to us, we may be required to engage in or continue costly, unpredictable and time-consuming litigation and may be prevented from or experience substantial delays in pursuing the development of and/or marketing our new products. If we fail in any such dispute, in addition to being forced to pay damages, we may be temporarily or permanently prohibited from commercializing our new products that are held to be infringing. We might, if possible, also be forced to redesign our new products so that we no longer infringe the third party intellectual property rights. Any of these events, even if we were ultimately to prevail, could require us to divert substantial financial and management resources that we would otherwise be able to devote to our business.

Third-partyclaims of intellectual property infringement may prevent or delay our development and commercialization efforts.

Our commercial success depends in part on our avoiding infringement of the patents and proprietary rights of third parties. Numerous U.S. and foreign issued patents and pending patent applications, which are owned by third parties, exist in the fields in which we are developing new products. As our industries expand and more patents are issued, the risk increases that our products may be subject to claims of infringement of the patent rights of third parties.

Third parties may assert that we are employing their proprietary technology without authorization. There may be third-party patents or patent applications with claims to materials, designs or methods of manufacture related to the use or manufacture of our products. There may be currently pending patent applications that may later result in issued patents that our products may infringe. In addition, third parties may obtain patents in the future and claim that use of our technologies infringes upon these patents.

If any third-party patents were held by a court of competent jurisdiction to cover aspects of our formulations, processes for designs, or methods of use, the holders of any such patents may be able to block our ability to develop and commercialize the applicable product candidate unless we obtain a license or until such patent expires or is finally determined to be invalid or unenforceable. In either case, such a license may not be available on commercially reasonable terms or at all.

Parties making claims against us may obtain injunctive or other equitable relief, which could effectively block our ability to further develop and commercialize one or more of our products. Defense of these claims, regardless of their merit, would involve substantial litigation expense and would be a substantial diversion of employee resources from our business. In the event of a successful claim of infringement against us, we may have to pay substantial damages, including treble damages and attorneys’ fees for willful infringement, pay royalties, redesign our infringing products or obtain one or more licenses from third parties, which may be impossible or require substantial time and monetary expenditure.

Patentpolicy and rule changes could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcementor defense of any issued patents.

Changes in either the patent laws or interpretation of the patent laws in the United States and other countries may diminish the value of any patents that may issue from our patent applications, or narrow the scope of our patent protection. The laws of foreign countries may not protect our rights to the same extent as the laws of the United States. Publications of discoveries in the scientific literature often lag behind the actual discoveries, and patent applications in the United States and other jurisdictions are typically not published until 18 months after filing, or in some cases not at all. We therefore cannot be certain that we were the first to file the invention claimed in our owned and licensed patent or pending applications, or that we or our licensor were the first to file for patent protection of such inventions. Assuming all other requirements for patentability are met, in the United States prior to March 15, 2013, the first to make the claimed invention without undue delay in filing, is entitled to the patent, while outside the United States, the first to file a patent application is entitled to the patent. After March 15, 2013, under the Leahy-Smith America Invents Act, or the Leahy-Smith Act, enacted on September 16, 2011, the United States has moved to a first to file system. The Leahy-Smith Act also includes a number of significant changes that affect the way patent applications will be prosecuted and may also affect patent litigation. In general, the Leahy-Smith Act and its implementation could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of any issued patents, all of which could have a material adverse effect on our business and financial condition.

Wemay be involved in lawsuits to protect or enforce our intellectual property, which could be expensive, time consuming, and unsuccessful.

Competitors may infringe our intellectual property. If we were to initiate legal proceedings against a third party to enforce a patent covering one of our new products, the defendant could counterclaim that the patent covering our product candidate is invalid and/or unenforceable. In patent litigation in the United States, defendant counterclaims alleging invalidity and/or unenforceability are commonplace. Grounds for a validity challenge could be an alleged failure to meet any of several statutory requirements, including lack of novelty, obviousness, or non-enablement. Grounds for an unenforceability assertion could be an allegation that someone connected with prosecution of the patent withheld relevant information from the USPTO, or made a misleading statement, during prosecution. Under the Leahy-Smith Act, the validity of U.S. patents may also be challenged in post-grant proceedings before the USPTO. The outcome following legal assertions of invalidity and unenforceability is unpredictable.

Derivation proceedings initiated by third parties or brought by us may be necessary to determine the priority of inventions and/or their scope with respect to our patent or patent applications or those of our licensors. An unfavorable outcome could require us to cease using the related technology or to attempt to license rights to it from the prevailing party. Our business could be harmed if the prevailing party does not offer us a license on commercially reasonable terms. Our defense of litigation or interference proceedings may fail and, even if successful, may result in substantial costs and distract our management and other employees. In addition, the uncertainties associated with litigation could have a material adverse effect on our ability to raise the funds necessary to continue our clinical trials, continue our research programs, license necessary technology from third parties, or enter into development partnerships that would help us bring our new products to market.

Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential information could be compromised by disclosure during this type of litigation. There could also be public announcements of the results of hearings, motions, or other interim proceedings or developments. If securities analysts or investors perceive these results to be negative, it could have a material adverse effect on the price of our traded securities.

Wemay, in the future, be subject to claims that our employees, consultants, or independent contractors have wrongfully or unavoidably usedor disclosed confidential information of third parties or that our employees have wrongfully used or disclosed alleged trade secretsof their former employers.

We continue to employ individuals who were previously employed at our competitors or potential competitors. We have established standard operating procedures to try and ensure that our employees, consultants, and independent contractors do not use the proprietary information or know-how of others in their work for us, but we may nevertheless be subject to claims that we or our employees, consultants, or independent contractors have inadvertently or otherwise used or disclosed intellectual property, including trade secrets or other proprietary information, of any of our employees’ former employers or other third parties. Litigation may result and be necessary to defend against these claims. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel, which could adversely impact our business. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to management and other employees.

Wemay be subject to claims challenging the inventorship of our intellectual property.

We may be subject to claims that former employees, collaborators or other third parties have an interest in, or right to compensation, with respect to our current patent and patent applications, future patents or other intellectual property as an inventor or co-inventor. For example, we may have inventorship disputes arise from conflicting obligations of consultants or others who are involved in developing our products. Litigation may be necessary to defend against these and other claims challenging inventorship or claiming the right to compensation. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights, such as exclusive ownership of, or right to use, valuable intellectual property. Such an outcome could have a material adverse effect on our business. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to management and other employees.

Wemay not be able to protect our intellectual property rights throughout the world.

Filing, prosecuting, and defending patents on products, as well as monitoring their infringement in all countries throughout the world would be prohibitively expensive, and our intellectual property rights in some countries can be less extensive than those in the United States. In addition, the laws of some foreign countries do not protect intellectual property rights to the same extent as federal and state laws in the United States.

Competitors may use our technologies in jurisdictions where we have not obtained patent protection to develop their own products and may also export otherwise infringing products to territories where we have patent protection, but enforcement is not as strong as that in the United States. These products may compete with our products. Future patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.

Many companies have encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents, trade secrets, and other intellectual property protection, which could make it difficult for us to stop the marketing of competing products in violation of our proprietary rights generally. Proceedings to enforce our patent rights in foreign jurisdictions, whether or not successful, could result in substantial costs and divert our efforts and attention from other aspects of our business, could put our future patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not issuing and could provoke third parties to assert claims against us. We may not prevail in any lawsuits that we initiate and the damages or other remedies awarded, if any, may not be commercially meaningful. Accordingly, our efforts to monitor and enforce our intellectual property rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that we develop or license.

Ourarticles of association provide that unless we consent to an alternate forum, the federal district courts of the United States shallbe the exclusive forum of resolution of any claims arising under the Securities Act.

Our articles of association provide that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States shall be the sole and exclusive forum for any claim asserting a cause of action arising under the Securities Act (for the avoidance of any doubt, such provision does not apply to any claim asserting a cause of action arising under the Exchange Act). Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all such Securities Act actions. Accordingly, both U.S. state and federal courts have jurisdiction to entertain such claims. This choice of forum provision may limit a shareholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees and may increase the costs associated with such lawsuits, which may discourage such lawsuits against us and our directors, officers and employees. Alternatively, if a court were to find these provisions of the articles of association inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our business and financial condition. Any person or entity purchasing or otherwise acquiring any interest in our share capital shall be deemed to have notice of and to have consented to the choice of forum provisions of the articles of association described above. This provision would not apply to suits brought to enforce a duty or liability created by the Exchange Act or any other claim for which the U.S. federal courts have exclusive jurisdiction.

RISKS

RELATED TO OUR OPERATIONS IN ISRAEL

Conditionsin Israel, including the ongoing war between Israel and Hamas and other conflicts in the region,as well as political and economic instability, may adversely impact our business operations.

Our headquarters, all members of our board of directors and management, all of our research and development activities, and other significant operations are located in Israel and may be impacted by regional instability and extreme security tension. Political, economic and security conditions in Israel and the surrounding region could directly affect our business. Any political instability, terrorism, armed conflicts, reserve mobilization, cyberattacks, boycotts, direct or indirect sanctions and restrictions, or any other hostilities involving Israel or the interruption or curtailment of trade between Israel and its trading partners could adversely affect our operations.

In October 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive rocket attacks on Israeli population and industrial centers. These attacks resulted in extensive deaths, injuries and kidnapping of civilians and soldiers, as well as evacuations of tens of thousands of civilians from their homes. Following the attack, Israel’s security cabinet declared war against Hamas and commenced a military campaign.

Since the commencement of these events, there have been additional active hostilities, including with Hezbollah in Lebanon, the Houthi movement which controls parts of Yemen and most recently with Iran. It is possible that these hostilities will escalate in the future into a greater regional conflict, and that additional terrorist organizations and countries, will actively join the hostilities.

Currently, the war has impacted the availability of a limited number of our workforce in Israel in various ways – a small part of our workforce has been called to active duty, and others have been supporting friends or family members engaged in the war. While many military reservists have been released, some remain obligated to return in the coming months. If the situation escalates, they may be called up for additional reserve duty sooner than expected, additional employees may be called for service, and such persons may be absent for an extended period of time. This may materially and adversely affect our business operations, including product development, and our ability to meet our customers’ expectations, and could impact our competitive position and cause our sales to decrease.

The scope, intensity and duration of the current war are difficult to predict, as are the economic implications on our business and operations and on Israel’s economy in general. For example, these events may be intertwined with wider macroeconomic factors relating to a deterioration of Israel’s economic standing, that may involve, for instance, a downgrade in Israel’s credit rating by rating agencies (such as the recent downgrade by Moody’s of its credit rating of Israel from A1 to A2, as well as the downgrade of its outlook rating from “stable” to “negative”). Any of these implications on Israel’s economy or financial conditions may have an adverse effect on our ability to effectively conduct our operations.

Moreover, the perception of Israel and Israeli companies by the global community (including, for example, in light of the interim ruling rendered by the International Court of Justice (ICJ) in a case filed by South Africa against Israel in January 2024) may cause an increase in sanctions and other adverse measures against Israel, Israeli companies and their products and services. Additionally, there have been increased efforts by countries, activists and organizations to cause companies and consumers to boycott Israeli goods and services or otherwise restrict business with Israel and with Israeli companies, which may impact our ability to do business with our existing and potential customers. Such efforts, particularly if they become widespread, as well as the ICJ ruling and possible future rulings and orders of other tribunals against Israel, could materially and adversely impact our business operations.

The current hostilities with Hamas, Hezbollah, Iran and other organizations and countries have included and may include various methods of armed attacks that have already caused and may cause further damage to private and public facilities, infrastructure, utilities, and telecommunication networks. This may require the temporary closure of our offices or facilities or affect our employees’ ability to work, negatively impacting our operational capacity and disrupting supply chains that impact our ability to conduct business efficiently, thereby leading to increased costs associated with alternative solutions or contingency measures. Such attacks may also pose risks to the safety and effectiveness of our workforce and impair our ability to maintain business continuity, which would likely result in substantial direct and indirect costs that may not be recoverable from our commercial insurance. Although the Israeli government currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts of war, we cannot be assured that such government coverage will be maintained or that it will sufficiently cover our potential damages. Any losses or damages incurred by us could have a material adverse effect on our business.

Further, Israel has held five general elections between 2019 and 2022, and prior to the Hamas attack in October 2023, the Israeli government had been pursuing legislative changes, which, if adopted, may alter the current state of separation of powers among the three branches of government and, as a result, have sparked a considerable political debate. Many individuals, organizations, and institutions, within and outside of Israel, voiced concerns over the potential negative impacts of such changes and the controversy surrounding them on the business and financial environment in Israel. Such negative impacts may include, among others, increased interest rates, currency fluctuations, inflation, civil unrest and volatility in securities markets, which could adversely affect the conditions in which we operate and potentially deter foreign investors and organizations from investing or transacting business with Israeli-based companies. To date, these initiatives have been substantially put on hold, but if such changes to Israel’s judicial system are again pursued by the government and approved by the parliament, or if any of the foregoing negative impacts were to materialize, it may have an adverse effect on our business, our results of operations and our ability to raise additional funds.

Becausea substantial portion of our revenues is expected to be generated in currencies other than our functional currency, we will be exposedto fluctuations in currency exchange rates, which could negatively affect our financial condition.

In the future, we expect that a substantial portion of our revenues will be generated in currencies other than our functional currency. Our functional and presentation currency, in which we currently maintain our financial records and report our financial results, is USD. As a result, our revenues for financial statement purposes might be negatively affected by fluctuations in the exchange rates of currencies in other countries in which our products may be sold, and supplementary services provided.

Currencyexchange controls may restrict our ability to utilize our cash flows.

We expect to receive proceeds from sales of any product we may develop, and also to pay a portion of our operational costs and expenses, in U.S. dollars, Euros and other foreign currencies. However, we may be subject to existing or future rules and regulations on currency conversion. In 1998, the Israeli currency control regulations were liberalized significantly, and there are currently no currency controls in place. Legislation remains in effect, however, pursuant to which such currency controls could be imposed in Israel by administrative action at any time. We cannot assure that such controls will not be reinstated, or if reinstated, that they would not have an adverse effect on our operations.

Enforcinga U.S. judgment against us and our executive officers and directors, or asserting U.S. securities law claims in Israel, may be difficult.

We are incorporated in Israel. Our executive officers and directors reside in Israel and most of our assets and the assets of these persons are located outside of the United States. We have been informed by our legal counsel in Israel that it may be difficult to assert claims under U.S. securities laws in original actions instituted in Israel or obtain, a judgment based on the civil liability provisions of the U.S. federal securities laws. Israeli courts may refuse hear a claim based on a violation of U.S. securities laws against us or any of our non-U.S. executive officers and directors because Israel may not be the most appropriate forum to bring such a claim.

In addition, even if an Israeli court agrees to hear such a claim, it may determine that Israeli, and not U.S., law is applicable to the claim. Under Israeli law, if U.S. law is found to be applicable to such a claim, the content of applicable U.S. law must be proved as a fact, which can be a time-consuming and costly process, and certain matters of procedure would be governed by Israeli law. There is little binding case law in Israel addressing these matters. Israeli courts might not enforce judgments rendered outside Israel, which may make it difficult to collect on judgments rendered against us or any of our non-U.S. executive officers and directors.

Moreover, an Israeli court will not enforce a non-Israeli judgment if (among other things) it was given in a state whose laws do not provide for the enforcement of judgments of Israeli courts (subject to exceptional cases), or if its enforcement is likely to prejudice the sovereignty or security of the State of Israel, or if it was obtained by fraud or in absence of due process, or if it is at variance with another valid judgment that was given in the same matter between the same parties, or if a suit in the same matter between the same parties was pending before a court or tribunal in Israel, at the time the foreign action was brought.

As a result of the difficulty associated with enforcing a judgment against us in Israel, you may not be able to collect any damages awarded by either a U.S. or foreign court.

If a foreign judgment is enforced by an Israeli court, it generally will be payable in Israeli currency, which can be converted into non-Israeli currency and transferred out of Israel. The usual practice in an action before an Israeli court to recover an amount in a non-Israeli currency is for the Israeli court to issue a judgment for the equivalent amount in Israeli currency at the rate of exchange in force on the date of the judgment, but the judgment debtor may make payment in foreign currency. Pending collection, the amount of the judgment of an Israeli court stated in Israeli currency ordinarily will be linked to the Israeli consumer price index, or Israeli CPI, plus interest at the annual statutory rate set by Israeli regulations prevailing at the time. Judgment creditors must bear the risk of unfavorable exchange rate fluctuations.

Ourarticles of association provide that unless we consent otherwise, the competent courts of Tel Aviv, Israel shall be the sole and exclusiveforum for substantially all disputes between the Company and its shareholders under the Companies Law and the Israeli Securities Law.

The competent courts of Tel Aviv, Israel shall, unless we consent otherwise in writing, be the exclusive forum for (i) any derivative action or proceeding brought on behalf of the Company, (ii) any action asserting a claim of breach of fiduciary duty owed by any director, officer or other employee of the Company to the Company or the Company’s shareholders, or (iii) any action asserting a claim arising pursuant to any provision of the Companies Law or the Israeli Securities Law, 1968, or the Israeli Securities Law. This exclusive forum provision is intended to apply to claims arising under Israeli law and would not apply to claims brought pursuant to the Securities Act or the Exchange Act or any other claim for which federal courts would have exclusive jurisdiction. Such exclusive forum provision in the articles of association will not relieve us of our duties to comply with federal securities laws and the rules and regulations thereunder, and our shareholders will not be deemed to have waived our compliance with these laws, rules and regulations. This exclusive forum provision may limit a shareholder’s ability to bring a claim in a judicial forum of its choosing for disputes us Company or our directors or other employees which may discourage lawsuits against us, our directors, officers and employees.

Yourrights and responsibilities as our shareholder will be governed by Israeli law, which may differ in some respects from the rights andresponsibilities of shareholders of U.S. corporations.

Since we are incorporated under Israeli law, the rights and responsibilities of our shareholders are governed by our articles of association and Israeli law. These rights and responsibilities differ in some respects from the rights and responsibilities of shareholders of U.S. corporations. In particular, each of our shareholders has a duty to act in good faith and in a customary manner in exercising its rights and performing its obligations toward us and other shareholders and to refrain from abusing its power in, among other things, voting at shareholder meetings on certain matters, such as an amendment to our articles of association, an increase of our authorized share capital, a merger and approval of related party transactions that require shareholder approval. In addition, a controlling shareholder or a shareholder who knows that it possesses the power to determine the outcome of a shareholders vote or to appoint or prevent the appointment of an office holder has a duty to act in fairness toward us. Israeli law does not clearly define the substance of these duties. There is limited case law available to assist in understanding the implications of these provisions that govern shareholder behavior.

Provisionsof Israeli corporate and tax law may deter acquisition transactions.

Israeli corporate law regulates mergers, requires tender offers for acquisitions of shares above specified thresholds, requires special approvals for transactions involving directors, officers or significant shareholders and regulates other matters that may be relevant to such types of transactions. For example, a merger may not be consummated unless at least 50 days have passed from the date on which a merger proposal is filed by each merging company with the Israel Registrar of Companies and at least 30 days have passed from the date on which the shareholders of both merging companies have approved the merger. In addition, a majority of each class of securities of the target company must approve a merger. Moreover, the Companies law requires that an acquirer in a full tender offer, which as a result would result in the acquirer to hold over 90% of the target company’s voting rights or the target company’s issued and outstanding share capital (or of a class thereof), to make a tender offer to all of the company’s shareholders for the purchase of all of the issued and outstanding shares of the company (or the applicable class). The full tender offer can only be completed if the acquirer receives positive responses from the holders of at least 95% of the issued share capital (or the applicable class) and if a majority of the offerees that do not have a personal interest in the tender offer; unless, the shareholders who did not accept the tender offer hold less than 2% of the issued and outstanding share capital of the company (or of the applicable class), all of the shares that the acquirer offered to purchase will be transferred to the acquirer by operation of law. the shareholders, including those who indicated their acceptance of the tender offer, may, at any time within six months following date of acceptance of the tender offer, and petition an Israeli court to determine whether the tender offer was for less than fair value and whether the fair value should be paid as determined by the court. However, an offeror may provide in the offer that a shareholder who accepted the offer will not be entitled to petition the court for appraisal rights as described in the preceding sentence, as long as the offeror and the company disclosed the information required by law in connection with the full tender offer. If the full tender offer was not accepted in accordance with any of the above alternatives, the acquirer may not acquire shares of the company that will increase its holdings to more than 90% of the company’s voting rights or the company’s issued and outstanding share capital (or of the applicable class) from shareholders who accepted the tender offer. Shares purchased in contradiction to the full tender offer rules under the Companies Law will have no rights and will become dormant shares.

Furthermore, Israeli tax considerations may make potential transactions unappealing to us or to our shareholders whose country of residence does not have a tax treaty with Israel exempting such shareholders from Israeli tax. For example, Israeli tax law does not recognize tax-free share exchanges to the same extent as U.S. tax law. With respect to mergers, Israeli tax law allows for tax deferral in certain circumstances but makes the deferral contingent on the fulfillment of a number of conditions, including, in some cases, a holding period of two years from the date of the transaction during which sales and dispositions of shares of the participating companies are subject to certain restrictions. Moreover, with respect to certain share swap transactions, the tax deferral is limited in time, and when such time expires, the tax becomes payable even if no disposition of the shares has occurred. These provisions could delay, prevent or impede an acquisition of us or our merger with another company, even if such an acquisition or merger would be beneficial to us or to our shareholders.

Ourarticles of association and Israeli law could prevent a takeover that shareholders consider favorable and could also reduce the marketprice of our ADSs.

Certain provisions of Israeli law and our articles of association could have the effect of delaying or preventing a change in control and may make it more difficult for a third party to acquire us or for our shareholders to elect different individuals to its board of directors, even if doing so would be beneficial to its shareholders, and may limit the price that investors may be willing to pay in the future for the our ADSs. Among other things:

●	Israeli<br> corporate law regulates mergers and requires that a tender offer be effected when more than<br> a specified percentage of shares in a company are purchased;
●	Israeli<br> corporate law requires special approvals for certain transactions involving directors, officers<br> or significant shareholders and regulates other matters that may be relevant to these types<br> of transactions;
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●	Israeli<br> corporate law does not provide for shareholder action by written consent for public companies,<br> thereby requiring all shareholder actions to be taken at a general meeting of shareholders;
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●	our<br> articles of association divide our directors into three classes, each of which is elected<br> once every three years;
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●	our<br> articles of association generally require a vote of the holders of a majority of our outstanding<br> ordinary shares entitled to vote present and voting on the matter at a general meeting of<br> shareholders (referred to as simple majority), and solely the amendment of the provision<br> relating to the removal of members of our board of directors, require a vote of the holders<br> of 65% of our outstanding ordinary shares entitled to vote at a general meeting;
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●	our<br> articles of association provide that director vacancies may be filled by our board of directors.
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RISKSRELATED TO OWNERSHIP OF THE ADSs

Ifwe are unable to maintain compliance with Nasdaq listing standards, our ADSs may be delisted from the Nasdaq StockMarket and you may face significant restrictions on the resale of your shares.

There can be no assurances that we will be able to maintain our Nasdaq listing in the future. On March 27, 2023, we received a notification from Nasdaq that the trading price of our ADSs did not meet the minimum bid price requirement of $1.00 per share for a period of 30 consecutive trading days. We were granted a 180-day compliance period, or September 18, 2023, to regain compliance by achieving a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading days. The Nasdaq confirmed that we had regained compliance on August 7, 2023. On October 31, 2023, we received another notification from Nasdaq that we were granted an additional 180-day period, or April 29, 2024, to regain compliance by achieving a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading days. The Nasdaq confirmed that we had regained compliance on April 18, 2024. In the event we are unable to maintain compliance with the Nasdaq Capital Market listing standards and our ADSs are delisted from the exchange, it would, among other things, likely lead to a number of negative implications, including an adverse effect on the price of our ADSs, reduced liquidity in our ADSs and greater difficulty in obtaining financing. In the event of a de-listing, we would take actions to restore our compliance with Nasdaq’s listing requirements, but we can provide no assurance that any such action taken by us would allow our ADSs to become listed again, stabilize the market price or improve the liquidity of our ADSs, prevent our ADSs from dropping below the Nasdaq minimum bid price requirement in the future, or prevent future non-compliance with Nasdaq’s listing requirements. If we cannot maintain our compliance with Nasdaq’s listing requirements, we would pursue eligibility for trading of these securities on other markets or exchanges, such as the OTCQB or OTCQX, which are unorganized, inter-dealer, over-the-counter markets which provides significantly less liquidity than the Nasdaq Capital Market or other national securities exchanges.

TheADS price may be volatile, and you may lose all or part of your investment.

The market price of the ADSs could be highly volatile and may fluctuate substantially, including downward, as a result of many factors, including:

●	changes<br> in the prices of our raw materials or the products manufactured in factories using our technologies;
●	the<br> trading volume of the ADSs;
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●	general<br> economic, market and political conditions, including negative effects on consumer confidence<br> and spending levels that could indirectly affect our results of operations;
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●	actual<br> or anticipated fluctuations in our financial condition and operating results, including fluctuations<br> in our quarterly and annual results;
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●	announcements<br> by us or our competitors of innovations, other significant business developments, changes<br> in distributor relationships, acquisitions or expansion plans;
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●	announcement<br> by competitors or new market entrants of their entry into or exit from the alternative protein<br> market;
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●	overall<br> conditions in our industry and the markets in which we intend to operate;
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●	market<br> conditions or trends in the packaged food sales industry that could indirectly affect our<br> results of operations;
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●	addition<br> or loss of significant customers or other developments with respect to significant customers;
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●	adverse<br> developments concerning our manufacturers and suppliers;
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●	changes<br> in laws or regulations applicable to our products or business;
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●	our<br> ability to effectively manage our growth and market expectations with respect to our growth,<br> including relative to our competitors;
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●	changes<br> in the estimation of the future size and growth rate of our markets;
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●	announcements<br> by us or our competitors of significant acquisitions, strategic partnerships, joint ventures<br> or capital commitments;
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●	additions<br> or departures of key personnel;
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●	competition<br> from existing products or new products that may emerge;
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●	issuance<br> of new or updated research or reports about us or our industry, or positive or negative recommendations<br> or withdrawal of research coverage by securities analysts;
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●	variance<br> in our financial performance from the expectations of market analysts;
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●	our<br> failure to meet or exceed the estimates and projections of the investment community or that<br> we may otherwise provide to the public;
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●	fluctuations<br> in the valuation of companies perceived by investors to be comparable to us;
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●	disputes<br> or other developments related to proprietary rights, including patents, and our ability to<br> obtain intellectual property protection for our products;
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●	litigation<br> or regulatory matters;
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●	announcement<br> or expectation of additional financing efforts;
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●	our<br> cash position;
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●	sales<br> and short-selling of the ADSs;
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●	our<br> issuance of equity or debt;
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●	changes<br> in accounting practices;
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●	ineffectiveness<br> of our internal controls;
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●	negative<br> media or marketing campaigns undertaken by our competitors or lobbyists supporting the conventional<br> meat industry;
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●	the<br> public’s response to publicity relating to the health aspects or nutritional value<br> of products to be manufactured in factories using our technologies; and
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●	other<br> events or factors, many of which are beyond our control.
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In addition, the stock markets have experienced extreme price and volume fluctuations. Broad market and industry factors may materially harm the market price of the ADSs, regardless of our operating performance. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes, tariffs, international currency fluctuations, or the effects of disease outbreaks or pandemics (such as the COVID-19 pandemic), may negatively impact the market price of the ADSs. In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been instituted against that company. If we were involved in any similar litigation, we could incur substantial costs and our management’s attention and resources could be diverted.

Wehave never paid dividends on our share capital and we do not intend to pay dividends for the foreseeable future.

We have never declared or paid any dividends on our share capital and do not intend to pay any dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development and growth of our business and for general corporate purposes. Accordingly, any gains from an investment in the ADSs will depend on price appreciation of the ADSs, which may never occur. In addition, Israeli law limits our ability to declare and pay dividends, and may subject our dividends to certain Israeli withholding taxes.

ADSholders may not receive the same distributions or dividends as those we make to the holders of our ordinary shares, and, in some limitedcircumstances, they may not receive dividends or other distributions on our ordinary shares and may not receive any value for them, ifit is illegal or impractical to make them available.

The depositary for the ADSs has agreed to pay to ADS holders the cash dividends or other distributions it or the custodian receives on ordinary shares or other deposited securities underlying the ADSs, after deducting its fees and expenses. ADS holders will receive these distributions in proportion to the number of ordinary shares their ADSs represent. However, the depositary is not responsible if it decides that it is unlawful or impractical to make a distribution available to any holders of ADSs. For example, it would be unlawful to make a distribution to a holder of ADSs if it consists of securities that require registration under the Securities Act of 1933, as amended, or the Securities Act, but that are not properly registered or distributed under an applicable exemption from registration. In addition, conversion into U.S. dollars from foreign currency that was part of a dividend made in respect of deposited ordinary shares may require the approval or license of, or a filing with, any government or agency thereof, which may be unobtainable. In these cases, the depositary may determine not to distribute such property and hold it as “deposited securities” or may seek to affect a substitute dividend or distribution, including net cash proceeds from the sale of the dividends that the depositary deems an equitable and practicable substitute. We have no obligation to register under U.S. securities laws any ADSs, ordinary shares, rights or other securities received through such distributions. We also have no obligation to take any other action to permit the distribution of ADSs, ordinary shares, rights or anything else to holders of ADSs. In addition, the depositary may deduct from such dividends or distributions its fees and may withhold an amount on account of taxes or other governmental charges to the extent the depositary believes it is required to make such withholding. These restrictions may cause a material decline in the value of the ADSs.

ADSholders do not have the same rights as our shareholders.

ADS holders do not have the same rights as our shareholders. For example, ADS holders may not attend shareholders’ meetings or directly exercise the voting rights attaching to the ordinary shares underlying their ADSs. ADS holders may vote only by instructing the depositary to vote on their behalf. If we request the depositary to solicit voting instructions from ADS holders (which we are not required to do), the depositary will notify ADS holders of a shareholders’ meeting and send or make voting materials available to them. Those materials will describe the matters to be voted on and explain how ADS holders may instruct the depositary how to vote. For instructions to be valid, they must reach the depositary by a date set by the depositary. The depositary will try, as far as practical, subject to the laws of Israel and the provisions of our articles of association or similar documents, to vote or to have its agents vote the deposited ordinary shares as instructed by ADS holders. If we do not request the depositary to solicit voting instructions from ADS holders, they can still send voting instructions, and, in that case, the depositary may try to vote as they instruct, but it is not required to do so. Except by instructing the depositary as described above, ADS holders won’t be able to exercise voting rights unless they surrender their ADSs and withdraw the ordinary shares. However, they may not know about the meeting enough in advance to withdraw the ordinary shares. We cannot assure ADS holders that they will receive the voting materials in time to ensure that they can instruct the depositary to vote their ordinary shares. In addition, the depositary and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that ADS holders may not be able to exercise voting rights and there may be nothing they can do if their ordinary shares are not voted as they requested. In addition, ADS holders have no right to call a shareholders’ meeting.

ADSholders may be subject to limitations on transfer of their ADSs.

ADSs will be transferable on the books of the depositary. However, the depositary may close its transfer books at any time or from time to time when it deems expedient in connection with the performance of its duties. In addition, the depositary may refuse to deliver, transfer or register transfers of ADSs generally when our books or the books of the depositary are closed, or at any time if we or the depositary deem it advisable to do so because of any requirement of law or of any government or governmental body, under any provision of the deposit agreement, or for any other reason in accordance with the terms of the deposit agreement.

Asa foreign private issuer whose ADSs are listed on Nasdaq, we follow certain home country corporate governance practices instead of certainNasdaq requirements, we are not subject to U.S. proxy rules and are exempt from certain Exchange Act reporting requirements. If we wereto lose our foreign private issuer status, our costs to modify our practices and maintain compliance under U.S. securities laws and Nasdaqrules would be significantly higher.

We are a foreign private issuer and are not subject to the same requirements that are imposed upon U.S. domestic issuers by the SEC. We are permitted to follow certain home country corporate governance practices instead of certain requirements of the rules of Nasdaq. As permitted under the Israeli Companies Law 1999, or Companies Law, pursuant to our articles of association, the quorum for an ordinary meeting of shareholders shall be the presence of at least two shareholders present in person, by proxy or by a voting instrument, who hold at least 25% of the voting power of our shares (and in an adjourned meeting, with some exceptions, a minimum of one shareholder) instead of 33 1⁄3% of our issued share capital as otherwise required under the Nasdaq corporate governance rules. We may also adopt and approve material changes to equity incentive plans in accordance with the Companies Law, which does not impose a requirement of shareholder approval for such actions. In addition, we follow Israeli corporate governance practice instead of the Nasdaq requirements to obtain shareholder approval for certain dilutive events (such as issuances that will result in a change of control, certain transactions other than a public offering involving issuances of a 20% or greater interest in us and certain acquisitions of the stock or assets of another company). Additionally, we follow Israeli corporate governance practices instead of Nasdaq requirements with regard to, among other things, the composition of our board of directors. For example, our board of directors currently comprises four directors, three of whom we have determined are independent, however during 2021, the majority of our board of directors was not deemed to be independent, in compliance with our home-country requirements. Accordingly, our shareholders may be afforded less protection that what is provided under the Nasdaq corporate governance rules to investors in U.S. domestic issuers. See “Item 16G. —Corporate Governance—Nasdaq Listing Rules and Home Country Practices.”

Additionally, we are exempt from the rules and regulations under the Exchange Act related to the furnishing and content of proxy statements, and our officers, directors, and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. Furthermore, although under regulations promulgated under the Companies Law, as an Israeli public company listed on Nasdaq, we are required to disclose the compensation of our five most highly compensated officers on an individual basis, this disclosure may not be as extensive as that required of U.S. domestic reporting companies. In addition, we are not required under the Exchange Act to file current reports and quarterly reports, including financial statements, with the SEC as frequently or as promptly as U.S. domestic reporting companies whose securities are registered under the Exchange Act. Moreover, we are not required to comply with Regulation FD, which restricts the selective disclosure of material information. These exemptions and leniencies reduce the frequency and scope of information and protections available to ADS holders in comparison to those applicable to U.S. domestic reporting companies.

If we cease to qualify as a foreign private issuer, we would be required to comply fully with the reporting requirements of the Exchange Act applicable to U.S. domestic issuers. We would lose our foreign private issuer status if a majority of our shares are owned by U.S. residents and a majority of our directors or executive officers are U.S. citizens or residents or we fail to meet additional requirements necessary to avoid loss of foreign private issuer status. If we are not a foreign private issuer, we will be required to file periodic reports and registration statements on U.S. domestic issuer forms with the SEC, which are more detailed and extensive than the forms available to a foreign private issuer. We may also be required to modify certain of our policies to comply with accepted governance practices associated with U.S. domestic issuers and we would lose our ability to rely upon exemptions from certain corporate governance requirements on U.S. stock exchanges that are available to foreign private issuers. Such modifications and subsequent compliance would cause us to incur significant legal, accounting and other expenses that we would not incur as a foreign private issuer.

Ifwe are a “passive foreign investment company” for U.S. federal income tax purposes, there may be adverse U.S. federal incometax consequences to U.S. investors.

Based on our income and assets, we believe that we may be treated as a PFIC for the preceding taxable year. However, the determination of our PFIC status is made annually based on the factual tests described below. Consequently, while we may be a PFIC in future years, we cannot estimate with certainty at this stage whether or not we are likely to be treated as a PFIC in the current taxable year or any future taxable years. Generally, if, for any taxable year, at least 75 percent of our gross income is “passive income” or at least 50 percent of the average percentage of our assets during the taxable year (based on the average of the fair market values of the assets determined at the end of each quarterly period) are assets that produce or are held for the production of passive income, we will be characterized as a PFIC for U.S. federal income tax purposes. Passive income for this purpose generally includes, among other things, dividends, interest, rents, royalties, gains from commodities and securities transactions, and gains from assets that produce passive income. However, rents and royalties received from unrelated parties in connection with the active conduct of a trade or business should not be considered passive income for purposes of the PFIC test. For example, if we were to be characterized as a PFIC for U.S. federal income tax purposes in any taxable year during which a U.S. Holder (as defined in “Item 10.—Additional Information—Taxation — Material United States federal income tax considerations”) holds ordinary shares or ADSs, such U.S. Holder could be subject to additional taxes and interest charges upon certain distributions by us and any gain recognized on a sale, exchange or other disposition of our shares, whether or not we continue to be characterized as a PFIC. Certain adverse consequences of PFIC status can be mitigated if a U.S. Holder makes a “mark to market” election or an election to treat us as a qualified electing fund, or QEF. See “Item 10.—Additional Information—Taxation—Passive foreign investment company considerations.”

Whether we are a PFIC for any taxable year will depend on the composition of our income and the composition and value of our assets from time to time. Each U.S. Holder is strongly urged to consult its tax advisor regarding these issues and any available elections to mitigate such tax consequences.

Ifwe are a controlled foreign corporation, there could be adverse U.S. federal income tax consequences to certain U.S. Holders.

Each “Ten Percent Shareholder” (as defined below) in a non-U.S. corporation that is classified as a “controlled foreign corporation,” or a CFC, for U.S. federal income tax purposes generally is required to include in income for U.S. federal tax purposes such Ten Percent Shareholder’s pro rata share of the CFC’s “Subpart F income,” “tested income,” “global intangible low-taxed income” and investment of earnings in U.S. property, even if the CFC has made no distributions to its shareholders. Subpart F income generally includes dividends, interest, rents, royalties, gains from the sale of securities and income from certain transactions with related parties. A non-U.S. corporation generally will be classified as a CFC for U.S. federal income tax purposes if Ten Percent Shareholders own, directly or indirectly, more than 50% of either the total combined voting power of all classes of stock of such corporation entitled to vote or of the total value of the stock of such corporation. A “Ten Percent Shareholder” is a United States person (as defined by the Internal Revenue Code of 1986, as amended, or the Code) who owns or is considered to own, directly, indirectly, or constructively, 10% or more of the value or total combined voting power of all classes of stock entitled to vote of such corporation.

The determination of CFC status is complex and includes complex attribution rules. A non-corporate Ten Percent Shareholder with respect to a CFC generally will not be allowed certain tax deductions or foreign tax credits generally available to a corporate Ten Percent Shareholder. Failure to comply with CFC reporting obligations may subject a Ten Percent Shareholder to significant monetary penalties. We cannot provide any assurances that we will furnish to any Ten Percent Shareholder information that may be necessary to comply with the reporting and tax paying obligations applicable under the CFC rules of the Code. U.S. Holders should consult their own tax advisors with respect to the potential adverse U.S. tax consequences of becoming a Ten Percent Shareholder in a CFC.

ITEM 4.	Information On The Company

A.History and Development of the Company

We were incorporated in May 2018 in Israel as DocoMed Ltd., and originally provided digital health services. In July 2019, we changed our name to MeaTech Ltd. and later Steakholder Innovation Ltd., or Steakholder Innovation, and commenced our cultured meat technology development operations. In January 2020, Steakholder Innovation completed a merger with Ophectra Real Estate and Investment Ltd., or Ophectra, a company incorporated in Israel whose shares were traded on the TASE, whereupon the name of Ophectra was changed to Meat-Tech 3D Ltd., then MeaTech 3D Ltd. and finally Steakholder Foods Ltd., or Steakholder Foods.

According to the terms of the merger, Steakholder Foods acquired all outstanding shares of Steakholder Innovation from the shareholders of Steakholder Innovation, in return for the issuance of ordinary shares to the shareholders of Steakholder Innovation, as well as non-tradable merger warrants to receive ordinary shares upon the achievement of pre-defined milestones, which were achieved in 2020 and 2021. Steakholder Innovation become Steakholder Foods’ wholly-owned subsidiary.

In connection with the merger, the Tel Aviv District Court for Economic Affairs approved an arrangement whereby all of Ophectra’s assets and liabilities, whether certain or contingent, at the time of the merger were irrevocably assigned to a settlement fund, or Settlement Fund, for the purpose of settling Ophectra’s pre-merger liabilities (except for Ophectra’s ownership of 14.74% of the outstanding shares of Therapin Ltd., as described below). This includes all future liabilities arising from Ophectra’s activities prior to the merger (including tax liabilities, if any), and any commitments made by Ophectra prior to the merger. We also provided the Settlement Fund approximately NIS 1.3 million (approximately $0.4 million), which we included in our public listing expenses, for the purpose of settling any of Ophectra’s debts, and bear no additional liabilities to the Settlement Fund. Anyone who believed they had a claim to Ophectra’s assets were invited to lodge their claims to the trustees. Due to the fact that more than two years have passed since the merger, and the fact that the Settlement Fund no longer contains any assets, its trustees are expected to instigate proceedings to wind up the Settlement Fund.

Although Steakholder Foods was the legal acquirer of Steakholder Innovation’s shares as described above, the merger was not considered a business acquisition as defined in ASC 805. As a result, it was determined that Steakholder Innovation is the acquirer of the business for accounting purposes and the transaction was treated as a reverse acquisition that does not constitute a business combination.

In March 2021, we completed an initial public offering on the Nasdaq Capital Market, listing American Depositary Shares (ADSs) for trade under the ticker STKH, and later voluntarily de-listed our ordinary shares from the TASE.

On April 3, 2023, we announced our participation in an investment round in Wilk Technologies Ltd. (TASE: WILK), or Wilk, alongside leading players in the food industry, such as Danone and the Central Bottling Co. Ltd. (owner of Tara, Coca Cola Israel and more). As part of the investment, we purchased ordinary shares of Wilk in the amount of USD 435 thousand at a 15% discount to its 45-day average closing price, giving us a 2.5% stake in Wilk. Yaron Kaiser was then chairman of both our board of directors and that of Wilk. Additionally, Arik Kaufman, our Chief Executive Officer, then served as a director of Wilk. For these reasons, this investment was classified as a related party transaction.

B.Business Overview

Overview

We are an international deep-tech food company that initiated activities in 2019 and are listed on the Nasdaq Capital Market under the ticker “STKH”. We are focusing on alternative protein machinery production, initially for three-dimensional printing of meat and seafood analogs, followed by hybrid meats that combine cultivated and plant-based elements. We believe that our alternative protein and cultivated meat technologies hold significant potential to reduce the environmental impact of food production (including reducing carbon footprint and promoting biodiversity), improve the supply chain, and offer consumers a range of new product offerings.

We aim to provide production technology and associated supplies needed to commercially produce structured alternative protein products. To that end, we are developing three-dimensional printing capabilities that can mimic meat and seafood texture, flavor, nutritional values and more. Our initial commercial offering combines three-dimensional printers and their supplies, primarily plant-based ingredient blends for printing plant-based meat and fish analogs. So far, we have developed two main types of three-dimensional printer: (1) meat printer

a food production machine that produces meat analogs with a fibrous texture, mimicking meats such as beef, pork and chicken; and (2) fish printer – a food production machine that produces fish and seafood analogs with a flaky texture, such as fish and seafood.

During 2023, we focused our efforts on commercializing our three-dimensional printers and their ingredient blend supplies for plant-based foods initially. As a result, our first commercial offering is intended to affordably generate revenues for our partners and customers by manufacturing plant-based meat and fish analogs, which are not expected to require the lengthy regulatory processes associated with cultivated meats and other novel foods.

In addition, we are developing hybrid cultivated meat technologies to be integrated into our production processes at high throughput, once these technologies become commercially viable. We believe that the cultivated meat production processes we are developing, which are designed to offer our partners and customers an alternative to industrial slaughter, will have the potential to improve the quality of the environment, shorten global food supply chains, and reduce the likelihood of health hazards such as zoonotic diseases transferred from animals to humans (including viruses, such as virulent avian influenza and COVID-19, and drug-resistant bacterial pathogens, such as some strains of salmonella).

In May 2022, we joined the United Nations, or UN, Global Compact initiative, committing to ten universally accepted principles in the areas of human rights, labor, environment, and anti-corruption and to act in support of the issues embodied in the UN’s Sustainable Development Goals.

In April 2023, we announced that we had printed the world’s first hybrid fish fillet, by customizing our plant-based white fish ingredient blend, combined with cultivated grouper cells.

In July 2023, we announced that we had entered into a Memorandum of Agreement for Strategic Cooperation, or MOA, with an accredited GCC-based governmental body as our strategic partner, to advance food security efforts through the application of our 3D printing technology. Commencing with an investment by the strategic partner in the construction of a pilot plant to produce printed products, the MOA eventually aims to create a first-of-its-kind large-scale production facility in the Persian Gulf region. The agreement foresees a material initial down payment to us for the procurement of at least one three-dimensional food printer, followed by a milestone-based sales and procurement plan for industrial-scale output.

In February 2024, we announced that we had entered into an inaugural private-sector Memorandum of Understanding, or MoU, for strategic cooperation with Wyler Farm, one of Israel’s leading alternative protein producers and its premier tofu producer. The terms of the non-binding MoU contemplate Wyler Farm acquiring one of our proprietary meat printers, along with a subscription to our software and plant-based meat ingredient blend, by early 2025.

We are led by our Chief Executive Officer, Arik Kaufman, who has founded various Nasdaq- and TASE-traded foodtech companies. He is also a founding partner of BlueOcean Sustainability Fund, LLC, or BlueSoundWaves, led by Ashton Kutcher, Guy Oseary and Effie Epstein, which has partnered with Steakholder to assist in attempting to accelerate our growth. Mr. Kaufman holds extensive personal experience in the fields of food-tech and bio-tech law, and has led and managed numerous complex commercial negotiations, as part of local and international fundraising, mergers and acquisitions, or M&A, transactions and licensing agreements. We have carefully selected personnel for the rest of our executive management team who possess substantial industry experience and share our core values, from fields as diverse as tissue engineering, industrial stem cell growth, and printer and print materials development.

AlternativeProtein Market Opportunity

Protein is a necessary staple for healthy nutrition. The growth in recent years of both the human population and global wealth is driving a decades-long trend of accelerating demand for meat. The demand for protein products has consistently risen in recent decades and is expected to continue to do so, however the rising growth of demand for farm animals for the food industry has created significant environmental, health, financial and ethical challenges.

Alternative proteins, with an emphasis on meat substitutes, have emerged as a leading method for dealing with these challenges. Globally, more than 670 million kilograms of meat substitutes are consumed annually, at a value of exceeding USD 11 billion in 2024. In the near term alone, this is expected to rise to over 980 million kilograms by 2028, valued at over USD 16 billion.

Meat substitutes are the second most valuable category of plant-based food products in the United States, where sales of plant-based analogs were estimated to be worth USD 1.8 billion in 2023, exceeded only by the People’s Republic of China (USD 2.1 billion in 2023 and 2.4 billion in 2024). Other countries in the world’s most populous continent led global rates of consumer spending for meat substitutes, chiefly Vietnam (24%) and Hong Kong (21%).

Meat substitutes are likewise the second-most valuable category of plant-based food products in Europe, with sales reaching EUR 2 billion in 2022, led by the United Kingdom (21%) and the Netherlands (19%) in rates of consumer spending.

Among those taking note of the potential of the alternative protein market are conventional meat players, seeking to benefit from diversification. For example, Rügenwalder Mühle, the German meat producer, has adapted its operations to became the leading manufacturer of plant-based meat analogs in Germany, with more than 40% overall share. With a rapidly growing global population and increased demand for proteins among existing populations, the alternative protein market can expect to receive a lot more attention in coming years.

Limitationsof Conventional Meat Production

In addition to questions about whether conventional meat production can adequately provide for the growing global population, conventional meat production raises serious environmental issues. According to the United Nations, 8% of the world’s freshwater is used for raising livestock for meat and leather. At least 18% of the greenhouse gases entering the atmosphere are from the livestock industry. 26% of the planet’s ice-free land is used for livestock grazing and 33% of croplands are used for animal feed. With regard to treatment of animals in conventional meat production, the Humane Society of the United States estimated in 2023 that more than 92 billion animals are slaughtered annually, with steady increases to be expected in line with increased demand for meat.

Another common consumer concern with industrial-scale animal rearing is the reliance on the intensive use of antibiotics. Antibiotics are used in livestock, especially pigs and poultry, to manage animal health, and to treat or prophylactically prevent diseases such as avian flu and swine flu. Their effects on human health have not been fully resolved, with concerns including the potential growth of antibiotic-resistant diseases in meat for human consumption.

ExistingAlternative Proteins and their Limitations

Negative consumer sentiment towards the perceived ethical, health and environmental effects of the global meat industry help explain the strong focus that has developed on creating methods of protein production that are more sustainable, nutritious and conscious of animal welfare. Recent years have seen a combination of increasing consumer awareness and advanced technological development that has led to substantially increased demand for proteins that do not involve animal slaughter besides traditional plant-based proteins, such as soy, peas and chickpeas. Some of the alternative proteins being developed for human consumption for this purpose include:

Plant-BasedMeat: These products are designed to look, cook, and taste like traditional meat, with the texture of traditional meat while using plant ingredients. Innovations in this field have led to plant-based burgers, sausages and nuggets that mimic their animal-based counterparts in an approach known as biomimicry.

CultivatedMeat: Meat grown through cellular agriculture, which aims to produce cultivated animal proteins without the need for slaughter. Cultivated meat is grown in cell culture rather than inside animals and applies tissue engineering practices for fat and muscle production for the purpose of human consumption. Stem cells are isolated from animal tissue, such as from an umbilical cord (following birth), an adipose or a muscle tissue, and then cultivated in vitro to form protein biomass, muscle fibers and fat cells.

Fermentation-DerivedProteins: Created through microbial fermentation. Examples include precision fermentation products, and mycoproteins, which are derived from fungi. They are high in protein and fiber, low in saturated fat, and contain no cholesterol. However, they have been associated with allergic and gastrointestinal reactions. They are fermented to become a dough, which can develop a texture similar to that of meat. and precision fermentation products.

Insect-BasedProteins: Insects are an environmentally-friendly source of protein that requires significantly less land and water, and emits significantly less greenhouse gases than large mammals raised for slaughter. In addition, they can be fed food unsuitable for livestock that would otherwise be wasted. While crickets are the most common source of edible insects, research is currently taking place on new insect species of value for food production, as well as methods to produce them economically at scale. Insects can be consumed in their natural state; however many cultures consider insect consumption to be taboo and many people are disgusted by the idea. As a result, research is taking place into developing insect-based products in different forms not easily discernable as insect-based, including flour.

Three-DimensionalPrinting Solution

Our three-dimensional food printers are designed as specialized, large-scale production machines, tailored to meet the distinct requirements for producing plant-based meat and seafood alternatives. We are developing two distinct types of industrial-grade printers, engineered to handle the specific textures and production requirements of meat or seafood alternatives, respectively, within high-volume food manufacturing environments.

OurThree-Dimensional Printer Types

Meat-SpecificThree-Dimensional Printers

Our meat-specific printers are equipped with advanced Fused Paste Layering, or FPL, technology. This technology is ideal for creating the dense, fibrous textures associated with various types of meat, from beef to poultry. The FPL process meticulously layers plant-based materials to mimic the natural structure of meats, including intricate marbling and texture variations that are critical for authentic taste and mouthfeel. These printers are designed to integrate seamlessly into existing meat production lines within food factories, complementing traditional meat processing equipment with minimal adjustment required.

Seafood-SpecificThree-Dimensional Printers

Our seafood-specific printers utilize Drop Location in Space, or DLS, technology, which specializes in replicating the delicate, flaky textures of various seafoods, from white fish to shellfish. DLS technology is designed to precisely position plant-based materials to emulate the unique physical properties of seafood, including layering and tender flakiness, essential for authentic experiences in alternative-protein seafood dishes. These machines are also built to integrate with standard seafood processing lines in food factories, ensuring that they can operate alongside other familiar equipment without disrupting existing workflows.

KeyFeatures of Both Meat- and Seafood-Specific Printers

●	Industrial<br> Scale Production: Both types of printers are designed for high output, capable of continuous<br> operation in demanding factory settings. They support large-scale production needs, ensuring<br> that food manufacturers can meet substantial market demands efficiently.
●	Seamless<br> Factory Integration: Each printer model is crafted to fit into existing production environments<br> easily. They interface smoothly with other factory equipment such as automated feed systems,<br> conveyors, and packaging lines, ensuring a cohesive and streamlined production process.
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●	Compliance<br> with Regulatory Standards: We are committed to maintaining strict standards of food safety<br> and hygiene in all of our manufacturing processes. In line with this commitment, all of our<br> three-dimensional food printers – whether meat-specific or seafood-specific –<br> are designed in accordance with regulatory requirements and guidelines, such as the European<br> Hygienic Engineering & Design Group guidelines. This ensures that our printers meet rigorous<br> standards for safe food production, which we believe is essential for maintaining consumer<br> health and trust.
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●	Customization<br> and Flexibility: Despite their specialized functions, both printer types offer customizable<br> settings to adjust textures, shapes, and sizes, allowing for a high degree of product personalization<br> and innovation within the plant-based food industry.
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By offering these two distinct types of three-dimensional food printers, we aim to provide food manufacturers with the precise tools needed to expand into or enhance their plant-based product offerings. Whether producing plant-based meats with realistic textures or crafting delicate seafood alternatives, our technology is designed to empower manufacturers to be leaders in the rapidly growing market for sustainable and innovative food solutions.

PremixBlends

At the core of our product catalog are the SHMeat™ and SHFish™ premix blends which we are developing in order to offer customers and partners a wide range of plant-based meat and seafood alternatives tailored to a variety of culinary tastes and dietary needs. A premix blend is a mixture of ingredients designed to be mixed with other ingredients before use. These blends are specially formulated to emphasize sustainability, health, and ethical consumption, with the goal of providing a delicious solution for conscientious eaters everywhere.

We are developing SHMeat™ Premix Blends in an array of premix blends to be available in both a printed format, for structured end products such as steaks, and a minced format, for unstructured end products, crafted to enhance culinary creativity and versatility with a range that extends to include pork, lamb, and exotic meat options. Each blend is being developed to mimic the exact taste and texture profile of its traditional meat counterpart, in order to provide an authentic culinary experience. The variety to which we aspire would cater to many kinds of dishes, from traditional recipes needing robust meaty flavors, to innovative dishes exploring novel culinary landscapes.

We are also developing SHFish™ Premix Blends, with the aim of delivering genuine fish and seafood experiences in both printed and minced product forms. This line includes the SHFish™ White Fish premix blend, for creating flaky, tender fillets suitable for both refined and casual dining. We are also developing additional selections, such as salmon, tuna, and various shellfish, in order to provide a diverse array of seafood dishes without the ecological footprint associated with conventional seafood harvesting. Each SHFish™ product is being designed to meticulously capture the unique textures and flavors specific to each seafood type, from the rich texture of salmon to the subtle taste of white fish, for dishes ranging from sophisticated sushi to hearty seafood tacos.

By choosing Steakholder Foods’ innovative solutions, our customers can provide consumers with traditional flavors in a more sustainable and ethical way, helping to transform the global food landscape and paving the way for a more sustainable culinary future.

Advantages

We are focused on developing a process that will allow our food technology customers to operate a high-throughput manufacturing process for high-quality, healthy meat. Our cellular agriculture and bioprinting processes are being designed to be modular, meaning that they can work using different factory sizes. We believe we could license our technology to customers with industrial plants close to urban areas seeking to provide “just in time”, logistically-efficient, local and premium cellular agriculture. In addition, we believe a licensee of our technology could build a plant in a locality that does not have the resources needed for industrial animal husbandry, which would allow places like the United Arab Emirates, Hong Kong or Singapore to potentially become more agriculturally independent by increasing food security. As costs decrease, we believe that our customers could also build production facilities in localities where there is high agricultural seasonality or desertification risk.

We believe that plant-based meats could have several potential advantages over conventionally-harvested meat:

●	Environmental:<br> At least 18% of the greenhouse gases entering the atmosphere today are from the livestock<br> industry. Research shows that the expected environmental footprint of cultivated meat includes<br> approximately 78% to 96% fewer greenhouse gas emissions, 63%-95% less land use, 51% to 78%<br> less water use, and 7% to 45% less energy use than conventionally-produced beef, lamb, pork<br> and poultry. This suggests that the environmental consequences of switching from large-scale,<br> factory farming to lab-grown alternative proteins could have a long-term positive impact<br> on the environment.
●	Mitigating and reducing of health risks: Another potential benefit of lab-grown alternative<br> proteins is that their growth environment is designed to be less susceptible to biological<br> risk and disease, through standardized, tailored production methods consistent with controlled<br> manufacturing practices that are designed to contribute to improved nutrition, health and<br> wellbeing. Therefore, the use of plant-based meats reduces the risk of new diseases and future<br> pandemics. Plant-based and cultivated meats are expected to be insusceptible to animal diseases<br> and should therefore not contribute to pandemic risk because they do not require the use<br> of live animals. Moreover, they may not require antibiotics during production and would therefore<br> not contribute to antibiotic resistance.
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●	Animal Suffering: More and more people are grappling with the ethical question of whether<br> humanity should continue to slaughter animals for food. There is a growing trend of opposition<br> to the way animals are raised for slaughter, often in small, confined spaces with unnatural<br> feeding patterns. In many cases, such animals suffer terribly throughout their lives. This<br> consideration is likely a factor in many consumers choosing to incorporate more flexitarian,<br> vegetarian and vegan approaches to their diets in recent years.
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●	Alternate Use of Natural Resources: Eight percent of the world’s freshwater supply and<br> one third of croplands are currently used to provide for livestock. Wide-scale acceptance<br> of alternative proteins is expected to free up many of these natural resources, especially<br> in developing economies where they are most needed.
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●	Food Waste: The conventional meat industry’s largest waste management problem relates<br> to the disposal of partially-used carcasses, which are usually buried, incinerated, rendered<br> or composted, with attendant problems such as land, water or air pollution. The use of alternative<br> proteins will alleviate this problem, with only the desired cuts of meat or their analogs<br> being produced for consumption and only minimal waste product generated with no leftover<br> carcass.
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OurStrategy

Our vision is to be a global leader in the alternative protein machinery field, offering printers based on our three-dimensional printing technology, as well as ingredient blends for use in the printers. In the future, we also aim to provide ingredient blends that include cultivated cells, for the printing of hybrid meat and seafood. We are committed to making the right choice of protein simple for end consumers, by developing commercial production machines that are capable of mimicking meat and seafood texture, flavor and nutritional values, all at an affordable cost so that we can offer our customers food printers to create products that end consumers will want to buy. Operators of our printers will have wide-ranging digital control over parameters of the products they print, including with respect to meat type, three-dimensional modeling, texture, flavor and nutritional values. In this way, end products can be adjusted and customized based on market demand. Our commercial-scale production machines are being designed to be modular, scalable starting from minimal production capacity of up to a few hundred kilograms per hour.

We are in the process of establishing a demonstration center at our headquarters, in order to demonstrate the full commercial production process, including all pre- and post-production stages, such as ingredients blend preparation, pasteurization and packaging, culminating in edible meat analogs produced from a commercial-scale printer. Once we successfully commercialize our first printers, we expect to also be able to demonstrate our printers at work in our customers’ food production sites.

Our technologies and processes have the potential to be sustainable. We are developing production processes that are designed to provide sustainability in an industry that, due to inefficiencies inherent in conventional meat farming, is not otherwise expected to be able to meet the growing demand for protein caused by rising population numbers and global affluence. These include the large amounts of land and water use that are needed for raising livestock, which causes precious natural resources to be squandered and the release of methane and other greenhouse gases by livestock. Our production machines are designed to be integrated into food production factories, meeting all relevant food standards, such as technology standards and safety standards.

We have carefully selected personnel for our management team who possess substantial industry experience, from diverse fields including the food industry, business development, three-dimensional printing, food technologies, tissue engineering, industrial stem cell growth, software engineering, electronic and mechanical engineering and print materials development. We believe that this blend of talent and experience in managers who share our core values gives us the requisite insights and capabilities to execute our plan to develop technologies designed to meet demand in a scalable, profitable and sustainable way.

PipelineApplication – Hybrid Product Inks

The cultivated meat industry aims for industrial production at a competitive price compared to conventional meat. However, challenges in scalability and cost have slowed progress. While the vision of cultivated meats steak remains a goal and the industry is actively working to overcome the aforementioned obstacles, our current focus for the next step after commercializing plant-based meat printers is developing hybrid meat blends for our printers, combining plant-based ingredients and cultivated animal cells. Therefore, we continue to develop hybrid products with lab-grown cells from multiple species, such as beef and fish. For example, the addition of bovine cultivated cells to a steak hybrid product is intended to provide qualities of “meatiness,” such as taste, texture, and nutritional values, closer to those of conventional meat products than the alternatives currently available in the market today.

The process of cultivating bovine cells is developed in-house. Integrating these cells into the hybrid product could involve either undifferentiated stem cell biomass or cells differentiated into specialized cell types. Traditional steak is naturally composed of muscle, fat, and connective tissue, so cells forming any of these parts could potentially enhance the final product. We are developing cellular agriculture technology, including cell lines and methods for working with growth media and develop differentiation media, to support the production of cells such as fat and muscle cells as well as undifferentiated biomass. The processes we are developing are designed to allow cells of interest, following humane tissue extraction from the umbilical cord or biopsy, to be isolated, replicated, grown and maintained in vitro under controlled, laboratory conditions.

We are engaged in exploring and evaluating the contributions of fat cells, muscle cells, and undifferentiated stem cells to the hybrid product, while also considering the unique obstacles each of these cell types faces in scaling up to industrial production. In February 2023, we announced that we had analyzed our muscle cells and found that they offer the same amino acid profile as that of the native tissue. The amino acid profile has two important roles in our cultivated beef products – taste and nutritional value. Our biology team tested 17 amino acids and compared them to native tissue, with the results showing that the team was able to create the same amino acid profile in the lab as in animals, For this reason, we believe that hybrid meats printed using our three-dimensional printers have the potential to provide similar nutritional value as that of conventional meats.

Meat is a rich source of amino acids, the building blocks of proteins. which play a crucial role in human nutrition. Essential amino acids, which the human body cannot produce on its own, include leucine, isoleucine, valine, lysine, methionine, phenylalanine, threonine, tryptophan, and histidine. These amino acids are important for a variety of bodily functions, including muscle growth and repair, immune function, and hormone production. The specific amino acid profile of meat, as well as its taste, varies depending on the animal species and how it is raised, as well as the cut of meat.

Integrating fat cells into the final hybrid product also appears to be a promising direction of development. Our cultivated fat biomass is engineered to be antibiotic-free and can be customized to offer personalized nutritional profiles and precise flavors, similar to natural beef fat. To this end, we have conducted a number of taste tests where we demonstrated the potential that our cultivated fat biomass has to enhance the taste of plant-based products. We believe that a product comprised of as little as 10-25% of our cultivated fat biomass combined with plant-based ingredients has the potential to enhance mouthfeel and overall experience.

Celllines development for cultivated meat products

The process of industrial scale meat printing necessitates the isolation and development of cells which have the potential to produce animal muscle or fat tissues. Our proprietary cell lines are isolated from various sources that harbor these properties. For example, adult stem cells can be isolated from various adult tissues and give rise to more cells of the same type, such as fat or muscle tissues, while stem cells isolated from the umbilical cord immediately following birth can give rise to multiple types of cells, including both fat and muscle cells. Each of these cells has advantages and disadvantages and their adaptation to our robust meat production process is currently being evaluated.

Once isolated and plated, stem cells derived from adult tissues or umbilical cord exhibit the intrinsic ability to continue dividing and propagating in vitro; however, their proliferative capacity is limited, rendering them unable to yield a sufficient number of cells for large-scale production. To facilitate industrial-scale production, we have developed an immortalization process. Through this process, our immortalized cell lines can continue proliferating for up to one year, maintaining a steady division rate. It’s noteworthy that this division rate is significantly lower than the primary source cells, ensuring a consistent and prolonged expansion for enhanced scalability.

In order to facilitate scale-up processes, it is imperative for cells to grow in suspension, as monolayer growth on traditional laboratory plates proves both cost-ineffective and incompatible with scaling up operations. To address this challenge, we have successfully developed an adaptation to a suspension growth process for our cell lines. Notably, this innovative approach has been successfully applied to various cell lines derived from adult tissues and umbilical cord origins. This achievement positions us strategically for the next crucial step in upscaling our production capabilities.

Mediadevelopment

We are in the process of developing growth media, a liquid designed to support the growth of cells for hybrid or cultivated meats, to be composed of food-grade ingredients, with growth factors similar to those produced naturally in the bodies of cattle, albeit free of fetal bovine serum. Fetal bovine serum was considered a significant component of cellular growth media, however it was harvested from animals. For that reason, we are engaged with experimentation to develop optimal and cost-effective antibiotic-free cell culture media, and are exploring a range of types of, and sources for, growth factors suited to cell culture. These sources are expected to be sustainable and ethical, providing a route to enabling efficient and cost-effective processes.

Some of the steps that we are taking in order to keep the growth media cost low include:

●	Developing<br> our own in-house medium tailored specifically for our cell types. By including only the essential<br> components necessary for the growth of each particular cell line, our medium costs significantly<br> less than commercial alternatives;
●	Replacing<br> expensive, animal-derived components in cell growth media with lab-developed compounds or<br> proteins developed through fermentation;
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●	Cell<br> line screening and optimizations for efficient growth in low-cost media; and
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●	Bioprocess<br> optimization and media recycling.
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Bioreactors

We are using software-controlled bioreactors to foster cell proliferation for hybrid meats, and eventually cultivated meats. The initial growth phase leverages exponential growth of stem cells to achieve sufficient cell volumes for food production. These stem cells initiate differentiation processes into multiple cell types, such as muscle and fat.

We are developing cell-cultivation processes and protocols unique to each cell line for use in bioreactors, by regulating the system parameters while monitoring the growth, viability and metabolism of our cells. We are continuously exploring diverse bioreactor infrastructures and refining cell harvesting techniques to optimize the yield of biomass production. To date, we have successfully advanced our yield and achieved high cell density in a short period of time, and we expect that our cell cultivation records in small-scale bioreactors will enable us to develop the proprietary information needed for the development of efficient and economical cell-growth processes in industrial-scale bioreactors.

Collaborations

WilkTechnologies Ltd.

On April 3, 2023, we announced our participation in a strategic investment round in Wilk Technologies Ltd. (TASE: WILK), alongside leading players in the food industry, such as Danone and the Central Bottling Co. Ltd. (owner of Tara, Coca Cola Israel and more). The transaction was approved by our audit committee (due to related party considerations) and board of directors. As part of the investment, we purchased ordinary shares of Wilk in the amount of $450,000 at a 15% discount below their 45-day average closing price, giving us a 2.5% stake in Wilk.

GulfCooperation Council Region Governmental Body

UmamiBioworks Pte. Ltd.

In January 2023, we announced that we had entered into a joint development agreement with Umami Bioworks, pursuant to which the Singapore-Israel Industrial R&D Foundation, or SIIRD, approved a grant to us of up to USD 1 million, of which we already received USD 0.2 million in early 2024. As part of this collaboration, we are developing printed hybrid grouper and eel products, where we are responsible for the development of the plant-based formulation, the three-dimensional printing process and the integration of Umami Bioworks’ cultivated cells into the product.

WylerFarm Ltd.

Salesand Distribution

We have strategically positioned ourselves to pioneer the integration of three-dimensional printing technology in the food manufacturing industry. Our comprehensive business-to-business model focuses on selling advanced three-dimensional food printers alongside our specialized premix blends, empowering food companies to produce and market innovative plant-based products directly. This dual-product approach is designed to both enhance manufacturing efficiency and foster creativity and customization in the plant-based food sector.

Our cutting-edge three-dimensional food printers are designed to meet the specific needs of plant-based food production, with a view to offering precision and versatility in creating complex textures and forms. We believe that these printers are ideal for manufacturers looking to innovate or expand their product lines with high-quality, plant-based alternatives. Their key sales features include:

●	Advanced<br> Printing Technology: Our printers utilize state-of-the-art DLS and FPL technologies, which<br> we view as crucial for replicating the textures and layers of traditional meat and seafood.
●	Customization<br> Capabilities: Each printer is designed to be adjustable to different formulations and textures,<br> providing our clients with the flexibility to create unique products tailored to their markets.
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●	Full<br> Installation and Training Services: We ensure that our clients can maximize the use of their<br> printers with comprehensive installation, operational training, and ongoing technical support.
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To complement our 3D printers, we offer a range of SHMeat™ and SHFish™ premix blends. These blends are scientifically formulated to work seamlessly with our 3D printing technology, ensuring consistent quality and performance with the following key features:

●	High-Quality<br> Ingredients: Our blends are made from premium, sustainably-sourced ingredients, for a delicious<br> and ethical product outcome.
●	Optimized<br> for 3D Printing: Each blend is specifically developed to perform optimally in our three-dimensional<br> food printers, with properties that support precise extrusion and texturizing.
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●	Custom<br> Blend Development: We collaborate with clients to develop custom blends that meet specific<br> dietary needs, flavor profiles, or nutritional specifications.
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Our sales strategy emphasizes the synergistic benefits of purchasing both the 3D printers and the premix blends. This integrated solution not only simplifies the production process but also ensures high standards of product quality and innovation which benefit from the following key components:

●	Bundled<br> Offers: We provide attractive pricing options for clients who purchase both the printers<br> and a steady supply of premix blends.
●	Joint<br> Product Development: Working together with clients, we are co-developing products that are<br> both innovative and aligned with current market trends.
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●	Long-term<br> Partnership Incentives: We offer long-term contracts that include benefits, such as discounts<br> on blend refills, extended warranties for the printers, and exclusive rights to sell newly<br> developed products in specific markets.
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Recognizing the global potential of our technology and products, we are actively seeking out international partnerships to localize production and streamline supply chains, the key features of which are:

●	Local<br> Production Partnerships: We aim to establish partnerships with local manufacturers to produce<br> premix blends regionally, reducing logistics costs and enhancing market responsiveness.
●	Market<br> Adaptation: We are adapting our products and technologies to meet local tastes, dietary preferences,<br> and regulatory requirements, with a view to global market acceptance.
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●	Strategic<br> Distribution Networks: We will work with local distributors to leverage their in-depth market<br> knowledge and established networks for effective market penetration.
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IntellectualProperty

We have sought and continue to seek patent protection as well as other intellectual property rights for our products, processes and technologies in the United States and internationally. Our policy is to pursue, maintain, expand, protect and defend our patent rights and trade secrets, which we believe enable us to deliver long-term protection for the proprietary technologies, inventions and improvements that are commercially important to the development of our business.

Since the beginning of 2022, we have received notices of grant or allowance for patent applications in the USA, Canada, Australia and New Zealand relating to our development of systems and methods to apply external forces to muscle tissue that result in the development of high-quality complex structured meat.

We have a growing portfolio of 16 provisional and non-provisional patent applications pending with the USPTO, WIPO (filed through the Patent Cooperation Treaty, or PCT), and in various countries worldwide. A provisional patent application is a preliminary application, and establishes a priority date for the patenting process of inventions disclosed therein.

Our existing patent portfolio can currently be divided into three main areas:

Mechanical: covering printer components and peripherals used in the fabrication of the tissue cultures with two applications filed at the national stage of prosecution. The first; directed to print heads operable in a bioprinting systems for the fabrication of edible biostructures using drop-on-demand, the print heads specifically designed to accommodate bio fluids of suspended systems without causing demixing, while still delivering bio fluids with high accuracy and precision.

The second application currently undergoing examination in six countries after being granted in the United States, Canada, China and New Zealand, is directed to systems and methods of physically manipulating a resilient container (bladder) of bioprinted tissue culture having non-random three-dimensional cell structure over 4 dimensions, namely elongation, compression, torsion and shear, to modulate the tissue and achieve the desired texture for each meat type.

Additional applications were filed for an alternative bio-printer head and a cooled chuck, which are currently in their provisional stage, with three more applications in the pipeline.

Biological: covering initial materials used in the process with several provisional, and PCT applications filed and currently pending.

These include an application directed to methods for the use of plant-based lecithins and/or their components in a composition as a differentiation drivers for use in selectively promoting adipocytes differentiation; and methods and compositions for accelerated myotube formation.

Applications: covering the final consumable formed using mechanical and biological inputs, with a couple of applications currently pending.

These include a provisional application for a beef-emulating consumable formed of stacked 3D-pronted layers of muscle and fat tissues; and an application for a method and composition for achieving the flaky characteristics associated with fish.

In addition to patent applications, we maintain trade secrets covering know-how and proprietary information relating to our core technologies and make practicable efforts to protect our confidential trade secrets.  To this end, we require our employees engaged in the development of intellectual property to enter into confidentiality agreements prohibiting the disclosure of confidential information and further, require disclosure and assignment of any inventions and associated intellectual property rights that are important to our business. Additionally, we require all entering employees to represent they are not bringing in, or are using any third party’s Trade Secrets.

We have also registered our new name, Steakholder Foods, and brand name as registered trademarks in various countries, and maintain ongoing rights to our domain name. Steakholder Foods® was registered in Japan and the European Community and is currently undergoing examination in several other countries, including the United States.

While our policy is to obtain patents by application, license or otherwise, to maintain trade secrets and to seek to operate without infringing on the intellectual property rights of third parties, technologies related to our business have been rapidly developing in recent years. Additionally, patent applications that we may file or license from third parties may not result in the issuance of patents, and our current or future issued patents may be challenged, invalidated or circumvented. Therefore, we cannot predict the extent of claims that may be allowed or enforced against our patents, nor be certain of the priority of inventions covered by pending third-party patent applications. If third parties prepare and file patent applications that also claim technology or therapeutics to which we have rights, we may have to engage in proceedings to determine priority of invention, which could result in substantial costs to us, even if the eventual outcome is favorable. Moreover, because of the extensive time required for clinical development and regulatory review of products we may develop, it is possible that the patent or patents on which we rely to protect such products could expire or be close to expiration by the commencement of commercialization, thereby reducing the value of such patent. Loss or invalidation of certain of our patents, or a finding of unenforceability or limited scope of certain of our intellectual property, could also have a material adverse effect on us. See “Risk Factors — Risks Related to our Intellectual Property and Potential Litigation.”.

Competition

We view our competition as primarily belonging to one of two groups:

-	Plant-based meat analog manufacturers, especially those who offer structured plant-based products,<br> such as Redefine Meat, Chunk Foods and Juicy Marbles, which are offering or plan to offer<br> whole cuts of plant-based meats. Apart from quality of texture and flavor, regarding which<br> we believe that our three-dimensional printing technology will offer us an advantage, we<br> are distinguished from these competitors by our business-to-business focus (aiming to sell<br> manufacturing machines rather than the food itself), which we expect to provide a wide range<br> of collaboration opportunities, allowing food producers to market their products under their<br> own brand. Also, we are developing our printer technologies as a platform to biomimic a wide<br> variety of species, rather than one specific type of meat or seafood.
-	Machinery providers – as we are developing commercial-scale food production machines, we<br> also view other food machinery providers as competitors, although we have not yet identified<br> any food production machines utilizing similar technologies being developed to produce textured<br> products in high throughput with digital control and development product capabilities.
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Plant-based meat analog manufacturers, especially those who offer structured plant-based products, such as Redefine Meat, Chunk Foods and Juicy Marbles, which are offering or plan to offer whole cuts of plant-based meats. Apart from quality of texture and flavor, regarding which we believe that our three-dimensional printing technology will offer us an advantage, we are distinguished from these competitors by our business-to-business focus (aiming to sell manufacturing machines rather than the food itself), which we expect to provide a wide range of collaboration opportunities, allowing food producers to market their products under their own brand. Also, we are developing our printer technologies as a platform to biomimic a wide variety of species, rather than one specific type of meat or seafood.

Machinery providers – as we are developing commercial-scale food production machines, we also view other food machinery providers as competitors, although we have not yet identified any food production machines utilizing similar technologies being developed to produce textured products in high throughput with digital control and development product capabilities.

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We expect that demand for our cultivated meat manufacturing technologies will be driven by consumer demand for alternative proteins. We believe that we will compete with other alternative protein manufacturers, other machinery providers, and the conventional meat industry as a whole.

CompaniesDeveloping Vegetable and Insect Protein Alternatives

There are numerous companies focused on developing meat substitutes. In order for a product to achieve commercial acceptance as an alternative to meat, it must have an appearance, taste, smell and nutritional values that are similar enough to the type of meat that it seeks to replace or with which it seeks to compete. These meat substitute companies generally employ proprietary formulae for manufacturing that are based wholly on ingredients of plant origin. In addition, we are aware of several companies developing insect-protein production capabilities, employing among other insects, flies, larvae and grasshoppers.

CompaniesDeveloping Cultivated Meat

The cellular agriculture meat sector is in early stages of development. The sector is currently primarily comprised of companies developing a full technology stack from developing cell lines to scaling up cellular cultivation, developing media and researching the food technology aspects of the final product. Market dynamics have led to a large number of companies operating in this manner. We do not believe that any companies in this space have already developed the capability to produce industrial quantities at prices low enough to compete on a dollar-per-pound basis against conventionally-harvested meat.

A number of larger companies have begun engaging in this sector. For example, companies such as Cargill, Inc., JBS Foods, Nestlé S.A., Tyson Foods, Inc., Merck & Co., Inc. and Lonza Group AG are currently investing in capabilities to accommodate the market’s desire for change in the cell culture media market. Additionally, a number of bioreactor companies are rumored to be interested in the cellular agriculture market opportunity. Over time, we expect that larger players will continue to increase their exposure to cellular meat production either by selling to, or collaborating with, the many start-ups in the space.

Currently, cellular agriculture companies are for the most part paving their own path, with a goal of producing meat cells suitable as a replacement for ground meat. The ground meat type of cellular product may also be suitable as an ingredient in a hybrid plant-based food product. The cell-types relevant to this effort are primarily muscle and fat cells. What exactly these cell-based companies will offer is likely to be affected by consumer expectations and underlying cost structures. We believe that these companies may have to mix their cellular meat product with plant-based ingredients in the interests of cost or appearance.

CompaniesDeveloping Structured Hybrid Meat Products

To our knowledge, there is currently no other company focused on the scaling up of three-dimensional printing of hybrid cultivated meat products whose technologies are as advanced as ours. To the best of our knowledge, we are the only company to publicly demonstrate our food printing technology at large food technology events during 2023. However, there are companies attempting to produce steaks by means of other approaches, such as growing bovine cells, including fat, muscle and connective tissue on a pre-prepared scaffold, in order to create a contiguous piece of meat.

GovernmentRegulation

Meatand Fish Analogs

We have received feasibility reports from the Mérieux NutriSciences group with regard to our proprietary, plant-based, three-dimensionally-printed whitefish and steak, which concluded that the products’ raw materials are permitted for use in plant-based substitutes or Generally Recognized as Safe (GRAS), and hence should be considered to be safe for use in strategically important jurisdictions such as the United States and United Arab Emirates (a pioneer in the field of food security where we intend to construct a large-scale production facility).

In addition to the status of the ingredients we used in the aforementioned products, the report found that as the 3D-printing process does not change the structure or composition of the materials used, the resulting product is unlikely to be classed as a novel food (a food not historically consumed by humans, such as food developed by innovative technologies) but should rather be subject to a conventional approval process.

We expect that federal, state and foreign regulators will have the authority to inspect our customers’ facilities to evaluate compliance with applicable food safety requirements. Federal, state and foreign regulatory authorities also require that certain nutrition and product information appear on the product labels of our customers’ food products and, more generally, that such labels, marketing and advertising be truthful, non-misleading and not deceptive to consumers.

CultivatedMeat

Regulators around the world are in the process of developing a regulatory approval process for cultivated meat. Cultivated meat is not yet generally commercially available, but technologies like ours are anticipated to facilitate the imminent scaling up of cultivated meat production. In general, cultivated meat production is expected to be subject to extensive regulatory laws and regulations in the United States and in other jurisdictions such as Canada, Japan, the European Union and the United Kingdom. In the United States, existing food safety requirements are expected to apply. Additional details are being developed at the U.S. Food and Drug Administration, or FDA, and the U.S. Department of Agriculture, or USDA, pursuant to a Memorandum of Understanding, or MOU, published by the FDA and USDA on March 7, 2019 entitled the “Formal Agreement to Regulate Cell-Cultured Food Products from Cell Lines of Livestock and Poultry.”

Under the MOU, the two agencies operate under a joint regulatory framework wherein the FDA oversees cell collection, cell banks and cell growth and differentiation. A transition from FDA to USDA oversight occurs during the cell harvest stage, at which point the USDA oversees the production and labeling of cultivated meat. As noted, the USDA is also advancing new labeling requirements. To the best of our knowledge, the regulatory approval details under development are not expected to apply to our business directly, but they are instructive as to the regulatory requirements that our cultivated meat production customers will be expected to face and their expectations of us, in the form of customer assurances, regarding our products.

At this time, our business is limited to developing cultivated meat production technology, such as bioprinters, that will be marketed to cultivated meat producers. Production equipment manufacturers must ensure that their products do not contribute to the production of adulterated food. The regulatory obligation falls on the food manufacturer to ensure that all food produced, including cultivated meat, is wholesome and not adulterated. Therefore, when sourcing food processing equipment, such as the three-dimensional bioprinter that we are developing, our customers will request assurances that the bioprinter is safe for its intended use and will not result in the production of adulterated food. We intend to monitor developments at the FDA and USDA in connection with the MOU to determine whether any specific requirements or recommendations are published with specific regard to cultivated meat equipment manufacturers.

In the United States, we expect companies manufacturing cultivated meat products to be subject to regulation by various government agencies, including the FDA, USDA, and the FTC. Equivalent foreign regulatory authorities include the Canadian Food Inspection Agency, the Japanese Food Safety Commission, the European Food Safety Authority and authorities of the EU member states, the State Food and Drug Administration of China and the SFA. These agencies, among other things, prescribe the requirements and establish the standards for food quality and safety, and regulate various food technologies, including alternative meat product composition, ingredients, manufacturing, labeling and other marketing and advertising to consumers.

In September 2021, the USDA published an Advance Notice of Proposed Rulemaking, or ANPR, indicating that the USDA is developing new labeling requirements for foods under its jurisdiction produced through cell culture technology.

In June 2022, Singapore was the first country to approve cultivated meat for sale. The SFA has published comprehensive guidance explaining all of the requirements necessary for the safety assessment of novel foods, covering all of the specifications required for the approval of cultivated meat in Singapore.

In November 2022, the FDA announced that it completed its first pre-market consultation of human food made from cultured animal cells. Through a process with a U.S.-based cultivated meat technology company, which involved evaluating the company’s production process and the cultured cell material made by the production process, including the establishment of cell lines and cell banks, manufacturing controls, and all components and inputs, the FDA determined that it had no further questions about the company’s safety conclusion. As this was the first instance of the FDA giving the greenlight to a cultivated meat product, the FDA further announced that the world is experiencing a food revolution and the FDA is committed to supporting innovation in the food supply. In March 2023, the FDA completed a second such consultation.

As the cell-based agriculture industry is young and its regulatory framework is emerging and evolving, legislation and regulation may evolve to raise barriers to our go-to-market strategies.

In addition to federal regulatory requirements in the United States, certain states impose their own manufacturing and labeling requirements. For example, states typically require facility registration with the relevant state food safety agency, and those facilities are subject to state inspections as well as federal inspections. Further, states can impose state-specific labeling requirements. In the United States, the USDA will be developing new labeling requirements for foods under its jurisdiction produced through cell culture technology as noted in the ANPR.

We are subject to labor and employment laws, laws governing advertising, privacy laws, safety regulations and other laws, including consumer protection regulations that regulate retailers or govern the promotion and sale of merchandise. Our operations are subject to various laws and regulations relating to environmental protection and worker health and safety matters. We monitor changes in these laws and believe that we are in material compliance with applicable laws.

Environmental,Health and Safety Matters

We, our agents and our service providers, including our manufacturers, may be subject to various environmental, health and safety laws and regulations, including those governing air emissions, water and wastewater discharges, noise emissions, the use, management and disposal of hazardous, radioactive and biological materials and wastes and the cleanup of contaminated sites. We believe that our business, operations and facilities, including, to our knowledge, those of our agents and service providers, are being operated in compliance in all material respects with applicable environmental and health and safety laws and regulations. Based on information currently available to us, we do not expect environmental costs and contingencies to have a material adverse effect on us. However, significant expenditures could be required in the future if we, our agents or our service providers are required to comply with new or more stringent environmental or health and safety laws, regulations or requirements.

Except as stated above, we are not aware of any environmental risks related to our operations, and therefore, we do not believe that environmental regulations will have a significant effect on us. However, in the future, we may be required to meet environmental protection standards or regulations which could have a material impact on our activities, activities, profitability and ability to remain competitive.

OrganizationalStructure

Our subsidiaries and the countries of their incorporation are as follows:

**<br><br> <br>Name**	Jurisdiction of Incorporation	Parent	% Ownership (direct or otherwise)
Steakholder<br> Foods USA, Inc.	Delaware,<br> U.S.	Steakholder<br> Foods Ltd.	100	%
Steakholder<br> Innovation Ltd.	Israel	Steakholder<br> Foods Ltd.	100	%
Steakholder<br> Foods Europe BV (commenced dissolution)	Belgium	Steakholder<br> Foods Ltd.	100	%
Peace<br> of Meat BV (commenced bankruptcy proceedings)	Belgium	Steakholder<br> Foods Europe BV and Steakholder Foods Ltd.	100	%

In February 2021, we completed a purchase of all of the outstanding share capital not yet owned by us of Belgian cultured fat developer Peace of Meat BV, or Peace of Meat, for total consideration of up to EUR 16,300 thousand (USD 19,900 thousand). At a meeting of the board of directors of Peace of Meat held on March 31, 2023, the board concluded that bankruptcy requirements have been fulfilled following cessation of funding by us. Peace of Meat entered bankruptcy proceedings, and a liquidator was appointed.

As of December 31, 2023, Peace of Meat has met the criteria for discontinued operations, hence the results of all discontinued operations, less applicable income taxes, have been reported as components of net loss separate from the net income (loss) of continuing operations. The comparative data have been restated in our consolidated statements of comprehensive loss to show the discontinued operation separately from continuing operations. We are not aware of any liabilities of ours to Peace of Meat’s creditors, and therefore we have not recorded any liabilities in respect of Peace of Meat.

For further discussion of the Peace of Meat investment, see “Note 3 - Discontinued Operations” to the financial statements for the year ended on 31 December 2023 attached under Item 18 of this report.

Propertyand Infrastructure

Our principal executive offices and laboratory are located at 5 David Fikes St., Rehovot, Israel. The laboratory and office space total approximately 18,300 square feet. The lease for this facility will expire in January 2026, although we have an option to renew it for four years, and the annual rent (including parking fees) is approximately $0.7 million, linked to the Israeli CPI.

Employees

As of December 31, 2023, we employed 43 employees based at our office and laboratory in Rehovot, Israel.

On April 4, 2023, we announced that our Belgian subsidiary, Peace of Meat BV, would be liquidated, and therefore we no longer employ employees in Belgium.

Local labor laws govern the length of the workday and workweek, minimum wages for employees, procedures for hiring and dismissing employees, determination of severance pay, annual leave, sick days, advance notice of termination, Social Security payments or regional equivalents, and other conditions of employment, including equal opportunity and anti-discrimination laws. None of our employees is party to any collective bargaining agreements. We generally provide our employees with benefits and working conditions beyond the required minimums. We believe we have a good relationship with our employees, and have never experienced any employment-related work stoppages.

LegalProceedings

From time to time, we may be party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not currently involved in any legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations.

ITEM 4A.	Unresolved Staff Comments

None.

ITEM 5.	Operating And Financial Review And Prospects

Our “Operating and Financial Review and Prospectus” is intended to convey management’s perspective regarding operational and financial performance for fiscal years 2023, 2022 and 2021. The following discussion of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and the notes to those statements included therein, which have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The following discussion includes forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including but not limited to those described in “Risk Factors” and elsewhere in this Annual Report. Please also see “Forward-Looking Statements.”

The Company has applied U.S. GAAP as issued by the Financial Accounting Standards Board, or FASB, on a fully retrospective basis, initially for its financial statements for fiscal years as of January 1, 2023. Prior to those financial statements, the Company, reporting as of its Nasdaq IPO as a foreign private issuer under the Securities and Exchange Act of 1934, elected to avail itself of relief in this respect and conducted its financial reporting in accordance with International Financial Reporting Standards (IFRS).

A.Operating Results

Revenues

To date, we have not generated any revenue since we commenced our cultured meat operations. We do not expect to receive any revenue unless and until we complete development of and successfully commercialize our technologies, such as revenue from a collaboration or other partnership such as a co-development agreement, or the acquisition of a company that generates revenues. There can be no assurance that we will be successful in developing or ultimately commercializing our technologies, in establishing revenue-generating collaborations or acquiring revenue-generating companies.

Researchand Development Expenses

Research and development activities are our primary focus. We do not believe that it is possible at this time to accurately project total expenses required for us to reach the point at which we will be ready to commercialize our technologies. Development timelines, the probability of success and development costs can differ materially from expectations. In addition, we cannot forecast whether and when collaboration arrangements will be entered into, if at all, and to what degree such arrangements would affect our development plans and capital requirements. We expect our research and development expenses to increase over the next several years as our development program progresses. We would also expect to incur increased research and development expenses if we were to identify and develop additional technologies.

Research and development expenses include the following:

●	employee-related<br> expenses, such as salaries and share-based compensation;
●	expenses<br> relating to outsourced and contracted services, such as external laboratories and consulting,<br> research and advisory services;
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●	supply<br> and development costs;
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●	expenses,<br> such as materials, incurred in operating our laboratories and equipment; and
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●	costs<br> associated with regulatory compliance.
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We recognize research and development expenses as we incur them.

MarketingExpenses

Marketing expenses consist primarily of professional services, personnel costs, including share-based compensation related to employees, and business development, public relations and investor relations services.

Generaland Administrative Expenses

General and administrative expenses consist primarily of personnel costs, including share-based compensation related to directors and employees, corporate costs (such as insurance), facility costs, patent application and maintenance expenses, and professional service costs, including legal, accounting, audit, finance and human resource services, and other consulting fees.

FinanceExpenses (income), Net

Finance expenses (income), net, consist primarily of changes in the fair value of financial instruments mandatorily measured at fair value through profit or loss, and exchange rate fluctuations.

IncomeTaxes

We have yet to generate taxable income. As of December 31, 2023, our operating tax loss carryforwards were approximately $7.3 million.

Resultsof Operations

Our results of operations have varied in the past and can be expected to vary in the future due to numerous factors. We believe that period-to-period comparisons of our operating results are not necessarily meaningful and should not be relied upon as indications of future performance.

Below is a summary of our results of operations for the periods indicated (in thousands):

	Year Ended December 31,
	2023		2022			2021
Operating expenses:
Research and development	$	7,095	$	6,529		$	4,779
Marketing		1,937		2,874			1,115
Marketing with related party		745		2,210			590
General and administrative		4,401		5,485			6,948
Total operating loss	$	14,178	$	17,098		$	13,432
Finance expense (income), net		1,369		(2,565	)		(9,571	)
Loss from continuing operation		15,547		14,533			3,861
Net loss from discontinued operations		1,317		7,326			18,057
Loss for the year	$	16,864	$	21,859		$	21,918

YearEnded December 31, 2023, Compared to Years Ended December 31, 2022 and 2021

Researchand development expenses

Research and development expenses increased by approximately $0.5 million, or 8.7%, to approximately $7.0 million for the year ended December 31, 2023, compared to approximately $6.5 million for year ended December 31, 2022. The increase resulted mainly from payroll expenses, materials and professional services expenditures related to our research and development operations.

Research and development expenses increased by approximately $1.7 million, or 36.6%, to approximately $6.5 million for the year ended December 31, 2022, compared to approximately $4.8 million for year ended December 31, 2021. The increase resulted mainly from payroll expenses, materials and professional services expenditures related to our cultured meat research and development operations and share based compensation, and reflects our growing investment in research and development as we achieve our milestones and expand our technology capabilities.

Marketingexpense, including marketing with related party

Marketing expenses decreased by approximately $2.3 million, or 47.3%, to approximately $2.7 million for the year ended December 31, 2023, compared to approximately $5.0 million for year ended December 31, 2022. The decrease resulted mainly from reduction in professional services and personnel costs, including share-based compensation for employees, as well as in business development, public relations and investor relations services.

Marketing expenses increased by approximately $3.3 million, or 198.1%, to approximately $5.0 million for the year ended December 31, 2022, compared to approximately $1.7 million for year ended December 31, 2021. The increase resulted mainly from professional services and share-based compensation.

Generaland administrative expenses

General and administrative expenses decreased by approximately $1.1 million, or 20%, to approximately $4.4 million for the year ended December 31, 2023, compared to approximately $5.5 million for the year ended December 31, 2022. The decrease resulted mainly from decreased employee share-based compensation.

General and administrative expenses decreased by approximately $1.5 million, or 21%, to approximately $5.5 million for the year ended December 31, 2022, compared to approximately $7.0 million for the year ended December 31, 2021. The decrease resulted mainly from decreases in personnel costs, corporate expenses, professional services (such as legal and audit fees) and operating expenditures.

Loss from continuingoperations

The loss from continuing operations increased by approximately $1.0 million, or 6.9%, to approximately $15.5 million for the year ended December 31, 2023, compared to approximately $14.5 million for the year ended December 31, 2022. After deducting $1.9 million and $3.4 million non-cash share-based compensation in 2023 and 2022, respectively, $1.4 million net financial expenses in 2023, and $2.6 million for net financial income in 2022, the net loss decreased by approximately $1.4 million, or 10.2%, driven mainly by decreases in marketing expenses.

The loss from continuing operations increased by approximately $10.7 million, or 276% to approximately $14.5 million for the year ended December 31, 2022, compared to approximately $3.8 million for the year ended December 31, 2021. After deducting $3.4 million and $3.7 million non-cash share-based compensation in 2022 and 2021, respectively, and $2.6 million and $9.6 million for net financial income in 2022 and 2021, respectively, the net loss increased by approximately $4.1 million, driven mainly by increased research and development and marketing expenses.

Netloss from discontinued operation

The net loss from a discontinued operation decreased by approximately $6.0 million, or 82%, to approximately $1.3 million for the year ended December 31, 2023, compared to approximately $7.3 million for the year ended December 31, 2022. This decrease resulted mainly from the discontinued operation taking place over a shorter period in 2023 (three months) than in 2022 (12 months). For further information, please refer to Note 3 to the consolidated financial statements.

The net loss from discontinued operations decreased by approximately $10.7 million, or 59%, to approximately $7.3 million for the year ended December 31, 2022, compared to approximately $18.0 million for the year ended December 31, 2021. This decrease resulted mainly from the recognition of the acquisition of Peace of Meat in the consolidated statement of comprehensive loss, rather than as an asset. For further information, see Note 3 to the consolidated financial statements.

CriticalAccounting Policies

We describe our significant accounting policies and estimates in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements contained elsewhere in this annual report. We believe that these accounting policies and estimates are critical in order to fully understand and evaluate our financial condition and results of operations.

We prepare our financial statements in accordance with U.S. GAAP as issued by the FASB.

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of our accounting policies and the reported amounts recognized in the financial statements. On a periodic basis, we evaluate our estimates, including those related to share-based compensation and the fair value measurement of financial instruments at each reporting period. We base our estimates on historical experience, authoritative pronouncements and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates.

Recently-IssuedAccounting Pronouncements

Certain recently-issued accounting pronouncements, if applicable, are discussed in Note 2 to our consolidated financial statements, regarding the impact of the U.S GAAP standards as issued by the FASB that we will adopt in future periods in our consolidated financial statements.

EmergingGrowth Company Status

We qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. These provisions include:

●	to<br> the extent that we no longer qualify as a foreign private issuer, (i) reduced disclosure<br> obligations regarding executive compensation in our periodic reports and proxy statements<br> and (ii) exemptions from the requirement to hold a non-binding advisory vote on executive<br> compensation, including golden parachute compensation;
●	an<br> exemption from the auditor attestation requirement in the assessment of our internal control<br> over financial reporting pursuant to the Sarbanes-Oxley Act of 2002; and
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●	an<br> exemption from compliance with the Critical Audit Matters requirement that the Public Company<br> Accounting Oversight Board has adopted regarding a supplement to the auditor’s report<br> providing additional information about the audit and the financial statements.
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We may take advantage of these exemptions for up to five years or until such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company upon the earliest to occur of: (i) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (ii) the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; (iii) the date on which we are deemed to be a large accelerated filer under the rules of the SEC; or (iv) the last day of the fiscal year following the fifth anniversary of our initial Nasdaq offering of March 2021. We may choose to take advantage of some but not all of these exemptions. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. This means that an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.

B.Liquidity and Capital Resources

Since the commencement of our food technology operations, we have not generated any revenue and have incurred operating losses and negative cash flows from our operations. We have funded our operations primarily through the sale of equity securities. From the inception of Steakholder Innovation through December 31, 2023, we raised an aggregate of approximately $65.5 million in four rounds of private placements of our securities, our initial public offering of securities on the Nasdaq, two registered direct offerings and a follow-on public offering, and approximately $6.1 million in proceeds from option exercises. As of December 31, 2023, we had approximately $4.3 million in cash and cash equivalents.

The table below shows a summary of our cash flows from continued and discontinued operations for the periods indicated. For more information regarding cash flow from the discontinued operation, see Note 3 to the consolidated financial statements.

	Year Ended December 31,
	2023			2022			2021
Net cash used in operating activities	$	(12,727	)	$	(14,821	)	$	(14,437	)
Net cash used in investing activities		(764	)		(3,591	)		(9,142	)
Net cash provided by financing activities		11,257			5,899			29,221
Effect of exchange rate changes on cash and cash equivalents		198			(379	)		(22	)
Net increase (decrease) in cash and cash equivalents	$	(2,036	)	$	(12,892	)	$	5,620

YearEnded December 31, 2023 Compared to Year Ended December 31, 2022 and December 31, 2021

Netcash used in operating activities

Net cash used in operating activities decreased by approximately $2.0 million, or 13.5%, to approximately $12.7 million for the year ended December 31, 2023 compared to approximately $14.8 million for the year ended December 31, 2022. This decrease was attributed mainly to reductions in discontinued operation of $2.4 million due to the discontinued operation taking place over a shorter period in 2023 (three months) than in 2022 (12 months).

Net cash used in operating activities was not substantially different in the year ended December 31, 2022, compared to the year ended December 31, 2021.

Netcash used in investing activities

Net cash used in investing activities decreased by approximately $2.8 million, or 79%, to approximately $0.7 million for the year ended December 31, 2023, compared to approximately $3.5 million for the year ended December 31, 2022. This decrease was driven by the decrease in acquisition of fixed assets.

Net cash used in investing activities decreased by approximately $5.5 million, or 61%, to approximately $3.5 million for the year ended December 31, 2022, compared to approximately $9.1 million for the year ended December 31, 2021. This decrease was primarily due to the reduction in the investment of Peace of Meat.

Netcash provided by financing activities

Net cash provided by financing activities increased by approximately $5.3 million, or 91%, to approximately $11.2 million for the year ended December 31, 2023, compared to approximately $5.8 million for the year ended December 31, 2022. This increase was due to the increase in proceeds from issuance of shares and warrants.

Net cash provided by financing activities decreased by approximately $23.3 million, or 80%, to approximately $5.8 million for the year ended December 31, 2022, compared to approximately $29.2 million for the year ended December 31, 2021. This increase was due to the decrease in proceeds from issuance of shares and warrants, and the decrease in stock option exercises.

We do not currently have any specific commitments or plans for acquisitions; to the extent we do engage in acquisitions, we will do so after ensuring that we will have sufficient funds available to meet our capital requirements, and such acquisitions are likely to affect our projected cash needs. To meet future capital needs, we would need to raise additional capital through equity or debt financing or other strategic transactions. However, any such financing may not be on favorable terms or even available to us. Our failure to obtain sufficient funds on commercially acceptable terms when needed would have a material adverse effect on our business, results of operations and financial condition. Our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and the actual amount of our expenses could vary materially and adversely as a result of a number of factors. We have based our estimates on assumptions that may prove to be wrong, and our expenses could prove to be significantly higher than we currently anticipate.

Our future capital requirements will depend on many factors, including, but not limited to:

●	the<br> progress and costs of our research and development activities;
●	the<br> costs of development and expansion of our operational infrastructure;
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●	the<br> costs and timing of developing technologies sufficient to allow food production equipment<br> manufacturers and food manufacturers to product products compliant with applicable regulations;
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●	our<br> ability, or that of our collaborators, to achieve development milestones and other events<br> or developments under potential future licensing agreements;
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●	the<br> amount of revenues and contributions we receive under future licensing, collaboration, development<br> and commercialization arrangements with respect to our technologies;
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●	the<br> costs of filing, prosecuting, enforcing and defending patent claims and other intellectual<br> property rights;
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●	the<br> costs of contracting with third parties to provide sales and marketing capabilities for us<br> or establishing such capabilities ourselves, once our technologies are developed and ready<br> for commercialization;
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●	the<br> costs of acquiring or undertaking development and commercialization efforts for any future<br> products or technology;
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●	the<br> magnitude of our general and administrative expenses; and
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●	any<br> additional costs that we may incur under future in- and out-licensing arrangements relating<br> to our technologies and futures products.
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Until we can generate significant recurring revenues, we expect to satisfy our future cash needs through capital raising or capital inflows from strategic partnerships. We cannot be certain that additional funding will be available to us on acceptable terms, if at all. If funds are not available on favorable terms, or at all, we may be required to delay, reduce the scope of or eliminate research or development efforts or plans for commercialization with respect to our technologies and make necessary change to our operations to reduce the level of our expenditures in line with available resources.

We are a development-stage technology company and it is not possible for us to predict with any degree of accuracy the outcome of our research and development efforts. As such, it is not possible for us to predict with any degree of accuracy any significant trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net loss, liquidity or capital resources, or that would cause financial information to not necessarily be indicative of future operating results or financial condition. However, to the extent possible, certain trends, uncertainties, demands, commitments and events are described herein.

Since inception, we have incurred significant losses and negative cash flows from operations and have an accumulated deficit of $69.8 million. We have financed our operations mainly through fundraising from various investors.

Our management expects that we will continue to generate losses and negative cash flows from operations for the foreseeable future. On January 29, 2024, we consummated a warrant exercise and issuance agreement with gross proceeds of approximately $6.6 million. Consequently, our management is of the opinion that our existing cash will be sufficient to fund operations until the fourth quarter of 2024. As a result, there is substantial doubt about our ability to continue as a going concern.

Management’s plans include continuing to secure sufficient financing through the sale of additional equity securities or capital inflows from strategic partnerships. Additional funds may not be available when we need them on terms that are acceptable to us, or at all. If we are unsuccessful in securing sufficient financing, we may need to cease operations.

Our financial statements include no adjustments for measurement or presentation of assets and liabilities, which may be required should we fail to operate as a going concern.

Quantitativeand Qualitative Disclosures About Market Risk

LiquidityRisk

Liquidity risk is the risk that we will encounter difficulty in meeting the obligations associated with our financial liabilities that are settled in cash. Cash flow forecasting is performed in our operating entities and aggregated at a consolidated level. We monitor forecasts of our liquidity requirements to ensure we have sufficient cash to meet operational needs. We may be reliant on our ability to raise additional investment capital from the issuance of equity or debt securities to fund our business operating plans and future obligations.

Creditrisk

Credit risk is the risk of financial loss to us if a debtor or counterparty to a financial instrument fails to meet its contractual obligations, and arises mainly from our receivables.

As part of an agreement with Therapin from May 2020, we agreed to convert an NIS 7,250 thousand (approximately USD 2,100 thousand) investment in Therapin made by Ophectra and assumed by us when we merged with Ophectra, into an interest-free loan, to be repaid by Therapin at a rate of NIS 480 thousand (approximately USD 140 thousand) per annum for ten years (NIS 4,800 thousand (USD 1,400 thousand) in total) plus NIS 2,450 thousand (approximately USD 700 thousand) to be paid upon an exit event, including a public offering, or repayment of 14.74% of any distributable surplus or dividend distributed by Therapin, up to the amount of the outstanding balance, as detailed in our separation agreement with Therapin. As part of the agreement, Therapin gave us an option to convert the cash payment to equity of Therapin. Therapin did not provide any guarantees in connection with its repayment of our loan. During the year ended December 31, 2023, Therapin experienced delays in payments to us, and we received only USD 88 thousand. Due to Therapin’s financial difficulties, and the current market conditions in the cannabis sector in which Therapin operates, Therapin filed a request for stay of bankruptcy proceedings. Therefore, we assess that no further payments will be received, and revaluated the investment to USD 0. For the years ended December 31, 2023 and December 31, 2022, we recorded a re-valuation financing expense in the amount of USD 1,207 thousand, and USD 74 thousand, respectively.

Hence, as of December 31, 2023, the Therapin investment is not subject to any further credit risk.

We restrict exposure to credit risk in the course of our operations by investing primarily in bank deposits.

Equityprice risk

As we primarily invest in short-term bank deposits, with only non-material holdings of marketable securities, we do not believe that changes in equity prices pose a material risk to our holdings. However, decreases in the market price of our ordinary shares or ADSs could make it more difficult for us to raise additional funds in the future or require us to raise funds at terms unfavorable to us.

ForeignCurrency Exchange Risk

Currency fluctuations could affect us primarily through increased or decreased foreign currency-denominated expenses. Currency fluctuations had an immaterial effect on our results of operations during the years ended December 31, 2023, 2022 and 2021.

C.Research and development, patents and licenses, etc.

For a description of our research and development policies for the last three years, see “Item 4.—Information on the Company—Business Overview—Intellectual Property.”

D.Trend Information

Not applicable.

E.Critical Accounting Estimates

Critical accounting estimates are those estimates made in accordance with U.S. GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant. For further information, see Note 2B to our annual consolidated financial statements included in this Annual Report on Form 20-F.

ITEM 6.	Directors, Senior Management And Employees

A.Directors and Senior Management

The

following table sets forth the name, age and position of each of our executive officers and directors as of the date of this Annual Report on Form 20-F. Unless otherwise stated, the address of our executive officers and directors is Steakholder Foods Ltd., 5 David Fikes St., Rehovot 7638205, Israel.

Name	Age	Position
Executive Officers:
Arik<br> Kaufman	43	Chief<br> Executive Officer
Moran<br> Attar	41	Vice<br> President of Finance
Itamar<br> Atzmony	37	Chief<br> Engineering Officer
Non-Employee Directors:
Yaron<br> Kaiser	46	Chairman<br> of the Board of Directors
David<br> Gerbi(1)(2)(3)	44	Director
Eli<br> Arad(1)(2)(3)	51	Director
Sari<br> Singer(1)(2)(3)	44	Director
(1)	Member<br>of the Audit Committee
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(2)	Member<br>of the Compensation Committee
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(3)	Independent<br>director as defined under Nasdaq Marketplace Rule 5605(a)(2) and SEC Rule 10A-3(b)(1).
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ExecutiveOfficers

ArikKaufmanhas served as our Chief Executive Officer since January 2022. He has founded various Nasdaq- and TASE-traded foodtech companies, and currently serves as director of Wilk Technologies Ltd. He is also a founding partner of the BlueSoundWaves collective, led by Ashton Kutcher, Guy Oseary and Effie Epstein, which recently partnered with Steakholder Foods to assist in attempting to accelerate the Company’s growth. Mr. Kaufman holds extensive personal experience in the fields of food-tech and bio-tech law, and has led and managed numerous complex commercial negotiations, as part of local and international fundraising, M&A transactions and licensing agreements. He holds a B.A. degree in Law from Reichman University (formerly the Interdisciplinary Center Hertzliya).

MoranAttar has served as our Vice President of Finance since May 2023. She has more than 16 years of experience as a financial advisor and an accountant for companies in the pharmaceutical, retail, high-tech and foodtech industries, including nine years as a CFO of publicly-traded companies, traded on the Nasdaq, London and Tel Aviv Stock Exchanges. She was CFO at BGI Investments Ltd. (now Israir Group Ltd.) between 2015 and 2019, at BSD Crown, the parent company of G Willi-Food International Ltd. between 2015 and 2019, and at Univo Pharmaceuticals Ltd. between 2019 and 2022. Previously, she served as an executive consultant at EY Israel, a member firm of Ernst & Young, between 2007 and 2013. She holds a B.A. in Accounting & Economics from Ben-Gurion University of the Negev, and an M.A. in Accounting from Bar-Ilan University.

ItamarAtzmony has served as our Chief Engineering Officer since September 2023, having previously served as our Vice President of Engineering since April 2022 and Team Leader since May 2021, after joining us as a mechanical engineer in May 2020. A highly accomplished Chief Engineering Officer with a strong background in 3D printing, robotics, and automation, Itamar previously served as a mechanical engineer at Highcon Systems Ltd. from February 2019 to February 2020, at Polygon T.R. Ltd. from December 2017 to February 2019, and at Nano Dimension Ltd. from June 2016 to November 2017, in which positions he made significant contributions to his field. He holds a B.Sc. degree in Mechanical Engineering from Afeka College of Engineering.

Directors

YaronKaiserhas founded various Nasdaq- or TASE-traded foodtech companies, and served as Chairperson of Wilk Technologies Ltd. between January 2021 and December 2023. Mr. Kaiser is a founding partner of the BlueSoundWaves collective since 2021, and practices law in the fields of securities, commercial and corporate law, representing numerous public companies on fundraising, IPOs, M&A, the Israel Securities Authority and corporate governance, most recently at JST & Co., Law Office, between 2010 and May 2021, and since then as a founding partner of Kaufman Kaiser, Law Firm. He holds an LL.B. degree from the College of Management Academic Studies, Israel.

EliArad has served as a director since February 2018. Mr. Arad has been chief executive officer of the real-estate and life science investment company Merchavia Holdings and Investments Ltd (TASE:MRHL) since 2011. Mr. Arad has served as a director of Cleveland Diagnostics, Inc., a clinical-stage biotechnology company developing technology to improve cancer diagnostics since 2016, E.N. Shoham Business Ltd. (TASE:SHOM) since 2019, and a number of privately-held companies (Veoli Ltd., Train Pain Ltd., EFA Ltd., Nervio Ltd. and Cardiosert Ltd.). He has had leadership roles in many biomedical startup companies, and has extensive experience in all areas of financial management. Mr. Arad is a certified practicing accountant who holds a diploma in Accounting from Ramat Gan College and an Executive B.A. (Hons.) in Business Administration from the Ruppin Academic Center.

DavidGerbihas served as a director since August 2019. Mr. Gerbi is managing partner of accounting firm Gerbi & Co., and serves as Chief Financial Officer of Israir Group Ltd. (TASE:ISRG) since 2017, Erech Finance Cahalacha Ltd. (TASE:EFNC) since 2019, Nur Ink Innovations Ltd. (TASE:NURI) since June 2021 and Bee-io Honey Ltd. (TASE:BHNY) since November 2021. Mr. Gerbi holds a B.A. in Business Administration and Accounting from the Israeli College of Management Academic Studies and an M.B.A. in Finance from Tel Aviv University.

SariSingerhas served as a director since March 2021. Ms. Singer has served as General Counsel and Executive Vice President at NewMed Energy LP (formerly Delek Drilling LP), the oil and gas arm of the Delek Group in Israel, and a partner in the Leviathan offshore gas field, as well as other petroleum assets offshore Israel and Cyprus, since 2012, where she has led significant strategic processes, including restructurings and complex financing rounds totaling some $7 billion in various transactions in the international and domestic markets. Ms. Singer holds an LL.B. (cum laude) from Tel Aviv University and has been a member of the Israel Bar since 2007.

FamilyRelationships

There are no family relationships among any of our directors or officers.

B.Compensation

AggregateCompensation of Office Holders

The aggregate compensation we paid to our executive officers and directors for the year ended December 31, 2023, was approximately $1.7 million. This amount includes approximately $0.2 million paid, set aside or accrued to provide pension, severance, retirement or similar benefits or expenses, but does not include share-based compensation expenses, or business travel, professional and business association dues and expenses reimbursed to office holders, and other benefits commonly reimbursed or paid by companies in our industry. As of the date hereof, options to purchase 8,625 ADSs granted to our officers and directors were outstanding under our share option plans at a weighted average exercise price of $65.00 per share, in addition to restricted share units vesting into 57,632 ADSs, with no exercise price, and performance share units vesting into 32,500 ADSs with no exercise price.

IndividualCompensation of Office Holders

The table and summary below outlines the compensation granted to our five most highly compensated executive officers in 2023, including our Chief Executive Officer, Chairman of our board of directors, former Chief Technologies Officer, Chief Engineering Officer and former Chief Financial Officer, with respect to the year ended December 31, 2023. For purposes of the table and the summary below, “compensation” includes base salary, bonuses, equity-based compensation, retirement or termination payments, benefits and perquisites such as car, phone and social benefits and any undertaking to provide such compensation.

Name and Principal Position	Salary(1)	Bonus^(2)^		Equity-Based Compensation^(3)^			Other<br> Compensation		Total
	( in thousands)
Mr. Arik Kaufman
Chief Executive Officer		$	113	$	211		$	-	$	749
Mr. Yaron Kaiser^)^
Chairman of the Board of Directors			79		143			-		521
Mr. Dan Kozlovski^(4)^
Former Chief Technologies Officer			17		98			-		319
Mr. Itamar Atzmony
Chief Engineering Officer			22		72			-		279
Mr. Eitan Noah ^(5)^
Former Chief Financial Officer		$	-	$	(20	)	$	-	$	75

All values are in US Dollars.

(1)	Salary<br> includes the gross salary of the officer or director plus payment by us of social benefits<br> on behalf of the officer or director. Such benefits may include payments, contributions and/or<br> allocations for savings funds (e.g., Managers’ Life Insurance Policy), pension, severance,<br> risk insurance (e.g., life, or work disability insurance), payments for social security and<br> tax gross-up payments, vacation, medical insurance and benefits, convalescence or recreation<br> pay and other benefits and perquisites consistent with our policies.
(2)	Represents<br> annual bonuses paid in 2023 with respect to 2022.
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(3)	Represents<br> the equity-based compensation expenses, based on the options’ fair value on the grant<br> date, calculated in accordance with applicable accounting guidance for equity-based compensation.<br> For a discussion of the assumptions used in reaching this valuation, see Note 10(B) to our<br> annual consolidated financial statements included elsewhere in this prospectus.
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(4)	Mr.<br> Kozlovski resigned his position as of March 31, 2024.
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(5)	Mr.<br> Noah resigned his position as of June 4, 2023, as a result of which we recorded a credit<br> for equity-based compensation expenses previously recognized.
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EmploymentAgreements and Director Fees

We have entered into written employment agreements with each of our executive officers, which provide for notice periods of varying duration for termination of the agreement by us or by the relevant executive officer, during which time the executive officer will continue to receive base salary and benefits. These agreements also contain customary provisions regarding noncompetition, confidentiality of information and assignment of inventions. However, the enforceability of the noncompetition provisions may be limited under applicable law. See “Risk Factors — Risks relating to our operations — Under applicable employment laws, we may not be able to enforce covenants not to compete” for a further description of the enforceability of non-competition clauses.

The material employment terms for Mr. Kaufman, our Chief Executive Officer, were as follows from his appointment in January 2022, until January 24, 2023: (1) a gross annual salary of NIS 564,000 ($160,000); (2) reimbursement of annual travel expenses of up to NIS 60,000 ($17,000); (3) options to purchase 500,000 Ordinary Shares (currently equivalent to 5,000 ADSs), vesting over three years from the date of his appointment as Chief Executive Officer, pursuant to which 1/12 will vest every quarter until fully vested, expiring one year following Mr. Kaufman’s cessation of service in all then-applicable capacities, but in any case after four years, with an exercise price of $0.519 per ordinary share (currently equivalent to $51.90 per ADS) and subject to acceleration upon termination pursuant to our sale or change in control; (4) an annual performance bonus in the aggregate amount of NIS 282,000 ($80,000), subject to his meeting certain performance milestones as determined by our board of directors on an annual basis; (5) termination of the employment relationship upon provision of six months’ advance notice by either party; (6) severance pay equal to 25% of the gross annual salary upon termination of Mr. Kaufman’s employment by us, not for cause, following three to twelve months of service, or 50% following twelve or more months of service (or 50% of these amounts upon Mr. Kaufman’s resignation); and (7) social benefits that we pay on behalf of officers, such as payments, contributions and/or allocations for savings funds (e.g., Managers’ Life Insurance Policy), pension, severance, risk insurance (e.g., life, or work disability insurance), payments for social security and tax gross-up payments, vacation, medical insurance and benefits, convalescence or recreation pay and other benefits and perquisites consistent with our policies, such as inclusion in our directors’ and officers’ liability insurance policy, and provision of indemnification, exculpation and exemption undertakings to the fullest extent permitted by the Companies Law.

Effective January 24, 2023, pursuant to the approval of our Compensation Committee and Board of Directors, the following amendments to the material terms for Mr. Kaufman were adopted: (1) a gross annual salary at a cost to us of $414,000, which will automatically increase by an amount equal to seven percent at the end of each year of service; (2) an allocation of restricted share units (RSUs) vesting into 1,910,000 ordinary shares (currently equivalent to 19,100 ADSs), vesting over three years, pursuant to which 1/12 will vest every quarter until fully vested, with no exercise price, issued under the Company’s 2022 Share Incentive Plan and the Capital Gains tax track pursuant to Section 102 of the Israeli Income Tax Ordinance (New Version), 1961 and subject to acceleration upon termination pursuant to either our sale or change in control; (3) an allocation of performance share units (PSUs) vesting into 1,910,000 ordinary shares (currently equivalent to 19,100 ADSs), vesting upon achievement of any one of the following milestones: (i) engagement with a strategic partner / investor (a corporation operating in the field of food, healthcare, pharmaceuticals or printing) for an investment in the company or its subsidiaries, in cash in an amount of not less than five hundred thousand dollars, (ii) submission of a regulatory approval to the U.S. FDA, Singapore Food Agency or European Food Safety Authority, for the commercial sale or distribution of our products, or (iii) engagement with a strategic partner (as defined above) in a joint development agreement to collaborate to develop technology or products for the purpose of later commercialization; and (4) an annual performance bonus in the aggregate amount of up to $113,000, subject to his meeting certain performance milestones as determined by our Board of Directors on an annual basis. In 2023, these milestones included an engagement with a strategic partner investor (a global player in the food or drug industry) by the company or any of its subsidiaries, including an investment in the group or a collaboration such as a joint development agreement; completion of fund raising of at least USD 10 million dollars; completion of the full cycle carousel of our three-dimensional printer; submission of a regulatory approval for one of our products to the U.S. Food and Drug Administration, Singapore Food Agency or equivalent, engagement in a joint development agreement with other companies from the cultivated meat industry, and grant of a patent. In 2024, our Compensation Committee and Board determined that these milestones were met, except for the submission of a regulatory approval. The following terms of Mr. Kaufman’s employment have not been amended: (1) reimbursement of annual travel expenses; (2) termination of the employment relationship upon provision of six months’ advance notice by either party; (3) severance pay equal to 25% of the gross annual salary upon termination of Mr. Kaufman’s employment by us, not for cause, following three to twelve months of service, or 50% following twelve or more months of service (or 50% of these amounts upon Mr. Kaufman’s resignation); and (4) social benefits that we pay on behalf of officers, such as payments, contributions and/or allocations for savings funds (e.g., Managers’ Life Insurance Policy), pension, severance, risk insurance (e.g., life, or work disability insurance), payments for social security and tax gross-up payments, vacation, medical insurance and benefits, convalescence or recreation pay and other benefits and perquisites consistent with our policies, such as inclusion in our directors’ and officers’ liability insurance policy, and provision of indemnification, exculpation and exemption undertakings to the fullest extent permitted by the Companies Law,The material terms for Mr. Kaiser, the Chairman of our board of directors, were as follows from his appointment in January 2022, until January 24, 2023: (1) an annual fee of $150,000, to be paid in four equal quarterly installments in USD or in NIS at the then-current exchange rate, which will automatically increase by an amount equal to seven percent at the end of each year of service; (2) reimbursement of annual travel expenses of up to $18,000; (3) options to purchase 350,000 Ordinary Shares (currently equivalent to 3,500 ADSs), vesting over three years from the date of his appointment as Chairman, pursuant to which 1/12 will vest every quarter until fully vested, expiring one year following Mr. Kaiser’s cessation of service in all then-applicable capacities, but in any case after four years, with an exercise price of $0.519 per ordinary share (currently equivalent to $51.90 per ADS) and subject to acceleration upon termination pursuant to our sale or change in control; (4) an annual bonus equal to 50% of the bonus awarded to the Chief Executive Officer in the applicable year; (5) severance pay equal to 12.5% of Mr. Kaiser’s annual fee upon the involuntary termination of his directorship, not for cause, following three to twelve months of service, or 25% following twelve or more months of service (or 50% of these amounts upon Mr. Kaiser’s resignation); and (6) other benefits and perquisites consistent with our policies, such as inclusion in our directors’ and officers’ liability insurance policy, and provision of indemnification, exculpation and exemption undertakings to the fullest extent permitted by the Companies Law.

Effective January 24, 2023, pursuant to approvals by our Compensation Committee, Board of Directors and a general meeting of our shareholders, the following amendments to the materials terms for Mr. Kaiser were adopted: his annual fee was adjusted to $290,000, automatically increased by an amount equal to seven percent at the end of each year of service commencing from the date of adjustment; his annual bonus shall be equal to 70% of the bonus awarded to the Chief Executive Officer in the applicable year; he received an allocation of restricted share units (RSUs) vesting into 1,340,000 ordinary shares (currently equivalent to 13,400 ADSs), vesting over three years from the date of adjustment, pursuant to which 1/12 will vest every quarter until fully vested, with no exercise price, issued under the Company’s 2022 Share Incentive Plan and the Capital Gains tax track pursuant to Section 102 of the Israeli Income Tax Ordinance (New Version), 1961 and subject to acceleration upon termination pursuant to either our sale or change in control; and he received an allocation of performance share units (PSUs) vesting into 1,340,000 ordinary shares (currently equivalent to 13,400 ADSs), vesting upon achievement of any one of the following milestones: (i) engagement with a strategic partner / investor (a corporation operating in the field of food, healthcare, pharmaceuticals or printing) for an investment in the company or its subsidiaries, in cash in an amount of not less than five hundred thousand dollars; (ii) submission of a regulatory approval to the U.S. FDA, Singapore Food Agency or European Food Safety Authority, for the commercial sale or distribution of our products; or (iii) engagement with a strategic partner (as defined above) in a joint development agreement to collaborate to develop technology or products for the purpose of later commercialization.

In addition, we pay fees to our non-executive directors in return for their service on our board of directors, in accordance with our compensation policy.

Our other employees are employed under the terms prescribed in their respective employment contracts. The employees are entitled to the social benefits prescribed by law and as otherwise provided in their agreements. These agreements each contain provisions standard for a company in our industry regarding non-competition, confidentiality of information and assignment of inventions. Under currently applicable labor laws, we may not be able to enforce covenants not to compete and therefore may be unable to prevent our competitors from benefiting from the expertise of some of our former employees. See “Risk Factors—Risks Related to Our Operations” for a further description of the enforceability of non-competition clauses.

Executive officers are also employed on the terms and conditions prescribed in employment agreements. These agreements provide for notice periods of varying duration for termination of the agreement by us or by the relevant executive officer, during which time the executive officer will continue to receive base salary and benefits. See “Risk Factors—Risks Related to Our Operations—If we are unable to attract and retain qualified employees, our ability to implement our business plan may be adversely affected.”

2018Option and RSU Allocation Plan

In June 2018, the board of directors of Ophectra adopted our Option and RSU Allocation Plan, as amended, or the share option plan, to issue options to purchase our Ordinary Shares and restricted stock units to our directors, officers, employees and consultants, and those of our affiliated companies (as such term is defined under share option plan), or the Grantees. The share option plan is administered by our board of directors or a committee that was designated by the board of directors for such purpose, or the Administrator.

Under the share option plan, we may grant options to purchase Ordinary Shares and/or RSUs, or options, under four tracks: (i) Approved 102 capital gains options through a trustee, which was approved by the Israeli Tax Authority in accordance with Section 102(a) of the Israeli Income Tax Ordinance (New Version), 1961, or ITO, and granted under the tax track set forth in Section 102(b)(2) of the ITO. The holding period under this tax track is 24 months from the date of issuance of options to the trustee or such period as may be determined in any amendment of Section 102 of the ITO, or any applicable tax ruling or guidelines; (ii) Approved 102 earned income options through a trustee, granted under the tax track set forth is Section 102(b)(1) of the ITO. The holding period under this tax track is 12 months from the date of issuance of options to the trustee or such period as may be determined in any amendment of Section 102 of the ITO; (iii) Unapproved 102 options (the options will not be issued through a trustee and will not be subject to a holding period); and (iv) 3(i) options (the options will not be subject to a holding period). These options shall be subject to taxation pursuant to Section 3(i) of the ITO, or Section 3(i).

Options pursuant to the first three tax tracks (under Section 102 of the ITO) can be granted to our employees and directors and the grant of options under Section 3(i) can be granted to our consultants and controlling shareholders (a controlling shareholder is defined under the Section 102 of the ITO is a person who holds, directly or indirectly, alone or together with a “relative,” (i) the right to at least 10% of the company’s issued capital or 10% of the voting power; (ii) the right to hold at least 10% of the company’s issued capital or 10% of the voting power, or the right to purchase such rights; (iii) the right to receive at least 10% of the company’s profits; or (iv) the right to appoint a company’s director). Grantees who are not Israeli residents may be granted options that are subject to the applicable tax laws in their respective jurisdictions.

We determine, in our sole discretion, under which of the first three tax tracks above the options are granted and we notify the Grantee in a grant letter, as to the elected tax track. As mentioned above, consultants and controlling shareholders can only be granted Section 3(i) options.

The number of Ordinary Shares authorized to be issued under the share option plan will be proportionately adjusted for any increase or decrease in the number of Ordinary Shares issued as a result of a distribution of bonus shares, change in our capitalization (split, combination, reclassification of the shares or other capital change), or issuance of rights to purchase Ordinary Shares or payment of a dividend. We will not issue fractions of Ordinary Shares and the number of Ordinary Shares shall be rounded up to the closest number of ordinary shares.

In the event of a (i) merger or consolidation in which we (in this context, specifically Steakholder Foods Ltd.) are not the surviving entity or pursuant to which the other company becomes our parent company or that pursuant to which we are the surviving company but another entity holds 50% or more of our voting rights, (ii) an acquisition of all or substantially all of our Ordinary Shares, (iii) the sale of all or substantially all of our assets, or (iv) any other event with a similar impact, we may exchange all of our outstanding options granted under the share option plan that remain unexercised prior to any such transaction for options to purchase shares of the successor corporation (or those of an affiliated company) following the consummation of such transaction.

The exercise price of an option granted under the share option plan will be specified in the grant letter every Grantee received from us in which the Grantee notifies of the decision to grant him/her options under the share option plan, and will be denominated in our functional currency at the time of grant or the currency in which the Grantee is paid, at our discretion.

The Administrator may, in its absolute discretion, accelerate the time at which options granted under the share option plan or any portion of which will vest.

Unless otherwise determined by the Administrator, in the event that the Grantee’s employment was terminated, not for Cause (as defined in the share option plan), the Grantee may exercise that portion of the options that had vested as of the date of such termination until the end of the specified term in the grant letter or the share option plan. The portion of the options that had not vested at such date, will be forfeited and can be re-granted to other Grantees, in accordance with the terms of the share option plan.

At the discretion of our board of directors, and subject to receipt of taxation authority approvals, we may allow Grantees to exercise their options on a cashless basis.

2022Share Incentive Plan

We adopted the 2022 Share Incentive Plan, or the 2022 Plan, on June 10, 2022, and a general meeting of our shareholders approved the 2022 Plan on March 30, 2023. The 2022 Plan provides for the grant of equity-based incentive awards to our employees, directors, office holders, service providers and consultants in order to incentivize them to increase their efforts on behalf of the Company and to promote the success of the Company’s business.

Shares Available for Grants. The maximum number Shares (which means ordinary shares, of no par value, (including ordinary shares resulting or issued as a result of share split, reverse share split, bonus shares, combination or other recapitalization events, and including in the form of ADSs), or shares of such other class of shares as shall be designated by the board of directors of the Company in respect of the relevant award) available for issuance under the 2022 Plan is equal to the sum of (i) 8,500,000 Shares, (ii) 1,127,850 Shares, which represents the number of Shares available for issuance under the Option and RSU Allocation Plan, or the Prior Plan, on the effective date of the 2022 Plan, and (iii) an annual increase on the first day of each year beginning in 2023 and on January 1st of each calendar year thereafter and ending on January 1, 2032, equal to the lesser of (A) 5% of the outstanding ordinary shares of the Company on the last day of the immediately preceding calendar year, on a fully diluted basis; and (B) such amount as determined by our board of directors if so determined prior to January 1 of a calendar year. Shares issued under the 2022 Plan may be, in whole or in part, authorized but unissued Shares, (and, subject to obtaining a ruling as it applies to 102 awards) treasury shares (dormant shares) or otherwise Shares that shall have been or may be repurchased by the Company (to the extent permitted pursuant to the Companies Law).

Any Shares (a) underlying an award granted under the 2022 Plan or an award granted under the Prior Plan (in an amount not to exceed 8,498,490 Shares under the Prior Plan) that has expired, or was cancelled, terminated, forfeited, or settled in cash in lieu of issuance of Shares, for any reason, without resulting in the issuance of Shares; (b) if permitted by the Company, subject to an award that are tendered to pay the exercise price of an award; or withholding tax obligations with respect to an award; or, if permitted by the Company, subject to an award that are not delivered to a Grantee because such Shares are withheld to pay the exercise price of such award; or withholding tax obligations with respect to such award may again be available for issuance under the 2022 Plan and for issuance upon exercise or (if applicable) vesting thereof for the purposes of the 2022 Plan, unless determined otherwise by the Board. Our board of directors may also reduce the number of ordinary shares reserved and available for issuance under the 2022 Plan in its discretion.

The maximum aggregate number of Shares that may be issued pursuant to the exercise of incentive stock options granted under the 2022 Plan, or the ISO Limit, shall be the sum of (a) the aggregate number of Shares set forth in clauses (a) and (b) in the above paragraph; and (b) any Shares underlying awards granted under the Prior Plan that are returned to the 2022 Plan (not to exceed 8,498,490 Shares). To the extent permitted under Section 422 of the United States Internal Revenue Code of 1986, and any applicable regulations promulgated thereunder, all as amended (the “Code”), any Shares covered by an award that has expired, or was cancelled, terminated, forfeited, or settled in cash without the issuance of Shares shall not count against the ISO Limit. Shares that actually have been issued under the 2022 Plan shall not become available for future issuance hereunder pursuant to incentive stock options.

Administration. Our board of directors, or a duly authorized committee of our board of directors, or the Administrator, or the Administrator, will administer the 2022 Plan. Under the 2022 Plan, the Administrator has the authority, subject to applicable law, to interpret the terms of the 2022 Plan and any award agreements or awards granted thereunder, designate recipients of awards, determine and amend the terms of awards, including the exercise price of an option award, the fair market value of an ordinary share, the time and vesting schedule applicable to an award or the method of payment for an award, accelerate or amend the vesting schedule applicable to an award, prescribe the forms of agreement for use under the 2022 Plan and take all other actions and make all other determinations necessary for the administration of the 2022 Plan.

The Administrator also has the authority to approve the conversion, substitution, cancellation or suspension under and in accordance with the 2022 Plan of any or all option awards or ordinary shares, and the authority to modify option awards to eligible individuals who are foreign nationals or are individuals who are employed outside Israel to recognize differences in local law, tax policy or custom, in order to effectuate the purposes of the 2022 Plan but without amending the 2022 Plan; provided, that if the Administrator takes such action with respect to an award held by a U.S. service provider, it shall do so in accordance with the requirements of Section 409A of the Code, if applicable.

The Administrator also has the authority to amend and rescind rules and regulations relating to the 2022 Plan or terminate the 2022 Plan at any time before the date of expiration of its ten year term.

*Eligibility.*The 2022 Plan provides for granting awards under various tax regimes, including, without limitation, in compliance with Section 102 of the Israeli Income Tax Ordinance (New Version) 5271-1961, and the regulations and rules promulgated thereunder, all as amended from time to time (the “Ordinance”), and Section 3(i) of the Ordinance and in compliance with Section 422 of the Code and Section 409A of the Code as they relate to U.S. service providers when granted Nonqualified Stock Options, and to U.S. service providers who are Employees when granted Incentive Stock Options.

*Grants.*All awards granted pursuant to the 2022 Plan will be evidenced by an award agreement, in a form approved, from time to time, by the Administrator in its sole discretion. The award agreement will set forth the terms and conditions of the award, including the type of award, number of shares subject to such award, vesting schedule and conditions (including performance goals or measures) and the exercise price, if applicable. Certain awards under the 2022 Plan may constitute or provide for a deferral of compensation, subject to Section 409A of the Code, which may impose additional requirements on the terms and conditions of such awards.

Unless otherwise determined by the Administrator and stated in the award agreement, and subject to the conditions of the 2022 Plan, awards vest and become exercisable under the following schedule: 25% of the shares covered by the award on the first anniversary of the vesting commencement date determined by the Administrator (and in the absence of such determination, the date on which such award was granted) and 6.25% of the Shares covered by the award at the end of each subsequent three-month period thereafter over the course of the following three years; provided that the grantee remains continuously as an employee or provides services to the company throughout such vesting dates.

Each award will expire ten years from the date of the grant thereof, unless such shorter term of expiration is otherwise designated by the Administrator.

*Awards.*The 2022 Plan provides for the grant of stock options (including incentive stock options and nonqualified stock options), ordinary shares, restricted shares, RSUs, stock appreciation rights and other share-based awards.

Options granted under the 2022 Plan to the Company employees who are U.S. residents may qualify as “incentive stock options” within the meaning of Section 422 of the Code, or may be non-qualified stock options. The exercise price of an option may not be less than the par value of the Shares (if the Shares bear a par value) for which such option is exercisable. The exercise price of an Incentive Stock Option may not be less than 100% of the fair market value of the underlying share on the date immediately preceding the day of the grant or such other amount as may be required pursuant to the Code, and in the case of Incentive Stock Options granted to ten percent shareholders, not less than 110%.

Nonqualified stock options may not be granted to a U.S. service provider unless (i) the Shares underlying such options constitute “service recipient stock” under Section 409A of the Code and such options meet the other requirements to be exempt from Section 409A of the Code or (ii) such options comply with the requirements of Section 409A of the Code. A nonqualified stock option may be granted with an exercise price lower than the minimum exercise price set forth above if (i) such option is granted pursuant to an assumption or substitution for another option in accordance with and pursuant to Section 409A of the Code or (ii) the Administrator expressly determined that the option will have a lower exercise price and the Option complies with Section 409A of the Code or meets another exemption under Section 409A of the Code.

Incentive stock options may be granted only to U.S. service providers who are employees of the Company. However, if for any reason an option (or portion thereof) does not qualify as an incentive stock option, then, to the extent of such non-qualification, such option (or portion thereof) shall be treated as a nonqualified stock option granted under the 2022 Plan.

An RSU may be awarded to any service provider, including under Section 102 of the Ordinance. Subject to Applicable Law, RSUs may be granted in consideration of a reduction in the recipient’s other compensation. No payment of exercise price shall be required as consideration for RSUs, unless included in the award agreement or as required by applicable law. The grantee shall not possess or own any ownership rights in the Shares underlying the RSUs. Settlement of vested RSUs shall be made in the form of Shares. Distribution to a grantee of an amount (or amounts) from settlement of vested RSUs can be deferred to a date after vesting as determined by the Administrator; provided, that no such deferral shall be made with respect to RSUs held by a U.S. service provider if such deferral would cause such RSUs to fail to qualify for an exemption under Section 409A of the Code and become subject to the requirements of Section 409A of the Code, unless expressly determined by the Administrator, or would violate the requirements of Section 409A. In no event shall any dividends or dividend equivalent rights be paid before the vesting of the portion of the RSUs to which such dividends or dividend equivalent rights relate, unless otherwise provided for in an award agreement or determined by the Committee. Any RSUs granted under the 2022 Plan that are not exempt from the requirements of Section 409A of the Code shall contain such restrictions or other provisions so that such RSUs will comply with the requirements of Section 409A of the Code.

*Exercise.*An award under the 2022 Plan may be exercised by providing the Company with a written or electronic notice of exercise and full payment of the exercise price for such shares underlying the award, if applicable, in such form and method as may be determined by the Administrator and permitted by applicable law. An award may not be exercised for a fraction of a share. With regard to tax withholding, exercise price and purchase price obligations arising in connection with awards under the 2022 Plan, the Administrator may, in its discretion, accept cash, provide for net withholding of shares in a cashless exercise mechanism or direct a securities broker to sell shares and deliver all or a part of the proceeds to the Company or the trustee. The exercise period of an award will be determined by the Administrator and stated in the award agreement, but will in no event be longer than ten (10) years from the date of grant of the award. Notwithstanding anything to the contrary, the Administrator may extend the periods for which awards held by any grantee may continue to vest and/or be exercisable; it being clarified that such awards may lose their entitlement to certain tax benefits under applicable law; if done so with respect to a U.S service provider, the Administrator shall act in accordance with Section 409A of the Code, as applicable.

*Transferability.*Other than by will, the laws of descent and distribution or as otherwise provided under the 2022 Plan, neither the options nor any right in connection with such options are assignable or transferable.

*Terminationof Employment.*In the event of termination of a grantee’s employment or service with the Company or any of its affiliates, all vested and exercisable awards held by such grantee as of the date of termination may be exercised within three months after such date of termination, unless otherwise determined by the Administrator, but in no event later than the date of expiration of the award as set forth in the award agreement. After such three-month period, all such unexercised awards will terminate and the shares covered by such awards shall again be available for issuance under the 2022 Plan.

In the event of termination of a grantee’s employment or service with the Company or any of its affiliates due to such grantee’s death or permanent disability, or in the event of the grantee’s death within the three month period (or such longer period as determined by the Administrator) following his or her termination of service, all vested and exercisable awards held by such grantee as of the date of termination may be exercised by the grantee or the grantee’s legal guardian, estate or by a person who acquired the right to exercise the award by bequest or inheritance, as applicable, within one year after such date of termination, unless otherwise provided by the Administrator, but in no event later than the date of expiration of the award as set forth in the award agreement. Any awards which are unvested as of the date of such termination or which are vested but not then exercised within the one year period following such date, will terminate and the shares covered by such awards shall again be available for issuance under the 2022 Plan.

Notwithstanding any of the foregoing, if a grantee’s employment or services with the Company or any of its affiliates is terminated for “cause” (as defined in the 2022 Plan), all outstanding awards held by such grantee (whether vested or unvested) will terminate on the date of such termination and the shares covered by such awards shall again be available for issuance under the 2022 Plan.

Any Option that is intended to be an incentive stock option and is exercised later than three (3) months after the grantee ceases to be employed by the Company (or any parent or subsidiary), except in the case of death or “Disability” (as defined in Section 22(e)(3) of the Code), will be deemed a nonqualified stock option. If the grantee ceases to be employed by the Company (or any parent or subsidiary) due to disability, any option that is intended to be an incentive stock option and is exercised later than twelve (12) months after such termination date will be deemed a nonqualified stock option.

*VotingRights.*Except with respect to restricted share awards, grantees will not have the rights as a shareholder of the Company with respect to any shares covered by an award until the award has vested and/or the grantee has exercised such award, paid any exercise price for such award and becomes the record holder of the shares. With respect to restricted share awards, grantees will possess all incidents of ownership of the restricted shares, including the right to vote and receive dividends on such shares.

*Dividends.*Grantees holding restricted share awards will be entitled to receive dividends and other distributions with respect to the shares underlying the restricted share award. Any stock split, stock dividend, combination of shares or similar transaction will be subject to the restrictions of the original restricted share award. Grantees holding RSUs will not be eligible to receive dividend but may be eligible to receive dividend equivalents.

*Transactions.*In the event of a share split, reverse share split, share dividend, recapitalization, combination or reclassification of the Company’s shares, the Administrator in its sole discretion may, and where required by applicable law shall, without the need for a consent of any holder, make an appropriate adjustment in order to adjust (i) the number and class of shares reserved and available for the outstanding awards, (ii) the number and class of shares covered by outstanding awards, (iii) the exercise price per share covered by any award, (iv) the terms and conditions concerning vesting and exercisability and the term and duration of the outstanding awards, (v) the type or class of security, asset or right underlying the award (which need not be only that of the Company, and may be that of the surviving corporation or any affiliate thereof or such other entity party to any of the above transactions), and (vi) any other terms of the award that in the opinion of the Administrator should be adjusted; provided that any fractional shares resulting from such adjustment shall be rounded to the nearest whole share unless otherwise determined by the Administrator. In the event of a distribution of a cash dividend to all shareholders, the Administrator may determine, without the consent of any holder of an award, that the exercise price of an outstanding and unexercised award shall be reduced by an amount equal to the per share gross dividend amount distributed by the Company, subject to applicable law.

In the event of a merger or consolidation of the Company or a sale of all, or substantially all, of the Company’s shares or assets or other transaction having a similar effect on the Company, or change in the composition of the board of directors, or liquidation or dissolution, or such other transaction or circumstances that our board of directors determines to be a relevant transaction, then without the consent of the grantee, (i) unless otherwise determined by the Administrator, any outstanding award will be assumed or substituted by such successor corporation, or (ii) regardless of whether or not the successor corporation assumes or substitutes the award (a) provide the grantee with the option to exercise the award as to all or part of the shares, and may provide for an acceleration of vesting of unvested awards, (b) cancel the award and pay in cash, shares of the Company, the acquirer or other corporation which is a party to such transaction or other property as determined by the Administrator as fair in the circumstances, or (c) provide that the terms of any award shall be otherwise amended, modified or terminated, as determined by the Administrator to be fair in the circumstances. Changes with respect to awards held by U.S. service providers shall be made in accordance with the requirements of Section 409A of the Code or Section 424 of the Code, as applicable and to the extent necessary to avoid adverse tax consequences under Section 409A of the Code, a transaction or other event will not be deemed a Merger/Sale for purposes of awards granted to U.S. service providers unless the transaction or other event qualifies as a change in control event within the meaning of Section 409A of the Code.

C.Board Practices

Boardof Directors

Our board of directors consists of four directors, three of whom are deemed independent directors under the corporate governance standards of the Nasdaq Marketplace Rules and the independence requirements of Rule 10A-3 of the Exchange Act, as well as the standards of the Companies Law.

Under our articles of association, our board of directors must consist of no less than three and no more than seven directors (including the external directors, if any), divided into three classes with staggered three-year terms. Each class of directors consists, as nearly as possible, of one-third of the total number of directors constituting the entire board of directors. At each annual general meeting of our shareholders, the election or re-election of directors following the expiration of the term of office of the directors of that class of directors will be for a term of office that expires on the third annual general meeting following such election or re-election.

Our directors are divided among the three classes as follows:

●	the<br> Class I directors are Messrs. Eli Arad and David Gerbi and their respective terms will expire<br> at the Company’s annual general meeting of shareholders to be held in 2026;
●	the<br> Class II director is Ms. Sari Singer and her term will expire at the Company’s annual<br> general meeting of shareholders to be held in 2024; and
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●	the<br> Class III director is Mr. Yaron Kaiser his term will expire at the Company’s annual<br> general meeting of shareholders to be held in 2025.
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Pursuant to our articles of association, the vote general required to appoint a director is a simple majority vote of holders of our voting shares participating and voting at the relevant meeting, provided that (i) in the event of a contested election, the method of calculation of the votes and the manner in which the resolutions will be presented to our shareholders at the general meeting shall be determined by our board of directors in its discretion, and (ii) in the event that our board of directors does not or is unable to make a determination on such matter, then the directors will be elected by a plurality of the voting power represented at the general meeting in person or by proxy and voting on the election of directors.

Each director will hold office until the annual general meeting of our shareholders for the year in which such director’s term expires, unless the tenure of such director expires earlier pursuant to the Companies Law or unless such director is removed from office. Under our articles of association, the approval of the holders of at least 65% of the total voting power of our shareholders is generally required to remove any of our directors from office.

In addition, our articles of association allow our board of directors to appoint new directors to fill vacancies which can occur for any reason or as additional directors, provided that the number of board members shall not exceed the maximum number of directors mentioned above. A director so appointed will hold office until the next annual general meeting of our shareholders for the election of the class of directors in respect of which the vacancy was created, or in the case of a vacancy due to the number of directors being less than the maximum number of directors stated in our articles of association, until the next annual general meeting of our shareholders for the election of the class of directors to which such director was assigned by our board of directors. Our board of directors may continue to operate for as long as the number of directors is no less than the minimum number of directors mentioned above.

In addition, under the Companies Law, our board of directors must determine the minimum number of directors who are required to have financial and accounting expertise. Under applicable regulations, a director with financial and accounting expertise is a director who, by reason of his or her education, professional experience and skill, has a high level of proficiency in and understanding of business accounting matters and financial statements. He or she must be able to thoroughly comprehend the financial statements of the company and initiate discussion regarding the manner in which financial information is presented. In determining the number of directors required to have such expertise, the board of directors must consider, among other things, the type and size of the company and the scope and complexity of its operations. Our board of directors has determined that we require at least one director with the requisite financial and accounting expertise and that Eli Arad and David Gerbi have such expertise.

ExternalDirectors

The Companies Law requires a public Israeli company to have at least two external directors who meet certain independence criteria to ensure that they are unaffiliated with the company and its controlling shareholder. An external director must have either financial and accounting expertise or professional qualifications, as defined in the regulations promulgated under the Companies Law, and at least one of the external directors is required to have financial and accounting expertise. An external director is entitled to reimbursement of expenses and compensation as provided in the regulations promulgated under the Companies Law, but is otherwise prohibited from receiving any other compensation from the company, directly or indirectly, during his or her term and for two years thereafter.

Pursuant to regulations promulgated under the Companies Law, as a company with shares traded on Nasdaq, we have elected no to comply with the requirements to appoint external directors and related rules concerning the composition of the audit committee and compensation committee of the board of directors. We are still subject to the gender diversity rule under the Companies Law, which requires that if, at the time a director is to be elected or appointed, all members of the board of directors are of the same gender, the director to be appointed must be of the other gender. The conditions to the exemptions from the Companies Law requirements are that: (i) the company does not have a “controlling shareholder,” as such term is defined under the Companies Law, (ii) its shares are traded on certain U.S. stock exchanges, including Nasdaq, and (iii) it comply with the director independence requirements and the audit committee and compensation committee composition requirements under U.S. laws, including the rules of the applicable exchange, that are applicable to U.S. domestic issuers.

Committeesof the Board of Directors

Our board of directors has established the following committees. Each committee operates in accordance with a written charter that sets forth the committee’s structure, operations, membership requirements, responsibilities and authority to engage advisors.

AuditCommittee

Under the Companies Law, the Exchange Act and Nasdaq Marketplace Rules, we are required to maintain an audit committee.

The responsibilities of an audit committee under the Companies Law include identifying and addressing flaws in the business management of the company, reviewing and approving related party transactions, establishing whistleblower procedures, overseeing the company’s internal audit system and the performance of its internal auditor, and assessing the scope of the work and recommending the fees of the company’s independent accounting firm. In addition, the audit committee is required to determine whether certain related party actions and transactions are “material” or “extraordinary” for the purpose of the requisite approval procedures under the Companies Law and to establish procedures for considering proposed transactions with a controlling shareholder.

In accordance with U.S. law and Nasdaq Marketplace Rules, our audit committee is also responsible for the appointment, compensation and oversight of the work of our independent auditors and for assisting our board of directors in monitoring our financial statements, the effectiveness of our internal controls and our compliance with legal and regulatory requirements.

Under the Companies Law, the audit committee must consist of at least three directors who meet certain independence criteria. Under the Nasdaq Marketplace Rules, we are required to maintain an audit committee consisting of at least three independent directors, all of whom are financially literate and one of whom has accounting or related financial management expertise. Each of the members of the audit committee is required to be “independent” as such term is defined in Rule 10A-3(b)(1) under the Exchange Act.

Our audit committee currently consists of Eli Arad, Sari Singer and David Gerbi. All members are independent directors as defined in the Companies Law, SEC rules and Nasdaq listing requirements. Our board of directors has determined that all members of our audit committee meet the requirements for financial literacy under the applicable rules and regulations of the SEC and Nasdaq Marketplace Rules. Our board of directors has determined that Eli Arad and David Gerbi are audit committee financial experts as defined by the SEC rules and have the requisite financial experience as defined by the Nasdaq Marketplace Rules.

CompensationCommittee

Under both the Companies Law and Nasdaq Marketplace Rules, we are required to establish a compensation committee.

The responsibilities of a compensation committee under the Companies Law include recommending to the board of directors, for ultimate shareholder approval by a special majority, a policy governing the compensation of directors and officers based on specified criteria, reviewing modifications to and implementing such compensation policy from time to time, and approving the actual compensation terms of directors and officers prior to approval by the board of directors.

The Companies Law stipulates that the compensation committee must consist of at least three directors who meet certain independence criteria. Under Nasdaq Marketplace Rules, we are required to maintain a compensation committee consisting of at least two independent directors; each of the members of the compensation committee is required to be independent under Nasdaq Marketplace Rules relating to compensation committee members, which are different from the general test for independence of board and committee members.

Our compensation committee currently consists of Eli Arad, Sari Singer and David Gerbi. All members are independent directors as defined in the Companies Law, SEC rules and regulations, and Nasdaq Marketplace Rules.

DirectorNominations

We do not have a standing nominating committee. In accordance with Rule 5605(e)(2) of the Nasdaq Rules, a majority of the independent directors may recommend a director nominee for selection by the board of directors. Our board of directors believes that the independent directors can satisfactorily carry out the responsibility of properly selecting or approving director nominees without the formation of a standing nominating committee. As we do not have a standing nominating committee, we will not have a nominating committee charter in place.

Our board of directors will consider candidates for nomination who have a high level of personal and professional integrity, strong ethics and values and the ability to make mature business judgments. In general, in identifying and evaluating nominees for director, our board of directors will also consider experience in corporate management such as serving as an officer or former officer of a publicly held company, experience as a board member of another publicly held company, professional and academic experience relevant to our business, leadership skills, experience in finance and accounting or executive compensation practices, whether candidate has the time required for preparation, participation and attendance at board meetings and committee meetings, if applicable, independence and the ability to represent the best interests of our shareholders.

InternalAuditor

Under the Companies Law, the board of directors is required to appoint an internal auditor recommended by the audit committee. The role of the internal auditor is to examine, among other things, whether the company’s actions comply with applicable law and proper business procedures. The internal auditor may not be an interested party, a director or an officer of the company, or a relative of any of the foregoing, nor may the internal auditor be our independent accountant or a representative thereof. Our current internal auditor is Mr. Daniel Spira, CPA, who is a member of the board of directors of the Institute of Internal Auditors in Israel and Chairman of its Auditing and Knesset Relations Committee.

FiduciaryDuties and Approval of Related Party Transactions

Fiduciaryduties of directors and officers

Israeli law imposes a duty of care and a duty of loyalty on all directors and officers of a company. The duty of care requires a director or officer to act with the level of care with which a reasonable director or officer in the same position would have acted under the same circumstances. The duty of care includes, among other things, a duty to use reasonable means, under the circumstances, to obtain information on the advisability of a given action brought for his approval or performed by virtue of his position and other important information pertaining to such action. The duty of loyalty requires the director or officer to act in good faith and for the benefit of the company.

Disclosureof Personal Interests of an Office Holder and Approval of Certain Transactions

Under the Companies Law, a company may approve an act specified above which would otherwise constitute a breach of the office holder’s fiduciary duty, provided that the office holder acted in good faith, the act or its approval does not harm the company, and the office holder discloses to the company his or her personal interest in the transaction (including any significant fact or document) a reasonable time before the approval of such act. Any such approval is subject to the terms of the Companies Law, setting forth, among other things, the appropriate bodies of the company required to provide such approval, and the methods of obtaining such approval.

The Companies Law requires that an office holder promptly disclose to the company any direct or indirect personal interest that he or she may have and all related material information or documents known to him or her relating to any existing or proposed transaction by the company. An interested office holder’s disclosure must be made promptly and, in any event, no later than the first meeting of the board of directors at which the transaction is considered. An office holder is not obliged to disclose such information if the personal interest of the office holder derives solely from the personal interest of his or her relative in a transaction that is not considered an extraordinary transaction.

If the transaction is an extraordinary transaction, the office holder must also disclose any personal interest held by:

●	the<br> office holder’s relatives (spouse, siblings, parents, grandparents, descendants, spouse’s descendants and the spouses<br> of any of these people); or
●	any<br> company in which the office holder or his or her relatives holds 5% or more of the shares or voting rights, serves as a director<br> or general manager or has the right to appoint at least one director or the general manager.
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Under the Companies Law, unless the articles of association of a company provide otherwise, a transaction with an office holder or with a third party in which the office holder has a personal interest, which is not an extraordinary transaction, requires approval by the board of directors or a committee authorized by the board of directors. If the transaction considered is an extraordinary transaction with an office holder or third party in which the office holder has a personal interest, then audit committee approval is required prior to approval by the board of directors. Under specific circumstances, shareholder approval may also be required. For the approval of compensation arrangements with directors and executive officers, see “Item 6.B. Compensation—Compensation of Directors and Executive Officers.”

Any persons who have a personal interest in the approval of a transaction that is brought before a meeting of the board of directors or the audit committee may not be present at the meeting or vote on the matter. However, if the chairman of the board of directors or the chairman of the audit committee, as applicable, has determined that the presence of an office holder with a personal interest is required, such office holder may be present at the meeting for the purpose of presenting the matter. Notwithstanding the foregoing, a director who has a personal interest may be present at the meeting of the board of directors or the audit committee (as applicable) and vote on the matter if a majority of the members of the board of directors or the audit committee (as applicable) have a personal interest in the approval of such transaction. If a majority of the directors at a board of directors meeting have a personal interest in the transaction, such transaction also generally requires approval of the shareholders of the company.

A “personal interest” is defined under the Companies Law as the personal interest of a person in an action or in a transaction of the company, including the personal interest of such person’s relative or the interest of any other corporate body in which the person and/or such person’s relative is a director or general manager, a 5% shareholder or holds 5% or more of the issued and outstanding share capital of the company or of its voting rights, or has the right to appoint at least one director or the general manager, but excluding a personal interest stemming solely from the fact of holding shares in the company. A personal interest also includes (i) a personal interest of a person who votes according to a proxy of another person, including in the event that the other person has no personal interest, and (ii) a personal interest of a person who gave a proxy to another person to vote on his or her behalf regardless of whether the discretion of how to vote lies with the person voting.

An “extraordinary transaction” is defined under the Companies Law as any of the following:

●	a<br> transaction other than in the ordinary course of business;
●	a<br> transaction that is not on market terms; or
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●	a<br> transaction that may have a material impact on the company’s profitability, assets or liabilities.
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Disclosureof Personal Interests of a Controlling Shareholder and Approval of Transactions

Pursuant to the Companies Law, the disclosure requirements that apply to an office holder also apply to a controlling shareholder of a public company. Extraordinary transactions with a controlling shareholder or in which a controlling shareholder has a personal interest, including a private placement in which a controlling shareholder has a personal interest, and the terms of engagement of the company, directly or indirectly, with a controlling shareholder or a controlling shareholder’s relative (including through a corporation controlled by a controlling shareholder), regarding the company’s receipt of services from the controlling shareholder, and if such controlling shareholder is also an office holder or employee of the company, regarding his or her terms of employment, require the approval of each of (i) the audit committee (or the compensation committee with respect to the terms of the engagement as an office holder or employee, including insurance, indemnification and compensation), (ii) the board of directors and (iii) the shareholders, in that order. In addition, the shareholder approval must fulfill one of the following requirements:

●	a<br> majority of the shares held by shareholders who have no personal interest in the transaction and are voting at the meeting must be<br> voted in favor of approving the transaction, excluding abstentions; or
●	the<br> shares voted by shareholders who have no personal interest in the transaction who vote against the transaction represent no more<br> than 2% of the voting rights in the company.
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Such majority determined in accordance with the majority requirement described above is hereinafter referred to as the Compensation Special Majority Requirement.

Any such transaction for which the term is more than three years must be approved in the same manner every three years, unless with respect to certain transactions as permitted by the Companies Law, the audit committee has determined that a longer term is reasonable under the circumstances. In addition, transactions with a controlling shareholder or a controlling shareholder’s relative who serves as an executive officer in a company, directly or indirectly (including through a corporation under his control), involving the receipt of services by a company or their compensation can have a term of five years from the company’s initial public offering under certain circumstances.

The Companies Law requires that every shareholder that participates, in person or by proxy, in a vote regarding a transaction with a controlling shareholder, must indicate in advance or in the ballot whether or not that shareholder has a personal interest in the vote in question. Failure to so indicate generally results in the invalidation of that shareholder’s vote.

Disclosureof Compensation of Executive Officers

For so long as we qualify as a foreign private issuer, we are not required to comply with the proxy rules applicable to U.S. domestic filers, including the requirement applicable to emerging growth companies to disclose the compensation of our chief executive officer and other two most highly compensated executive officers on an individual, rather than an aggregate, basis. Nevertheless, regulations promulgated under the Companies Law require us to disclose in the proxy statement for the annual general meeting of our shareholders (or to include a reference therein to other previously furnished public disclosure) the annual compensation of our five most highly compensated executive officers on an individual, rather than an aggregate, basis. This disclosure will not be as extensive as that required of a U.S. domestic issuer.

Compensationof Directors and Executive Officers

Directors. Under the Companies Law, the compensation of our directors requires the approval of our compensation committee, the subsequent approval of the board of directors and, unless exempted under regulations promulgated under the Companies Law, the approval of the shareholders at a general meeting. If the compensation of our directors is inconsistent with our compensation policy, then, provided that those provisions that must be included in the compensation policy according to the Companies Law have been considered by the compensation committee and board of directors, and provided that shareholder approval is obtained by the Compensation Special Majority Requirement.

Executive Officers (other than the Chief Executive Officer). The Companies Law requires the approval of the compensation of a public company’s executive officers (other than the chief executive officer) in the following order: (i) the compensation committee, (ii) the company’s board of directors and (iii) if such compensation arrangement is inconsistent with the company’s compensation policy, the company’s shareholders (the Compensation Special Majority Requirement). However, if the shareholders of the company do not approve a compensation arrangement with an executive officer that is inconsistent with the company’s compensation policy, the compensation committee and board of directors may override the shareholders’ decision if each of the compensation committee and the board of directors provide detailed reasons for their decision.

Chief Executive Officer. The Companies Law requires the approval of the compensation of a public company’s chief executive officer in the following order: (i) the company’s compensation committee, (ii) the company’s board of directors and (iii) the company’s shareholders (the Compensation Special Majority Requirement). However, if the shareholders of the company do not approve the compensation arrangement with the chief executive officer, the compensation committee and board of directors may override the shareholders’ decision if each of the compensation committee and the board of directors provide a detailed report for their decision. The approval of each of the compensation committee and the board of directors should be in accordance with the company’s compensation policy; however, in special circumstances, they may approve compensation terms of a chief executive officer that are inconsistent with such policy provided that they have considered those provisions that must be included in the compensation policy according to the Companies Law and that shareholder approval was obtained (by a special majority vote as discussed above with respect to the approval of director compensation). In addition, the compensation committee may waive the shareholder approval requirement with regards to the approval of the engagement terms of a candidate for the chief executive officer position, if the compensation committee determines that the compensation arrangement is consistent with the company’s compensation policy, and that the chief executive officer did not have a prior business relationship with the company or a controlling shareholder of the company and that subjecting the approval of the engagement to a shareholder vote would impede the company’s ability to employ the chief executive officer candidate.

CompensationPolicy

Under the Companies Law, we are required to approve, at least once every three years, a compensation policy with respect to our directors and officers. Following the recommendation of our compensation committee, the compensation policy must be approved by our board of directors and our shareholders. The shareholder approval must be by a simple majority of all votes cast, provided that (i) such majority includes a simple majority of the votes cast by non-controlling shareholders having no personal interest in the matter or (ii) the total number of votes of shareholders mentioned in clause (i) above who voted against such transaction does not exceed 2% of the total voting rights in the company.

Directors’Service Contracts

There are no arrangements or understandings between us and any of our subsidiaries, on the one hand, and any of our directors, on the other hand, providing for benefits upon termination of their employment or service as directors of our company or any of our subsidiaries.

Dutiesof Shareholders

Under the Companies Law, a shareholder has a duty to refrain from abusing its power in the company and to act in good faith and in an acceptable manner in exercising its rights and performing its obligations to the company and other shareholders, including, among other things, when voting at meetings of shareholders on the following matters:

●	an<br> amendment to the articles of association;
●	an<br> increase in the company’s authorized share capital;
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●	a<br> merger; and
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●	the<br> approval of related party transactions and acts of office holders that require shareholder approval.
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A shareholder also has a general duty to refrain from discriminating against other shareholders.

The remedies generally available upon a breach of contract also apply to a breach of the shareholder duties mentioned above, and in the event of discrimination against other shareholders, additional remedies may be available to the injured shareholder.

In addition, any controlling shareholder, any shareholder that knows that its vote can determine the outcome of a shareholder vote and any shareholder that, under a company’s articles of association, has the power to appoint or prevent the appointment of an office holder, or any other power with respect to a company, is under a duty to act with fairness towards the company. The Companies Law does not describe the substance of this duty except to state that the remedies generally available upon a breach of contract also apply in the event of a breach of the duty to act with fairness, taking the shareholder’s position in the company into account.

Exculpation,Insurance and Indemnification of Directors and Officers

Under the Companies Law, a company may not exculpate an office holder from liability for a breach of the duty of loyalty. An Israeli company may exculpate an office holder in advance from liability to the company, in whole or in part, for damages caused to the company as a result of a breach of duty of care but only if a provision authorizing such exculpation is included in its articles of association. Our articles of association include such a provision. The company may not exculpate in advance a director from liability arising from a breach of his or her duty of care in connection with a prohibited dividend or distribution to shareholders.

As permitted under the Companies Law, our articles of association provide that we may indemnify an office holder in respect of the following liabilities, payments and expenses incurred for acts performed by him or her as an office holder, either in advance of an event or following an event:

●	financial<br> liability that was imposed upon him in favor of another person pursuant to a judgment, including a compromise judgment or an arbitrator’s<br> award approved by a court;
●	reasonable<br> litigation expenses, including attorneys’ fees paid by an officeholder following an investigation or proceeding conducted against<br> him by an authority authorized to conduct such investigation or proceeding, and which ended without the filing of an indictment against<br> him and without any financial obligation being imposed on him as an alternative to a criminal proceeding, or which ended without<br> the filing of an indictment against him but with the imposition of a financial obligation as an alternative to a criminal proceeding<br> for an offense which does not require proof of mens rea or in connection with a financial sanction;
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●	reasonable<br> litigation expenses, including attorneys’ fees paid by the officeholder or which he was required to pay by a court, in a proceeding<br> filed against him by the Company or on its behalf or by another person, or in criminal charges from which he was acquitted, or in<br> criminal charges in which he was convicted of an offense which does not require proof of mens rea;
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●	a<br> financial obligation imposed on the officeholder for the benefit of all of the parties damaged by the violation of an administrative<br> proceeding;
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●	expenses<br> incurred by an officeholder in connection with an Administrative Proceeding conducted in his regard, including reasonable litigation<br> expenses, and including attorneys’ fees;
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●	expenses<br> incurred by an officeholder in connection with a proceeding under the Antitrust Law, 5748-1988 and/or in connection with it (a “Proceeding<br> Under the Antitrust Law”), conducted regarding him, including reasonable litigation expenses, and attorneys’ fees; and
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●	any<br> other liability or expense in respect of which it is permitted or shall be permitted by Law to indemnify an officeholder.
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As permitted under the Israeli Companies Law, our articles of association provide that we may insure an office holder against the following liabilities incurred for acts performed by him or her as an office holder:

●	Breach<br> of the duty of care to the Company or to any other person;
●	Breach<br> of the fiduciary duty to the Company, provided that the officeholder acted in good faith and had reasonable grounds to assume that<br> his act would not adversely affect the Company’s best interests;
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●	financial<br> liability imposed upon him in favor of another person;
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●	financial<br> liability imposed on the officeholder for the benefit of all of the parties damaged by the violation of an administrative proceeding;
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●	expenses<br> incurred or to be incurred by an officer in connection with an Administrative Proceeding, including reasonable litigation expenses,<br> and including attorneys’ fees;
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●	Expenses<br> incurred or to be incurred in connection with a proceeding under the Antitrust Law, including reasonable litigation expenses, and<br> including attorneys’ fees; and
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●	any<br> other event in respect of which it is permitted and/or shall be permitted by Law to insure the liability of an officeholder.
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Under the Companies Law, a company may not indemnify, exculpate or insure an office holder against any of the following:

●	a<br> breach of the duty of loyalty, except for indemnification and insurance for a breach of the duty of loyalty to the company to the<br> extent that the office holder acted in good faith and had a reasonable basis to believe that the act would not prejudice the company;
●	a<br> breach of duty of care committed intentionally or recklessly, excluding a breach arising out of the negligent conduct of the office<br> holder;
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●	an<br> act or omission committed with intent to derive illegal personal benefit; or
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●	a<br> fine, monetary sanction or forfeit levied against the office holder.
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Under the Companies Law, exculpation, indemnification and insurance of office holders must be approved by the compensation committee and the board of directors and, with respect to directors or controlling shareholders, their relatives and third parties in which controlling shareholders have a personal interest, also by the shareholders.

Our articles of association permit us to exculpate, indemnify and insure our office holders to the fullest extent permitted or to be permitted by law. Our office holders are currently covered by a directors’ and officers’ liability insurance policy. As of the date of this annual report, no claims for directors’ and officers’ liability insurance have been filed under this policy and we are not aware of any pending or threatened litigation or proceeding involving any of our office holders, including our directors, in which indemnification is sought.

D.Employees

As of December 31, 2023, we employed 43 employees based at our office and laboratory in Rehovot, Israel. On April 4, 2023, we announced that our Belgian subsidiary Peace of Meat would be liquidated, therefore we no longer employ any employees in Belgium.

Local labor laws govern the length of the workday and workweek, minimum wages for employees, procedures for hiring and dismissing employees, determination of severance pay, annual leave, sick days, advance notice of termination, Social Security payments or regional equivalents, and other conditions of employment and include equal opportunity and anti-discrimination laws. None of our employees is party to any collective bargaining agreements. We generally provide our employees with benefits and working conditions beyond the required minimums. We believe we have a good relationship with our employees, and have never experienced any employment-related work stoppages.

E.Beneficial Ownership of Executive Officers and Directors

The beneficial ownership of our ordinary shares (including ordinary shares represented by ADSs) is determined in accordance with the rules of the SEC. Under these rules, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or to direct the voting of the security, or investment power, which includes the power to dispose of or to direct the disposition of the security. For purposes of the table below, we deem ordinary shares issuable pursuant to options or warrants that are currently exercisable or exercisable within 60 days of the date of this Annual Report on Form 20-F, if any, to be outstanding and to be beneficially owned by the person holding the options or warrants for the purposes of computing the percentage ownership of that person, but we do not treat them as outstanding for the purpose of computing the percentage ownership of any other person.

Unless

otherwise noted below, each shareholder’s address is c/o Steakholder Foods Ltd., 5 David Fikes St., Rehovot 7638205, Israel.

	American Depositary<br><br> Shares Beneficially Owned
Name of Beneficial Owner	Number		Percentage^(1)^
Directors and executive officers
Arik Kaufman^(2)^		69,114		2.5	%
Moran Attar		-		-
Itamar Atzmony^(3)^		4,366		*
Yaron Kaiser^(4)^		72,060		2.6	%
David Gerbi^(5)^		5,666		*
Eli Arad^(6)^		5,150		*
Sari Singer^(7)^		5,219		*
All directors and executive officers as a group (7 persons)		161,575		5.7	%
*	Less<br> than one percent (1%).
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(1)	Based<br> on 2,735,120 ADSs, representing or able to represent<br> Ordinary Shares, outstanding as of April 29, 2024.
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(2)	Consists<br> of 10,791 ADSs, 37,556 ADSs which have vested or are expected to vest within 60 days of the<br> date of this annual report from employee RSUs for which Messrs. Kaufman and Kaiser hold a<br> power of attorney with regard to their voting rights only, performance share units that may<br> vest into 19,100 ADSs if his associated performance targets are met during such period, and<br> options to purchase 1,667 ADSs exercisable within 60 days of the date of this annual report,<br> with an exercise price of $51.90. These options expire on March 16, 2026.
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(3)	Consists<br> of 2,499 ADSs, options to purchase 1,000 ADSs exercisable within 60 days of the date of this<br> annual report, with an exercise price of NIS 349 ($96), expiring on March 24, 2025, and options<br> to purchase 867 ADSs exercisable within 60 days of the date of this annual report, with an<br> exercise price of $39.90, expiring on July 23, 2026.
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(4)	Consists<br> of 19,937 ADSs based on information provided to us by Mr. Kaiser, options to purchase 1,167<br> ADSs exercisable within 60 days of the date of this annual report with an exercise price<br> of $51.90, expiring on March 16, 2026, 37,556 ADSs which have vested or are expected to vest<br> within 60 days of the date of this annual report from employee RSUs for which Messrs. Kaufman<br> and Kaiser hold a power of attorney with regard to their voting rights only, and performance<br> share units that may vest into 13,400 Ordinary Shares within 60 days of this annual report<br> if his associated performance targets are met during such period.
(5)	Consists<br> of 4,357 ADSs and options to purchase 1,309 ADSs within 60 days of the date of this annual<br> report with an exercise price of $71.60. These options expire on July 20, 2025.
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(6)	Consists<br> of 3,841 ADSs and options to purchase 1,309 ADSs within 60 days of the date of this annual<br> report with an exercise price of $71.60. These options expire on July 20, 2025.
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(7)	Consists<br> of 3,910 ADSs and options to purchase 1,309 ADSs within 60 days of the date of this annual<br> report with an exercise price of $71.60. These options expire on July 20, 2025.
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F.Action to Recover Erroneously Awarded Compensation

Not applicable.

ITEM 7.	MajorShareholders And Related Party Transactions

A.Major Shareholders

To our knowledge, we have no shareholders who own beneficially more than 5% of our ordinary shares as of the date hereof.

None of our shareholders have different voting rights from other shareholders. We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our company.

As of the date of this Annual Report on Form 20-F, there are five shareholders of record of our ordinary shares, of whom two are in the United States. The number of record holders is not representative of the number of beneficial holders of our ordinary shares, as most of the shares we have issued, including those represented by ADSs are currently recorded in the name of our ADS registrar, The Bank of New York Mellon. Based upon a review of the information provided to us by The Bank of New York Mellon, as of March 1, 2024, there were 27 holders of record of the ADSs on record with the Depository Trust Company. These numbers are not representative of the number of beneficial holders of our ADSs nor is it representative of where such beneficial holders reside, since many of these ADSs were held of record by brokers or other nominees.

B.Related Party Transactions

Thefollowing is a description of the material transactions we entered into with related parties since January 1, 2021. We believe that wehave executed all of our transactions with related parties on terms no less favorable to us than those we could have obtained from unaffiliatedthird parties.

OurBoard of Directors, acting through our Audit Committee, is responsible for the review, approval, or ratification of related party transactionsbetween us and related persons. Under Israeli law, related party transactions are subject to special approval requirements, see “Management— Fiduciary duties and approval of specified related party transactions and compensation under Israeli law.”

EmploymentAgreements and Director Fees

We have entered into written employment agreements with each of our executive officers, which provide for notice periods of varying duration for termination of the agreement by us or by the relevant executive officer, during which time the executive officer will continue to receive base salary and benefits. These agreements also contain customary provisions regarding noncompetition, confidentiality of information and assignment of inventions. However, the enforceability of the noncompetition provisions may be limited under applicable law. See “Risk factors - Risks relating to our operations - Under applicable employment laws, we may not be able to enforce covenants not to compete” for a further description of the enforceability of non-competition clauses. For further information, see “Management - Employment and Consulting Agreements.”

Directorsand Officers Insurance Policy and Indemnification and Exculpation Agreements

In accordance with our articles of association, we have obtained Directors and Officers insurance for our executive officers and directors, and provide indemnification, exculpation and exemption undertakings to each of our directors and officers to the fullest extent permitted by the Companies Law.

PrivateIssuances of Securities

Engagementwith BlueSoundWaves

On October 6, 2021, we entered into a services and collaboration agreement, or the Services and Collaboration Agreement, with BlueOcean Sustainability Fund, LLC, or BlueSoundWaves, pursuant to which BlueSoundWaves provides us with marketing and promotional services, strategic consulting advice, and partner and investor engagement services in the United States. As consideration for such services, BlueSoundWaves received (i) an option to purchase 6,215,770 ordinary shares, currently equal to 621,577 ADSs, and (ii) 1,243,150 of our ordinary restricted shares, currently equal to 124,315 ADSs.

BlueOcean Sustainability Management Fund LP, a Cayman partnership, and the managing partner of BlueSoundWaves holds all of the outstanding share capital of BlueOcean Kayomot Ltd., an Israeli company. Messrs. Kaufman and Kaiser are directors of BlueOcean Kayomot Ltd. and founding partners of BlueSoundWaves. Mr. Kaufman also serves as the chief executive officer of BlueOcean Kayomot Ltd. See Item 10.C for additional discussion of the Services and Collaboration Agreement.

C.Interests of Experts and Counsel

Not applicable.

ITEM 8.	FINANCIAL INFORMATION

A.Consolidated Statements and other Financial Information

See “Item 18.—Financial Statements” in this Annual Report on Form 20-F.

LegalProceedings

DividendDistributions

We have never declared or paid cash dividends to our shareholders. Currently we do not intend to pay cash dividends. We currently intend to reinvest any future earnings in developing and expanding our business. Any future determination relating to our dividend policy will be at the discretion of our Board of Directors and will depend on a number of factors, including future earnings, our financial condition, operating results, contractual restrictions, capital requirements, business prospects, applicable Israeli law and other factors our Board of Directors may deem relevant.

B.Significant Changes

Since December 31, 2023, the following significant changes have occurred:

●	On<br> January 24, 2024, the Company entered into an inducement offer letter agreement with a certain holder of existing warrants to exercise<br> these warrants and purchase (i) 6,000,000 ADSs issued in July 2023 at an exercise price of $1.10 per ADS, (ii) 6,500,000 ADSs issued<br> in January 2023 at an exercise price of $1.00 per ADS and (iii) 1,857,143 ADSs issued in July 2022 at an exercise price of $1.00<br> per ADS (all herein “the Exercised Warrants”). Pursuant to the letter agreement, the holder agreed to exercise for cash<br> its Exercised Warrants to purchase an aggregate of 14,357,143 ADSs at a reduced exercise price of $0.46 per ADS in consideration<br> of New Warrants to purchase up to an aggregate of 28,714,286 ADSs at an exercise price of $0.485 per ADS that have a term<br> of exercise of between three and half years with respect to 12,000,000 New Warrants and five years with respect to 16,714,286 New<br> Warrants; and
●	On April 4, 2024, the Company effected an adjustment to the ratio of<br>ordinary shares to American Depositary Shares (“ADS”) at a ratio of 10:1, such that after the ratio adjustment was effected,<br>every 10 ADSs were consolidated into 1 ADS and each ADS now represents one hundred (100) ordinary shares instead of ten (10) ordinary<br>shares prior to the ratio adjustment. All share and per share amounts, and exercise prices of stock options, warrants, and pre-funded<br>warrants, if applicable, in the consolidated financial statements and notes thereto have been adjusted for all periods presented to give<br>effect to this adjustment to the ratio of ordinary shares to ADS.
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ITEM 9.	The Offer And Listing
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A.Offer and Listing Details

ADSs

The ADSs, representing our ordinary shares, traded on the Nasdaq under the symbol “MITC” between March 12, 2021 and August 2, 2022, and have traded under the symbol “STKH” since then.

OrdinaryShares

Our ordinary shares were traded on the TASE between January 26, 2020 and August 3, 2021, when we voluntarily de-listed them from trade on the TASE. Our ordinary shares were traded under the symbol “MEAT” until March 2021, and thereafter under the symbol “MITC.” Some of our ordinary shares are traded over the counter under the symbol MTTCF.

B.Plan of Distribution

Not applicable.

C.Markets

For a description of our publicly-traded ADSs, see “Item 9.— Offer and Listing Details —ADSs.” For a description of our ordinary shares, see “Item 9.— Offer and Listing Details —Ordinary Shares.”

D.Selling Shareholders

Not applicable.

E.Dilution

Not applicable.

F.Expenses of the Issue

Not applicable.

ITEM 10.	Additional Information

A.Share Capital

Not applicable.

B.Memorandum and Articles of Association

A copy of our Articles of Association is attached as Exhibit 1.1 to this Annual Report. Other than as set forth below, the information called for by this Item is set forth in Exhibit 2.3 to this Annual Report and is incorporated by reference into this Annual Report.

C.Material Contracts

On October 6, 2021, we entered into the Services and Collaboration Agreement with BlueSoundWaves, a sustainability focused fund led by led by Ashton Kutcher, Guy Oseary and Effie Epstein. Pursuant to the Services and Collaboration Agreement, BlueSoundWaves provides us marketing and promotional services, strategic consulting advice, and partner and investor engagement services in the United States.

As consideration for such services, BlueSoundWaves received (i) an option to purchase 6,215,770 ordinary shares, currently equal to 621,577 ADSs, and (ii) 1,243,150 of our ordinary restricted shares, currently equal to 124,315 ADSs. The exercise price per ordinary share of the ordinary share option and restricted ordinary share option is the greater of (a) the closing price per ADS on October 5, 2021 ($6.65) divided by the number of ordinary shares represented by the ADS and (b) the closing price per ADS on the day prior to the exercise of the options less a discount ranging from 25% to 75% depending on how much higher the exercise price is compared to the price determined under subsection (a) of this paragraph. The options granted pursuant to this agreement will vest over a three-year period, with one-third vesting on the first anniversary of the Services and Collaboration Agreement with the remaining amount vesting in equal quarterly installments for the remaining period. If either party provides notice to terminate the agreement, the quarterly vesting will be cancelled. A percentage of the options described above will immediately vest and be exercisable upon the occurrence of certain trading milestones, investment milestones or change of control event. We have also agreed to reimburse BlueSoundWaves its reasonable out of pocket expenses which have been previously approved.

The Services and Collaboration Agreement will remain in effect until terminated in accordance with its terms. Each party has the right to terminate upon 60 days prior written notice after the 12-month anniversary of the effective date. Either party may also terminate the Services and Collaboration Agreement upon the occurrence of a material breach which remains uncured 30 days after the breaching party has received notice of the breach. Any portion of the vested options to purchase ordinary shares or restricted ordinary shares will expire on the second anniversary of the termination of the Services and Collaboration Agreement, or otherwise expire on the 10th anniversary.

For other agreements with related parties, see “Item 7.—Major Shareholders and Related Party Transactions—Related Party Transactions.”

D.Exchange Controls

Non-residents of Israel who purchase our ordinary shares outside of Israel with U.S. dollars or other foreign currency will be able to convert dividends (if any) thereon, and any amounts payable upon the dissolution, liquidation or winding up of the affairs of the Company, as well as the proceeds of any sale in Israel of the ordinary shares to an Israeli resident, into freely repatriable dollars, at a rate of exchange prevailing at the time of conversion, pursuant to regulations issued under the Currency Control Law, 1978, provided that Israeli income tax has been withheld by the Company with respect to such amounts.

E.Taxation

The following description is not intended to constitute a complete analysis of all tax consequences relating to the acquisition, ownership and disposition of our ordinary shares or ADSs. You should consult your own tax advisor concerning the tax consequences of your particular situation, as well as any tax consequences that may arise under the laws of any state, local, foreign or other taxing jurisdiction.

Israelitax considerations and government programs

The following is a summary of the current tax regime in the State of Israel, which applies to us and to persons who hold our ordinary shares or ADSs.

This summary does not discuss all the aspects of Israeli tax law that may be relevant to a particular investor in light of his or her personal investment circumstances or to some types of investors subject to special treatment under Israeli law. Examples of this kind of investor include traders in securities or persons who do not hold our ordinary shares or ADSs as a capital asset. Some parts of this discussion are based on a new tax legislation which has not been subject to judicial or administrative interpretation. The discussion should not be construed as legal or professional tax advice and does not cover all possible tax considerations.

HOLDERS AND POTENTIAL INVESTORS ARE URGED TO CONSULT THEIR OWN TAX ADVISORS AS TO THE ISRAELI OR OTHER TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR ORDINARY SHARES OR ADSs, INCLUDING, IN PARTICULAR, THE EFFECT OF ANY FOREIGN, STATE OR LOCAL TAXES.

Generalcorporate tax structure in Israel

Israeli resident companies are generally subject to corporate tax on both ordinary income and capital gains, currently at the rate of 23% of a company’s taxable income. Capital gains derived by an Israeli resident company are subject to tax at the prevailing corporate tax rate. However, the effective tax rate payable by a company that derives income from an “Approved Enterprise”, a “Beneficiary Enterprise” or a “Preferred Enterprise”, a “Special Preferred Enterprise”, a “Preferred Technology Enterprise” or “Special Preferred Technology Enterprise”, may be considerably lower. Capital gains derived by an Israeli company are generally subject to the prevailing regular corporate tax rate.

Taxationof our shareholders

Capitalgains

Capital gains tax is generally imposed on the disposal of capital assets by an Israeli resident, and on the disposal of capital assets by a non-Israeli resident if those assets (i) are located in Israel, (ii) are shares or a right to shares in an Israeli resident corporation, (iii) represent, directly or indirectly, rights to assets located in Israel, or (iv) a right in a foreign resident corporation, which in its essence is the owner of a direct or indirect right to property located in Israel (with respect to the portion of the gain attributed to the property located in Israel), unless a specific exemption is available or unless a tax treaty between Israel and the shareholder’s country of residence provides otherwise. The ITO distinguishes between “Real Capital Gain” and “Inflationary Surplus.” Real Capital Gain is the excess of the total capital gain over Inflationary Surplus. The Inflationary Surplus is a portion of the total capital gain which is equivalent to the increase of the relevant asset’s price that is attributable to the increase in the Israeli consumer price index or, in certain circumstances, a foreign currency exchange rate, between the date of purchase and the date of sale. Inflationary Surplus is not currently subject to tax in Israel.

Real Capital Gain accrued by individuals on the sale of our ordinary shares or ADSs will be taxed at the rate of 25%. However, if the individual shareholder is a “Substantial Shareholder” (i.e., a person who holds, directly or indirectly, alone or together with another, 10% or more of one of the Israeli resident company’s means of control (including, among other things, the right to receive profits of the company, voting rights, the right to receive the company’s liquidation proceeds and the right to appoint a director)) at the time of sale or at any time during the preceding 12-month period, and/or claims a deduction for interest and linkage differences expenses in connection with the purchase and holding of such shares, such gain will be taxed at the rate of 30%.

Individual and corporate shareholders dealing in securities in Israel are taxed at the tax rates applicable to business income in 2022, a tax rate of 23% for corporations and a marginal tax rate of up to 47% for individuals, unless contrary provisions in a relevant tax treaty applies. In addition, a 3% excess tax (as discussed below) is levied on individuals whose total taxable income in Israel in 2022 exceeded NIS 663,240.

Notwithstanding the foregoing, generally, capital gain derived from the sale of our ordinary shares or ADSs by a shareholder who is a non-Israeli resident (whether an individual or a corporation) should be exempt from Israeli capital gain tax, provided, among others, that:(i) the ordinary shares or ADSs were purchased upon or after the listing of the securities on the stock exchange, and (ii) the seller does not have a permanent establishment in Israel to which the derived capital gain is attributable. However, non-Israeli entities (including corporations) will not be entitled to the foregoing exemption if Israeli residents, whether directly or indirectly: (i) have a controlling interest of more than 25% in such non-Israeli entity or (ii) are the beneficiaries of, or are entitled to, 25% or more of the revenues or profits of such non-Israeli entity. In addition, such exemption is not applicable to a person whose gains from selling or otherwise disposing of the shares or ADSs are deemed to be business income. In addition, the sale of ordinary shares or ADSs may be exempt from Israeli capital gains tax under the provisions of an applicable tax treaty. For example, the U.S.-Israel Tax Treaty, or the Treaty, generally exempts U.S. residents (for purposes of the U.S.-Israel Treaty) holding the shares as a capital asset from Israeli capital gains tax in connection with such sale, exchange or disposition unless either (i) the U.S. treaty resident owns, directly or indirectly, 10% or more of the Israeli resident company’s voting rights at any time within the 12-month period preceding such sale, exchange or disposition; (ii) the seller, if an individual, has been present in Israel for a period or periods aggregating to 183 days or more during the relevant taxable year; (iii) the capital gain from the sale, exchange or disposition was derived through a permanent establishment of the U.S. resident in Israel; (iv) the capital gain arising from such sale, exchange or disposition is attributed to real estate located in Israel, or (v) the capital gains arising from such sale, exchange or disposition is attributed to royalties. In any such case, the sale, exchange or disposition of such shares or ADSs would be subject to Israeli tax, to the extent applicable; however, under the U.S.-Israel Treaty, a U.S. resident would be permitted to claim a credit for the Israeli tax against the U.S. federal income tax imposed with respect to the sale, exchange or disposition, subject to the limitations in U.S. laws applicable to foreign tax credits. The U.S.-Israel Treaty does not provide such credit against any U.S. state or local taxes.

In some instances where our shareholders may be liable for Israeli tax on the sale of their shares or ADSs, the payment of the consideration may be subject to withholding tax at source in Israel. Shareholders may be required to demonstrate that they are exempt from tax on their capital gains in order to avoid withholding tax at source at the time of sale. Specifically, in transactions involving a sale of all of the shares of an Israeli resident company, in the form of a merger or otherwise, the Israel Tax Authority may require from shareholders who are not liable for Israeli tax to sign declarations in forms specified by this authority or obtain a specific exemption from the Israel Tax Authority to confirm their status as non-Israeli residents, and, in the absence of such declarations or exemptions, may require the purchaser of the shares to withhold tax at source.

Upon the sale of securities traded on a stock exchange, a detailed return, including a computation of the tax due, must be filed and an advance payment must be made on January 31 and July 31 of every tax year, in respect of sales of securities made within the previous six months by Israeli residents for whom tax has not already been deducted. However, if all tax due was withheld at source according to applicable provisions of the ITO and the regulations promulgated thereunder, there is no need to file a return and no advance payment must be paid, provided that (i) such income was not generated from business conducted in Israel by the taxpayer, (ii) the taxpayer has no other taxable sources of income in Israel with respect to which a tax return is required to be filed and an advance payment does not need to be made, and (iii) the taxpayer is not obligated to pay excess tax (as further explained below). Capital gains are also reportable on the annual income tax return.

Dividends

Israeli residents who are individuals are generally subject to Israeli income tax for dividends paid (other than bonus shares or share dividends) at 25%, or 30% if the recipient of such dividend is a Substantial Shareholder, as defined above, at the time of distribution or at any time during the preceding 12-month period. Israeli resident corporations are generally exempt from Israeli corporate tax on the receipt of dividends paid on shares of Israeli resident corporations.

Non-Israeli residents (whether individuals or corporations) are generally subject to Israeli income tax on the receipt of dividends paid on ordinary shares at the rate of 25% or 30% (if the dividend recipient is a Substantial Shareholder at the time of distribution or at any time during the preceding 12-month period). Such dividends are generally subject to Israeli withholding tax at a rate of 25% so long as the shares are registered with a nominee company (whether the recipient is a Substantial Shareholder or not), unless a reduced rate is provided under an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). Under the U.S.- Israel Treaty and subject to the eligibility to the benefits under such treaty, the maximum rate of tax withheld at source in Israel on dividends paid to a holder of our ordinary shares who is a U.S. resident (for purposes of the U.S.-Israel Treaty) is 25%. However, for dividends not generated by an Approved Enterprise, Benefited Enterprise or Preferred Enterprises (which are benefitted tax regimes under the Law for Encouragement of Capital Investments-1959) and paid to a U.S. corporation holding 10% or more of the outstanding voting capital throughout the tax year in which the dividend is distributed as well as during the previous tax year, the maximum rate of withholding tax is generally 12.5%, provided that not more than 25% of the gross income of the Israeli resident paying corporation for such preceding year consists of certain types of dividends and interest. Notwithstanding the foregoing, dividends distributed from income attributed to an Approved Enterprise, Benefited Enterprise or Preferred Enterprise are not entitled to such reduction under such tax treaty but are subject to withholding tax at the rate of 15% or 20% for such a United States corporate shareholder, provided that the conditions related to the holding of 10% of our voting capital and to our gross income for the previous year (as set forth in the previous sentence) are met. The aforementioned rates under the U.S.-Israel Treaty would not apply if the dividend income is derived through a permanent establishment of the U.S. resident in Israel.

If the dividend is attributable partly to income derived from an Approved Enterprise, Benefited Enterprise or Preferred Enterprise, and partly to other sources of income, the withholding rate will be a blended rate reflecting the relative portions of the two types of income. U.S. residents (for purposes of the U.S.-Israel Treaty) who are subject to Israeli withholding tax on a dividend may be entitled to a credit or deduction for United States federal income tax purposes up to the amount of the taxes withheld, subject to detailed rules contained in U.S. tax law.

A non-Israeli resident who receives dividends from which tax was withheld is generally exempt from the obligation to file tax returns in Israel in respect of such income, provided, inter alia, that (i) such income was not derived from a business conducted in Israel by the taxpayer, (ii) the taxpayer has no other taxable sources of income in Israel with respect to which a tax return is required to be filed and (iii) the taxpayer is not obliged to pay excess tax (as further explained below).

ExcessTax

Individuals who are subject to tax in Israel (whether any such individual is an Israeli resident or non-Israeli resident) are also subject to an additional tax at a rate of 3% on annual income exceeding NIS 663,240 for 2022 (which amount is linked to the annual change in the Israeli consumer price index), including, but not limited to, dividends, interest and capital gain.

Estateand gift tax

Israeli law presently does not impose estate or gift taxes.

MaterialUnited States federal income tax considerations

The following discussion describes material United States federal income tax considerations relating to the acquisition, ownership, and disposition of shares or ADSs by a U.S. Holder (as defined below) that acquires our shares or ADSs and holds them as a capital asset. This discussion is based on the tax laws of the United States, including the Code, Treasury regulations promulgated or proposed thereunder, and administrative and judicial interpretations thereof, all as in effect on the date hereof. These tax laws are subject to change, possibly with retroactive effect, and subject to differing interpretations that could affect the tax consequences described herein. In addition, this section is based in part upon the representations of the depositary and the assumption that each obligation in the deposit agreement and any related agreements will be performed in accordance with its terms. This discussion does not address the tax consequences to a U.S. Holder under the laws of any state, local or foreign taxing jurisdiction.

For purposes of this discussion, a “U.S. Holder” is a beneficial owner of our shares or ADSs that, for United States federal income tax purposes, is:

●	an<br> individual who is a citizen or resident of the United States,
●	a<br> domestic corporation (or other entity taxable as a corporation);
---	---
●	an<br> estate the income of which is subject to United States federal income taxation regardless<br> of its source; or
---	---
●	a<br> trust if (1) a court within the United States is able to exercise primary supervision over<br> the trust’s administration and one or more United States persons have the authority<br> to control all substantial decisions of the trust or (2) a valid election under the Treasury<br> regulations is in effect for the trust to be treated as a United States person.
---	---

A “Non-U.S. Holder” is a beneficial owner of our ordinary shares that is neither a U.S. Holder nor a partnership (or other entity treated as a partnership for United States federal income tax purposes).

This discussion does not address all aspects of United States federal income taxation that may be applicable to U.S. Holders in light of their particular circumstances or status (including, for example, banks and other financial institutions, insurance companies, broker and dealers in securities or currencies, traders that have elected to mark securities to market, regulated investment companies, real estate investment trusts, partnerships or other pass-through entities, corporations that accumulate earnings to avoid U.S. federal income tax, tax-exempt organizations, pension plans, persons that hold our shares as part of a straddle, hedge or other integrated investment, persons subject to alternative minimum tax or whose “functional currency” is not the U.S. dollar).

If a partnership (including any entity or arrangement treated as a partnership for United States federal income tax purposes) holds our shares or ADSs, the tax treatment of a person treated as a partner in the partnership for United States federal income tax purposes generally will depend on the status of the partner and the activities of the partnership. Partnerships (and other entities or arrangements so treated for United States federal income tax purposes) and their partners should consult their own tax advisors.

In general, and taking into account the earlier assumptions, for United States federal income and Israeli tax purposes, a holder that holds ADRs evidencing ADSs will be treated as the owner of the shares represented by those ADRs. Exchanges of shares for ADRs, and ADRs for shares, generally will not be subject to United States federal income or Israeli tax.

Thisdiscussion addresses only U.S. Holders and does not discuss any tax considerations other than United States federal income tax considerations.Prospective investors are urged to consult their own tax advisors regarding the United States federal, state, and local, and non-UnitedStates tax consequences of the purchase, ownership, and disposition of our shares or ADSs.

Dividends

We do not expect to make any distribution with respect to our shares or ADSs. However, if we make any such distribution, under the United States federal income tax laws, and subject to the passive foreign investment company, or PFIC, rules discussed below, the gross amount of any dividend we pay out of our current or accumulated earnings and profits (as determined for United States federal income tax purposes) will be includible in income for a U.S. Holder and subject to United States federal income taxation. Dividends paid to a noncorporate U.S. Holder that constitute qualified dividend income will be taxable at a preferential tax rate applicable to long-term capital gains of, currently, 20 percent, provided that the U.S. Holder holds the shares or ADSs for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date and meets other holding period requirements. If we are treated as a PFIC, dividends paid to a U.S. Holder will not be treated as qualified dividend income. If we are not treated as a PFIC, dividends we pay with respect to the shares or ADSs generally may be qualified dividend income, provided that the holding period requirements are satisfied by the U.S. Holder.

A U.S. Holder must include any Israeli tax withheld from the dividend payment in the gross amount of the dividend even though the holder does not in fact receive it. The dividend is taxable to the holder when the holder, in the case of shares, or the Depositary, in the case of ADSs, receives the dividend, actually or constructively. The amount of the dividend distribution includible in a U.S. Holder’s income will be the U.S. dollar value of the NIS payments made, determined at the spot NIS/U.S. dollar rate on the date the dividend distribution is includible in income, regardless of whether the payment is in fact converted into U.S. dollars. Generally, any gain or loss resulting from currency exchange fluctuations during the period from the date the dividend payment is included in income to the date the payment is converted into U.S. dollars will be treated as ordinary income or loss and will not be eligible for the special tax rate applicable to qualified dividend income. The gain or loss generally will be income or loss from sources within the United States for foreign tax credit limitation purposes.

Dividends paid with respect to our ordinary shares or ADSs will be treated as foreign source income, which may be relevant in calculating the holder’s foreign tax credit limitation. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends that we distribute generally should constitute “passive category income,” or, in the case of certain U.S. Holders, “general category income.” A foreign tax credit for foreign taxes imposed on distributions may be denied if holders do not satisfy certain minimum holding period requirements. The rules relating to the determination of the foreign tax credit are complex, and you should consult your tax advisor to determine whether and to what extent you will be entitled to this credit.

To the extent a distribution with respect to our shares or ADSs exceeds our current or accumulated earnings and profits, as determined under United States federal income tax principles, the distribution will be treated, first, as a tax-free return of the U.S. Holder’s investment, up to the holder’s adjusted tax basis in its shares or ADSs, and, thereafter, as capital gain, which is subject to the tax treatment described below in “—Gain on Sale, Exchange or Other Taxable Disposition.”

Subject to certain limitations, the Israeli tax withheld in accordance with the Treaty and paid over to Israel will be creditable or deductible against a U.S. Holder’s United States federal income tax liability.

Subject to the discussion below under “Information reporting and backup withholding,” if you are a Non-U.S. Holder, you generally will not be subject to United States federal income (or withholding) tax on dividends received by you on your ordinary shares, unless you conduct a trade or business in the United States and such income is effectively connected with that trade or business (or, if required by an applicable income tax treaty, the dividends are attributable to a permanent establishment or fixed base that such holder maintains in the United States).

Gainon sale, exchange or other taxable disposition

Subject to the PFIC rules described below under “***—***Passive Foreign Investment **** Company Considerations,” a U.S. Holder that sells, exchanges or otherwise disposes of shares or ADSs in a taxable disposition generally will recognize capital gain or loss for United States federal income tax purposes equal to the difference between the U.S. Dollar value of the amount realized and the holder’s tax basis, determined in U.S. Dollars, in the shares or ADSs. Gain or loss recognized on such a sale, exchange or other disposition of shares or ADSs generally will be long-term capital gain if the U.S. Holder’s holding period in the shares or ADSs exceeds one year. Long-term capital gains of non-corporate U.S. Holders are generally taxed at preferential rates. The gain or loss generally will be income or loss from sources within the United States for foreign tax credit limitation purposes. A U.S. Holder’s ability to deduct capital losses is subject to limitations.

●	such<br> gain is effectively connected with your conduct of a trade or business in the United States<br> (or, if required by an applicable income tax treaty, the gain is attributable to a permanent<br> establishment or fixed base that such holder maintains in the United States); or
●	you<br> are an individual and have been present in the United States for 183 days or more in the<br> taxable year of such sale or exchange and certain other conditions are met.
---	---

For a cash basis taxpayer, units of foreign currency paid or received are translated into U.S. dollars at the spot rate on the settlement date of the purchase or sale. In that case, no foreign currency exchange gain or loss will result from currency fluctuations between the trade date and the settlement date of such a purchase or sale. An accrual basis taxpayer, however, may elect the same treatment required of cash basis taxpayers with respect to purchases and sales of our ordinary shares that are traded on an established securities market, provided the election is applied consistently from year to year. Such election may not be changed without the consent of the IRS. An accrual basis taxpayer who does not make such election may recognize exchange gain or loss based on currency fluctuations between the trade date and the settlement date. Any foreign currency gain or loss a U.S. Holder realizes will be U.S. source ordinary income or loss.

The determination of whether the ADSs or ordinary shares are traded on an established securities market is not entirely clear under current U.S. federal income tax law. Please consult your tax advisor regarding the proper treatment of foreign currency gains or losses with respect to a sale or other disposition of our ordinary shares.

Passiveforeign investment company considerations

Based on our income and assets, we believe that we may be treated as a PFIC for the preceding taxable year. However, the determination of our status is made annually based on the factual tests described below. Consequently, while we may be treated as a PFIC in future years, we cannot estimate with certainty at this stage whether or not we are likely to be treated as a PFIC for the current or future taxable years. If we were classified as a PFIC in any taxable year, a U.S. Holder would be subject to special rules with respect to distributions on and sales, exchanges and other dispositions of the shares or ADSs. We will be treated as a PFIC for any taxable year in which at least 75 percent of our gross income is “passive income” or at least 50 percent of the average percentage of our assets during the taxable year, measured based on the average of the fair market values of the assets determined at the end of each quarterly period, are assets that produce or are held for the production of passive income. Passive income for this purpose generally includes, among other things, dividends, interest, rents, royalties, gains from commodities and securities transactions, and gains from assets that produce passive income. In determining whether we are a PFIC, a pro rata portion of the income and assets of each corporation in which we own, directly or indirectly, at least a 25% interest (by value) is taken into account.

Excessdistribution rules

If we were a PFIC with respect to a U.S. Holder, then unless the holder makes one of the elections described below, a special tax regime would apply to the U.S. Holder with respect to (a) any “excess distribution” (generally, aggregate distributions in any year that are greater than 125% of the average annual distribution received by the holder in the shorter of the three preceding years or the holder’s holding period for the shares or ADSs) and (b) any gain realized on the sale or other disposition of the shares or ADSs. Under this regime, any excess distribution and realized gain will be treated as ordinary income and will be subject to tax as if (a) the excess distribution or gain had been realized ratably over the U.S. Holder’s holding period, (b) the amount deemed realized in each year had been subject to tax in each year of that holding period at the highest marginal rate for such year (other than income allocated to the current period or any taxable period before we became a PFIC, which would be subject to tax at the U.S. Holder’s regular ordinary income rate for the current year and would not be subject to the interest charge discussed below), and (c) the interest charge generally applicable to underpayments of tax had been imposed on the taxes deemed to have been payable in those years. If we were determined to be a PFIC, this tax treatment for U.S. Holders would apply also to indirect distributions and gains deemed realized by U.S. Holders in respect of stock of any of our subsidiaries determined to be PFICs. In addition, dividend distributions would not qualify for the lower rates of taxation applicable to long-term capital gains discussed above under “Dividends”.

A U.S. Holder that holds the shares or ADSs at any time during a taxable year in which we are classified as a PFIC generally will continue to treat such shares or ADSs as shares or ADSs in a PFIC, even if we no longer satisfy the income and asset tests described above, unless the U.S. Holder elects to recognize gain, which will be taxed under the excess distribution rules as if such shares or ADSs had been sold on the last day of the last taxable year for which we were a PFIC.

Certain elections by a U.S. Holder would alleviate some of the adverse consequences of PFIC status and would result in an alternative treatment of the shares or ADSs, as described below. However, we do not currently intend to provide the information necessary for U.S. Holders to make “QEF elections,” as described below, and the availability of a “mark-to-market election” with respect to the shares or ADSs is a factual determination that will depend on the manner and quantity of trading of our shares or ADSs, as described below. A mark-to-market election cannot be made with respect to the stock of any of our subsidiaries.

QEFelection

If we were a PFIC, the rules above would not apply to a U.S. Holder that makes an election to treat our shares or ADSs as stock of a “qualified electing fund” or QEF. A U.S. Holder that makes a QEF election is required to include in income its pro rata share of our ordinary earnings and net capital gain as ordinary income and long-term capital gain, respectively. A U.S. Holder makes a QEF election generally by attaching a completed IRS Form 8621 to a timely filed United States federal income tax return for the year beginning with which the QEF election is to be effective (taking into account any extensions). A QEF election can be revoked only with the consent of the IRS. In order for a U.S. Holder to make a valid QEF election, we must annually provide or make available to the holder certain information. We cannot provide any assurances that we will provide to U.S. Holders the information required to make a valid QEF election.

Mark-to-marketelection

If we were a PFIC, the rules above also would not apply to a U.S. Holder that makes a “mark-to-market” election with respect to the shares or ADSs, but this election will be available with respect to the shares or ADSs only if they meet certain minimum trading requirements to be considered “marketable stock” for purposes of the PFIC rules. In addition, a mark-to-market election generally could not be made with respect to the stock of any of our subsidiaries unless that stock were itself marketable stock, and the election may therefore be of limited benefit to a U.S. Holder that wants to avoid the excess distribution rules described above. Shares or ADSs will be marketable stock if they are regularly traded on a national securities exchange that is registered with the Securities and Exchange Commission or on a non-U.S. exchange or market that meets certain requirements under the Treasury regulations. Shares or ADSs generally will be considered regularly traded during any calendar year during which they are traded, other than in de minimis quantities, on at least 15 days during each calendar quarter. Any trades that have as their principal purpose meeting this requirement will be disregarded.

A U.S. Holder that makes a valid mark-to-market election for the first tax year in which the holder holds (or is deemed to hold) our shares or ADSs and for which we are a PFIC will be required to include each year an amount equal to the excess, if any, of the fair market value of such shares or ADSs the holder owns as of the close of the taxable year over the holder’s adjusted tax basis in such shares or ADSs. The U.S. Holder will be entitled to a deduction for the excess, if any, of the holder’s adjusted tax basis in the shares or ADSs over the fair market value of such shares or ADSs as of the close of the taxable year, but only to the extent of any net mark-to-market gains with respect to such shares or ADSs included by the U.S. Holder under the election for prior taxable years. The U.S. Holder’s basis in such shares or ADSs will be adjusted to reflect the amounts included or deducted pursuant to the election. Amounts included in income pursuant to a mark-to-market election, as well as gain on the sale, exchange or other taxable disposition of such shares or ADSs, will be treated as ordinary income. The deductible portion of any mark-to-market loss, as well as loss on a sale, exchange or other disposition of our shares or ADSs to the extent that the amount of such loss does not exceed net mark-to-market gains previously included in income, will be treated as ordinary loss.

The mark-to-market election applies to the taxable year for which the election is made and all subsequent taxable years, unless the shares cease to be treated as marketable stock for purposes of the PFIC rules or the IRS consents to its revocation. The excess distribution rules described above generally will not apply to a U.S. Holder for tax years for which a mark-to-market election is in effect. However, if we were a PFIC for any year in which the U.S. Holder owns the shares or ADSs but before a mark-to-market election is made, the interest charge rules described above would apply to any mark-to-market gain recognized in the year the election is made.

PFICreporting obligations

A U.S. Holder of PFIC shares must generally file an annual information return on IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund) containing such information as the U.S. Treasury Department may require. The failure to file IRS Form 8621 could result in the imposition of penalties and the extension of the statute of limitations with respect to U.S. federal income tax.

U.S.Holders are urged to consult their tax advisors as to our status as a PFIC, and the tax consequences to them if we were a PFIC, includingthe reporting requirements and the desirability of making, and the availability of, a QEF election or a mark-to-market election withrespect to the shares or ADSs.**

Medicaretax

Non-corporate U.S. Holders that are individuals, estates or trusts and whose income exceeds certain thresholds generally are subject to a 3.8% tax on all or a portion of their net investment income, which may include their gross dividend income and net gains from the disposition of shares or ADSs. A United States person that is an individual, estate or trust is encouraged to consult its tax advisors regarding the applicability of this Medicare tax to its income and gains in respect of any investment in our shares or ADSs.

Informationreporting with respect to foreign financial assets

Individual U.S. Holders may be subject to certain reporting obligations on IRS Form 8938 (Statement of Specified Foreign Financial Asset) with respect to the shares or ADSs for any taxable year during which the U.S. Holder’s aggregate value of these and certain other “specified foreign financial assets” exceed a threshold amount that varies with the filing status of the individual. This reporting obligation also applies to domestic entities formed or availed of to hold, directly or indirectly, specified foreign financial assets, including the shares or ADSs. Significant penalties can apply if U.S. Holders are required to make this disclosure and fail to do so.

Informationreporting and backup withholding

In general, information reporting may apply to dividends in respect of shares or ADSs and the proceeds from the sale, exchange or redemption of shares of ADSs that are paid to a holder of shares or ADSs within the United States (and in certain cases, outside the United States), unless such holder is an exempt recipient such as a corporation. Backup withholding (currently at a 24% rate) may apply to such payments if a holder of shares or ADSs fails to provide a taxpayer identification number (generally on an IRS Form W-9) or certification of other exempt status or fails to report in full dividend and interest income.

Backup withholding is not an additional tax. A U.S. Holder generally may obtain a refund of any amounts withheld under the backup withholding rules that exceed the U.S. Holder’s income tax liability by filing a refund claim with the Internal Revenue Service.

F.Dividends and Paying Agents

Not applicable

G.Statement by Experts

Not applicable.

H.Documents on Display

We are subject to the information reporting requirements of the Exchange Act applicable to foreign private issuers and under those requirements will file reports with the SEC. Those reports may be inspected without charge at the locations described below. As a foreign private issuer, we are exempt from the rules under the Exchange Act related to the furnishing and content of proxy statements, and our officers, directors and principal shareholders are exempt from the reporting and short swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we are not required under the Exchange Act to file periodic reports and financial statements with the SEC as frequently or as promptly as United States companies whose securities are registered under the Exchange Act.

We maintain a corporate website at www.steakholderfoods.com. We intend to post our Annual Report on Form 20-F on our website promptly following it being filed with the SEC. Information contained on, or that can be accessed through, our website does not constitute a part of this Annual Report on Form 20-F. We have included our website address in this Annual Report on Form 20-F solely as an inactive textual reference.

Our SEC filings are available to you on the SEC’s website at http://www.sec.gov. This site contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. The information on that website is not part of this Annual Report on Form 20-F.

With respect to references made in this Annual Report on Form 20-F to any contract or other document of Steakholder Foods, such references are not necessarily complete and you should refer to the exhibits attached or incorporated by reference to this Annual Report on Form 20-F for copies of the actual contract or document.

I.Subsidiary Information

Not applicable.

J.Annual Report to Security Holders

Not applicable.

ITEM 11.	Quantitative And Qualitative Disclosure On Market Risk

For quantitative and qualitative information regarding our market risk, see “Item 5 — Operating and Financial Review and Prospects — Liquidity and Capital Resources — Quantitative and Qualitative Disclosures About Market Risk” and Note 2 to our financial statements.

ITEM 12.	Description Of Securities Other Than Equity Securities

A.Debt Securities

Not applicable.

B.Warrants and Rights

Not applicable.

C.Other Securities

Not applicable.

D.American Depositary Shares

The Bank of New York Mellon is the depositary of the ADSs. Each ADS represents 100 ordinary shares (or a right to receive 100 ordinary shares). Each ADS will also represent any other securities, cash or other property which may be held by the depositary. The depositary’s office at which the ADSs are administered and its principal executive office are located at 240 Greenwich Street, New York, New York 10286.

A deposit agreement among us, the depositary, ADS holders and all other persons indirectly or beneficially holding ADSs sets out ADS holder rights as well as the rights and obligations of the depositary. New York law governs the deposit agreement and the ADSs. A copy of the deposit agreement was filed as Exhibit 4.1 to our amended registration statement on Form F-1 filed with the SEC on March 5, 2021 and is incorporated by reference herein.

Feesand Expenses

Pursuant to the terms of the deposit agreement, the holders of the ADSs will be required to pay the following fees:

Persons depositing or withdrawing ordinary shares or ADS holders must pay	For:
$5.00<br> (or less) per 100 ADSs (or portion of 100 ADSs)	Issuance<br> of ADSs, including issuances resulting from a distribution of ordinary shares or rights or other property Cancellation of ADSs for<br> the purpose of withdrawal, including if the deposit agreement terminates
$.05<br> (or less) per ADS	Any<br> cash distribution to ADS holders
A<br> fee equivalent to the fee that would be payable if securities distributed to you had been ordinary shares and the ordinary shares<br> had been deposited for issuance of ADSs	Distribution<br> of securities distributed to holders of deposited securities (including rights) that are distributed by the depositary to ADS holders
$.05<br> (or less) per ADS per calendar year	Depositary<br> services
Registration<br> or transfer fees	Transfer<br> and registration of ordinary shares on our share register to or from the name of the depositary or its agent when you deposit or<br> withdraw ordinary shares
Expenses<br> of the depositary	Cable,<br> telex and facsimile transmissions (when expressly provided in the deposit agreement)<br><br> Converting foreign currency to U.S. dollars
Taxes<br> and other governmental charges the depositary or the custodian have to pay on any ADSs or ordinary shares underlying ADSs, such as<br> stock transfer taxes, stamp duty or withholding taxes	As<br> necessary
Any<br> charges incurred by the depositary or its agents for servicing the deposited securities	As<br> necessary

The depositary collects its fees for delivery and surrender of ADSs directly from investors depositing ordinary shares or surrendering ADSs for the purpose of withdrawal or from intermediaries acting for them. The depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees. The depositary may collect its annual fee for depositary services by deduction from cash distributions or by directly billing investors or by charging the book-entry system accounts of participants acting for them. The depositary may collect any of its fees by deduction from any cash distribution payable (or by selling a portion of securities or other property distributable) to ADS holders that are obligated to pay those fees. The depositary may generally refuse to provide fee-attracting services until its fees for those services are paid.

From time to time, the depositary may make payments to us to reimburse us for costs and expenses generally arising out of establishment and maintenance of the ADS program, waive fees and expenses for services provided to us by the depositary or share revenue from the fees collected from ADS holders. In performing its duties under the deposit agreement, the depositary may use brokers, dealers, foreign currency or other service providers that are owned by or affiliated with the depositary and that may earn or share fees, spreads or commissions.

The depositary may convert foreign currency itself or through any of its affiliates and, in those cases, acts as principal for its own account and not as an agent, fiduciary or broker on behalf of any other person and earns revenue, including, without limitation, fees and spreads that it will retain for its own account. The revenue is based on, among other things, the difference between the exchange rate assigned to the currency conversion made under the deposit agreement and the rate that the depositary or its affiliate receives when buying or selling foreign currency for its own account. The depositary makes no representation that the exchange rate used or obtained in any currency conversion under the deposit agreement will be the most favorable rate that could be obtained at the time or that the method by which that rate will be determined will be most favorable to ADS holders, subject to its obligations under the deposit agreement. The methodology used to determine exchange rates used in currency conversions is available upon request.

PART

ITEM 13.	Defaults, Dividend Arrearages and Delinquencies

Not applicable.

ITEM 14.	Material Modifications To The Rights Of Security Holders And Use Of Proceeds

InitialPublic Offering

In March 2021, we sold 2,721,271 ADSs, each representing ten ordinary shares, no par value, in our U.S. initial public offering at a public offering price of $10.30 per ADS. Gross proceeds, including proceeds generated from the partial exercise of the underwriter’s option to purchase additional ADSs, were $28 million. Net proceeds to us, after deducting underwriting discounts and commissions and estimated offering expenses payable by us were approximately $24.7 million. The effective date of the registration statement on Form F-1 (File No. 333-253257) for our U.S. initial public offering of ADSs was March 11, 2021. The offering closed on March 17, 2021. H.C. Wainwright, Inc. acted as the sole underwriter in the offering.

ITEM 15.	Controls And Procedures
A.	Disclosure Controls and Procedures
---	---

We have performed an evaluation of the effectiveness of our disclosure controls and procedures that are designed to ensure that the material financial and non-financial information required to be disclosed to the SEC is recorded, processed, summarized and reported timely. Based on our evaluation, our management, including our chief executive officer and chief financial officer, has concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report are effective. Notwithstanding the foregoing, there can be no assurance that our disclosure controls and procedures will detect or uncover all failures of persons within the Company to disclose material information otherwise required to be set forth in our reports.

B.	Management’s Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) promulgated under the Exchange Act. Our internal control system was designed to provide reasonable assurance to our management and board of directors regarding the reliability of financial reporting and the preparation and fair presentation of published financial statements for external purposes in accordance with generally accepted accounting principles. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate.

Our management assessed our internal control over financial reporting as of December 31, 2023, the end of our fiscal year. Management based its assessment on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The assessment included evaluation of elements such as the design and operating effectiveness of key financial reporting controls, process documentation, accounting policies and our overall control environment.

Based on its assessment, our management has concluded that our internal control over financial reporting was effective as of the end of the fiscal year to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States. We reviewed the results of our management’s assessment with the Audit Committee of our Board of Directors.

C.	Attestation Report of the Registered Public Accounting Firm

This Annual Report on Form 20-F does not include an attestation report of the company’s registered public accounting firm as the company is considered an emerging growth company.

D.	Changes in Internal Control over Financing Reporting

We have implemented additional controls for the preparation of the financial statement in accordance with U.S GAAP in our internal control over financial reporting for the period covered by this Annual Report on Form 20-F. We do not believe that these changes have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 16.	[reserved]

ITEM 16A.	Audit Committee Financial Expert

Our board of directors has determined that all members of our audit committee are financially literate as determined in accordance with Nasdaq rules and that Messrs. Eli Arad and David Gerbi are qualified to serve as “audit committee financial experts” as defined by SEC rules. The audit committee financial experts are independent directors.

ITEM 16B.	Code Of Ethics

We have adopted a Code of Business Conduct and Ethics (the “Code of Ethics”) that is applicable to all of our directors, executives and other employees, and those of our affiliates. A copy of the Code of Conduct is available on our website at www.steakholderfoods.com. Any waivers of the Code of Ethics for directors and officers require the approval of the audit committee of our board of directors. We expect that any amendments to the Code of Conduct will be disclosed on our website. We granted no waivers under our Code of Ethics and Conduct in 2023.

ITEM 16C.	Principal Accountant Fees And Services

FeesPaid to Independent Registered Public Accounting Firm

Somekh Chaikin, a member firm of KPMG International, located in Tel Aviv, Israel (PCAOB ID 1057), has served as our independent registered public accounting firm for 2023 and 2022. Following are Somekh Chaikin’s fees for professional services in each of the respective fiscal years:

	Year ended December 31,
	2023	2022
	, in thousands
Audit fees^(1)^			295
Tax fees^(2)^			25
Total			320

All values are in US Dollars.

(1)

Audit fees consist of fees billed or expected to be billed for the annual audit services engagement and other audit services, which are those services that only the external auditor can reasonably provide, and include the Company audit; statutory audits; comfort letters and consents; attest services; and assistance with and review of documents filed with the TASE and SEC.

(2)

Tax fees include fees billed for tax compliance services that were rendered during the most recent fiscal year, including the preparation of original and amended tax returns and claims for refund; tax consultations, such as assistance and representation in connection with tax audits and appeals, tax advice related to mergers and acquisitions, transfer pricing, and requests for rulings or technical advice from taxing authority; tax planning services; and expatriate tax planning and services.

Policyon Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Auditors

Our Audit Committee has the sole authority to approve the scope of the audit and any audit-related services, as well as all audit fees and terms. The Audit Committee must pre-approve any audit and non-audit services provided by our independent registered public accounting firm. The Audit Committee will not approve the engagement of the independent registered public accounting firm to perform any services that the independent registered public accounting firm would be prohibited from providing under applicable laws, rules and regulations, including those of self-regulating organizations. The Audit Committee reviews and pre-approves the statutory audit fees that can be provided by the independent registered public accounting firm on an annual basis.

ITEM 16D.	Exemptions From The Listing Standards For Audit Committees

Not applicable.

ITEM 16E.	Purchases Of Equity Securities By The Issuer And Affiliated Purchasers

Not applicable.

ITEM 16F.	Change In Registrant’s Certifying Accountant

Not applicable.

ITEM 16G.	Corporate Governance

NasdaqListing Rules and Home Country Practices

The Sarbanes-Oxley Act, as well as related rules subsequently implemented by the SEC, requires foreign private issuers, such as us, to comply with various corporate governance practices. As a foreign private issuer, we are permitted to follow certain Israeli corporate governance practices instead of Nasdaq rules, provided that we disclose which requirements we are not following and the equivalent Israeli requirements. Below is a concise summary of the significant ways in which our corporate governance practices differ from the corporate governance requirements of Nasdaq applicable to domestic U.S. listed companies:

●	Quorum.<br> As permitted under the Companies Law, pursuant to our articles of association, the quorum<br> required for an ordinary meeting of shareholders consists of at least two shareholders present<br> in person or by proxy who hold or represent between them at least 25% of the voting power<br> of our shares (and, with respect to an adjourned meeting, generally one or more shareholders<br> who hold or represent any number of shares), instead of 33 1/3% of the issued share capital<br> provided under Nasdaq Listing Rule 5260(c).
●	Shareholder Approval. Although the Nasdaq Listing Rules generally require shareholder approval<br> of equity compensation plans and material amendments thereto, we follow Israeli practice,<br> which is to have such plans and amendments approved only by the board of directors, unless<br> such arrangements are for the compensation of chief executive officer or directors, in which<br> case they also require the approval of the compensation committee and the shareholders.<br> In addition, rather than follow the Nasdaq Listing<br> Rules requiring shareholder approval for the issuance of securities in certain circumstances,<br> we follow Israeli law, under which a private placement of securities requires approval by<br> our board of directors and shareholders if it will cause a person to become a controlling<br> shareholder (generally presumed at 25% ownership) or if: (a) the securities issued amount<br> to 20% or more of our outstanding voting rights before the issuance; (b) some or all of the<br> consideration is other than cash or listed securities or the transaction is not on market<br> terms; and (c) transaction will increase the relative holdings of a shareholder that holds<br> 5% or more of our outstanding share capital or voting rights or will cause any person to<br> become, as a result of the issuance, a holder of more than 5% of our outstanding share capital<br> or voting rights.
---	---
●	Executive Sessions. While the Nasdaq Listing Rules require that “independent directors,”<br> as defined in the Nasdaq Listing Rules, must have regularly scheduled meetings at which only<br> “independent directors” are present. Israeli law does not require, nor do our<br> independent directors necessarily conduct, regularly scheduled meetings at which only they<br> are present.
---	---

BoardDiversity Matrix

The table below provides certain information regarding the diversity of our board of directors as of the date of this Annual Report.

Board Diversity Matrix<br><br> <br>As of the date of this Annual Report
Country<br> of Principal Executive Offices:	Israel
Foreign<br> Private Issuer	Yes
Disclosure<br> Prohibited under Home Country Law	No
Total<br> Number of Directors	4
	Female	Male	Non-<br><br> <br>Binary/Transgender	Did Not Disclose Gender
Part I: Gender Identity
Directors	1	3	0	0
Part II: Demographic Background
Underrepresented<br> Individual in Home Country Jurisdiction	0
LGBTQ+	0
Did<br> Not Disclose Demographic Background	0
ITEM 16H.	MineSafety Disclosure
---	---

Not applicable.

Item 16I.	DisclosureRegarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

Item 16J.	InsiderTrading Policies

Not Applicable.

Item 16K.	Cybersecurity

CybersecurityRisk Management and Strategy

We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. Our cybersecurity risk management program includes a cybersecurity incident response plan.

We design and assess our program with the help of outside service providers and also based on the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF). This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use the NIST CSF as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business.

Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.

Our cybersecurity risk management program includes:

●	risk<br> assessments designed to help identify material cybersecurity risks to our critical systems,<br> information, products, services, and our broader enterprise IT environment;
●	a<br> security team principally responsible for managing (1) our cybersecurity risk assessment<br> processes, (2) our security controls, and (3) our response to cybersecurity incidents;
---	---
●	the<br> use of external service providers, where appropriate, to assess, test or otherwise assist<br> with aspects of our security controls;
---	---
●	cybersecurity<br> awareness training of our employees, incident response personnel, and senior management;
---	---
●	a<br> cybersecurity incident response plan that includes procedures for responding to cybersecurity<br> incidents; and
---	---
●	a<br> third-party risk management process for service providers, suppliers, and vendors.
---	---

We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.

CybersecurityGovernance

Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (Committee) oversight of cybersecurity and other information technology risks. The Committee oversees management’s implementation of our cybersecurity risk management program.

The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.

The Committee reports to the full Board regarding its activities, including those related to cybersecurity. The full Board also receives briefings from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from our Information Technology Manager, or IT Manager as part of the Board’s continuing education on topics that impact public companies.

Our management team, including our IT Manager, is responsible for assessing and managing our material risks from cybersecurity threats. The IT Manager has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. Our IT Manager’s experience includes over 12 years in the information technology and security fields, including at publicly-traded companies, and credentials including MCSA/MSCE, Fortinet Certified Expert Cybersecurity and AZ-900: Microsoft Azure Fundamentals.

Our IT Manager supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the IT environment.

PART

III

ITEM 17.	Financial Statements

The Registrant has responded to Item 18 in lieu of responding to this Item.

ITEM 18.	Financial Statements

See the financial statements beginning on page F-1. The following financial statements and financial statement schedules are filed as part of this Annual Report on Form 20-F together with the report of the independent registered public accounting firm.

ITEM 19.	Exhibits

Exhibit No.	Description
1.1	Steakholder Foods Ltd. Articles of Association (incorporated herein by reference to Exhibit 1.1 to the Registrant’s annual report on Form 20-F for the fiscal year ended December 31, 2022 filed with the SEC on April 4, 2023)
2.1	Form of Deposit Agreement between the Registrant, the Bank of New York Mellon as Depositary, and owners and holders from time to time of ADSs issued by the Company (incorporated herein by reference to Exhibit 2.1 to the Registrant’s annual report on Form 20-F for the fiscal year ended December 31, 2021 filed with the SEC on March 24, 2022)
2.2	Specimen American Depositary Receipt (included in Exhibit 2.1)
2.3	Description of Securities pursuant to Section 12 of the Securities and Exchange Act of 1934
4.1	Rental Agreement by and between the Registrant and Gav-Yam Lands Corp, Ltd., dated May 18, 2021 (incorporated herein by reference to Exhibit 4.1 to the Registrant’s annual report on Form 20-F for the fiscal year ended December 31, 2021 filed with the SEC on March 24, 2022)
4.2	Services and Collaboration Agreement by and between the Registrant and BlueOcean Substainability Fund, LLC, dated October 6, 2021 (incorporated herein by reference to Exhibit 4.4 to the Registrant’s annual report on Form 20-F for the fiscal year ended December 31, 2021 filed with the SEC on March 24, 2022)
4.3	Employment Agreement by and between the Registrant and Arik Kaufman, dated March 15, 2022, as amended on April 5, 2022 and April 20, 2023
4.4	Form of Indemnification Agreement
4.5*	Form of Exculpation Agreement (incorporated herein by reference to Exhibit 4.7 to the Registrant’s annual report on Form 20-F for the fiscal year ended December 31, 2021, filed with the SEC on March 24, 2022)
4.6*	2018 Option and Restricted Stock Unit Allocation Plan (incorporated herein by reference to Exhibit 4.8 to the Registrant’s annual report on Form 20-F for the fiscal year ended December 31, 2021, filed with the SEC on March 24, 2022)
4.7	2022 Share Incentive Plan (incorporated herein by reference to Exhibit 4.9 to the Registrant’s annual report on Form 20-F for the fiscal year ended December 31, 2022 filed with the SEC on April 4, 2023)
4.8	Compensation Policy for Directors and Officers
8.1	List of Subsidiaries
12.1	Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
12.2	Certification of the Principal Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
13.1	Certification of the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
13.2	Certification of the Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
15.1	Consent of Somekh Chaikin, member firm of KPMG International, independent registered public accounting firm
97.1	Steakholder Foods Compensation Recovery Policy
101.INS	Inline XBRL Instance Document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*	English<br>translation of original Hebrew document.

SIGNATURES

The Registrant hereby certifies that it meets all of the requirements for this filing and that it has duly caused and authorized the undersigned to sign this Annual Report on Form 20-F on its behalf.

STEAKHOLDER FOODS LTD.
By:	/s/ Arik<br> Kaufman
	Arik<br> Kaufman
	Chief<br> Executive Officer

Date: April 30, 2024

STEAKHOLDERFOODS LTD

Steakholder Foods Ltd. (formerly known asMeaTech 3D Ltd.)

Index to Consolidated Financial Statements

Financial Statements of Steakholder Foods Ltd.	Page
Report of Independent Registered Public Accounting Firm (PCAOB ID is 1057)	F-2
Consolidated Financial Statements:
Consolidated Balance Sheets	F-3
Consolidated Statement of Comprehensive Loss	F-4
Consolidated Statement of Changes in Shareholders’ Equity	F-5
Consolidated Statement of Cash Flows	F-6
Notes to the Consolidated Financial Statements	F-7

F-1

Report of Independent Registered Public AccountingFirm to the Shareholders of Steakholder Foods Ltd.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Steakholder Foods Ltd. and its subsidiaries, (hereinafter: “the Company”) as of December 31, 2023 and 2022, the related consolidated statements of comprehensive loss, changes in shareholders’ equity and cash flows for each of the years in the three-year period ended December 31, 2023, and the related notes (collectively, “the consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2023, in conformity with U.S generally accepted accounting principles.

Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1e to the consolidated financial statements, the Company has incurred significant losses and negative cash flows from operations and has an accumulated deficit that raise the substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1e. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Change in Basis of Accounting

The Company’s annual consolidated financial statements for 2022 were previously prepared in conformity with IFRS as issued by the IASB. As more fully described in Note 1d to the consolidated financial statements, the Company elected in 2023 to change the basis of accounting used in preparing its financial statements for it to be in conformity with U.S. generally accepted accounting principles. Consequently, the Company’s annual prior years financial statements for 2022 and 2021, referred to above, are now being presented in accordance with U.S. generally accepted accounting principles.

Basis of opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Somekh Chaikin

Somekh Chaikin

Member Firm of KPMG International

We have served as the Company’s auditor since 2020.

Tel Aviv, Israel

April 30, 2024

F-2

STEAKHOLDER FOODS LTD

CONSOLIDATED BALANCESHEETS

U.S. dollars in thousands(except share data)

	December 31,
	2023			2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		4,248			6,284
Restricted deposits		-			24
Other investment		-			136
Marketable securities with related party		351			-
Prepaid expenses and other current assets		367			685
Total current assets		4,966			7,129
NON-CURRENT ASSETS:
Restricted deposits		301			331
Other investment		-			1,156
Right-of-use asset		3,212			3,687
Property and equipment, net		2,344			3,497
Total non-current assets		5,857			8,671
Total Assets		10,823			15,800
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payables and accruals		1,783			2,104
Other liabilities		193			199
Trade payables		154			746
Current lease liability		355			601
Warrant liability		-			4
Total current liabilities		2,485			3,654
NON-CURRENT LIABILITIES
Long term lease liability		2,456			2,746
Total non-current liabilities		2,456			2,746
COMMITMENTS AND CONTINGENT LIABILITIES (Note 9)
SHAREHOLDERS’ EQUITY
Ordinary shares – no par value, Authorized 1,000,000,000 shares.<br>Issued and outstanding 251,756,047 and 146,471,680 at December 31, 2023 and December 31, 2022, respectively		-			-
Additional paid in capital		76,058			62,942
Accumulated other comprehensive loss		-			(230	)
Accumulated deficit		(70,176	)		(53,312	)
Total shareholders’ equity		5,882			9,400
Total liabilities and shareholders’ equity		10,823			15,800

The accompanying notes are an integral part of the consolidated financial statements.

F-3

STEAKHOLDER FOODS LTD

CONSOLIDATED STATEMENTSOF COMPREHENSIVE LOSS

U.S. dollars in thousands(except per share data)

	Year ended December 31,
	2023			2022			2021
Research and development		7,095			6,529			4,779
Marketing		1,937			2,874			1,115
Marketing with related party		745			2,210			590
General and administrative		4,401			5,485			6,948
Total operating loss		14,178			17,098			13,432
Financial expenses (income), net		1,369			(2,565	)		(9,571	)
Loss from continuing operations		15,547			14,533			3,861
Net loss from discontinued operations		1,317			7,326			18,057
Loss for the year		16,864			21,859			21,918
Other comprehensive (income) loss:
Foreign currency translation differences		(230	)		121			109
Other comprehensive (income) loss for the year, net		(230	)		121			109
Total comprehensive loss		16,634			21,980			22,027
Net loss per share from continuing operations – basic and diluted		(0.07	)		(0.11	)		(0.03	)
Net loss per share from discontinued operations – basic and diluted		(0.01	)		(0.05	)		(0.16	)
Weighted average shares outstanding – basic and diluted		236,645,676			135,900,869			115,954,501

The accompanying notes are an integral part of the consolidated financial statements.

F-4

STEAKHOLDER FOODS LTD

STATEMENTS OF CHANGESIN SHAREHOLDERS’ EQUITY

U.S. dollars in thousands(except per share data)

	Ordinary Shares				Additional<br> Paid-in		Other<br> Comprehensive			Accumulated			Total<br> Shareholders’
	Shares		Value(*)		Capital		Income (loss)			deficit			Equity
Balance as of January 1, 2021		79,866,264		-		13,612		-			(9,535	)		4,077
Exercise of stock options and RSU		5,227,844		-		3,222		-			-			3,222
Share-based compensation		-		-		3,799		-			-			3,799
Issuance of shares and warrants, net		40,676,000		-		32,330		-			-			32,330
Other comprehensive loss		-		-		-		(109	)		-			(109	)
Net loss		-		-		-		-			(21,918	)		(21,918	)
Balance as of December 31, 2021		125,770,108		-		52,963		(109	)		(31,453	)		21,401
Exercise of stock options		1,107,736		-		53		-			-			53
Share-based compensation		-		-		3,356		-			-			3,356
Issuance of shares and warrants, net		19,593,836		-		6,570		-			-			6,570
Other comprehensive loss		-		-		-		(121	)		-			(121	)
Net loss		-		-		-		-			(21,859	)		(21,859	)
Balance as of December 31, 2022		146,471,680		-		62,942		(230	)		(53,312	)		9,400
Share-based compensation		-		-		1,859		-			-			1,859
Issuance of shares and warrants, net		101,821,880		-		11,257		-			-			11,257
Exercise of restricted share units		3,462,487		-		-		-			-			-
Other comprehensive income		-		-		-		230			-			230
Net loss		-		-		-		-			(16,864	)		(16,864	)
Balance as of December 31, 2023		251,756,047		-		76,058		-			(70,176	)		5,882
(*)	No par value
---	---

The accompanying notes are an integral part of the consolidated financial statements.

F-5

STEAKHOLDER FOODS LTD

CONSOLIDATED STATEMENTSOF CASH FLOWS

U.S. dollars in thousands

	Year ended December 31,
	2023			2022			2021
Cash flows from operating activities:
Net Loss		(16,864	)		(21,859	)		(21,918	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		503			837			380
Change in fair value of financial liabilities		(4	)		(2,603	)		(9,209	)
Change in fair value of other investment		1,148			(99	)		(193	)
Change in fair value of marketable securities with related parties		84			-			-
Change in lease right of use assets		417			494			287
Change in lease liabilities		(524	)		(486	)		(306	)
Change in other investment		-			-			1,223
Share-based compensation		1,114			1,146			3,209
Share-based compensation with related party		745			2,210			590
Impairment loss on fixed asset		-			1,210			-
Loss of control of discontinued operation		(178	)		-			-
Decrease (increase) in prepaid expenses and other current assets		153			1,904			(2,339	)
Research and development expenses		-			1,562			12,926
Foreign exchange gain or losses		162			210			(87	)
Increase (decrease) in trade payables		(460	)		452			(97	)
Increase in accounts payables and accruals		977			201			1,097
Net cash used in operating activities		(12,727	)		(14,821	)		(14,437	)
Cash flows from investing activities:
Acquisition of fixed assets		(270	)		(2,901	)		(1,776	)
Increase (decrease) in restricted deposit		16			5			(340	)
Loan provided		-			-			(367	)
Proceeds from other investment		88			143			149
Investment in in-process research and development asset		-			(838	)		(6,808	)
Investment in marketable securities with related party		(435	)		-			-
Net cash decrease from loss of control over discontinued operations		(163	)		-			-
Net cash used in investing activities		(764	)		(3,591	)		(9,142	)
Cash flows from financing activities:
Proceeds from issuance of shares and warrants		12,500			6,300			29,282
Issuance costs		(1,243	)		(454	)		(3,283	)
Proceeds from exercise of stock options		-			53			3,222
Net cash provided by financing activities		11,257			5,899			29,221
Effect of exchange rate changes on cash and cash equivalents		198			(379	)		(22	)
Increase (decrease) in cash and cash equivalents		(2,036	)		(12,892	)		5,620
Cash and cash equivalents and restricted cash, beginning of the year		6,284			19,176			13,556
Cash and cash equivalents end of the year		4,248			6,284			19,176
Supplemental disclosure of cash flow information:
Cash paid during the year for taxes		-			-			-
Supplemental information for non-cash transactions
Non-cash purchase of property and equipment		-			7			57
Issuance of shares and options against in-process research and development<br>asset		-			724			6,332
Right-of-use asset recognized with corresponding lease liability		-			3,787			541

The accompanying notes are an integral part of the consolidated financial statements.

F-6

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 1 – GENERAL

a.	Steakholder Foods Ltd. (formerly Ophectra Real Estate and<br> Investments Ltd., Meat-Tech 3D Ltd. and MeaTech 3D Ltd.) (the “Company”) was incorporated in Israel on July 22, 1992 as<br> a private company limited by shares in accordance with the Companies Ordinance, 1983, and later a publicly-traded company whose<br> ordinary shares were listed for trade on the Tel Aviv Stock Exchange (TASE). In March 2021, the Company completed an initial public<br> offering on the Nasdaq Capital Market (Nasdaq), listing American Depositary Shares (ADSs) for trade under the ticker STKH, and later<br> voluntarily de-listed its ordinary shares from the TASE. The Company’s official address is 5 David Fikes St., Rehovot, Israel.<br> In August 2022, the Company changed its name from MeaTech 3D Ltd. to Steakholder Foods Ltd.
b.	The Company’s foodtech activities were commenced in July 2019<br>by a company called MeaTech Ltd., which merged with the Company in January 2020 and became a fully-owned subsidiary, now called Steakholder<br>Innovation Ltd. As the Company was the surviving entity of the merger, and continued the pre-merger business operations, utilizing the<br>pre-merger management and employees of MeaTech Ltd., the transaction was treated as a reverse acquisition that does not constitute a business<br>combination.
---	---
c.	The Company is developing and<br> selling two types of 3D-printing production machines, and developing plant-based<br> products that aim to replicate the complex textures of traditional meats such as beef steaks, white fish, shrimp, and eel.<br> Also, the Company is exploring the integration of cultivated cells, preparing for<br>future advancements in food technology.
---	---
d.	The Company has applied U.S. GAAP as issued by the Financial Accounting Standards Board, or FASB, on<br> a fully retrospective basis, initially for its financial statements for fiscal years as of January 1, 2023. Prior to those financial<br> statements, the Company, reporting as of its Nasdaq IPO as a “foreign private<br> issuer” under the Securities and Exchange Act of 1934, elected to avail itself of relief in this respect and conducted its<br> financial reporting in accordance with International Financial Reporting Standards (IFRS).
---	---
e.	Since its inception, the Company has incurred significant<br>losses and negative cash flows from operations and as of December 31, 2023, has an accumulated deficit of USD 70,176 thousand.<br>The Company has financed its operations mainly through fundraising from various investors. The Company’s management expects that<br>the Company will continue to generate losses and negative cash flows from operations for the foreseeable future. Management is of the<br>opinion that its existing cash will be sufficient to fund operations until the fourth quarter of 2024. As a result, there is substantial doubt about the<br>Company’s ability to continue as a going concern. Management’s plans include the continue securing sufficient financing through<br>the sale of additional equity securities or capital inflows from strategic partnerships. Additional funds may not be available when the<br>Company needs them on terms that are acceptable to it, or at all. If the Company is unsuccessful securing sufficient financing, it may<br>need to cease operations. The financial statements include no adjustments for measurement or presentation of assets and liabilities, which<br>may be required should the Company fail to operate as a going concern.
---	---
f.	In October 2023, Israel was attacked by a terrorist organization and entered a state of war. As of the<br>date of these consolidated financial statements, the war in Israel is ongoing and continues to evolve. The Company’s activities in Israel have not been substantially affected. During the year ended December<br>31, 2023, the impact of this war on the Company’s results of operations and financial condition was immaterial, however such impact may<br>increase, and even become material, as a result of the continuation, escalation or expansion of such war. In such a scenario, the Company may encounter difficulties<br>in raising funds and establishing new collaborations with foreign companies.
---	---

F-7

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 2 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A.	Basis of preparation:

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

B.	Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting and measurement estimates that require management’s subjective judgments include, but are not limited to, those related to share-based compensation, and fair value measurement of financial instrument at each balance sheet date. The Company evaluates its estimates and judgments on an ongoing basis and revises them when necessary. Actual results may differ from the original or revised estimates.

C.	Principles of consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation.

D.	Foreign currency translation and transactions

The Company’s management believes that the United States dollar (“USD”) is the currency that represents the primary economic environment in which the Company and its Israeli subsidiary operate and is therefore the functional currency of their operations. Thus, the functional and reporting currency of the Company is the U.S. dollar.

The functional currencies of the Company’s subsidiaries are their local currencies. The financial statements of the Company’s subsidiaries have been translated into United States dollars. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the reporting period. Income statement accounts are translated at average rates for the reporting period. Gains and losses from translation of foreign denominated transactions into USD are included in current results of operations. Gains and losses resulting from foreign currency transactions are also included in current results of operations. The effects of translating the assets, liabilities and income of the Company’s subsidiaries with functional currencies other than the USD are included in the Company’s consolidated statements of comprehensive loss.

E.	Discontinued operation

In 2023, the Company’s subsidiary, Peace of Meat BV (hereinafter – Peace of Meat, or POM), entered into bankruptcy proceedings and was appointed a liquidator following cessation of funding by the Company. Peace of Meat met the definition of a discontinued operation as of March 31, 2023. Pursuant to the guidance of ASC 205-20 Presentation of Financial Statements – Discontinued Operations, the net expenses of the subsidiary have been included in “Net loss from discontinued operations” in the Company’s consolidated statements of comprehensive loss. See also Note 3.

F.	Cash and cash equivalents

Cash and cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired.

G.	Restricted deposit

Restricted deposits are deposits with maturities of 12 months and are used as security for the rental of premises and for the Company’s credit cards. As of December 31, 2023, and 2022, the Company’s bank deposits were denominated in New Israeli Shekels (“NIS”) and bore interest at weighted average interest rates of 4.16%.

F-8

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 2 – SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

H.	Concentrations of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted deposits, other investment and marketable securities.

For cash and cash equivalents and restricted deposits, the Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the consolidated balance sheets exceed government-insured limits. The Company maintains its cash and cash equivalents and restricted deposits with financial institutions that management believes is of high credit quality and has not experienced any losses on these accounts.

For other investment, the Company is exposed to credit risk in the event of default by Therapin due to Therapin’s financial difficulties. Additionally, the Company’s management anticipates that in the event of a bankruptcy of Therapin, which constitutes an acceleration event of the repayment of the loan granted to Therapin, there will be insufficient funds to repay the loan to the Company. In the year ended December 31, 2023, Therapin filed for a stay of proceedings to the District Court in Nazareth. Therefore, the Company assesses no further payments will be received and revaluated the investment to USD 0 (see also Note 8).

I.	Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation and impairment. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows:

	Estimated useful life
Computers	3 years
Laboratory equipment	5-7 years
Machinery and equipment	6-10 years
Office Equipment	14 years
Leasehold Improvements	2-8 years

Depreciation begins at the time the asset is placed in service. Maintenance and repairs are charged to expense as incurred while significant renewals and improvements are capitalized. Upon retirement or sale, the cost of the disposed asset and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of comprehensive loss.

The carrying amounts of property and equipment are reviewed for impairment in accordance with ASC Topic 360, Property, Plant and Equipment (“ASC 360”), whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The determination of whether any impairment exists includes a comparison of estimated undiscounted future cash flows anticipated to be generated over the remaining life of an asset or asset group to their net carrying amount. If such assets are considered to be impaired, the impairment loss to be recognized is measured by the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. There were no impairment losses during financial years 2021 and 2023. For the year ended on December 31, 2022, the Company recorded an impairment loss of USD 1,210 thousand (see also Note 3).

J.	Segment reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the enterprise’s chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company evaluated segment reporting in accordance with Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting. The Company concluded that it operates in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the CODM to make decisions about resource allocation and performance assessment.

K.	Foreign government grants

U.S. GAAP does not contain authoritative accounting standards for incentives and grants provided by governmental entities to a for-profit entity. The Company determined it most appropriate to account for government grants by analogy to International Accounting Standards 20 (“IAS 20”), Accounting for Government Grants and Disclosure of Government Assistance. Under the provisions of IAS 20, a government grant is recognized when there is reasonable assurance that the Company will meet the terms for receiving and realizing the benefit of the grant. Government grants are recognized as accounts payable upon receipt. Subsequently, they are recognized as a deduction from research and development expenses on a systematic basis over the periods during which the Company incurs costs for which the grant is intended to compensate.

F-9

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (CONT.)

L.	Leases

The Company accounts for its leases in accordance with ASC Topic 842, Leases (“ASC 842”). The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term; the lease contains an option to purchase the asset that is reasonably certain to be exercised; the lease term is for a major part of the remaining useful life of the asset; the present value of the lease payments equals or exceeds substantially all of the fair value of the asset; or the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term. A lease is classified as an operating lease if it does not meet any one of these criteria. During the periods presented, most of the Company’s leases are accounted for as operating leases.

The Company’s lease agreements may include lease and non-lease components, such as services or maintenance, which are combined and accounted for as a single lease component. Certain lease agreements contain variable payments, including payments based on a Consumer Price Index (“CPI”). Variable lease payments based on a CPI are initially measured using the index in effect at lease commencement, and will not be subsequently adjusted, unless the liability is reassessed for other reasons. Subsequent increases in the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred.

Right of use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date, based on the present value of lease payments over the lease term. As the Company cannot readily determine the rate implicit in the lease, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU assets also include any prepaid lease payments and lease incentives.

The Company’s lease terms may include options to extend or terminate the lease. These options are included in the lease terms when it is reasonably certain they will be exercised. Leases with expected terms of 12 months or less are not recorded on the consolidated balance sheets.

The carrying amounts of ROU assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. There were no impairment charges during any of the periods presented.

Leases are presented in the Company’s consolidated balance sheets in long-term assets, and current and non-current liabilities.

Operating lease expenses (excluding variable lease payments) are recognized in the consolidated statements of comprehensive loss on a straight-line basis over the lease term.

Financing lease expenses include amortization expenses of the finance lease ROU asset on a straight-line basis over the shorter of its useful life or lease term, and interest expenses for finance lease liabilities based on the incremental borrowing rate.

M.	Fair value measurement

The Company applies ASC Topic 820, Fair Value Measurement (“ASC 820”), that defines fair value and establishes a framework for measuring and disclosing fair value. The Company measures certain financial assets and liabilities at fair value based on applicable accounting guidance using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value.

Level 1	-	Quoted prices in active markets<br>for identical assets or liabilities.
Level 2	-	Observable inputs other than Level<br>1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that<br>are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
---	---	---
Level 3	-	Unobservable inputs that are supported<br>by little or no market activity and that are significant to the fair value of the assets or liabilities.
---	---	---

F-10

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (CONT.)

The carrying value of cash and cash equivalents, restricted deposits, prepaid expenses and other current assets, accounts payables and accruals and trade and other payables approximate their fair values due to the short-term maturities of such instruments. The Company’s warrants liability, share-based compensation and derivative liability were measured at fair value using Level 3 unobservable inputs.

N.	Marketable securities and other investments

Marketable securities consist of investments in equity securities with readily determinable fair values. The Company accounts for investments in marketable equity securities in accordance with ASC Topic 321, Investments - Equity Securities (“ASC 321”). These investments are measured at fair value using a Level 1 fair value measurement, with realized and unrealized gains and losses reported in financial income (expenses), net in the consolidated statements of comprehensive loss.

For other investments, the Company accounts for investments in fixed maturity securities as trading at acquisition, based on intent or via the election of the fair value option in accordance with ASC Topic 320, Investments - Debt Securities (“ASC 320”). The investment is carried at fair value using a Level 3 fair value measurement, with realized and unrealized gains and losses reported in financial income (expenses), net in the consolidated statements of comprehensive loss (for the investment in the separation agreement with Therapin see also Note 8).

The Company considers credit-related impairments to be changes in value that are driven by a change in the debtor’s ability to meet its payment obligations and records an allowance and recognizes a corresponding loss in financial income (expenses), net when the impairment is incurred. During the year ended December 31, 2023, a credit impairment loss was recognized for an amount of USD 1,148 thousand. During the years ended December 31, 2022 and 2021, no credit loss impairments were recognized.

The Company classifies its other investments as either short-term or long-term based on each instrument’s underlying contractual maturity date as well as the intended time of realization. Other investments with maturities of 12 months or less are classified as short-term, and other investments with maturities greater than 12 months are classified as long-term.

O.	Warrants

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance. The assessment considers whether the warrants are freestanding financial instruments, meet the definition of a liability under ASC 480, and meet all of the requirements for equity classification, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification.

This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent reporting period end date while the warrants are outstanding. Warrants that meet all the criteria for equity classification are recorded within additional paid-in capital. Warrants that do not meet all the criteria for equity classification, are recorded as liabilities at their initial fair value on the date of issuance and remeasured to fair value at each balance sheet date thereafter.

F-11

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (CONT.)

The Company accounts for warrant liabilities by measuring the fair value at inception and subsequently remeasures on a recurring basis, with changes in fair value recognized in financial income (expenses), within the Company’s consolidated statements of comprehensive loss.

The Company utilized a Black-Scholes option pricing model to estimate the fair value of the warrant liabilities, which utilizes certain unobservable inputs and is therefore considered a Level 3 fair value measurement. Certain inputs used in the Black-Scholes pricing model may fluctuate in future periods based upon factors that are outside of the Company’s control, including a potential change in control outside of the Company’s control.

The inputs utilized to value the warrant liabilities are highly subjective. The assumptions used in calculating the fair value of the warrant liabilities represent the best estimates, but these estimates involve inherent uncertainties and application of management’s judgment. As a result, if factors change and the Company uses different assumptions, the fair value of the warrant liabilities may be materially different in the future.

P.	Contingencies

The Company accounts for contingent liabilities in accordance with ASC 450 “Contingencies”. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter.

Q.	Severance pay

The Israeli Severance Pay Law, 1963 (“Severance Pay Law”), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month of salary for each year of employment, or a portion thereof.

The majority of the Company’s liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law (“Section 14”). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, contributed on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company’s balance sheet.

Severance expense for the years ended December 31, 2023, 2022 and 2021, amounted to USD 323 thousand, USD 305 thousand and USD 225 thousand, respectively.

R.	Basic and diluted net loss per ordinary share

The Company follows FASB ASC 260, Earnings Per Share (“ASC 260”), which requires the reporting of both basic and diluted earnings per ordinary share. Earnings per share (“EPS”) is calculated using the weighted average number of ordinary shares outstanding during each period.

Basic net loss per share for both continuing and discontinued operations are computed by dividing net loss from continuing operations and net loss from discontinued operations attributable to ordinary shareholders by the weighted-average number of ordinary shares, including pre-funded warrants to purchase ordinary shares, outstanding for the period. The pre-funded warrants are included in the calculation of basic and diluted net loss per share as the shares are issuable for little or no consideration.

F-12

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (CONT.)

Diluted net loss per share for both continuing and discontinued operations is computed by dividing the net loss by the weighted-average number of ordinary shares and dilutive ordinary share equivalents outstanding for the period determined using the treasury-share and if-converted methods, as applicable. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the potentially dilutive securities would be anti-dilutive.

S.	Research and development

Research and development costs, consisting primarily of employee compensation, operating supplies, facility costs and depreciation, are expensed as incurred. For further information regarding the in-process research and development acquired and recognized as research and development expenses, see Note 3.

T.	Share-based compensation

The Company accounts for share-based compensation in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”), which requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is recognized as an expense over the requisite service periods in the Company’s consolidated statements of comprehensive loss.

The Company recognizes compensation costs for awards conditioned only on continued service that have a graded vesting schedule using the accelerated method based on the multiple-option award approach. Forfeitures are accounted for as they occur.

For performance-based share units, the Company recognizes compensation expenses for the value of such awards, if and when the Company concludes that it is probable that a performance condition will be achieved based on the accelerated attribution method over the requisite service period. The Company reassesses the probability of vesting at each reporting period for awards with performance conditions and adjusts compensation cost based on its probability assessment.

The Company accounts for options granted to consultants and other service providers under ASC 718. The fair value of these options was estimated using a Black-Scholes option-pricing model and is recognized as an expense over the requisite service periods in the Company’s consolidated statements of comprehensive loss.

The Company estimates the fair value of stock options on the grant date using the binomial and Monte Carlo option pricing models. The option pricing models require the input of highly subjective assumptions, including the expected term of the option, the expected volatility of the price of the Company’s ADSs and the expected dividend yield of ordinary shares. The assumptions used to determine the fair value of the option awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. Expected volatility was calculated based upon historical volatility of share price of similar companies.

The expected option term represents the period that the Company’s stock options are expected to be outstanding and is determined based on the simplified method until sufficient historical exercise data will support using expected life assumptions. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends.

U.	Income taxes

The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”.

Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. In determining whether a valuation allowance is needed, the Company considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. Deferred income tax liabilities and assets are classified as non-current.

F-13

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (CONT.)

ASC 740 also contains a two-step approach of recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement.

As of December 31, 2023, and 2022, no liability for unrecognized tax benefits was recorded.

V.	New accounting pronouncements

The Company qualifies as an emerging growth company (“EGC”) as defined under the Jumpstart Our Business Startups Act (the “JOBS Act”). Using exemptions provided under the JOBS Act for EGCs, the Company has elected to defer compliance with new or revised ASUs until it is required to comply with such updates, which is generally consistent with the adoption dates of private companies.

Recently issued accounting pronouncements,not yet adopted

a.	In November 2023, the FASB issued ASU 2023-07 Segment Reporting<br>(Topic 280): Improvements to reportable segment disclosures. The amendments in this update improve financial reporting by requiring disclosure<br>of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful<br>financial analyses. The amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods<br>within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating these amendments<br>to determine the impact it may have on its consolidated financial statements.
b.	In December 2023, the FASB issued ASU 2023-09, Income Taxes<br>(Topic 740): Improvements to Income Tax Disclosures, which improves the transparency of income tax disclosures by requiring consistent<br>categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by<br>jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. As EGC, this guidance<br>will be effective for annual periods beginning after December 15, 2025. Early adoption is permitted. Upon adoption, the guidance can<br>be applied prospectively or retrospectively. The Company is currently evaluating the ASU to determine its impact on its income tax disclosures.
---	---
c.	In June 2022, the FASB issued ASC 2022-03 “Fair Value<br>Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The ASU clarifies that a contractual restriction on<br>the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered<br>in measuring its fair value. The ASU also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual<br>sale restriction. The ASU also introduces new disclosure requirements for equity securities subject to contractual sale restrictions.<br>As an Emerging Growth Company, the ASU is effective for fiscal years beginning after December 15, 2024, and interim periods within those<br>fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available<br>for issuance. The Company is currently evaluating the effect that ASU 2022-03 will have on its consolidated financial statements and<br>related disclosures.
---	---

NOTE 3 – DISCONTINUEDOPERATION

In February 2021, the Company completed a purchase of all of the outstanding share capital not yet owned by the Company of Peace of Meat, a Belgian cultured fat developer, for total consideration of up to EUR 16,300 thousand (USD 19,900 thousand). The total consideration payable by the Company in the acquisition consisted of both cash and equity instruments to be paid to Peace of Meat shareholders including legal fees. The total consideration was paid as part of the closing of the acquisition and part upon the achievement of the defined milestones and sub-milestones. Substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable in-process research and development (IPR&D) asset or group of similar IPR&D assets, thus the subsidiary is not considered a business and the acquisition is accounted as an asset acquisition. As at the time of the acquisition the Company did not foresee an alternative future use for the IPR&D assets acquired, consideration attributed to those assets was recognized as research and development expenses. Contingent consideration, dependent upon the achievement of technological milestones was recognized as additional research and development expenses at the time of the achievement of each milestone on the basis of the grant date fair value of the shares.

F-14

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 3 – DISCONTINUED OPERATION (CONT.)

Following the decision to cease the funding of Peace of Meat by the Company, the Board of Directors of the former concluded on March 31, 2023, that requirements for bankruptcy had been fulfilled. Peace of Meat entered bankruptcy proceedings, and a liquidator was appointed. As of December 31, 2022, and in accordance with ASC 360-10, the Company has assessed the indicators for impairment for its remaining long-lived assets in Peace of Meat. The Company assessed that Peace of Meat can no longer generate future economic benefits and recognized an impairment loss for the fixed assets, based on their fair value in an amount of USD 1,210 thousand.

In addition, and in accordance with ASC 205-20, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. As of December 31, 2023, Peace of Meat has met the discontinued operations criteria, hence the results of all discontinued operations, less applicable income taxes, were reported as components of net loss separate from the net loss of continuing operations. The comparative data has been restated in the consolidated statements of comprehensive loss to show the discontinued operation separately from continuing operations. The Company is not aware of any liabilities of the Company to POM’s creditors and therefore the Company has not recorded any liabilities in respect of Peace of Meat.

As of December 31, 2023 Peace of Meat is still undergoing bankruptcy process and the Company no longer has any ability to manage or control the net assets of Peace of Meat. Therefore, the Company no longer controls Peace of Meat. The Company estimates the fair value less costs of disposal of its remaining interest in Peace of Meat at USD 0. The income from loss of control over assets and liabilities amounted to USD 178 thousand, presented under ‘net loss from discontinued operation’.

The following information presents the major classes of assets and liabilities of the discontinued operations as reported on the consolidated balance sheet:


Cash and cash equivalents	163
Restricted deposits	29
Prepaid expenses and other current assets	138
Right of use assets	53
Fixed assets	954
Trade payables	(132	)
Other payables	(1,550	)
Lease liabilities	(63	)
Currency translation differences reserve	230

The following information presents the major classes of line items constituting the pre-tax loss from the discontinued operation in the consolidated statements of comprehensive loss:

	Year ended December 31,
	2023			2022		2021
Research and development, net		1,219			5,005		17,242
Marketing		9			100		61
General and administrative		258			1,002		742
Impairment loss		-			1,210		-
Operating loss		1,486			7,317		18,045
Financial expenses		9			9		12
Net loss from discontinued operations		1,495			7,326		18,057
Loss from disposal of assets and liabilities		(408	)		-		-
Other comprehensive income		230			-		-
Total loss attributed to the discontinued operation		1,317			7,326		18,057

F-15

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 3 – DISCONTINUED OPERATION(CONT.)

The following information presents cash flow attributable to the discontinued operation:

	Year ended December 31,
	2023			2022			2021
Cash flow from discontinued operation
Net cash used in operating activities		(895	)		(3,286	)		(2,752	)
Net cash used in investing activities		(8	)		(1,991	)		(8,109	)
Effect of exchange differences on cash and cash equivalents		(33	)		(37	)		(38	)
Net cash used in discontinued operation		(936	)		(5,314	)		(10,899	)

Net cash used in investing activities for the year ended December 31, 2023 does not include the cash and cash equivalent within the disposal group.

NOTE 4 – PREPAIDEXPENSES AND OTHER CURRENT ASSETS

	December 31,
	2023		2022
Institutions		37		247
Prepaid expenses		330		438
		367		685

NOTE 5 – PROPERTYAND EQUIPMENT, NET

The composition of property and equipment, net is as follows:

	December 31,
	2023			2022
Cost:
Computers		228			304
Laboratory equipment		1,764			4,315
Machinery and equipment		477			360
Office Equipment		272			296
Leasehold Improvements		627			708
		3,368			5,983
Less – accumulated depreciation		(1,024	)		(1,276	)
Less – impairment		-			(1,210	)
		2,344			3,497

The depreciation expense related to property and equipment, net for the years ended December 2023, 2022, 2021 was included in the Company’s consolidated statements of comprehensive loss, excluding discontinued operation in the amount of USD 51 thousand, USD 453 thousand and USD 195 thousand, respectively.

	Year ended December 31,
	2023		2022		2021
Research and development, net		299		297		119
Marketing		23		26		17
General and administrative		130		61		49
		452		384		185

F-16

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 6 – ACOUNTPAYABLES AND ACCRUALS

	December 31,
	2023		2022
Accrued expenses		532		604
Employee benefits		1,241		1,175
Subsidiary government grant advances		-		314
Other		10		11
		1,783		2,104

NOTE 7 – LEASES

The main operating lease expenses include lease of office space and laboratory facilities. The Company’s leases have original lease periods expiring up to 2030. The Company does not assume renewals in determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement.

The Company determines if an arrangement is or contains a lease at contract inception and recognizes a right of use asset and a lease liability at the lease commencement date.

As of December 31, 2023, the Company has no financing leases.

The information presented within this note excludes discontinued operations. Refer to Note 3, “Discontinued Operations” for further discussion regarding discontinued operations.

The components of lease expense were as follows for the periods presented (in thousands):

	Year ended December 31,
	2023		2022		2021
Operating lease cost		580		586		215
Short-term lease cost		-		20		-
Variable lease cost		52		26		4
Total lease cost		632		632		219

The weighted-average remaining lease term and discount rate related to operating leases were as follows:

	December 31,
	2023			2022
Weighted average remaining lease term		7			8
Weighted average discount rate		8.767	%		8.767	%

Cash payments related to operating lease liabilities for the years ended December 31, 2023, 2022, and 2021, were USD 620 thousand, USD 604 thousand and USD 228 thousand, respectively.

The maturities of the Company’s operating lease liabilities were as follows (in thousand):

Fiscal years ending December 31,
2024	575
2025	575
2026	595
2027	597
2028	597
Thereafter	646
Total undiscounted lease payments	3,585
Less imputed interest	(774	)
Total lease liabilities	2,811

F-17

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 8 – FAIR VALUEMEASUREMENT

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values:

	Year ended December 31, 2023
	Fair value measurements using input type
	Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Marketable securities with related party		351		351		-		-
	Year ended December 31, 2022
---	---	---	---	---	---	---	---	---
	Fair value measurements using input type
	Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Other investment		1,292		-		-		1,292
Financial Liabilities:
Warrant liability		4		-		-		4
		1,296		-		-		1,296

During the years ended December 31, 2023, and 2022, the Company had no transfers in or out of Level 3 of the fair value hierarchy of its assets measured at fair value.

Marketable securities with related party

On April 3, 2023, the Company announced its participation in an investment round in Wilk Technologies Ltd. (TASE: WILK), a related party, alongside leading players in the food industry, such as Danone and the Central Bottling Co. Ltd. (owner of Tara, Coca Cola Israel and more). As part of the investment, the Company purchased ordinary shares of Wilk in the amount of USD 435 thousand at a 15% discount to its 45-day average closing price, giving the Company a 2.5% investment in Wilk. Yaron Kaiser Chairman of the board of directors of the Company, then served as chairman of the board of directors of Wilk. Additionally, Arik Kaufman, the Chief Executive Officer of the Company, then served as a director at Wilk. For these reasons, this investment was classified as a related party transaction.

The Company re-measured the asset using a Level 1 fair value measurement, as its prices are quoted in an active market.

Other investment

The Company entered into a separation agreement with Therapin on May 26, 2020, whereby it canceled its previous investment agreement with Therapin and replaced it with a debt arrangement (the “Loan”). Therapin committed to pay the Company NIS 40 thousand (approximately USD 11 thousand) per month for 119 months for a total consideration of NIS 4,800 thousand (approximately USD 1,400 thousand) plus NIS 2,450 thousand (approximately USD 700 thousand) to be paid upon an exit event. If Therapin were to complete an exit event during the payment period, the Company would have the option to receive shares or payment in cash for the remaining balance. If Therapin were to generate a distributable surplus or distributes a dividend, the Company would receive a portion of it as repayment. The separation agreement with Therapin is considered a “remeasurement event” according to ASC 825 provision. Therefore, the Company qualifies, and has elected, to account for the separation agreement with Therapin under the fair value option. The Company re-measured the asset using a Level 3 fair value measurement. The fair value was assessed by capitalization of future cash flows (proceeds) at interest rates that reflect the level of risk (based on the duration of the debt) of these proceeds and were classified as Level 3 in the fair value hierarchy. As of December 31, 2022 the Loan had 90 monthly instalments remaining to be paid. The discount rate related to the Loan valuation was 11.84%. As of December 31, 2022, the difference between the aggregate fair value and the aggregate unpaid principal balance was USD 425 thousand (NIS 1,495 thousand).

F-18

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 8 – FAIRVALUE MEASUREMENT (CONT.)

During the year ended December 31, 2023, Therapin experienced delays in payments to the Company, which received only USD 88 thousand. Due to Therapin’s financial difficulties, and the current market conditions in the cannabis sector in which Therapin operates, in November 2023, Therapin filed for a stay of proceeding in the District Court in Nazareth. Therefore, the Company assesses no further payments will be received and revaluated the investment to USD 0. For the year ended December 31, 2023, the Company recorded a re-valuation financing expense in the amount of USD 1,148 thousand and for the years ended December 31, 2022 and December 31, 2021 the Company recorded a re-valuation financing income in the amount of USD 99 thousand and USD 193 thousand, respectively.

Warrant liability

During 2020 and in early 2021, the Company entered into several investment agreements, according to which the Company issued warrants exercisable into a total of 26,639,573 and 1,925,000 ordinary shares, respectively. The warrants are accounted for as warrant liabilities as the exercise prices of the warrants are denominated in Israeli Shekels (ILS), which differs from the Company’s functional currency. The warrants liability’s fair value was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy using the Black and Scholes pricing model. The warrants expired by December 31, 2023.

The fair value of the warrant liability was estimated with the following significant unobservable inputs:

	June 30			December 31,
	2023			2022
Stock price	$	0.31		$	0.36
Exercise price		1.10			0.84-1.67
Expected term (in years) (1)		0.10			0.38-0.59
Volatility (2)		125.64	%		113.03%-117.97	%
Dividend rate (3)		0	%		0	%
Risk-free interest rate (4)		4.64	%		3.52%-3.58	%
(1)	The expected term assumes that the option is held until expiration.
---	---
(2)	The annual expected volatility applied determined on the basis<br>of share price volatility in similar companies.
---	---
(3)	Dividend distribution is not expected during the remaining contractual term of the outstanding stock options.
---	---
(4)	Risk-free interest rate based on US bonds, with time to maturity<br>equal to the useful life of the options.
---	---

Derivative liability – Ratchet

The investment agreements signed in 2020 and 2021 included Company’s share purchase agreements by and among several investors. According to the agreements, the Company issued 17,874,121 ordinary shares at a fixed price per share (‘PPS’). The agreements include a ratchet mechanism (the “Ratchet”), according to which, in the event that within a period of three years commencing on the issuance date the Company shall allocate additional shares at a price per share which is lower than the PPS, the investor shall be entitled to receive additional ordinary shares, the number of which shall be calculated using the PPS and the price per share under such event. The Ratchet will be canceled at the earlier of (1) Company’s Nasdaq listing, or (2) 24 months after commencement date. The Ratchet was determined to be a freestanding financial instrument that was classified as a liability. In accordance with the agreements, the Ratchet expired upon the Company’s Nasdaq listing in 2021. The Ratchet liability was recorded at fair value with subsequent changes in fair value recorded in earnings.

The fair value of the Ratchet was estimated by third party appraiser using the Monte-Carlo pricing model compute the fair value of the derivative and to mark to market the fair value of the derivative, which represents a Level 3 measurement within the fair value hierarchy. In 2021, the impact on the consolidated comprehensive loss was USD 316 thousand.

F-19

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S.dollars in thousands (except share data and per share data)

NOTE 9 –COMMITMENTS AND CONTINGENT LIABILITIES

From time to time, the Company may be involved in claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. The Company is not currently involved in any legal proceedings that could reasonably be expected to have a material adverse effect on its business, prospects, financial condition or results of operations.

Ophectra

In November 2020, the Israeli Securities Authority, or ISA, initiated an administrative proceeding claiming negligent misstatement regarding certain immediate and periodic reports published by the Company’s predecessor (Ophectra) during the years 2017 and 2018, prior to the merger with MeaTech and prior to establishment of the settlement fund in connection with the Merger. In February 2021, the trustee of the settlement fund informed the Company that the ISA views the Company as a party to this proceeding, notwithstanding the settlement and establishment of the settlement fund. This proceeding is of an administrative nature and carries a potential penalty in the form of a monetary fine which, under applicable Israeli law, could be as high as NIS 5,000 thousand. In April 2021, following negotiations with the ISA, the Company agreed to settle the matter for USD 200 thousand (NIS 700 thousand), for which the Company recorded a loss contingency. The settlement is subject to approval of the ISA’s Enforcement Committee. As similar proceedings with several other companies found the companies not liable, the Company has initiated procedures to obtain a similar finding with respect to the Company, notwithstanding the settlement, however due to lack of certainty with the regard to the outcome of these procedures, the Company has retained the aforementioned provision.

In February 2021, a civil claim was lodged against the settlement fund, relating to Ophectra’s activities prior to establishment of the settlement fund, in an amount of, approximately USD 700 thousand (NIS 2,695 thousand). The Company believes that it is probable that no final ruling will be decided against the settlement fund. As of the date of the Financial Statements, an evidentiary hearing has been set for March 2025.

---

NOTE 10- SHAREHOLDERS’ EQUITY

(1)

The holders of ordinary share have the right to one vote for each ordinary share held of record by such holder with respect to all matters on which shareholders are entitled to vote, to receive dividends as they may be declared at the discretion of the Company’s Board of Directors and to participate in the balance of the Company’s assets remaining after liquidation, dissolution or winding up, ratably in proportion to the number of ordinary shares held by them. Except for contractual rights of certain investors, shareholders have no pre-emptive or similar rights and are not subject to redemption rights and carry no subscription or conversion rights.

F-20

STEAKHOLDERFOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except sharedata and per share data)

NOTE 10 –SHAREHOLDERS’ EQUITY (CONT.)

(2)

On March 12, 2021, the Company completed its Initial Public Offering (IPO) on the Nasdaq of 272,127 ADSs, each representing hundred (100) ordinary shares of the Company, at an offering price of USD 103.0 per ADS, resulting in gross proceeds of approximately USD 28,000 thousand and net proceeds of approximately USD 24,700 thousand. Additionally, the vesting of 1,374,998 investor share rights was triggered by the IPO, and these shares were issued in return for approximately USD 1,250 thousand following the IPO. As part of the IPO, options and rights previously held by the Company’s founders Investors were issued to 6,359,480 shares.

(3)	As part of the acquisition of Peace of Meat, during 2022 and 2021 the Company issued 846,000 ordinary shares and 5,923,000 ordinary shares, respectively to the Peace of Meat shareholders.
(4)	On July 5, 2022, the Company consummated a securities purchase agreement with a single U.S. institutional investor for the purchase and sale of 60,000 ADSs, each representing hundred (100) ordinary shares of no par value, at a price of USD 35 per ADS, pre-funded warrants to purchase 125,714 ADSs at a price of USD 34.999 (that was already paid) with an exercise price of USD 0.001 per ADS to be paid once exercised, classified as equity, and warrants to purchase 185,714 ADSs for five years with an exercise price of USD 35.0 per ADS, classified as equity. The securities were offered in the framework of a registered direct offering. The gross proceeds were approximately USD 6,500 thousand, and the net proceeds were approximately USD 5,800 thousand. Issuance costs were recognized as a reduction to equity. All pre-funded warrants were exercised through December 31, 2022.
---	---
(5)	On January 9, 2023, the Company consummated an underwritten public<br>offering of 155,000 ADSs each representing hundred (100) ordinary shares, no par value, at a price of USD 10 per ADS, pre-funded warrants,<br>classified in equity, to purchase 495,000 ADSs at a purchase price of USD 9.999 per warrant and an exercise price of USD 0.001 per ADS,<br>and ADS warrants, classified in equity, to purchase 650,000 ADSs, exercisable immediately for a period of five years, with an exercise<br>price of USD 10 per ADS, for total immediate gross proceeds of approximately USD 6,500 thousand.<br> <br><br> <br>As part of the offering, the Company issued Underwriter Warrants, classified as equity, to purchase 16,250 ADSs each representing hundred (100) ordinary shares, no par value, the Underwriter’s Warrants are exercisable beginning six months from the effective date of the offering, from time to time, in whole or in part, for a period of five years, with an exercise price of USD 10 per ADS with an aggregated fair value of USD 131 thousand that were allocated to premium on shares.<br> <br><br> <br>In addition, the underwriters were granted with an option exercisable within 45 days from January 9, 2023 to purchase up to 97,500 additional ADSs and Warrants to purchase 97,500 additional ADSs, from the Company at the public offering price, less the underwriting discounts and commissions. This option was not exercised by the underwriters. Underwriting discounts and other offering expenses totaled approximately USD 700 thousand.<br> <br><br> <br>Following the public offering the Company entered into a warrant amendment (the “Amendment”) according to which the exercise price of the warrants to purchase 185,714 ADSs was reduced from USD 35 to USD 10 and the termination date was extended for approximately six months. The Amendment was accounted for as a modification of a freestanding equity-classified warrant that remains equity classified after the modification, according to ASU 2021-04. The effect of the modification was recognized as an equity. All pre-funded warrants were exercised through December 31, 2023.
---	---

F-21

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except sharedata and per share data)

NOTE 10 –SHAREHOLDERS’ EQUITY (CONT.)

(6)

On July 27, 2023, the Company consummated a securities purchase agreement with a single U.S. institutional investor for the purchase and sale of: (i) 109,500 ADSs, at an offering price of USD 10 per ADS, and (ii) pre-funded warrants to purchase up to 490,500 ADSs at an offering price of USD 9.99 per pre-funded warrant. Each pre-funded warrant is exercisable for one ADS. The pre-funded warrants have an exercise price of USD 0.01 per ADS and may be exercised at any time for a period of 3.5 years until exercised in full, the pre-funded warrants were classified in equity. The securities were offered in the framework of a registered direct offering. In addition, the Company allocated warrants to purchase 42,000 ADSs, to the placement agent (or its designees) as compensation in connection with this offering, at an exercise price of USD 12.50 per ADS. The ADS Warrants were classified as equity. In a concurrent private placement, the Company allocated to the investor unregistered warrants to purchase up to 600,000 ADSs at an exercise price of USD 11 per ADS. The gross proceeds were approximately USD 6,000 thousand, and the net proceeds were approximately USD 5,500 thousand. 258,710 ADS pre-funded warrants were exercised through December 31, 2023.

The table below summarizes the outstanding ADS warrants as of December 31, 2023:


Pre-funded warrants	231,900	-
ADS warrants	1,493,964	3.5-5
Total outstanding	1,725,864

All values are in US Dollars.

NOTE 11 – SHARE-BASEDCOMPENSATION

The Company has adopted share-based compensation plan, the 2022 Share Incentive Plan (the Plan), from which share-based compensation awards can be granted to employees, directors and consultants. As of December 31, 2023, there were 2,306,600 ordinary shares authorized for issuance under the Plan.

The Company has issued stock option and Restricted share units (RSU) awards to management, other key employees, consultants, and executive directors. These awards generally vest ratably over a three-year period and the option awards expire after a term of four years from the date of grant. The Company’s option and RSUs awards have vesting conditions based on services period, and performance share units (PSUs) have vesting conditions based on achievement of pre-determined performance conditions.

New allotments during the year ended December 31, 2023 that remain outstanding, all of which are non-tradable and physically-settled, are set out below:

Date of grant	Eligible<br> Recipients	Terms of<br> the instrument	No. of <br> ordinary shares<br> (thousands)	Vesting Conditions
March 30, 2023	Chairman of the Board	Restricted share units (1)	1,340	12 quarterly tranches
March 30, 2023	Chairman of the Board	Performance share units (1)	1,340	Vesting upon achievement of performance conditions
April 20, 2023	Chief Executive Officer	Restricted share units (2)	1,910	12 quarterly tranches
April 20, 2023	Chief Executive Officer	Performance share units (2)	1,910	Vesting upon achievement of performance conditions
June 25, 2023	Company Employees	Restricted Share Units (3)	11,217	12 quarterly tranches
August 30, 2023	Company Employees	Restricted Share Units (3)	190	12 quarterly tranches
October 12, 2023	Directors	Restricted Share Units (4)	3,831	12 quarterly tranches
November 22, 2023	Company Employees	Restricted Share Units (3)	862	12 quarterly tranches
Total securities exercisable into shares			22,600
(1)	On March 30, 2023, the Chairman of the Board, who had waived unvested, out-of-the-money options, was granted restricted share units. The incremental fair value of the grant was calculated as the difference between the fair value of the restricted share units and the net fair value of out-of-the-money options that the Chairman of the Board had waived. The incremental fair value of this grant, amounting to USD 87 thousand, is recognized over the course of 12 quarterly installments. The Chairman was also granted performance share units, which will vest in full upon the achievement of one of the following milestones: (i) engagement with a strategic partner/investor/corporation operating in the field of food, healthcare, pharmaceuticals, or printing for an investment in the company or its subsidiaries, in cash in an amount of not less than USD 500 thousand; (ii) submission of a regulatory approval to the U.S. FDA, Singapore Food Agency or European Food Safety Authority, for the commercial sale or distribution of Company’s products; or (iii) engagement with a strategic partner/corporation operating in the field of food, healthcare, pharmaceuticals or printing in a joint development agreement to collaborate to develop technology or products for the purpose of later commercialization. As of December 31, 2023, the Company’s management assessed<br>the completion percentage of a milestone, leading to the recognition of share-based payment expenses amounting to USD 61 thousand.
---	---

F-22

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except sharedata and per share data)

NOTE 11 – SHARE-BASEDCOMPENSATION (CONT.)

(2)	On April 20, 2023, the Chief Executive Officer, who had waived<br>unvested, out-of-the-money options, was granted restricted share units. The incremental fair value of the grant was calculated as<br>the difference between the fair value of the restricted share units and the net fair value of out-of-the-money options that the Chief<br>Executive Officer had waived. The incremental fair value of this grant, amounting to USD 134 thousand, is recognized over<br>the course of 12 quarterly installments. The Chief Executive Officer was also granted performance share units, which will vest in<br>full upon the achievement of one of the aforementioned milestones. As of December 31, 2023, the Company’s management assessed the completion<br>percentage of a milestone, leading to the recognition of share-based payment expenses amounting to USD 87 thousand.
(3)	On June 25, 2023, Company employees were granted restricted<br>share units. The incremental fair value of the grant was calculated as the difference between the fair value of the restricted share<br>units and the net fair value of unvested out-of-the-money options that employees had separately waived. This incremental fair value,<br>in the amount of USD 820 thousand, will be recognized over the course of 12 quarterly installments. During 2023,<br>the Company issued restricted share units to its new employees, with a fair value of USD 164 thousand. The assumption for estimate<br>the incremental fair value are detailed in table below.
---	---
(4)	In August 2023, members of the Company’s Board of Directors were granted restricted<br>share units. The incremental fair value of the grant was calculated as the difference between the fair value of the restricted share<br>units and the net fair value of unvested out-of-the-money options that employees had separately waived. This incremental fair value,<br>in the amount of USD 389 thousand, will be recognized over the course of 12 quarterly installments. The assumption<br>for estimate the incremental fair value are detailed in table below.
---	---

F-23

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except sharedata and per share data)

NOTE 11 – SHARE-BASEDCOMPENSATION (CONT.)

The fair value at the dates the options were awarded was estimated using a binomial option pricing model.

The fair value of the Company’s stock options granted to employees and directors for the years ended December 31, 2023, 2022 and 2021 was estimated using the following assumptions:

	2023		2022		2021
Expected volatility	97.57%-119.85	%	91.25%-100.74	%	73.84%-93.1	%
Risk free interest rate	3.78%-4.92	%	2.03%-4.04	%	0.23%-1.97	%
Expected dividend	0	%	0	%	0	%
Expected term (in years)	1.5-2 years		2-2.8 years		4-10 years

The Expected Volatility was determined on the basis of a weighted average share price volatility of the company, as well as similar companies, for a period equal to the expected terms of the share options The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The estimated exercise coefficient for executive and non-executive is approximately 2.8 and 2, respectively. Share price was determined according to quoted share prices on Nasdaq.

Transactions related to the grant of options to employees, directors and non-employees under the Company’s options plan during the year ended December 31, 2023 were as follows:


Outstanding at January 1, 2023	19,046,329		4.89
Granted	-		-
Exercised	-		-
Cancelled	(4,132,233	)	0.55
Forfeited	(1,299,583	)	2.20
Expired	(3,640,418	)	-
Outstanding at December 31, 2023	9,974,095		6.41
Vested and expected to vest at end of period	9,974,095		6.41
Exercisable at December 31, 2023	7,805,505		4.9

All values are in US Dollars.

The weighted-average grant-date fair value of RSUs and options granted during the years 2023, 2022 and 2021 was 0.08, 0.24 and 0.48, respectively.

The total intrinsic value of options exercised during the years ended December 31, 2023, 2022 and 2021, was USD 0, USD 246 thousand and USD 1,505 thousand, respectively.

F-24

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except sharedata and per share data)

NOTE 11 – SHARE-BASEDCOMPENSATION (CONT.)

Transactions related to restricted share units (RSUs) during the year ended December 31, 2023 were as follows:


Outstanding at January 1, 2023	986,533
Granted	22,600,120
Vested	(3,462,487	)
Cancelled	(90,853	)
Forfeited	(1,904,663	)
Outstanding at December 31, 2023	18,128,650

All values are in US Dollars.

The total intrinsic value of vested RSU’s during the years ended December 31, 2023, 2022 and 2021, was USD 271 thousand, USD 120 thousand and USD 0, respectively.

As of December 31, 2023, the total compensation cost related to non-vested awards not yet recognized was approximately USD 1,228 thousand, which is expected to be recognized over a period of up to three years.

Besides incentive options and RSUs, as of the December 31, 2023 the Company has issued securities exercisable into 35,595,831 ordinary shares to investors, former shareholders of Peace of Meat and former Ophectra Real Estate and Investments Ltd. employees prior to the reverse merger, including investor warrants exercisable into 35,395,831 ordinary shares with exercise prices between USD 0.35 and USD 1.71 and prior Ophectra Real Estate and Investments Ltd. employees options exercisable into 200,000 ordinary shares with exercise price of USD 0.49.

The total equity-based compensation expense related to all of the Company’s equity-based awards recognized for the years ended December 31, 2023, 2022 and 2021 was comprised as follows:

	Year ended December 31,
	2023		2022		2021
Research and development, net		476		627		925
Marketing		832		2,291		704
General and administrative		551		438		2,170
Total share-based compensation expenses		1,859		3,356		3,799

NOTE 12 – BASICAND DILUTED NET LOSS PER ORDINARY SHARE

A reconciliation of net loss available to ordinary shareholders and the number of shares in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share amounts):

	Year ended December 31,
	2023			2022			2021
Net loss from continuing operations attributable<br> to ordinary shareholders		(15,547	)		(14,533	)		(3,861	)
Net loss from discontinued operations		(1,317	)		(7,326	)		(18,057	)
Weighted-average shares used in computing net loss per share, basic and diluted		236,645,676			135,900,869			115,954,501
Net loss per share from continuing operations, basic and diluted		(0.07	)		(0.11	)		(0.03	)
Net income (loss) per share from discontinued operations, basic and diluted		(0.01	)		(0.05	)		(0.16	)

In computing diluted loss per share for the years ended December 31, 2023, 2022 and 2021, no account was taken of the potential dilution that could occur upon the exercise of warrants, options granted under employee stock compensation plans, and contingently issuable shares, amounting to 177,699,182, 55,632,713 and 41,902,044 shares outstanding, as of December 31, 2023, 2022 and 2021, respectively since they had an anti-dilutive effect on net loss per share.

F-25

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except sharedata and per share data)

NOTE 13 –RELATED PARTY BALANCES AND TRANSACTIONS

The directors of the Company are entitled to a service fee and share-based compensation (and in the case of the Chairman of the Board, domestic travel expenses and an annual performance-based bonus). In the years ended December 31, 2023, 2022 and 2021, the Company incurred net expenses of USD 852 thousand, USD 720 thousand and USD 799 thousand, respectively in the consolidated statement of comprehensive loss.

Mr. Kaufman, the Chief Executive Officer of the Company, and Yaron Kaiser, the Chairman of the Board of Director of the Company, are also founders of BlueOcean Sustainability Fund, LLC, known as BlueSoundWaves, which provide to the Company marketing, consulting, and investor engagement services in the U.S., in exchange for warrants to purchase ordinary shares and restricted share units, which are recognized as share-based payments expenses. BlueSoundWaves is led by prominent investment community personalities Ashton Kutcher, Guy Oseary, and Effie Epstein. In the years ended December 31, 2023, 2022 and 2021, the Company incurred net expenses of USD 745 thousand, USD 2,210 thousand and USD 590 thousand, respectively in marketing expense with this related party.

In addition, the Company has invested in equity securities of a related party in 2023, see Note 8 and share based compensation, see Note 11.

NOTE 14 – INCOME TAX

A.	The components of the net profit (loss) before the provision for income taxes from continuing operation were<br>as follows:

	Years ended December 31,
	2023			2022			2021
Israel		(15,492	)		(13,658	)		(4,092	)
Foreign		(55	)		(875	)		231
Total		(15,547	)		(14,533	)		(3,861	)
B.	The provision for income taxes was as follows:
---	---
	Years ended December 31,
---	---	---	---
	2023	2022	2021
Current:
Israel	-	-	-
Foreign	-	-	-
Total current income tax expense (benefit)	-	-	-
Deferred:
Israel	-	-	-
Foreign	-	-	-
Total deferred income tax expense (benefit)	-	-	-
Total provision for income taxes	-	-	-

F-26

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except sharedata and per share data)

NOTE 14 – INCOME TAX (CONT.)

C.	Reconciliation of the theoretical tax expenses

A reconciliation of the Company’s theoretical income tax expense at the Israeli statutory rate of 23% to actual income tax expense is as follows:

	Years ended December 31,
	2023			2022			2021
Theoretical income tax benefit		(3,576	)		(3,343	)		(888	)
Foreign tax rate differentials		(2	)		(16	)		5
Reduced tax rate for preferred enterprises		-			-			-
Non-deductible expenses		195			613			465
Change in valuation allowance		3,417			1,507			1,074
Foreign exchange impact		(34	)		1,239			(656	)
Total		-			-			-

The Company’s subsidiaries corporate tax rate is limited to 25% in respect of Belgian operations.

D.	Deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The following table presents the significant components of the Company’s deferred tax assets and liabilities including the discontinued operation:

	Years ended December 31,
	2023			2022			2021
Deferred tax assets:
Net operating loss carryforwards		7,468			4,158			2,675
Research and development expenses		467			812			924
Accruals and reserves		120			138			139
Shared-based compensations		1,821			1,554			1,524
Financial income		684			793			1
Fixed asset		10			7			8
Gross deferred tax assets		10,570			7,462			5,271
Valuation allowance		(7,850	)		(4,433	)		(2,926	)
Total deferred tax assets		2,720			3,029			2,345
Deferred tax liabilities:
Leases		(1	)		(31	)		(2	)
Financial instruments		(2,534	)		(2,797	)		(2,222	)
Intercompany interest		-			-			(46	)
Financial expenses		-			(16	)		-
Other		(185	)		(185	)		(75	)
Gross deferred tax liabilities		(2,720	)		(3,029	)		(2,345	)
Deferred tax assets (liabilities), net		-			-			-

A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. The Company has established a valuation allowance to offset the deferred tax assets at December 31, 2023, 2022 and 2021 due to the uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets.

F-27

STEAKHOLDER FOODS LTD.

NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except sharedata and per share data)

NOTE 14 – INCOME TAX (CONT.)

The Company’s roll forward of the valuation allowance is as follows:


Valuation allowance on deferred tax assets:
Fiscal year ended December 31, 2021	(1,852	)	(1,074	)	(2,926	)
Fiscal year ended December 31, 2022	(2,926	)	(1,507	)	(4,433	)
Fiscal year ended December 31, 2023	(4,433	)	(3,417	)	(7,850	)

As of December 31, 2023, 2022 and 2021, the Company recorded a deferred tax asset in the amount of USD 6,284 thousand, USD 5,846 thousand, and USD 4,835 thousand, respectively, in respect of its discontinued operations. The deferred tax asset is fully offset by a valuation allowance.

As of December 31, 2023, undistributed earnings held by the Company’s foreign subsidiaries are designated as indefinitely reinvested. The Company did not recognize deferred taxes liabilities on undistributed earnings of its foreign subsidiaries, as the Company intends to indefinitely reinvest those earnings. Determination of the amount of unrecognized deferred tax liability on unremitted earnings is not practicable.

F.	As of December 31, 2023 and 2022, the Company had approximately USD 7,324 thousand and USD 4,161 thousand in net operating loss carryforwards in Israel that can be carried forward indefinitely.

G.	The<br>Company is not currently subject to any tax assessments in any tax jurisdictions.

The Company has final assessments through 2017.

NOTE

15 – GEOGRAPHIC INFORMATION

Property and equipment, net by geographic area consisted of the following:

	December 31,
	2023		2022
Israel		2,344		2,500
Belgium		-		997
Total property and equipment, net		2,344		3,497

NOTE

16 – SUBSEQUENT EVENTS

On January 24, 2024, the Company entered into an inducement offer letter agreement with a certain holder, of existing warrants to exercise these warrants and purchase (i) 6,000,000 ADSs issued in July 2023 at an exercise price of USD 1.10 per ADS, (ii) 6,500,000 ADSs issued in January 2023 at an exercise price of USD 1.00 per ADS and (iii) 1,857,143 ADSs issued in July 2022 at an exercise price of USD 1.00 per ADS (all herein “the Exercised Warrants”). Pursuant to the letter agreement, the holder agreed to exercise for cash its Exercised Warrants to purchase an aggregate of 14,357,143 ADSs at a reduced exercise price of USD 0.46 per ADS in consideration of New Warrants to purchase up to an aggregate of 28,714,286 ADSs at an exercise price of USD 0.485 per ADS that have a term of exercise of between three and half years with respect to 12,000,000 New Warrants and five years with respect to 16,714,286 New Warrants.

On April 4, 2024, the Company effected an adjustment to the ratio of ordinary shares to American Depositary Shares (“ADS”) at a ratio of 10:1, such that after the ratio adjustment was effected, every 10 ADSs were consolidated into 1 ADS and each ADS now represents one hundred (100) ordinary shares instead of ten (10) ordinary shares prior to the ratio adjustment. All share and per share amounts, and exercise prices of stock options, warrants, and pre-funded warrants, if applicable, in the consolidated financial statements and notes thereto have been adjusted for all periods presented to give effect to this adjustment to the ratio of ordinary shares to ADS.

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F-28

Exhibit 2.3

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

The following description of Steakholder Foods Ltd.’s (the “Company”) share capital, American Depositary Shares (“ADSs”), and provisions of articles of association are summaries and do not purport to be complete.

Share capital

Our authorized share capital consists of 1,000,000,000 ordinary shares.

All of our outstanding ordinary shares are validly issued, fully paid and non-assessable. Our ordinary shares are not redeemable and do not have any preemptive rights.

We may also issue and redeem redeemable securities on such terms and in such manner as our board of directors shall determine.

Transfer of shares

Our fully paid ordinary shares are issued in registered form and may be freely transferred under our amended and restated articles of association, unless the transfer is restricted or prohibited by another instrument, applicable law or the rules of a stock exchange on which the ordinary shares are listed for trade. The ownership or voting of our ordinary shares by non-residents of Israel is not restricted in any way by our amended and restated articles of association or the laws of the State of Israel, except for ownership by nationals of some countries that are, or have been, in a state of war with Israel.

Election of directors

Under our amended and restated articles of association, our board of directors must consist of not less than three (3) but no more than seven (7) directors. Pursuant to our amended and restated articles of association, each of our directors is appointed by a simple majority vote of holders of our ordinary shares, participating and voting at an annual general meeting of our shareholders provided that (i) in the event of a contested election the method of calculation of the votes and the manner in which the resolutions will be presented to our shareholders at the general meeting shall be determined by our board of directors in its discretion, and (ii) in the event that our board of directors does not or is unable to make a determination on such matter, then the directors will be elected by a plurality of the voting power represented at the general meeting in person or by proxy and voting on the election of directors. In addition, our directors are divided into three classes, one class being elected each year at the annual general meeting of our shareholders, and serve on our board of directors until the third annual general meeting following such election or re-election or until they are removed by a vote of 65% of the total voting power of our shareholders at a general meeting of our shareholders or upon the occurrence of certain events in accordance with the Israeli Companies Law, 5759-1999 (the “Companies Law”) and our amended and restated articles of association. In addition, our amended and restated articles of association provide that vacancies on our board of directors may be filled by a vote of a simple majority of the directors then in office. A director so appointed will hold office until the next annual general meeting of our shareholders for the election of the class of directors in respect of which the vacancy was created, or in the case of a vacancy due to the number of directors being less than the maximum number of directors stated in our amended and restated articles of association, until the next annual general meeting of our shareholders for the election of the class of directors to which such director was assigned by our board of directors.

Dividend and liquidation rights

We may declare a dividend to be paid to the holders of our ordinary shares in proportion to their respective shareholdings. Under the Companies Law, dividend distributions are determined by the board of directors and do not require the approval of the shareholders of a company unless the company’s articles of association provide otherwise. Our amended and restated articles of association do not require shareholder approval of a dividend distribution and provide that dividend distributions may be determined by our board of directors.

Pursuant to the Companies Law, the distribution amount is limited to the greater of retained earnings or earnings generated over the previous two years, according to our then last reviewed or audited financial statements (less the amount of previously distributed dividends, if not reduced from the earnings), provided that the end of the period to which the financial statements relate is not more than six months prior to the date of the distribution. If we do not meet such criteria, then we may distribute dividends only with court approval; as a company listed on an exchange outside of Israel, however, court approval is not required if the proposed distribution is in the form of an equity repurchase, provided that we notify our creditors of the proposed equity repurchase and allow such creditors an opportunity to initiate a court proceeding to review the repurchase. If within 30 days such creditors do not file an objection, then we may proceed with the repurchase without obtaining court approval. In each case, we are only permitted to distribute a dividend if our board of directors and, if applicable, the court determines that there is no reasonable concern that payment of the dividend will prevent us from satisfying our existing and foreseeable obligations as they become due.

In the event of our liquidation, after satisfaction of liabilities to creditors, our assets will be distributed to the holders of our ordinary shares in proportion to their shareholdings. This right, as well as the right to receive dividends, may be affected by the grant of preferential dividend or distribution rights to the holders of a class of shares with preferential rights that may be authorized in the future.

Shareholder Meetings

Under Israeli law, we are required to hold an annual general meeting of our shareholders once every calendar year and no later than 15 months after the date of the previous annual general meeting. All meetings other than the annual general meeting of shareholders are referred to in our amended and restated articles of association as special general meetings. Our board of directors may call special general meetings of our shareholders whenever it sees fit, at such time and place, within or outside of Israel, as it may determine. In addition, the Companies Law provides that our board of directors is required to convene a special general meeting of our shareholders upon the written request of (1) any two or more of our directors, (2) one-quarter or more of the serving members of our board of directors or (3) as a company listed on an exchange in the U.S., one or more shareholders holding, in the aggregate, either (a) 10% or more of our outstanding issued shares and 1% or more of our outstanding voting power or (b) 10% or more of our outstanding voting power.

Under Israeli law, one or more shareholders holding at least 1% of the voting rights at the general meeting of the shareholders may request that the board of directors include a matter in the agenda of a general meeting of the shareholders to be convened in the future, provided that it is appropriate to discuss such a matter at the general meeting. Notwithstanding the foregoing, as a company listed on an exchange outside of Israel, a matter relating to the appointment or removal of a director may only be requested by one or more shareholders holding at least 5% of the voting rights at the general meeting of the shareholders. Our amended and restated articles of association contain procedural guidelines and disclosure items with respect to the submission of shareholder proposals for general meetings.

Subject to the provisions of the Companies Law and the regulations promulgated thereunder, shareholders entitled to participate and vote at general meetings of shareholders are the shareholders of record on a date to be decided by the board of directors, which, as a company listed on an exchange outside Israel, may be between four and 60 days prior to the date of the meeting. Furthermore, the Companies Law requires that resolutions regarding the following matters must be passed at a general meeting of shareholders:

●	amendments to our articles of association;
●	appointment, terms of service or and termination of service of our auditors;
---	---
●	appointment of directors, including external directors (if applicable);
---	---
●	approval of certain related party transactions;
---	---

●	increases or reductions of our authorized share capital;
●	a merger; and
---	---
●	the exercise of our board of directors’ powers by a general meeting, if our board of directors is<br>unable to exercise its powers and the exercise of any of its powers is required for our proper management.
---	---

The Companies Law requires that a notice of any annual general meeting or special general meeting be provided to shareholders at least 21 days prior to the meeting and if the agenda of the meeting includes, among other things, the appointment or removal of directors, the approval of transactions with office holders or interested or related parties, or an approval of a merger, notice must be provided at least 35 days prior to the meeting. Under the Companies Law and our amended and restated articles of association, shareholders are not permitted to take action by way of written consent in lieu of a meeting.

Voting rights

All ordinary shares have identical voting and other rights in all respects.

Quorum

Pursuant to our amended and restated articles of association, holders of our ordinary shares have one vote for each ordinary share held on all matters submitted to a vote before the shareholders at a general meeting of shareholders. The quorum required for our general meetings of shareholders consists of at least two shareholders present in person or by proxy in accordance with the Companies Law who hold or represent at least 33^1^⁄3% of the total outstanding voting power of our shares, except that if (i) any such general meeting was initiated by and convened pursuant to a resolution adopted by the board of directors and (ii) at the time of such general meeting we qualify as to use the forms and rules of a “foreign private issuer,” the requisite quorum will consist of two or more shareholders present in person or by proxy who hold or represent at least 25% of the total outstanding voting power of our shares. The requisite quorum shall be present within half an hour of the time fixed for the commencement of the general meeting. A general meeting adjourned for lack of a quorum shall be adjourned either to the same day in the next week, at the same time and place, to such day and at such time and place as indicated in the notice to such meeting, or to such day and at such time and place as the chairperson of the meeting shall determine. At the reconvened meeting, any number of shareholders present in person or by proxy shall constitute a quorum, unless a meeting was called pursuant to a request by our shareholders, in which case the quorum required is one or more shareholders, present in person or by proxy and holding the number of shares required to call the meeting as described above.

Vote requirements

Our amended and restated articles of association provide that all resolutions of our shareholders require a simple majority vote, unless otherwise required by the Companies Law or by our amended and restated articles of association. Under the Companies Law, certain actions require the approval of a special majority, including: (i) an extraordinary transaction with a controlling shareholder or in which the controlling shareholder has a personal interest, (ii) the terms of employment or other engagement of a controlling shareholder of the company or a controlling shareholder’s relative (even if such terms are not extraordinary) and (iii) certain compensation-related matters. Under our amended and restated articles of association, the alteration of the rights, privileges, preferences or obligations of any class of our shares (to the extent there are classes other than ordinary shares) requires the approval of a simple majority of the class so affected (or such other percentage of the relevant class that may be set forth in the governing documents relevant to such class), in addition to a majority of all classes of shares voting together as a single class at a shareholder meeting. Under our amended and restated articles of association, the approval of the holders of at least 65% of the total voting power of our shareholders is generally required to remove any of our directors from office.

Access to corporate records

Under the Companies Law, all shareholders generally have the right to review minutes of our general meetings, our shareholder register (including with respect to material shareholders), our articles of association, our financial statements, other documents as provided in the Companies Law, and any document we are required by law to file publicly with the Israeli Registrar of Companies or the Israel Securities Authority. Any shareholder who specifies the purpose of its request may request to review any document in our possession that relates to any action or transaction with a related party which requires shareholder approval under the Companies Law. We may deny a request to review a document if we determine that the request was not made in good faith, that the document contains a trade secret or a patent or that the document’s disclosure may otherwise impair our interests.

Acquisitions under Israeli law

Full tender offer. A person wishing to acquire shares of a public Israeli company who would, as a result, hold over 90% of the target company’s voting rights or the target company’s issued and outstanding share capital (or of a class thereof), is required by the Companies Law to make a tender offer to all of the company’s shareholders for the purchase of all of the issued and outstanding shares of the company (or the applicable class). If (a) the shareholders who do not accept the offer hold less than 5% of the issued and outstanding share capital of the company (or the applicable class) and the shareholders who accept the offer constitute a majority of the offerees that do not have a personal interest in the acceptance of the tender offer or (b) the shareholders who did not accept the tender offer hold less than 2% of the issued and outstanding share capital of the company (or of the applicable class), all of the shares that the acquirer offered to purchase will be transferred to the acquirer by operation of law. A shareholder who had its shares so transferred may petition an Israeli court within six months from the date of acceptance of the full tender offer, regardless of whether such shareholder agreed to the offer, to determine whether the tender offer was for less than fair value and whether the fair value should be paid as determined by the court. However, an offeror may provide in the offer that a shareholder who accepted the offer will not be entitled to petition the court for appraisal rights as described in the preceding sentence, as long as the offeror and the company disclosed the information required by law in connection with the full tender offer. If the full tender offer was not accepted in accordance with any of the above alternatives, the acquirer may not acquire shares of the company that will increase its holdings to more than 90% of the company’s voting rights or the company’s issued and outstanding share capital (or of the applicable class) from shareholders who accepted the tender offer. Shares purchased in contradiction to the full tender offer rules under the Companies Law will have no rights and will become dormant shares.

Special tender offer. The Companies Law provides that an acquisition of shares of an Israeli public company must be made by means of a special tender offer if as a result of the acquisition the purchaser would become a holder of 25% or more of the voting rights in the company. This requirement does not apply if there is already another holder of 25% or more of the voting rights in the company. Similarly, the Companies Law provides that an acquisition of shares of an Israeli public company must be made by means of a special tender offer if as a result of the acquisition the purchaser would become a holder of more than 45% of the voting rights in the company, if there is no other shareholder of the company who holds more than 45% of the voting rights in the company. These requirements do not apply if (i) the acquisition occurs in the context of a private placement by the company that received shareholders’ approval as a private placement whose purpose is to give the purchaser 25% or more of the voting rights in the company, if there is no person who holds 25% or more of the voting rights in the company or as a private placement whose purpose is to give the purchaser 45% of the voting rights in the company, if there is no person who holds 45% of the voting rights in the company, (ii) the acquisition was from a shareholder holding 25% or more of the voting rights in the company and resulted in the purchaser becoming a holder of 25% or more of the voting rights in the company, or (iii) the acquisition was from a shareholder holding more than 45% of the voting rights in the company and resulted in the purchaser becoming a holder of more than 45% of the voting rights in the company. A special tender offer must be extended to all shareholders of a company. A special tender offer may be consummated only if (i) at least 5% of the voting power attached to the company’s outstanding shares will be acquired by the offeror and (ii) the number of shares tendered in the offer exceeds the number of shares whose holders objected to the offer (excluding the purchaser, its controlling shareholders, holders of 25% or more of the voting rights in the company and any person having a personal interest in the acceptance of the tender offer, or anyone on their behalf, including any such person’s relatives and entities under their control).

In the event that a special tender offer is made, a company’s board of directors is required to express its opinion on the advisability of the offer, or shall abstain from expressing any opinion if it is unable to do so, provided that it gives the reasons for its abstention. The board of directors shall also disclose any personal interest that any of the directors has with respect to the special tender offer or in connection therewith. An office holder in a target company who, in his or her capacity as an office holder, performs an action the purpose of which is to cause the failure of an existing or foreseeable special tender offer or is to impair the chances of its acceptance, is liable to the potential purchaser and shareholders for damages, unless such office holder acted in good faith and had reasonable grounds to believe he or she was acting for the benefit of the company. However, office holders of the target company may negotiate with the potential purchaser in order to improve the terms of the special tender offer, and may further negotiate with third parties in order to obtain a competing offer.

If a special tender offer is accepted, then shareholders who did not respond to or that had objected the offer may accept the offer within four days of the last day set for the acceptance of the offer and they will be considered to have accepted the offer from the first day it was made.

In the event that a special tender offer is accepted, then the purchaser or any person or entity controlling it or under common control with the purchaser or such controlling person or entity at the time of the offer may not make a subsequent tender offer for the purchase of shares of the target company and may not enter into a merger with the target company for a period of one year from the date of the offer, unless the purchaser or such person or entity undertook to effect such an offer or merger in the initial special tender offer. Shares purchased in contradiction to the special tender offer rules under the Companies Law will have no rights and will become dormant shares.

Merger. The Companies Law permits merger transactions if approved by each party’s board of directors and, unless certain conditions described under the Companies Law are met, a simple majority of the outstanding shares of each party to the merger that are represented and voting on the merger. The board of directors of a merging company is required pursuant to the Companies Law to discuss and determine whether in its opinion there exists a reasonable concern that as a result of a proposed merger, the surviving company will not be able to satisfy its obligations towards its creditors, such determination taking into account the financial status of the merging companies. If the board of directors determines that such a concern exists, it may not approve a proposed merger. Following the approval of the board of directors of each of the merging companies, the boards of directors must jointly prepare a merger proposal for submission to the Israeli Registrar of Companies.

For purposes of the shareholder vote of a merging company whose shares are held by the other merging company, or by a person or entity holding 25% or more of the voting rights at the general meeting of shareholders of the other merging company, or by a person or entity holding the right to appoint 25% or more of the directors of the other merging company, unless a court rules otherwise, the merger will not be deemed approved if a majority of the shares voted on the matter at the general meeting of shareholders (excluding abstentions) that are held by shareholders other than the other party to the merger, or by any person or entity who holds 25% or more of the voting rights of the other party or the right to appoint 25% or more of the directors of the other party, or any one on their behalf including their relatives or corporations controlled by any of them, vote against the merger. In addition, if the non-surviving entity of the merger has more than one class of shares, the merger must be approved by each class of shareholders. If the transaction would have been approved but for the separate approval of each class or the exclusion of the votes of certain shareholders as provided above, a court may still approve the merger upon the request of holders of at least 25% of the voting rights of a company, if the court holds that the merger is fair and reasonable, taking into account the valuation of the merging companies and the consideration offered to the shareholders. If a merger is with a company’s controlling shareholder or if the controlling shareholder has a personal interest in the merger, then the merger is instead subject to the same special majority approval that governs all extraordinary transactions with controlling shareholders.

Under the Companies Law, each merging company must deliver to its secured creditors the merger proposal and inform its unsecured creditors of the merger proposal and its content. Upon the request of a creditor of either party to the proposed merger, the court may delay or prevent the merger if it concludes that there exists a reasonable concern that, as a result of the merger, the surviving company will be unable to satisfy the obligations of the merging company, and may further give instructions to secure the rights of creditors.

In addition, a merger may not be completed unless at least 50 days have passed from the date that a proposal for approval of the merger is filed with the Israeli Registrar of Companies and 30 days from the date that shareholder approval of both merging companies is obtained.

Anti-takeover measures

The Companies Law allows us to create and issue shares having rights different from those attached to our ordinary shares, including shares providing certain preferred rights with respect to voting, distributions or other matters and shares having preemptive rights. No preferred shares will be authorized under our amended and restated articles of association. In the future, if we do authorize, create and issue a specific class of preferred shares, such class of shares, depending on the specific rights that may be attached to it, may have the ability to frustrate or prevent a takeover or otherwise prevent our shareholders from realizing a potential premium over the market value of their ordinary shares. The authorization and designation of a class of preferred shares will require an amendment to our amended and restated articles of association, which requires the prior approval of the holders of a majority of the voting power attached to our issued and outstanding shares at a general meeting of shareholders. The convening of the meeting, the shareholders entitled to participate and the vote required to be obtained at such a meeting will be subject to the requirements set forth in the Companies Law and our amended and restated articles of association.

In addition, we have a classified board structure whereby our directors are divided into three classes with staggered three-year terms. At each annual general meeting of the Company’s shareholders, the election or re-election of directors (other than external directors, if any) following the expiration of the term of office of the directors of that class of directors will be for a term of office that expires on the third annual general meeting following such election or re-election, such that from the annual general meeting of 2023 and thereafter, each year the term of office of only one class of directors will expire. We believe this mechanism effectively limits the ability of any investor or potential investor or group of investors or potential investors to gain control of our board of directors.

Approval of Business Combination Transactions

According to our amended and restated articles of association, unless otherwise approved by our board of directors in advance, the Company cannot enter into a business combination (as defined in the amended and restated articles of association) with any shareholder or any of its affiliates and/or investors for a period of three years following (i) with respect to any shareholder holding twenty percent (20%) or more of the voting power of the Company’s share capital and (ii) with respect to all shareholders, each time as such shareholder and/or any of its affiliates and/or investors become(s) (other than due to a buyback, redemption or cancellation of shares by the Company) the holder(s) (beneficially or of record) of 20% or more of the issued and outstanding voting power of the Company’s share capital.

Forum Selection Clause

Our amended and restated articles of association provide that unless the Company consents in writing to the selection of an alternative forum, the federal district courts of the United States shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended; and, for the avoidance of any doubt, such provision does not apply to any claim asserting a cause of action arising under the Exchange Act. Our amended and restated articles of association also provide that unless the Company consents in writing to the selection of an alternative forum, the competent courts in Tel Aviv, Israel shall be the exclusive forum for any derivative action or proceeding brought on behalf of the Company, any action asserting a breach of a fiduciary duty owed by any of the Company’s directors, officers or other employees to the Company or shareholders of the Company or any action asserting a claim arising pursuant to any provision of the Companies Law or the Israeli Securities Law, 5728-1968, and the regulations promulgated thereunder.

Amendment of Amended and Restated Articlesof Association

Any amendment of our amended and restated articles of associations requires, in addition to the approval of the shareholders of the Company, the approval of our board of directors with the affirmative vote of a majority of the then serving directors.

Borrowing Powers

Pursuant to the Companies Law and our amended and restated articles of association, our board of directors may exercise all powers and take all actions that are not required under law or under our amended and restated articles of association to be exercised or taken by our shareholders, including the power to borrow money for company purposes.

Changes in capital

Our amended and restated articles of association enable us to increase or reduce our share capital. Any such changes are subject to Israeli law and must be approved by a resolution duly passed by our shareholders at a general meeting of shareholders. In addition, transactions that have the effect of reducing capital, such as the declaration and payment of dividends in the absence of sufficient retained earnings or profits, require the approval of both our board of directors and an Israeli court.

Transfer agent and registrar

The transfer agent and registrar for our ordinary shares is Computershare Inc.

Exhibit 4.3

PERSONAL EMPLOYMENT AGREEMENT

THIS AGREEMENT (“Agreement”) is executed on March 15^th^, 2022 by and between MeaTech 3D Ltd. (Registration Number520041955 ) , an Israeli corporation whose principal place of business is 5 David Fikes St., Rehovot 7632805, Israel (“Company”), and Arik Kaufman Israeli ID 037336807, of 123 HaHadarim St., Even Yehuda 4051390, Israel (“Employee”).

WHEREAS Company wishes to employ Employee, and Employee agrees to be employed by Company subject to and in accordance with the terms and conditions hereinafter set forth; and

NOW, THEREFORE, in consideration of the mutual premises, covenants and undertakings contained herein, the parties hereto have hereby agreed as follows:

1.	Representations and Warranties

Employee represents and warrants to Company that he/she is free to be employed by the Company pursuant to the terms contained in this Agreement and there are no contracts, hindrances and/or restrictive covenants preventing full performance of the Employee’s duties and obligations hereunder.

2.	Term

Employee’s employment with Company shall commence as of January 24, 2021 (the “Commencement Date”) and shall continue until terminated in accordance with the provisions of Section 9 hereof (the “Term”).

3.	Position; Scope
3.1.	Company hereby agrees to employ Employee and Employee hereby agrees to be employed by Company in the position<br>of CEO (the “Position”).
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3.2.	The scope of employment of Employee shall be 90% of full-time employment.
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3.3.	During Employee’s employment with Company, Employee shall have the authority, functions, duties<br>and responsibilities, as from time to time may be stipulated by the Board of Directors or any other person designated from time to time<br>by Company (“Direct Manager”), and shall report thereto.
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3.4.	The Company’s standard working days and hours are 5 days per week between Sunday and Thursday, four days<br>of 9 gross hours (including lunch and rest breaks) per day and one shortened day of 8 gross hours including breaks. The regular weekly<br>rest day is Saturday. The working hours of the Employee shall be as required by the nature of the Employee’s position in the Company,<br>including during overtime hours if required in order to fulfill the Employee’s obligations according to this Agreement.
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3.5.	The Employee undertakes to report to the Company the actual working hours that will be performed by the<br>Employee each month on a daily basis, in accordance with the applicable law.
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4.	Employee’s Duties
---	---

Employee affirms and undertakes:

4.1.	To devote his/her entire working time, know-how, energy, expertise, talent, experience and best efforts<br>to the business and affairs of the Company and to the performance of his/her duties with Company.
4.2.	To perform and discharge well and faithfully, with devotion, honesty and fidelity, his/her obligations<br>pursuant to his/her Position and to carry out those functions, duties and responsibilities as shall be stipulated from time to time by<br>the Direct Manager.
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4.3.	To comply with all Company’s disciplinary regulations, work rules, policies, procedures and objectives,<br>as may be determined by Company from time to time.
---	---
4.4.	Not to receive, at all times, whether during the Term and/or at any time thereafter, directly or indirectly,<br>any payment, benefit and/or other consideration, from any third party in connection with his/her employment with Company, without the<br>Company’s prior written authorization. In the event the Employee breaches this Sub-section, without derogating from any of the Company’s<br>right by law or contract, such benefit or payment shall become the sole property of the Company and the Company may set-of such amount<br>from any sums due to the Employee.
---	---
4.5.	To immediately and without delay inform the Direct Manager of any affairs and/or matters that might constitute<br>a conflict of interest with Employee’s Position and/or employment with Company.
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4.6.	Not to assume employment obligations unrelated to the Company (and/or any subsidiary and/or parent company<br>of Company) and/or be retained as a consultant or advisor or contractor (whether or not compensated therefore) by or to any other business<br>or entity other than with the prior written approval of Company and in accordance with the terms and conditions of such approval.
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4.7.	Not to use any trade secrets or proprietary information in such a manner that may breach any confidentiality<br>and/or other obligation Employee may have undertaken relating to any former employer(s) and/or any third party.
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4.8.	The Employee acknowledges and agrees of his/her own free will that personal information related to him/her<br>and the Employee’s terms of employment at the Company, as shall be received and held by the Company will be held and managed by the Company,<br>and that the Company shall be entitled to transfer such information to third parties, in Israel or abroad. The information will be collected,<br>retained, used, and transferred for legitimate business purposes and to the reasonable and necessary scope only, including: human resources<br>management, business management and customer relations, assessment of potential transactions (including mergers and IPO) and relating<br>to such transactions, compliance with law and other requests and requirements from government authorities and audit, compliance checks<br>and internal investigations.
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5.	Compensation
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5.1.	Subject to and in consideration of Employee’s fulfillment of his/her obligations in pursuance of<br>this Agreement, Company shall pay Employee a base monthly gross salary of 37,600 NIS (the “Base Salary”).
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5.2.	Since Employee may be required to work outside of regular working hours and outside of regular working<br>days, the Company agrees to pay to Employee during the term of this Agreement a gross payment of 9,400 NIS per month (the “OvertimePayment”) on account of an average of 36 overtime hours and/or working through irregular days and hours per month (the “Quota”).<br>The Base Salary and the Overtime Payment together shall constitute the “Salary” for purposes of this Agreement. In this respect,<br>it is clarified that the Company does not wish that the Employee shall perform work on irregular days and hours, including overtime, beyond<br>the Quota. The Employee acknowledges and agrees that unless he obtains his/her supervisor’s prior written approval, the Employee shall<br>not work more than said Quota. The Employee shall not be entitled to any additional compensation with respect to unauthorized work hours<br>that exceed the monthly working hours mentioned above.
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5.3.	The Salary and social benefits, as set forth below, includes any and all payments, which the Employee<br>is entitled to receive from the Company under any applicable law, regulation, or agreement. The Salary shall be payable by no later than<br>the ninth (9th) day of the consecutive calendar month following the calendar month of employment to which the payment relates. Any payment<br>or benefit under this Agreement (including any bonuses or the like), other than the Salary, shall not be considered as a salary for any<br>purpose whatsoever, and the Employee shall not maintain or claim otherwise.
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5.4.	Israeli income tax and other applicable withholdings with respect to the Salary shall be deducted from<br>the Salary by the Company at source. The Salary shall serve as the basis for deductions and contributions to Pension Scheme and study<br>fund (keren hishtalmut) pursuant to Section 7 and for the calculation of all social benefits.
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5.5.

If the Company notifies Employee of intention to terminate this Agreement (not Termination for Cause, as defined herein) three months or more following the Commencement Date, it shall pay Employee severance pay equal to three Salaries if notice was provided up to one year from the Commencement Date, or six Salaries thereafter. If Employee notifies the Company of his intention to terminate this Agreement three months of more following the Commencement Date, the Company shall pay Employee severance pay equal to one and one half Salaries if notice was provided up to one year from the Commencement Date, or three Salaries thereafter.

5.6.

Annual Bonus

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Employee shall be eligible for an annual bonus of up to six (6) Salaries subject to his achievement of milestones as determined by the Company’s Board of Directors and in accordance with the Company’s Compensation Policy.

In case of termination of employment prior to year ended, either due to resignation or dismissal (other than Termination for Cause, as defined herein), the Employee may be entitled to a partial annual bonus with respect to the period the Executive actually worked through such relevant year all in accordance with the Compensation Policy, as determined by the Company’s Board of Directors.

For avoidance of any doubt, the annual bonus shall not be deemed as part of the Salary for any purpose and intent, including not for pension scheme and severance pay.

6.	Employee Stock Option Plan
6.1.	Without derogating from and in addition to the Salary set forth in Section 5 above, the Company will grant<br>the Employee options (the “Options”) to purchase 500,000 ordinary shares of the Company. The Options shall be granted<br>pursuant to the MeaTech 3D Employee Stock Option Plan (the “Plan”).
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The terms of the Options, including the exercise price, shall be as provided for in an option agreement, in the form as shall be approved by the Company’s board of directors, to be executed by the Company and the Employee. Employee undertakes to execute any and all documents as may be reasonably required by the Company in connection with the Options as a prerequisite to the grant of the Options.

7.	Social benefits
7.1.	Pension Scheme
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The Company encourages the Employee to tailor a pension scheme, a Managers’ Insurance Policy (the “Policy”) and/or Pension Fund (the “Pension Fund”) and/or alike, or a combination of plans that best suit the Employee’s anticipated future needs (the “Pension Scheme”). Therefore, the Employee shall be entitled to a pension arrangement in accordance with his/her choice (the contributions shall commence following completion of three months of the Employee’s employment at the Company with retroactive effect as of the Commencement Date). For the avoidance of doubt, in the event the Employee elects to combine plans, the contributions percentages will relate to such portion of Salary (including the Overtime Payment) that the Employee has allocated towards each benefit plan as follows:

7.1.1.

The contributions by Company shall be as follows: 8.33% of the Salary towards severance pay (the “SeveranceContribution”) and 6.5% of the Salary towards pension component at the Pension Scheme. In addition, in case of a Policy (i.e. Managers’ Insurance Policy), such pension allocations shall include a contribution for work disability insurance, in an amount required to insure 75% of the Salary, with pension contributions at an amount of no less than 5% of the Salary. Notwithstanding the above, should it be necessary to increase allocations under this subsection beyond said 6.5% of the Salary due to the cost of work disability insurance, then the Company’s allocations for work disability insurance and the Pension Scheme, shall together, under no circumstances, exceed 7.5% of the Salary.

7.1.2.	In addition, Employee shall contribute, and for that purpose he/she hereby irrevocably authorizes and<br>instructs Company to deduct from his/her Salary at source, an aggregate monthly amount of 6% (and up to 7% according to the Employee’s<br>request) of the Salary towards the Pension Scheme as Employee’s premium.
7.1.3.	In the event the Employee does not inform the Company of the pension scheme of his/her choice, the Company<br>shall execute the contributions as described above to one of the “default pension funds” determined by the Capital Market, Insurance,<br>and Savings Department of the Ministry of Finance.
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7.1.4.	Company and Employee respectively declare and covenant that, as evidenced by their respective signatures,<br>they hereby undertake to be bound by the general settlement authorized as pertaining to Company’s payment to the benefit of pension<br>funds and insurance funds, in place and in lieu of severance payment, pursuant to Section 14 of the Severance Payment Act (1963), attached<br>hereto as Exhibit A and in accordance with Sections 7 and 9 to the Extension Order General Insurance Pension In The Israeli<br>Market (“Section 14 Arrangement”).
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7.1.5.	The Employee agrees and acknowledges that the Company’s Severance Contribution in accordance with<br>the foregoing, shall be in lieu of 100% of the severance payment to which the Employee (or his/her beneficiaries) shall be entitled with<br>respect to the Salary and the contributions were made and for the period in which they were made, pursuant to Section 14 Arrangement.<br>Further to this Section 7, Company waives in advance any right, which it may have to a refund of funds from its Severance Contribution<br>payments, unless the Employee’s right to severance pay has been revoked by a judgment by virtue of Sections 16 or 17 of the Severance<br>Payment Law (1963), and to the extent so revoked and/or the Employee has withdrawn monies from the Pension Fund or Insurance Fund (both<br>as defined in Exhibit A) other than by reason of an entitling event; in such regard “Entitling Event” means death, disability<br>or retirement at after the age of 60.
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7.1.6.	The Employee shall be responsible for any tax imposed on him/her in connection with the above plans or<br>insurance policies or in connection with the Company’s contributions thereto.
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7.2.	Study Fund
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7.2.1.	Company shall contribute an aggregate monthly amount up to 7.5% of the Salary towards a study fund (KerenHishtalmut) (the “Study Fund”).
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7.2.2.	Employee shall contribute, and for that purpose, Employee hereby irrevocably authorizes and instructs<br>Company to deduct from the Salary at source, an aggregate monthly amount equal to 2.5% of the Salary as Employee’s participation<br>in such Study Fund.
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7.2.3.	Company shall bear any and all taxes applicable in connection with amounts payable by Employee and/or<br>Company to the Study Fund pursuant to this Section 7.2, including any tax which may apply due to contributions exceeding the tax-exempt<br>limit.
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7.3.	Vacation
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Employee shall be entitled to 24 days of annual leave. Scheduling of vacation days shall be made with the Direct Manager. The Employee may accumulate his/her annual leave days up to 150% of the Employee’s annual vacation quota (the “Maximum Accumulated Quota”). In case the Company schedules a forced vacation, the Company shall make reasonable efforts to let the Employee know regarding such forced vacation prior to the forced vacation, within a reasonable time frame, at the Company’s sole discretion. In no case, such efforts are be deemed to be binding and they are based on the Company’s good will and business order. Any amounts exceeding such Maximum Quota shall be cancelled by the Company and will not be redeemable in any event.

7.4.	Sick Leave

Employee shall be entitled to sick leave in accordance with applicable law, subject to the presentation of appropriate medical records, such that from the first day onward the Employee is to be paid a regular wage, as if he/she were not absent from work. Unused sick leave may not be redeemed, except as required by law.

7.5.	Recreation Pay

Employee shall be entitled to annual recreation pay (Dmey Havra’a) in an amount to be determined in accordance with Israeli regulations as in effect from time to time with respect to such pay.

7.6.	Transportation Expenses.

In addition to the Salary, the Company shall reimburse the Employee for transportation expenses from Employee’s home to his/her work and back in the amount of 5,000 NIS per each month.

8.	Confidentiality, Non-Solicitation, Non-Competition, and Assignment of Inventions Undertaking

Employee shall execute and deliver the Confidentiality, Non-Solicitation, Non-Competition, and Assignment of Inventions Undertaking annexed as Exhibit B to this Agreement, which shall constitute an indivisible and integral part hereof, and which shall apply, in accordance with its terms and to the Term.

9.	Termination
9.1.	This Agreement may be terminated by either party at any time by giving the other party hereto six months’<br>prior written notice of such termination (the “Notice Period”).
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9.2.	In the event that a Termination Notice is delivered by either party hereto, the following shall apply:
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9.2.1.	During the Notice Period, Employee shall be obligated to continue to discharge and perform all of his/her<br>duties and obligations with Company and to take all steps, satisfactory to Company, to ensure the orderly transition to any persons designated<br>by Company of all matters handled by Employee during the course of his/her employment with Company.
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9.2.2.	Notwithstanding the provisions of Section 9.2.1 above to the contrary, the Company shall be entitled,<br>but not obligated, at any time prior to the expiration of the Notice Period, at its sole discretion: (i) to waive the Employee’s actual<br>work during the Notice Period, or to reduce the scope of the Employee’s work hours, while continuing to pay the Employee his/her regular<br>payments and benefits until the completion of the Notice Period; or (ii) terminate this Employment Agreement and the employment relationship,<br>at any time prior to the expiration of the Notice Period, and pay a cash equivalent to his/her Salary for the remainder of the Notice<br>Period as a payment in lieu of prior notice in accordance with the law.
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9.3.	The provisions of Sections 9.1 and 9.2 above notwithstanding, Company, by furnishing a notice to Employee,<br>shall be entitled to terminate his/her employment with Company with immediate effect, where said termination is a Termination for Cause.<br>In the event of such termination, this Agreement shall be deemed effectively terminated as of the time of delivery of such notice, and<br>without derogating from the rights of Company under this Agreement and/or any applicable law, Employee shall not be entitled to any of<br>the consideration specified in Section 9.1 above and in the event of the occurrence of the circumstances set forth in Section 7.1.7 above,<br>Employee shall not be entitled to the Company’s contributions to the severance component in the Pension Scheme.
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9.4.	As used in this Agreement, the term “Termination for Cause” shall mean termination<br>by Company of Employee’s employment with Company under one of the following circumstances (a) Employee is found guilty of a criminal<br>offense of moral turpitude; (b) Employee causes harm to the Company’s business affairs or breaches his duty of trust or fiduciary<br>duties to the Company or its affiliates; (c) Employee breaches the confidentiality, non-competition, non-solicitation and protection of<br>intellectual property provisions of this Agreement,; or (d) Employee has intentionally failed, or willfully refused without reasonable<br>reason, to perform his/her duties under this employment agreement, provided, however, that with respect to a breach which is not material,<br>only to the extent that such breach was not cured within seven days following notice by the Company to the Employee requiring remedy of<br>such breach or (e) involvement in severe disciplinary offense or in the event that Employee is not eligible to severance pay under the<br>provisions of the Severance Pay Law, 1963.
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9.5.	Upon termination of Employee’s employment with Company for any reason whatsoever, or at such other<br>time as directed by the Company, Employee affirms and undertakes to (i) transfer his/her Position to his/her replacement, as shall be<br>determined by Company, during the Notice Period in an efficient, complete, appropriate and orderly manner, (ii) return to Company’s<br>office all information, equipment or documentation (including all passwords, write-protect codes and similar access codes used in the<br>context of his/her work), in any media and other property belonging to the Company which was given to him/her by the Company in connection<br>with his/her employment (collectively: the “Company Equipment”) and Employee shall have no rights to lien with respect<br>to said Company’s Equipment, and (iii) fulfill his/her obligations under Section 1.4.4 of Exhibit B.
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10.	General Provisions
10.1.	The Employee and the Company undertake to keep the contents of this Agreement confidential and not to<br>disclose the existence or contents of this Agreement to any third party without the prior written consent of the Company or the Employee,<br>as applicable, except to legal counsel, auditor or bookkeeper to the Parties and unless such disclosure is required under any applicable<br>law, and provided, however, that the Company may disclose the existence of this Agreement or contents thereof without the prior consent<br>of the Employee, in connection with any contemplated investment in the Company.
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10.2.	Company may assign or transfer this Agreement, or any right, claim or obligation provided herein, provided<br>however that none of Employee’s rights under this Agreement are thereby diminished. Neither this Agreement nor any right or interest<br>hereunder shall be assignable or transferable by the Employee.
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10.3.	Company shall withhold, or charge Employee with, all taxes and other compulsory payments as required under<br>applicable law with respect to all payments, benefits and/or other compensation paid to Employee in connection with his/her employment<br>with Company.
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10.4.	Company’s failure or delay in enforcing any of the provisions of this Agreement shall not, in any<br>way, be construed as a waiver of any such provisions, or prevent Company thereafter from enforcing each and every other provision of this<br>Agreement which were previously not enforced.
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10.5.	The provisions of this Agreement shall, where possible, be interpreted in a manner necessary to sustain<br>their legality and enforceability. Without derogating from the foregoing, in the event that any one or more of the provisions contained<br>in this Agreement should be held invalid, illegal or unenforceable in any respect due to the fact that it is over-broad or insufficiently<br>limited in time, geography or else, the parties hereby authorize, to the maximum extent legally permissible, the tribunal interpreting<br>such provision(s) to replace the invalid, illegal or unenforceable provision(s) with valid provision(s) the effect of which come as close<br>as possible to that of the invalid, illegal or unenforceable provision(s). The validity, legality and enforceability of the remaining<br>provisions contained herein shall in no way be affected or impaired as a result of any provision contained in this Agreement being held<br>invalid, illegal or unenforceable in any respect.
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10.6.	Notices given hereunder shall be in writing and shall be deemed to have been duly given on the date of<br>personal delivery, on the date of proof of delivery if mailed by certified or registered mail, or on the date sent by facsimile upon transmission<br>and electronic confirmation of receipt or (if transmitted and received on a non-business day) on the first business day following transmission<br>and electronic confirmation of receipt, addressed as set forth above or such other address as either party may designate to the other<br>in accordance with the aforesaid procedure.
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10.7.	This Agreement shall be interpreted and construed in accordance with the laws of the State of Israel.<br>The parties submit to the exclusive jurisdiction of the competent courts of the State of Israel in any dispute related to this Agreement.
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10.8.	This Agreement is personal, and the terms and conditions of the employment shall be solely as set forth<br>herein. This Agreement, together with all exhibits thereto, constitutes the entire agreement of the parties hereto with respect to the<br>subject matters hereof and supersedes all prior agreements and understandings between the parties with respect thereto, each of which<br>is hereby terminated and annulled. Unless otherwise provided in this Agreement, the provisions of any collective agreement (“Heskem<br>Kibutsi”), collective arrangement (“Hesder Kibutsi”) or other custom of any kind shall not apply.
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10.9.	Captions and paragraph headings used in this Agreement are for convenience purposes only and shall not<br>be used for the interpretation thereof. Words in the masculine gender shall include the feminine and vice versa.
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10.10.	This Agreement is subject to all the applicable approvals according to applicable law, if any.
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10.11.	This Agreement shall be deemed due notification regarding the Employee’s employment terms in accordance<br>with the provisions of the Notice to Employee and to Candidate (Employment Terms and Screening and Acceptance to Work Proceedings) Law,<br>2002 and the regulations thereunder.
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IN WITNESS WHEREOF, the parties hereto have hereby duly executed this Agreement on the day and year first set forth above.

/s/ Omri Schanin		/s/ Arik Kaufman
MeaTech 3D Ltd.		Employee
By:	Omri Schanin
Title:	Deputy CEO
/s/ Guy Hefer
By:	Guy Hefer
Title:	CFO

EXHIBIT A - GENERAL APPROVALREGARDING PAYMENTS BY EMPLOYERS TO A PENSION FUND AND INSURANCE FUND IN LIEU OF SEVERANCE PAY

By virtue of my power under section 14 of the Severance Pay Law, 1963 (hereinafter: the “Law”), I certify that payments made by an employer commencing from the date of the publication of this approval publication for his employee to a comprehensive pension benefit fund that is not an insurance fund within the meaning thereof in the Income Tax (Rules for the Approval and Conduct of Benefit Funds) Regulations, 1964 (hereinafter: the “Pension Fund”) or to managers insurance including the possibility of an insurance pension fund or a combination of payments to an annuity fund and to a non-annuity fund (hereinafter: the “Insurance Fund), including payments made by him by a combination of payments to a Pension Fund and an Insurance Fund, whether or not the Insurance Fund has an annuity fund (hereinafter: the “Employer’s Payments), shall be made in lieu of the severance pay due to the said employee in respect of the salary from which the said payments were made and for the period they were paid (hereinafter: the “Exempt Salary”), provided that all the following conditions are fulfilled:

1.	The Employer’s Payments -
(a)	To the Pension Fund are not less than 14^1^/3% of the Exempt Salary or 12% of the<br>Exempt Salary if the employer pays for his employee in addition thereto also payments to supplement severance pay to a benefit fund for<br>severance pay or to an Insurance Fund in the employee’s name in an amount of 2^1^/3% of the Exempt Salary. In the<br>event the employer has not paid an addition to the said 12%, his payments shall be only in lieu of 72% of the employee’s severance pay;
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(b)	To the Insurance Fund are not less than one of the following:
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(i)	13^1^/3% of the Exempt Salary, if the employer pays for his employee in addition thereto<br>also payments to secure monthly income in the event of disability, in a plan approved by the Commissioner of the Capital Market, Insurance<br>and Savings Department of the Ministry of Finance, in an amount required to secure at least 75% of the Exempt Salary or in an amount of<br>2^1^/2% of the Exempt Salary, the lower of the two (hereinafter: “Disability Insurance”);
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(ii)	11% of the Exempt Salary, if the employer paid, in addition, a payment to the Disability Insurance, and<br>in such case the Employer’s Payments shall only replace 72% of the Employee’s severance pay; In the event the employer has paid in addition<br>to the foregoing payments to supplement severance pay to a benefit fund for severance pay or to an Insurance Fund in the employee’s name<br>in an amount of 2^1^/3% of the Exempt Salary, the Employer’s Payments shall replace 100% of the employee’s severance<br>pay.
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(2)	No later than three months from the commencement of the Employer’s Payments, a written agreement is executed<br>between the employer and the employee in which -
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(a)	The employee has agreed to the arrangement pursuant to this approval in a text specifying the Employer’s<br>Payments, the Pension Fund and Insurance Fund, as the case may be; the said agreement shall also include the text of this approval;
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(b)	The employer waives in advance any right, which it may have to a refund of monies from his payments, unless<br>the employee’s right to severance pay has been revoked by a judgment by virtue of Section 16 and 17 of the Law, and to the extent<br>so revoked and/or the employee has withdrawn monies from the Pension Fund or Insurance Fund other than by reason of an entitling event;<br>in such regard “Entitling Event” means death, disability or retirement at after the age of 60.
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(3)	This approval is not such as to derogate from the employee’s right to severance pay pursuant to any law,<br>collective agreement, extension order or employment agreement, in respect of salary over and above the Exempt Salary.
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/s/<br> Omri Schanin	/s/<br> Guy Hefer	/s/<br> Arik Kaufman
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Omri Schanin Employer	Guy Hefer	Employee

EXHIBIT B - CONFIDENTIALITY, NON-COMPETITION,NON-SOLICITATION, AND ASSIGNMENT OF INVENTIONS UNDERTAKING (THE “UNDERTAKING”)

This undertaking is an Exhibit B to the Employment Agreement dated March 15^th^, 2022 by and between Arik Kaufman, I.D. Number 037336807 residing at 123 HaHadarim St., Even Yehuda 4051390, Israel (the “Employee”) and MeaTech 3D Ltd. (the “Employment Agreement”)

The Employee warrants and undertakes that during his/her relationship with the Company and thereafter, he/she shall maintain in complete confidence any matters that relate to the Company (together with its Affiliates shall be defined as the “Company), its affairs or business, including regarding the terms and conditions of his/her employment, and that he/she shall not harm its goodwill or reputation, and he/she agrees to the provisions of the confidentiality, non-competition, non-solicitation and intellectual property clauses as specified below.

For avoidance of any doubt, it is hereby clarified that the Employee’s obligations and representations and the Company’s rights under this Undertaking shall apply retroactively as of the commencement of the parties’ engagement, regardless of the date of execution of this Undertaking.

The Employee’s obligations pursuant to this Undertaking derive from his/her status and his/her position in the Company, along with all matters connected therewith, and the terms and conditions of the Employee’s employment pursuant to the Employment Agreement, including his/her compensation and benefits, have been determined in part, inter alia, in consideration of this undertaking and constitute sufficient consideration for his/her obligations hereunder.

Confidentiality

1.1	The Employee undertakes to maintain the Confidential Information (as defined below)<br>of the Company during the term of his/her engagement with the Company and after the termination of such, for any reason.
1.2	Without derogating from the generality of the foregoing, the Employee hereby agrees<br>that he/she shall not, directly or indirectly, disclose or transfer to any person or entity, at any time, either during or subsequent<br>to his/her engagement with the Company, any trade secrets or other confidential information, whether patentable or not, of the Company,<br>including but not limited to, any (i) processes, formulas, trade secrets, innovations, inventions, discoveries, improvements, research<br>or development and test results, survey, specifications, data and know-how; (ii) marketing plans, business plans, strategies, forecasts,<br>unpublished financial information, budgets, projections, product plans and pricing; (iii) personnel information, including organizational<br>structure, salary, and qualifications of employees; (iv) customer and supplier information, including identities, product sales and purchase<br>history or forecasts and agreements; and (v) any other information which is not known to the public (collectively, “ConfidentialInformation”), of which the Employee is or becomes informed or aware during his/her engagement period with the Company, whether<br>or not developed by the Employee.
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1.3	The Employee undertakes not to directly or indirectly give or transfer, directly<br>or indirectly, to any person or entity, any material, raw material, product, part of a product, model, document or other information storage<br>media, or any photocopied, printed or duplicated object containing any or all of the Confidential Information.
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1.4	The Employee acknowledges that the Company may receive from third parties confidential<br>or proprietary information (“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality<br>of such information and to use it only for certain limited purposes. During the term of the Employee’s relationship with the Company,<br>and thereafter, the Employee will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than<br>Company personnel who need to know such information in connection with their work for the Company) or use, except solely for the purpose<br>of and in connection with his/her work for the Company, Third Party Information unless expressly authorized by the Company in writing.
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1.5	During the Employee’s relationship with the Company the Employee shall not improperly<br>use or disclose any confidential information or trade secrets, if any, of any former employer or any other person to whom the Employee<br>has an obligation of confidentiality, and the Employee did not and will not bring onto the premises of the Company any unpublished documents<br>or any property belonging to any former employer or any other person to whom he/she has an obligation of confidentiality unless consented<br>to in writing by that former employer or person.
1.6	In the event the Employee is in breach of any of his/her above obligations, he/she<br>shall be liable to compensate the Company in respect of all damages or expenses incurred by the Company as a result of such breach, including<br>trial costs and legal fees and statutory VAT, without derogating from any other relief or remedy available to the Company by virtue of<br>any law.
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2.	Non-Competition/ Non-Solicitation
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In order to enable the Company to effectively protect the Company’s Major Assets (as defined below), and Confidential Information (which the Employee will be exposed to and it constitutes the essence of the Company’s protected business and commercial advantage in which significant capital investments were made), the Employee hereby undertakes that during the period of his/her engagement with the Company and for a period of six (6) months following termination of his/her engagement with the Company, for any reason:

2.1	he shall not, anywhere in the world, do business, as an employee, independent contractor,<br>consultant or otherwise, and shall not directly or indirectly participate in or accept any position, proposal or job offer that may directly<br>or indirectly compete with or harm the Company, or in the field in which the Company engages, is engaged or is anticipated to be engaged<br>(the “Competitive Occupation”).
2.2	Without derogating from the generality of the foregoing, the Employee undertakes<br>not to maintain any business relations of any type whatsoever, including a proposal to conduct business relations, directly or indirectly,<br>with any of the Company’s customers, suppliers or agents, including customers, suppliers or agents with whom the Company conducted negotiations<br>towards an agreement at the time of the termination of his/her employment with the Company or prior thereto.
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2.3	In addition, the Employee undertakes that during the period of his/her engagement<br>with the Company and for a period of twelve (12) months following termination of his/her engagement with the Company, for any reason,<br>not to approach, solicit or recruit any employee of the Company or any consultant, service provider, agent, distributor, customer or supplier<br>of the Company, to terminate, reduce or modify the scope of such person’s engagement with the Company.
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2.4	The foregoing shall apply irrespective of whether the Competitive Occupation is<br>carried out by the Employee alone or in cooperation with others and shall apply to the participation of the Employee in a Competitive<br>Occupation, whether as a controlling shareholder or as an interested party.
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3	Intellectual Property, Copyright and Patents
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3.1	The Employee hereby acknowledges and agrees that the Company exclusively owns and<br>shall own all right, title and interest in and to any work, products, processes, materials, inventions, texts, algorithms, designs, sketches,<br>ideas or discoveries, all derivatives, enhancements or improvements thereof and any and all Intellectual Property Rights associated therewith,<br>created, conceived made or discovered by the Employee (whether solely or jointly with others) during the term of employment; or in connection<br>therewith; or in connection with the Company, its business (actual or contemplated), products, technology or know how (“CompanyIPR”). “Intellectual Property Rights” means all worldwide (a) patents, patent applications, designs and patent<br>rights; (b) rights associated with works of authorship, including, but not limited to, copyrights, copyrights applications, copyrights<br>restrictions, mask work rights, mask work applications and mask work registrations; (c) rights relating to the protection of trade secrets<br>and confidential information; (d) moral rights, trademarks, service marks, logos, domain names, trade dress and goodwill; (e) rights analogous<br>to those set forth herein and any other proprietary rights relating to intangible property including ideas; and (f) divisions, continuations,<br>renewals, reissues and extensions of the foregoing (as applicable) now existing or hereafter filed, issued, or acquired.
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3.2

The Employee acknowledges and agrees that all Company IPR and all modifications, derivatives and enhancements thereof belong to, and shall be the sole property of, the Company (or its designees) upon creation thereof. The Employee hereby irrevocably assigns to the Company or its designee and shall assign all right, title and interest the Employee may have or may acquire in and to Company IPR upon its creation. The Employee acknowledges and agrees that no rights relating to any Company IPR are reserved to Employee.

The Employee will assist the Company, upon Company’s first request, to obtain, and from time to time enforce, any Company IPR worldwide, including without limitation, executing, verifying and delivering such documents and performing such other acts as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Company IPR. Such obligation shall remain in effect beyond the termination of the Employee’s relationship with the Company, all for no additional consideration, provided that Employee shall not be required to bear any expenses as a result of such assignment. In the event the Company is unable for any reason, after reasonable effort, to secure Employee’s signature on any document required, Employee hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as its agent and attorney in fact to act for and on its behalf to further the above purposes.

3.3	The Employee irrevocably confirms that the consideration explicitly set forth in<br>the employment agreement between the Employee and the Company is inclusive of any and all rights for compensation that may arise in connection<br>with the Company IPR under applicable law and the Employee irrevocably waives any legal right he/she may have in connection with the Company<br>IPR, including without limitation any right, moral rights or right to claim royalties or any other additional consideration from the Company<br>with regard to the assigned Company IPR, including without limitation, in respect of Section 134 of the Patent Law 5727-1967 or other<br>applicable laws. The foregoing waiver relates to any claims or demands whatsoever, whether in the present, past or future, and whether<br>under contract or other legal or equitable theory.
3.4	The Employee represents and warrants that upon execution hereof, he/she has not<br>created and does not have any right, title or interest in and to any Intellectual Property Rights related, similar to and/or required<br>for Company’s business, products or Intellectual Property Rights (“Prior Inventions”). The Employee undertakes not to<br>incorporate any Prior Inventions or third party’s Intellectual Property Rights (including of a former employer) in any Company IPR.
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3.5	The Employee undertakes to immediately inform and deliver IN WRITING to the Company,<br>written notice of any Company IPR conceived or invented by him or personnel of the Company or its successors who are subordinate to him,<br>immediately upon the discovery thereof.
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3.6	The Employee’s obligations pursuant to this Section 3 shall survive the termination<br>of his/her employment with the Company or its successors and assigns with respect to inventions conceived by him during the term of his/her<br>employment or as a result of his/her employment with the Company.
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4.	General

The Employee confirms that he/she has carefully reviewed the provisions of this Undertaking, fully understand the consequences thereof and have assessed the respective advantages and disadvantages to me of subscribing to this Undertaking and, specifically, his/her undertaking relating to non-compete and non-solicitation, and acknowledges and agrees that:

4.1	Employee’s obligations according to this Undertaking including relating to<br>non-competition and non-solicitation are necessary and essential to protect the business and the Company’s sensitive and valuable<br>proprietary information, property (including, intellectual property) and technologies, as well as its goodwill and business plans (the<br>“Company’s Major Assets”) and to realize and derive all the benefits, rights and expectations of conducting Company’s<br>business, and that the scope and duration of such obligations and the other protective covenants contained herein are fair, reasonable<br>and proportional in all aspects, especially in light of the nature of the business in which the Company is engaged, the Employee’s<br>knowledge of the Company’s business, his/her position, Employee’s exposure to confidential information and the compensation<br>and benefits to which Employee is entitled under the Agreement (which constitutes, among others, good and valuable consideration for his/her<br>agreement to be bound by such covenants and such compensation and benefits were determined, inter alia, in consideration for his/her obligations<br>under this Undertaking).
4.2	Breach of any obligation under this Undertaking shall contradict the nature of<br>the special trust and relationship of loyalty between the parties, the fair and proper business practices, the duty of good faith and<br>fairness between the parties, shall harm the Company, shall constitute a material breach of the Agreement, and may harm the trade secrets,<br>confidential connections, confidential information and other privileged interests of the Company.
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4.3	Employee’s obligations under this Undertaking do not prevent him/her from<br>developing his/her general knowledge and professional expertise in the area of his business, with regard to those who are not customers,<br>contractors and/or employees of the Company and without usurping its trade secrets and its confidential information.
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4.4	Notwithstanding anything contained herein to the contrary, if the period of time<br>or the geographical area specified herein should be determined to be unreasonable in any judicial proceeding, then the period of time<br>and area of the restriction shall be reduced so that this Undertaking may be enforced in such area and during such period of time as shall<br>be determined to be reasonable by such judicial proceeding.
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4.5	This Undertaking and all rights and duties of the parties hereunder shall be exclusively<br>governed by and interpreted in accordance with the laws of the State of Israel. The competent courts of the State of Israel, Tel Aviv<br>Jaffa district, shall have the exclusive jurisdiction over the parties with regard to this Undertaking, its execution, interpretation<br>and performance.
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4.6	Capitalized terms used herein and not otherwise defined shall have the respective<br>meanings ascribed to them in the Employment Agreement.
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4.7	This Undertaking is the entire agreement between the parties with respect to the<br>subject matter hereof, and supersedes all prior understandings, agreements and discussions between them, oral or written.
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I, Arik Kaufman, HAVE READ THIS UNDERTAKING CAREFULLY AND UNDERSTAND ITS TERMS.

ACCEPTED AND AGREED TO:

/s/ Arik Kaufman	Date: ______________

AMENDMENT NO. 1

DATED APRIL 5, 2022

TO EMPLOYMENT AGREEMENT

Whereas	MeaTech 3D Ltd. (the “Company”) and Arik Kaufman (the “Employee”, and together<br>with the Company, the “Parties”) entered into an Employment Agreement as of March 15, 2022 (the “Agreement”);<br>and
Whereas	The Parties desire to mutually amend the Agreement.
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The Parties declare, undertake and stipulate as follows (all capitalised terms shall retain the meaning assigned to them in the Agreement):

Paragraph 7.6 of the Agreement will be replaced by the following paragraph:

Transportation Expenses.

Fort the duration of his employment, Company will pay Employee a monthly sum of 5,000 NIS for domestic transportation expenses (the “Transportation Expenses”). It is hereby agreed and understood that the Transportation Expenses shall not be deemed as an integral part of the Salary for any intent and purpose (including without limitation for the purpose of the Employee’s entitlement to severance pay and payments towards the Manager’s Policy Scheme and Education Fund).

Any applicable tax for the Transportation Expenses will be incurred by the Employer.

In witness thereof, the Parties have signed this Amendment:

COMPANY:	EMPLOYEE:
MEATECH 3D	Arik Kaufman

AMENDMENT NO. 2

DATED APRIL 20, 2023

TO EMPLOYMENT AGREEMENT

Whereas	Steakholder Foods Ltd. (the “Company”) and Arik Kaufman (the “Employee”, and together<br>with the Company, the “Parties”) entered into an Employment Agreement as of March 15, 2022, as amended on April 5, 2022 (the<br>“Agreement”); and
Whereas	The Parties desire to mutually amend the Agreement.
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The Parties declare, undertake and stipulate as follows (all capitalised terms shall retain the meaning assigned to them in the Agreement):

A. Paragraphs 5.1-5.2 of the Agreement will be replaced by the following paragraphs:

5.1 Subject to and in consideration of Employee’s fulfillment of his/her obligations in pursuance of this Agreement, Company shall pay Employee a base monthly salary, the employer cost of which to the Company shall equal USD 27,600 (the “Base Salary”), to be increased by an amount of 7% on January 24 of each year subsequent to the date hereof, for a period of three years.

5.2 Since Employee may be required to work outside of regular working hours and outside of regular working days, the Company agrees to pay to Employee during the term of this Agreement a gross payment, the employer cost of which to the Company shall equal USD 6,900 per month (the “Overtime Payment”), to be increased by an amount of 7% on January 24 of each year subsequent to the date hereof, for a period of three years, on account of an average of 36 overtime hours and/or working through irregular days and hours per month (the “Quota”). The Base Salary and the Overtime Payment together shall constitute the “Salary” for purposes of this Agreement. In this respect, it is clarified that the Company does not wish that the Employee shall perform work on irregular days and hours, including overtime, beyond the Quota. The Employee acknowledges and agrees that unless he obtains his/her supervisor’s prior written approval, the Employee shall not work more than said Quota. The Employee shall not be entitled to any additional compensation with respect to unauthorized work hours that exceed the monthly working hours mentioned above.

B. Paragraph 5.6 of the Agreement will be replaced by the following paragraphs:

5.6	Annual Bonus

Employee shall be eligible for an annual bonus of up to $113,000 subject to his achievement of milestones as determined by the Company’s Board of Directors and the subjective evaluation of the Board of Directors, and in accordance with the Company’s Compensation Policy.

For avoidance of any doubt, the annual bonus shall not be deemed as part of the Salary for any purpose and intent, including not for pension scheme and severance pay.

In witness thereof, the Parties have signed this Amendment:

COMPANY:	EMPLOYEE:
/s/ Yaron Kaiser	/s/ Arik Kaufman
Steakholder Foods Ltd.	Arik Kaufman

Exhibit 4.4

indemnification agreement

THIS INDEMNIFICATION AGREEMENT (the “Agreement”), dated as of __________, 202_, is entered into by and between Steakholder Foods Ltd., an Israeli company whose address is 5 David Fikes St., Rehovot, Israel (the “Company”), and the undersigned Director or Officer of the Company whose name appears on the signature page hereto officer (the “Indemnitee”).

WHEREAS,	Indemnitee is an Office Holder (“Nosse Misra”), as such term is defined in the Companies Law, 5759–1999, as amended (the “Office Holder” and the “Companies Law” respectively), of the Company;
WHEREAS,	both the Company and Indemnitee recognize the increased risk of litigation and other claims being asserted against Office Holders of companies and that highly competent persons have become more reluctant to serve corporations as directors and officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to, and activities on behalf of, companies;
WHEREAS,	the Amended and Restated Articles of Association of the Company (the “Articles of Association”) authorize the Company to indemnify and advance expenses to its Office Holders and provide for insurance and exculpation to its Office Holders, in each case, to the fullest extent permitted by applicable law;
WHEREAS,	the Company has determined that (i) the increased difficulty in attracting and retaining competent persons is detrimental to the best interests of the Company’s shareholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future, and (ii) it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law, so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; and
WHEREAS,	in recognition of Indemnitee’s need for substantial protection against personal liability in order to assure Indemnitee’s continued service to the Company in an effective manner and, in part, in order to provide Indemnitee with specific contractual assurance that the indemnification, insurance and exculpation afforded by the Articles of Association will be available to Indemnitee, the Company wishes to undertake in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent permitted by applicable law and as set forth in this Agreement and provide for insurance and exculpation of Indemnitee as set forth in this Agreement.

NOW, THEREFORE, the parties hereto agree as follows:

1.	INDEMNIFICATION AND INSURANCE.

1.1.	The Company hereby undertakes to indemnify Indemnitee to the fullest extent permitted by applicable law<br>for any liability and expense specified in Sections 1.1.1 through 1.1.4 below, imposed on Indemnitee due to or in connection with an act<br>performed by such Indemnitee, either prior to or after the date hereof, in Indemnitee’s capacity as an Office Holder, including,<br>without limitation, as a director, officer, employee, agent or fiduciary of the Company, any subsidiary thereof or any other corporation,<br>collaboration, partnership, joint venture, trust or other enterprise, in which Indemnitee serves at any time at the request of the Company<br>(the “Corporate Capacity”). The term “act performed in Indemnitee’s capacity as an Office Holder”<br>shall include, without limitation, any act, omission or failure to act and any other circumstances relating to or arising from Indemnitee’s<br>service in a Corporate Capacity. Notwithstanding the foregoing, in the event that the Office Holder is the beneficiary of an indemnification<br>undertaking provided by a subsidiary of the Company or any other entity with respect to his or her Corporate Capacity with such subsidiary<br>or entity, then the indemnification obligations of the Company hereunder with respect to such Corporate Capacity shall only apply to the<br>extent that the indemnification by such subsidiary or other entity does not actually fully cover the indemnifiable liabilities and expenses<br>relating thereto. The following shall be hereinafter referred to as “Indemnifiable Events”:
1.1.1.	Financial liability imposed on Indemnitee in favor of any person pursuant to a judgment, including a judgment<br>rendered in the context of a settlement or an arbitrator’s award approved by a court. For purposes of Section 1 of this Agreement,<br>the term “person” shall include, without limitation, a natural person, firm, partnership, joint venture, trust, company,<br>corporation, limited liability entity, unincorporated organization, estate, government, municipality, or any political, governmental,<br>regulatory or similar agency or body;
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1.1.2.	Reasonable Expenses (as defined below) expended by Indemnitee as a result of an investigation or any proceeding<br>instituted against the Indemnitee by an authority that is authorized to conduct such investigation or proceeding, and that was concluded<br>without filing an indictment against the Indemnitee and without imposing on the Indemnitee a financial liability in lieu of a criminal<br>proceeding, or that was concluded without filing an indictment against the Indemnitee but imposing a financial liability in lieu of a<br>criminal proceeding in an offence that does not require proof of mens rea, or in connection with a financial sanction. In this<br>section “conclusion of a proceeding without filing an indictment in a matter in which a criminal investigation has been instigated”<br>and “financial liability in lieu of a criminal proceeding” shall have the meaning assigned to such terms under the Companies<br>Law, and the term “financial sanction” shall mean such term as referred to in Section 260(a)(1a) of the Companies Law;
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1.1.3.	Reasonable Expenses expended by or imposed on Indemnitee by a court, in a proceeding instituted against<br>Indemnitee by the Company or on its behalf or by another person, or in a criminal charge from which Indemnitee was acquitted or in which<br>Indemnitee convicted of an offence that does not require proof of mens rea; and
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1.1.4.	Any other event, occurrence, matter or circumstances under any law with respect to which the Company may,<br>or will be able to, indemnify an Office Holder (including, without limitation, in accordance with Section 56h(b)(1) of the Israeli Securities<br>Law 5728-1968 (the “Israeli Securities Law”), if applicable, and Section 50P(b)(2) of the Israeli Economic Competition<br>Law, 5758-1988 (the “Economic Competition Law”)).
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For the purpose of this Agreement, “Expenses” shall include, without limitation, legal fees and all other costs, expenses and obligations paid or incurred by Indemnitee in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness in or participate in any claim, action, suit, proceeding, alternative dispute resolution mechanism, hearing, inquiry or investigation relating to any matter for which indemnification hereunder may be provided. Expenses shall be considered paid or incurred by Indemnitee at such time as Indemnitee is required to pay or incur such cost or expenses, including upon receipt of an invoice or payment demand. The Company shall pay the Expenses in accordance with the provisions of Section 1.3.

1.2.

Notwithstanding anything herein to the contrary, the Company’s undertaking to indemnify the Indemnitee under Section 1.1.1 shall only be with respect to events described in Exhibit A hereto. The Board of Directors of the Company (the “Board”) has determined that the categories of events listed in Exhibit A are foreseeable in light of the operations of the Company. The maximum amount of indemnification payable by the Company under Section 1.1.1 with respect to the specific events described in Exhibit A during any period of five years, shall be as set forth in Exhibit A hereto (the “Limit Amount”). If the Company undertook to indemnify multiple persons under agreements similar to this Agreement (the “Indemnifiable Persons”) the Limit Amount for the five year period commencing on the closing of the first issuance and sale of the Company’s ordinary shares to the public, pursuant to an effective registration statement under the United States Securities Act 1933, as amended, or the securities law of any other jurisdiction, and for every subsequent five year period, shall apply to all Indemnifiable Persons, in the aggregate, and if the Limit Amount is insufficient to cover all the indemnity amounts payable with respect to all Indemnifiable Persons during the relevant five year period, then such amount shall be allocated to such Indemnifiable Persons pro rata according to the percentage of their culpability, as finally determined by a court in the relevant claim, or, absent such determination or in the event such persons are parties to different claims, based on an equal pro rata allocation among such Indemnifiable Persons. The Limit Amount payable by the Company as described in Exhibit A is deemed by the Company to be reasonable in light of the circumstances. The indemnification provided under Section 1.1.1 herein shall not be subject to the limitations imposed by this Section 1.2 and Exhibit A if and to the extent such limits do not or are no longer required by the Companies Law.

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1.3.	If so requested by Indemnitee in writing, and subject to the Company’s repayment and reimbursements<br>rights set forth in Sections 3 and 5 below, the Company shall pay amounts to cover Indemnitee’s Expenses with respect to which Indemnitee<br>is entitled to be indemnified under Section 1.1 above, as and when incurred. The payments of such amounts shall be made by the Company<br>directly to the Indemnitee’s legal and other advisors, as soon as practicable, but in any event no later than fifteen (15) days<br>after written demand by such Indemnitee therefor to the Company, and any such payment shall be deemed to constitute indemnification hereunder.<br>As part of the aforementioned undertaking, the Company will make available to Indemnitee any security or guarantee that Indemnitee may<br>be required to post in accordance with an interim decision given by a court, governmental or administrative body, or an arbitrator, including<br>for the purpose of substituting liens imposed on Indemnitee’s assets.
1.4.	The Company’s obligation to indemnify Indemnitee and advance Expenses in accordance with this Agreement<br>shall be for such period (the “Indemnification Period”) as Indemnitee shall be subject to any actual, possible or threatened<br>claim, action, suit, demand or proceeding or any inquiry or investigation, whether civil, criminal or investigative, arising out of the<br>Indemnitee’s service in the Corporate Capacity as described in Section 1.1 above, whether or not Indemnitee is still serving in<br>such position.
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1.5.	The Company undertakes that, subject to the mandatory limitations under applicable law, as long as it<br>may be obligated to provide indemnification and advance Expenses under this Agreement, the Company will purchase and maintain in effect<br>directors and officers liability insurance, which will include coverage for the benefit of the Indemnitee, providing coverage in amounts<br>as reasonably determined by the Board; provided that, the Company shall have no obligation to obtain or maintain directors and officers<br>insurance policy if the Company determines in good faith that such insurance is not reasonably available, the premium costs for such insurance<br>are disproportionate to the amount of coverage provided, or the coverage provided by such insurance is so limited by exclusions that it<br>provides an insufficient benefit. The Company hereby undertakes to notify the Indemnitee 30 days prior to the expiration or termination<br>of the directors and officers liability insurance.
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1.6.

The Company undertakes to give prompt written notice of the commencement of any claim hereunder to the insurers in accordance with the procedures set forth in each of the policies. The Company shall thereafter diligently take all actions reasonably necessary under the circumstances to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such action, suit, proceeding, inquiry or investigation in accordance with the terms of such policies. The above shall not derogate from Company’s authority to freely negotiate or reach any compromise with the insurer which is reasonable at the Company’s sole discretion provided that the Company shall act in good faith and in a diligent manner.

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2.	SPECIFIC LIMITATIONS ON INDEMNIFICATION.

Notwithstanding anything to the contrary in this Agreement, the Company shall not indemnify or advance Expenses to Indemnitee with respect to (i) any act, event or circumstance with respect to which it is prohibited to do so under applicable law, or (ii) a counter claim made by the Company or in its name in connection with a claim against the Company filed by the Indemnitee.

3.	REPAYMENT OF EXPENSES.
3.1.	In the event that the Company provides or is required to provide indemnification with respect to Expenses<br>hereunder and at any time thereafter the Company determines, based on advice from its legal counsel, that the Indemnitee was not entitled<br>to such payments, the amounts so indemnified by the Company will be promptly repaid by Indemnitee, unless the Indemnitee disputes the<br>Company’s determination, in which case the Indemnitee’s obligation to repay to the Company shall be postponed until such dispute<br>is resolved.
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3.2.	Indemnitee’s obligation to repay to the Company for any Expenses or other sums paid hereunder shall<br>be deemed as a loan given to Indemnitee by the Company subject to the minimum interest rate prescribed by Section 3(9) of the Income Tax<br>Ordinance [New Version], 1961, or any other legislation replacing it, which is not considered a taxable benefit.
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4.	SUBROGATION.
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In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

5.	REIMBURSEMENT.

The Company shall not be liable under this Agreement to make any payment in connection with any Indemnifiable Event to the extent Indemnitee has otherwise actually received payment under any insurance policy or otherwise (without any obligation of Indemnitee to repay any such amount) of the amounts otherwise indemnifiable hereunder. Any amounts paid to Indemnitee under such insurance policy or otherwise after the Company has indemnified Indemnitee for such liability or Expense shall be repaid to the Company promptly upon receipt by Indemnitee, in accordance with the terms set forth in Section 3.2.

The Company hereby acknowledges that the Indemnitee has now or may have in the future certain rights to indemnification, advancement of expenses and/or insurance provided by third parties (the “Third Party Indemnitor”), and the Company hereby agrees (i) that the Company is the indemnitor of first resort (i.e., its obligations to the Indemnitee are primary and any obligation of any Third Party Indemnitor to advance expenses or to provide indemnification for the same expenses or liabilities incurred by the Indemnitee are secondary), (ii) it shall be required to advance the full amount of expenses incurred by the Indemnitee and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to the fullest extent legally permitted and as required by the terms of this Agreement and/or the Articles (or any other agreement between the Company and the Indemnitee), without regard to any rights the Indemnitee may have against the Third Party Indemnitors, and (iii) that it irrevocably waives, relinquishes and releases any Third Party Indemnitor from any and all claims against any Third Party Indemnitor for contribution, subrogation or any other recovery of any kind of respect of the subject matters of this Agreement. Without altering or expanding any of the Company’s indemnification obligations hereunder, the Company further agrees that no advancement or payment by any Third Party Indemnitor on the Indemnitee’s behalf with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and any Third Party Indemnitor shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of the Indemnitee against the Company. The Company and the Indemnitee agree that the Third Party Indemnitors are express third party beneficiaries of the terms of this Section 5.

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6.	EFFECTIVENESS.

The Company represents and warrants that this Agreement is valid, binding and enforceable in accordance with its terms and was duly adopted and approved by the Company, and shall be in full force and effect immediately upon its execution.

7.	NOTIFICATION AND DEFENSE OF CLAIM.

Indemnitee shall notify the Company of the commencement of any action, suit or proceeding, and of the receipt of any notice or threat that any such legal proceeding has been or shall or may be initiated against Indemnitee (including any proceedings by or against the Company and any subsidiary thereof), promptly upon Indemnitee first becoming so aware; but the omission so to notify the Company will not relieve the Company from any liability which it may have to Indemnitee under this Agreement unless and to the extent that such failure to provide notice prejudices the Company’s ability to defend such action. Notice to the Company shall be directed to the Chief Executive Officer or Chief Financial Officer of the Company at the address shown in the preamble to this Agreement (or such other address as the Company shall designate in writing to Indemnitee). With respect to any such action, suit or proceeding as to which Indemnitee notifies the Company of the commencement thereof and without derogating from Sections 1.1 and 2:

7.1.	The Company will be entitled to participate therein at its own expense.
7.2.	Except as otherwise provided below, the Company, alone or jointly with any other indemnifying party similarly<br>notified, will be entitled to assume the defense thereof, with counsel selected by the Company. Indemnitee shall have the right to employ<br>his or her own counsel in such action, suit or proceeding, but the fees and expenses of such counsel incurred after notice from the Company<br>of its assumption of the defense thereof shall be at the expense of Indemnitee, unless: (i) the employment of counsel by Indemnitee<br>has been authorized in writing by the Company; (ii) the Company, in good faith, reasonably concluded that there may be a conflict of interest<br>between the Company and Indemnitee in the conduct of the defense of such action; or (iii) the Company has not in fact employed counsel<br>to assume the defense of such action within reasonable time, in which cases the reasonable fees and expenses of Indemnitee’s counsel<br>shall be at the expense of the Company. The Company shall not be entitled to assume the defense of any action, suit or proceeding brought<br>by or on behalf of the Company or as to which Indemnitee and the Company shall have reached the conclusion specified in (ii) above.
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7.3.	The Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts or expenses<br>paid in connection with a settlement of any action, claim or otherwise, effected without the Company’s prior written consent.
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7.4.	The Company shall have the right to conduct the defense as it sees fit in its sole discretion (provided<br>that the Company shall conduct the defense in good faith and in a diligent manner), including the right to settle or compromise any claim<br>or to consent to the entry of any judgment against Indemnitee without the consent of the Indemnitee, provided that, the amount of such<br>settlement, compromise or judgment does not exceed the Limit Amount (if applicable) and is fully indemnifiable pursuant to this Agreement<br>(subject to Section 1.2 of this Agreement) and/or applicable law, and any such settlement, compromise or judgment does not impose any<br>penalty or limitation on Indemnitee without the Indemnitee’s prior written consent. The Indemnitee’s consent shall not be<br>required if the settlement includes a complete release of Indemnitee, does not contain any admission of wrong-doing by Indemnitee, and<br>includes monetary sanctions only as provided above. In the case of criminal proceedings the Company and/or its legal counsel will not<br>have the right to plead guilty or agree to a plea-bargain in the Indemnitee’s name without the Indemnitee’s prior written<br>consent. Neither the Company nor Indemnitee will unreasonably withhold or delay their consent to any proposed settlement.
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7.5.

Indemnitee shall fully cooperate with the Company and shall give the Company all information and access to documents, files and to his or her advisors and representatives as shall be within Indemnitee’s power, in every reasonable way as may be required by the Company with respect to any claim which is the subject matter of this Agreement and in the defense of other claims asserted against the Company (other than claims asserted by Indemnitee), provided that the Company shall cover all expenses, costs and fees incidental thereto such that the Indemnitee will not be required to pay or bear such expenses, costs and fees.

EXCULPATION.

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Subject to the provisions of the Companies Law, the Company hereby releases, in advance, the Office Holder from liability to the Company for any damage that arises from the breach of the Office Holder’s duty of care (within the meaning of such terms under Sections 252 and 253 of the Companies Law), other than breach of the duty of care towards the Company in a distribution (as such term is defined in the Companies Law).

9.	NON-EXCLUSIVITY.

The rights of the Indemnitee hereunder shall not be deemed exclusive of any other rights Indemnitee may have under the Articles of Association, applicable law or otherwise***,***and to the extent that during the Indemnification Period the indemnification rights of the then serving directors and officers are more favorable to such directors or officers than the indemnification rights provided under this Agreement to Indemnitee, Indemnitee shall be entitled to the full benefits of such more favorable indemnification rights to the extent permitted by law.

10.	PARTIAL INDEMNIFICATION.

If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually or reasonably incurred by Indemnitee in connection with any proceedings, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled under any provision of this Agreement. Subject to the provisions of Section 5 above, any amount received by Indemnitee (under any insurance policy or otherwise) shall not reduce the Limit Amount hereunder and shall not derogate from the Company’s obligation to indemnify the Indemnitee in accordance with the provisions of this Agreement up to the Limit Amount, as set forth in Section 1.2.

11.	BINDING EFFECT.

This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns. In the event of a merger or consolidation of the Company or a transfer or disposition of all or substantially all of the business or assets of the Company, the Indemnitee shall be entitled to the same indemnification and insurance provisions as the most favorable indemnification and insurance provisions afforded to the then-serving Office Holders of the Company. In the event that in connection with such transaction the Company purchases a directors and officers’ “tail” or “run-off” policy for the benefit of its then serving Office Holders, then such policy shall cover Indemnitee and such coverage shall be deemed to be in satisfaction of the insurance requirements under this Agreement. This Agreement shall continue in effect during the Indemnification Period regardless of whether Indemnitee continues to serve in a Corporate Capacity.

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Any amendment to the Companies Law, the Israeli Securities Law, the Economic Competition Law or other applicable law adversely affecting the right of the Indemnitee to be indemnified, insured or released pursuant hereto shall be prospective in effect, and shall not affect the Company’s obligation or ability to indemnify or insure the Indemnitee for any act or omission occurring prior to such amendment, unless otherwise provided by applicable law.

12.	SEVERABILITY.

The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

13.	NOTICE.

All notices and other communications pursuant to this Agreement shall be in writing and shall be deemed provided if delivered personally, telecopied, sent by electronic facsimile, email, reputable overnight courier or mailed by registered or certified mail (return receipt requested), postage prepaid, to the parties at the addresses shown in the preamble to this Agreement, or to such other address as the party to whom notice is to be given may have furnished to the other party hereto in writing in accordance herewith. Any such notice or communication shall be deemed to have been delivered and received (i) in the case of personal delivery, on the date of such delivery, (ii) in the case of telecopier or an electronic facsimile or email, one business day after the date of transmission if confirmation of receipt is received, (iii) in the case of a reputable overnight courier, three business days after deposit with such reputable overnight courier service, and (iv) in the case of mailing, on the seventh business day following that on which the mail containing such communication is posted.

14.	GOVERNING LAW; JURISDICTION.

This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Israel, without giving effect to the conflicts of law provisions of those laws. The Company and Indemnitee each hereby irrevocably consent to the exclusive jurisdiction and venue of the courts of Tel Aviv, Israel for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement.

15.	ENTIRE AGREEMENT.

This Agreement represents the entire agreement between the parties and supersedes any other agreements, contracts or understandings between the parties, whether written or oral, with respect to the subject matter of this Agreement.

16.	NO MODIFICATION AND NO WAIVER.

No supplement, modification or amendment, termination or cancellation of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. Any waiver shall be in writing. The Company hereby undertakes not to amend its Articles of Association in a manner which will adversely affect the provisions of this Agreement.

17.	ASSIGNMENTS; NO THIRD PARTY RIGHTS

Neither party hereto may assign any of its rights or obligations hereunder except with the express prior written consent of the other party. Nothing herein shall be deemed to create or imply an obligation for the benefit of a third party. Without limitation of the foregoing, nothing herein shall be deemed to create any right of any insurer that provides directors and officers’ liability insurance, to claim, on behalf of Indemnitee, any rights hereunder.

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18.	INTERPRETATION; DEFINITIONS.

Unless the context shall otherwise require: words in the singular shall also include the plural, and vice versa; any pronoun shall include the corresponding masculine, feminine and neuter forms; the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”; the words “herein”, “hereof” and “hereunder” and words of similar import refer to this Agreement in its entirety and not to any part hereof; all references herein to Sections or clauses shall be deemed references to Sections or clauses of this Agreement; any references to any agreement or other instrument or law, statute or regulation are to it as amended, supplemented or restated, from time to time (and, in the case of any law, to any successor provisions or re-enactment or modification thereof being in force at the time); any reference to “law” shall include any supranational, national, federal, state, local, or foreign statute or law and all rules and regulations promulgated thereunder; any reference to a “day” or a number of “days” (without any explicit reference otherwise, such as to business days) shall be interpreted as a reference to a calendar day or number of calendar days; reference to month or year means according to the Gregorian calendar; reference to a “company”, “corporate body” or “entity” shall include a, partnership, firm, company, corporation, limited liability company, association, joint venture, trust, unincorporated organization, estate, or a government municipality or any political, governmental, regulatory or similar agency or body, and reference to a “person” shall mean any of the foregoing or a natural person.

19.	COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart, and all of which together shall constitute one and the same instrument; it being understood that parties need not sign the same counterpart. The exchange of an executed Agreement (in counterparts or otherwise) by facsimile or by electronic delivery in pdf format shall be sufficient to bind the parties to the terms and conditions of this Agreement, as an original.

[SIGNATURE PAGE TO FOLLOW]

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IN WITNESS WHEREOF, the parties, each acting under due and proper authority, have executed this Indemnification Agreement as of the date first mentioned above, in one or more counterparts.

Steakholder Foods Ltd.
By:
Name and title:

Indemnitee:
Name:
Signature:
Address:

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EXHIBITA*

CATEGORY OF INDEMNIFIABLE EVENT

1.	Matters, events, occurrences or circumstances in connection or associated with employment relationships with employees or consultants or any employee union or similar or comparable organization.
2.	Matters, events, occurrences or circumstances in connection or associated with business relations of any kind between the Company and its employees, independent contractors, customers, suppliers, partners, distributors, agents, resellers, representatives, licensors, licensees, service providers and other business associates.
3.	Negotiations, execution, delivery and performance of agreements of any kind or nature and any decisions or deliberations relating to actions or omissions relating to the foregoing; any acts, omissions or circumstances that do or may constitute or are alleged to constitute anti-competitive acts, acts of commercial wrongdoing, or failure to meet any standard of conduct which is or may be applicable to such acts, omissions or circumstances.
4.	Approval of and recommendation or information provided to shareholders with respect to any and all corporate actions, including the approval of the acts of the Company’s management, their guidance and their supervision, matters relating to the approval of transactions with Office Holders (including, without limitation, all compensation related matters) or shareholders, including controlling persons and claims and allegations of failure to exercise business judgment, reasonable level of proficiency, expertise, care or any other applicable standard, with respect to the foregoing or otherwise with respect to the Company’s business, strategy, operations and prospective outlook, and any discussions, deliberations, reviews or other preparatory or preliminary phases relating to any of the foregoing.
5.	Violation, infringement, misappropriation, dilution and other misuse of copyrights, patents, designs, trade secrets, confidential information, proprietary information and any intellectual property rights, acts in connection with the registration, assertion or protection of rights to intellectual property and the defense of claims related to intellectual property, breach of confidentiality obligations, acts in regard of invasion of privacy or any violation of privacy or privacy related right or regulation, including with respect to databases or handling, collection or use of private information, acts in connection with slander and defamation, and claims in connection with publishing or providing any information, including any filings with any governmental authorities, whether or not required under any applicable laws.
6.	Violations of or failure to comply with securities laws, and any regulations or other rules promulgated thereunder, of any jurisdiction, including without limitation, claims under the U.S. Securities Act of 1933 or the U.S. Exchange Act of 1934 or under the Israeli Securities Law, fraudulent disclosure claims, failure to comply with any securities authority or any stock exchange disclosure or other rules and any other claims relating to relationships with investors, debt holders, shareholders, optionholders, holders of any other equity or debt instrument of the Company, and otherwise with the investment community (including without limitation any such claims relating to a merger, acquisition, change in control transaction, issuance of securities, restructuring, spin out, spin off, divestiture, recapitalization or any other transaction relating to the corporate structure or organization of the Company); claims relating to or arising out of financing arrangements, any breach of financial covenants or other obligations towards investors, lenders or debt holders, class actions, violations of laws requiring the Company to obtain regulatory and governmental licenses, permits and authorizations in any jurisdiction, including in connection with disclosure, offering or other transaction related documents; actions taken in connection with the issuance, purchase, holding or disposition of any type of securities of Company, including, without limitation, the grant of options, warrants or other rights to purchase any of the same or any offering of the Company’s securities (whether on behalf of the Company or on behalf of any holders of securities of the Company) to private investors, underwriters, resellers or to the public, and listing of such securities, or the offer by the Company to purchase securities from the public or from private investors or other holders, and any undertakings, representations, warranties and other obligations related to any of the foregoing or to the Company’s status as a public company or as an issuer of securities.

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7.	Liabilities arising in connection with any products or services developed, distributed, rendered, sold, provided, licensed or marketed by the Company or any Affiliate thereof, and any actions or omissions in connection with the distribution, provision, sale, marketing, license or use of such products or services, including without limitation in connection with professional liability and product liability claims or regulatory or reputational matters.
8.	The offering of securities by the Company (whether on behalf of itself or on behalf of any holder of securities and any other person) to the public and/or to offerees or the offer by the Company to purchase securities from the public and/or from private investors or other holders pursuant to a prospectus, offering documents, agreements, notices, reports, tenders and/or other processes.
9.	Events, facts or circumstances in connection with change in ownership or in the structure of the Company, its reorganization, dissolution, winding up, any other arrangements concerning creditors rights, merger, change in control, issuances of securities, restructuring, spin out, spin off, divestiture, recapitalization or any other transaction relating to the corporate structure or organization of the Company, and the approval of failure to approve of any corporate actions and any matters relating to corporate governance, capital structure, articles of association or other charter or governance documents, appointment or dismissal of office holders or compensation thereof and appointment or dismissal of auditors, internal auditor or any other person performing any services for the Company.
10.	Any claim or demand made in connection with any transaction not in the ordinary course of business of the Company, as well as the sale, lease, purchase or acquisition of, or the receipt or grant of any rights with respect to, any assets or business.
11.	Any claim or demand made by any third party suffering any personal injury and/or bodily injury or damage to business or personal property or any other type of damage through any act or omission attributed to the Company, or its employees, agents or other persons acting or allegedly acting on its behalf, including, without limitation, failure to make proper safety arrangements for the Company or its employees and liabilities arising from any accidental or continuous damage or harm to the Company’s employees, its contractors, its guests and visitors as a result of an accidental or continuous event, or employment conditions, permanent or temporary, in the Company’s offices.
12.	Any claim or demand made directly or indirectly in connection with complete or partial failure, by the Company or its directors, officers and employees, to pay, report, keep applicable records or otherwise, of any local or foreign federal, state, county, municipal or city taxes or other taxes or compulsory payments of any nature whatsoever, including, without limitation, income, sales, use, transfer, excise, value added, registration, severance, stamp, occupation, customs, duties, real property, personal property, capital stock, social security, unemployment, disability, payroll or employee withholding or other withholding, including any interest, penalty or addition thereto, whether disputed or not.

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13.	Any administrative, regulatory, judicial or civil actions orders, decrees, suits, demands, demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance or violation by any governmental entity or other person alleging potential responsibility or liability (including potential responsibility or liability for costs of enforcement investigation, cleanup, governmental response, removal or remediation, for natural resources damages, property damage, personal injuries or penalties or for contribution, indemnification, cost recovery, compensation or injunctive relief) arising out of, based on or related to (a) the presence of, release, spill, emission, leaning, dumping, pouring, deposit, disposal, discharge, leaching or migration into the environment (each a “Release”) or threatened Release of, or exposure to, any hazardous, toxic, explosive or radioactive substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing material, polychlorinated biphenyls (“PCBs”) or PCB-containing materials or equipment, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any environmental law, at any location, whether or not owned, operated, leased or managed by the Company or any of its subsidiaries, or (b) circumstances forming the basis of any violation of any environmental law or environmental permit, license, registration or other authorization required under applicable environmental law.
14.	Any administrative, regulatory or judicial actions, orders, decrees, suits, demands, demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance or violation by any governmental or regulatory entity or authority or any other person alleging the failure to comply with any statute, law, ordinance, rule, regulation, order or decree of any governmental entity applicable to the Company or any of its businesses, assets or operations, or the terms and conditions of any operating certificate or licensing agreement.
15.	Participation and/or non-participation at Company Board meetings, expression of opinion or view and/or voting and/or abstention from voting at Company Board meetings, including, in each case, any committee thereof, as well as expression of opinion publicly in connection with the service as an Office Holder.
16.	Review and approval of the Company’s financial statements and any specific items or matters within, including any action, consent or approval related to or arising from the foregoing, including, without limitations, engagement of or execution of certificates for the benefit of third parties related to the financial statements.
17.	Violation of laws, rules or regulations requiring the Company to obtain regulatory and governmental licenses, permits and authorizations (including without limitation relating to export, import, encryption, antitrust or competition authorities) or laws related to any governmental grants in any jurisdiction.
18.	Resolutions and/or actions relating to investments in the Company and/or its subsidiaries and/or affiliated companies and/or investment in corporate or other entities and/or investments in other traded or non-traded securities and/or any other form of investment.
19.	Liabilities arising out of advertising, including misrepresentations regarding the Company’s products or services and unlawful distribution of emails.
20.	Management of the Company’s bank accounts, including money management, foreign currency deposits, securities, loans and credit facilities, credit cards, bank guarantees, letters of credit, consultation agreements concerning investments including with portfolio managers, hedging transactions, options, futures, and the like.
21.	All actions, consents and approvals, including any prior discussions, reviews and deliberations, relating to a distribution of dividends, in cash or otherwise, or to any other “distribution” as such term is defined under the Companies Law.

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22.	Any administrative, regulatory, judicial, civil or criminal, actions orders, decrees, suits, demands, demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance, violation or breaches alleging potential responsibility, liability, loss or damage (including potential responsibility or liability for costs of enforcement, investigation, cleanup, governmental response, removal or remediation, property damage or penalties, or for contribution, indemnification, cost recovery, compensation or injunctive relief), whether alleged or claimed by customers, consumers, regulators, shareholders or others, arising out of, based on or related to: (a) cyber security, cyber attacks, data loss or breaches, unauthorized access to information, data, or databases (including but not limited to any personally identifiable information or private health information) and use or disclosure of information contained therein, not preventing or detecting the breach or failing to otherwise disclose or respond to the breach; (b) circumstances forming the basis of any violation of any law, permit, license, registration or other authorization required under applicable law governing data security, data protection, network security, information systems, privacy or any cyber environment (including, users, networks, devices, software, processes, information systems, databases, information in storage or transit, applications, services, and systems that can be connected directly or indirectly to networks); (c) failure to implement a reporting system or control, or failure to monitor or oversee the operation of such a system; (d) data destruction, extortion, theft, hacking, and denial of service attacks; losses or liabilities to others caused by errors and omissions, failure to safeguard data or defamation; or (e) security-audit, post-incident public relations and investigative expenses, criminal reward funds, data breach/privacy crisis management (including, management of an incident, investigation, remediation, data subject notification, call management, credit checking for data subjects, legal costs, court attendance and regulatory fines), extortion liability (including, losses due to a threat of extortion, professional fees related to dealing with the extortion), or network security liability (including, losses as a result of denial of access, costs related to data on third-parties and costs related to the theft of data on third-party systems).
	The Limit Amount for all Indemnifiable Persons during each relevant period referred to in Section 1.2 of the Indemnification Agreement for all events described in this Exhibit A (in Sections 1-22 (inclusive) above), shall be twenty-five percent (25%) of the Company’s total shareholders’ equity according to the Company’s most recent financial statements as of the time of the actual payment of indemnification (the “Limit Amount”), provided, however, that such Limit Amount shall not be lower than 20,000,000 USD.
*	Any reference in this Exhibit A to the Company shall include<br>the Company and any entity in which the Indemnitee serves in a Corporate Capacity.
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13 -

Exhibit 4.8

COMPENSATION POLICY

STEAKHOLDER FOODS LTD.

Compensation Policy for Executive Officers andDirectors

(As Adopted on October 12, 2023)

A. Overview and Objectives

1.	Introduction

This document sets forth the Compensation Policy for Executive Officers and Directors (this “Compensation Policy” **** or “Policy”) **** of Steakholder Foods Ltd. **** (“Steakholder Foods” **** or the “Company”), **** in accordance with the requirements of the Companies Law, 5759-1999 and the regulations promulgated thereunder (the “Companies Law”).

Compensation is a key component of Steakholder Foods’ overall human capital strategy to attract, retain, reward, and motivate highly skilled individuals that will enhance Steakholder Foods’ value and otherwise assist Steakholder Foods to reach its business and financial long-term goals. Accordingly, the structure of this Policy is established to tie the compensation of each officer to Steakholder Foods’ goals and performance.

For purposes of this Policy, “Executive Officers” shall mean “Office Holders” as such term is defined in Section 1 of the Companies Law, excluding, unless otherwise expressly indicated herein, Steakholder Foods’ directors.

This policy is subject to applicable law and is not intended, and should not be interpreted as limiting or derogating from, provisions of applicable law to the extent not permitted.

This Policy shall apply to compensation agreements and arrangements which will be approved after the date on which this Policy is adopted and shall serve as Steakholder Foods’ Compensation Policy for three (3) years, commencing as of its adoption, unless amended earlier.

The Compensation Committee and the Board of Directors of Steakholder Foods (the “Compensation Committee” and the “Board”, respectively) shall review and reassess the adequacy of this Policy from time to time, as required by the Companies Law.

2.	Objectives

Steakholder Foods’ objectives and goals in setting this Policy are to attract, motivate and retain experienced and talented leaders who will contribute to Steakholder Foods’ success and enhance shareholder value, while demonstrating professionalism in an achievement-oriented and merit-based culture that rewards long-term excellence, and embedding and modeling Steakholder Foods’ core values as part of a motivated behavior. To that end, this Policy is designed, among other things:

2.1.	To closely align the interests<br>of the Executive Officers with those of Steakholder Foods’ shareholders in order to enhance shareholder value;
2.2.	To align a significant portion of the Executive Officers’ compensation with Steakholder Foods’ short and long-term goals and performance;
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2.3.	To provide the Executive Officers with a structured compensation package, including competitive salaries, performance-motivating cash and equity incentive programs and benefits, and to be able to present to each Executive Officer an opportunity to advance in a growing organization;
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2.4.	To strengthen the retention and the motivation of Executive Officers in the long-term;
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2.5.	To provide appropriate awards in order to incentivize superior individual excellence and corporate performance; and
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2.6.	To maintain consistency in the way Executive Officers are compensated.
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3.	Compensation Instruments
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Compensation instruments under this Policy may include the following:

3.1.	Base salary;
3.2.	Benefits;
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3.3.	Cash bonuses;
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3.4.	Equity based compensation;
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3.5.	Change of control provisions; and
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3.6.	Retirement and termination terms.
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4.	Overall Compensation - RatioBetween Fixed and Variable Compensation
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4.1.	This Policy aims to balance the mix of “Fixed Compensation” (comprised of base salary and benefits) and “Variable Compensation” (comprised of cash bonuses and equity-based compensation) in order to, among other things, appropriately incentivize Executive Officers to meet Steakholder Foods’ short and long-term goals while taking into consideration the Company’s need to manage a variety of business risks.
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4.2.	The total annual target bonus and equity-based compensation per vesting annum (based on the fair market value at the time of grant calculated on a linear basis) of each Executive Officer shall not exceed 95% of such Executive Officer’s total compensation package for such year.
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5.	Inter-Company CompensationRatio
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5.1.	In the process of drafting this Policy, Steakholder Foods’ Board and Compensation Committee have examined the ratio between employer cost associated with the engagement of the Executive Officers, including directors, and the average and median employer cost associated with the engagement of Steakholder Foods’ other employees (including contractor employees as defined in the Companies Law) (the “Ratio”).
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5.2.	The possible ramifications of the Ratio on the daily working environment in Steakholder Foods were examined and will continue to be examined by Steakholder Foods from time to time in order to ensure that levels of executive compensation, as compared to the overall workforce will not have a negative impact on work relations in Steakholder Foods.
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B. Base Salary and Benefits

6.	Base Salary
6.1.	A base salary provides stable compensation to Executive Officers and allows Steakholder Foods to attract and retain competent executive talent and maintain a stable management team. The base salary varies among Executive Officers, and is individually determined according **** to the educational background, prior vocational experience, qualifications, corporate role, business responsibilities and past performance of each Executive Officer.
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6.2.	Since a competitive base salary is essential to Steakholder Foods’ ability to attract and retain highly skilled professionals, Steakholder Foods will seek to establish a base salary that is competitive with base salaries paid to Executive Officers in a peer group of other companies operating in sectors that are as much as possible similar in their characteristics to Steakholder Foods the list of which shall be reviewed and approved by the Compensation Committee. To that end, Steakholder Foods shall utilize comparative market data and practices as a reference, including a survey comparing and analyzing the level of the overall compensation package offered to an Executive Officer of the Company with compensation packages for persons serving in similar positions (to that of the relevant officer) in the peer group. Such compensation survey may be conducted internally or through an external independent consultant.
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6.3.	The Compensation Committee and the Board may periodically consider and approve base salary adjustments for Executive Officers. The main considerations for salary adjustment will be similar to those used in initially determining the base salary, but may also include change of role or responsibilities, recognition for professional achievements, regulatory or contractual requirements, budgetary constraints or market trends. The Compensation Committee and the Board will also consider the previous and existing compensation arrangements of the Executive Officer whose base salary is being considered for adjustment. Any limitation herein based on the annual base salary shall be calculated based on the monthly base salary applicable at the time of consideration of the respective grant or benefit.
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7.	Benefits
7.1.	The following benefits may be granted to the Executive Officers in order, among other things, to comply with legal requirements:
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7.1.1.	Vacation days in accordance with market practice;
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7.1.2.	Sick days in accordance with market practice;
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7.1.3.	Convalescence pay according to applicable law;
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7.1.4.	Monthly remuneration for a study fund, as allowed by applicable law and with reference to Steakholder Foods’ practice and the practice in peer group companies (including contributions on bonus payments);
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7.1.5.	Steakholder Foods shall contribute on behalf of the Executive Officer to an insurance policy or a pension fund, as allowed by applicable law and with reference to Steakholder Foods’ policies and procedures and the practice in peer group companies (including contributions on bonus payments); and
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7.1.6.	Steakholder Foods shall contribute on behalf of the Executive Officer towards work disability insurance, as allowed by applicable law and with reference to Steakholder Foods’ policies and procedures and to the practice in peer group companies.
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7.2.	Non-Israeli Executive Officers may receive other similar, comparable or customary benefits as applicable in the relevant jurisdiction in which they are employed. Such customary benefits shall be determined based on the methods described in Section 6.2 of this Policy (with the necessary changes and adjustments).
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7.3.	In the events of relocation and/or repatriation of an Executive Officer to another geography, such Executive Officer may receive other similar, comparable or customary benefits as applicable in the relevant jurisdiction in which he or she is employed or additional payments to reflect adjustments in the cost of living. Such benefits may include reimbursement for one-time out-of-pocket payments and other ongoing expenses, such as a housing allowance, a car allowance, home leave visit, etc.
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7.4.	Steakholder Foods may offer additional benefits to its Executive Officers, which will be comparable to customary market practices, such as, but not limited to: cellular and land line phone benefits, company car and travel benefits, reimbursement of car related expenses and business travel including a daily stipend when traveling and other business related expenses, insurances (including private health insurance and screening tests), other benefits **** (such as meals in the office, newspaper subscriptions, academic and professional studies), etc., provided, however, that such additional benefits shall be determined in accordance with Steakholder Foods’ policies and procedures.
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C. Cash Bonuses

8.	Annual Cash Bonuses - The Objective
8.1.	Compensation in the form of an annual cash bonus is an important element in aligning the Executive Officers’ compensation with Steakholder Foods’ objectives and business goals.
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Therefore, annual cash bonuses will reflect a pay-for-performance element, with payout eligibility and levels determined based on actual financial and operational results, in addition to other factors the Compensation Committee may determine, including individual performance.
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8.2.	An annual cash bonus may be awarded to Executive Officers upon the attainment of pre-set periodical objectives and individual targets determined by the Compensation Committee (and, if required by law, by the Board) for each fiscal year, or in connection with such officer’s engagement, in case of newly hired Executive Officers, taking into account Steakholder Foods’ short and long-term goals, as well as its compliance and risk management policies. The Compensation Committee and the Board shall also determine applicable minimum thresholds that must be met for entitlement to the annual cash bonus (all or any portion thereof) and the formula for calculating any annual cash bonus payout, with respect to each fiscal year, for each Executive Officer. In special circumstances, as determined by the Compensation Committee and the Board (e.g., regulatory changes, significant changes in Steakholder Foods’ business environment, a significant organizational change, significant merger and acquisition events, etc.), the Compensation Committee and the Board may modify the objectives and/or their relative weight during the fiscal year, or may modify payouts following the conclusion of the year.
8.3.	In the event that the employment of an Executive Officer is terminated prior to the end of a fiscal year, the Company may (but shall not be obligated to) pay such Executive Officer an annual cash bonus (which may or may not be pro-rated) assuming the Executive Officer is otherwise entitled to an annual cash bonus.
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8.4.	The actual annual cash bonus to be paid to Executive Officers shall be approved by the Compensation Committee and the Board.
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9.	Annual Cash Bonuses—TheFormula
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Executive Officers other than the CEO

9.1.	The performance objectives for the annual cash bonus of Steakholder Foods’ Executive Officers, other than the chief executive officer (the “CEO”), may be approved by Steakholder Foods’ CEO (in lieu of the Compensation Committee) and may be based on company and individual objectives. Measurable performance objectives will include the objectives and the weight to be assigned to each achievement in the overall evaluation, and will be based on actual results. The Company may also grant annual cash bonuses to Steakholder Foods’ Executive Officers, other than the CEO, on a discretionary basis.
9.2.	The target annual cash bonus (not including any commissions in the case of Commission-Based Executive Officers (as defined below)) that an Executive Officer, other than the CEO, will be entitled to receive for any given fiscal year, will not exceed 100% of such Executive Officer’s annual base salary.
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9.3.	The maximum annual cash bonus, (not including<br> any commissions in the case of Commission-Based Executive Officers (as defined below)), including for overachievement performance, that<br> an Executive Officer, other than the CEO, will be entitled to receive for any given fiscal year, will not exceed 200% of such Executive<br> Officer’s annual base salary.
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9.4.	The annual commissions that any Executive Officer<br> in a role with the Company which the Compensation Committee and the Board determine should be compensated in the form of commissions (collectively,<br> the “Commission-Based Executive Officers”) will not exceed 20% of the Company’s revenue for such given fiscal<br> year.

CEO

9.5.	The annual cash bonus of Steakholder Foods’ CEO will be mainly based on measurable performance objectives and subject to minimum thresholds as provided in Section 8.2 above. Such measurable performance objectives will be determined annually by Steakholder Foods’ Compensation Committee (and, if required by law, by Steakholder Foods’ Board) and will be based on company and personal objectives. These measurable performance objectives, which include the objectives and the weight to be assigned to each achievement in the overall evaluation, will be based on overall company performance measures, which are based on actual financial and operational results, such as (by way of example and not by way of limitation) revenues, sales, operating income, cash flow or the Company’s annual operating plan and long-term plan.
9.6.	The less significant part of the annual cash bonus granted to Steakholder Foods’ CEO, and in any event not more than 40% of the annual cash bonus, may be based on a discretionary evaluation of the CEO’s overall performance by the Compensation Committee and the Board based on quantitative and qualitative criteria.
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9.7.	The target annual cash bonus that the CEO will be entitled to receive for any given fiscal year, will not exceed 100% of his or her annual base salary.
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9.8.	The maximum annual cash bonus including for overachievement performance that the CEO will be entitled to receive for any given fiscal year, will not exceed 200% of his or her annual base salary.
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10.	Other Bonuses
10.1.	Special Bonus. Steakholder Foods may grant its Executive Officers a special bonus as an award for special achievements (such as in connection with mergers and acquisitions, offerings, achieving target budget or business plan objectives under exceptional circumstances, or special recognition in case of retirement) or as a retention award at the CEO’s discretion for Executive Officers other than the CEO (and in the CEO’s case, at the Compensation Committee’s and the Board’s discretion), subject to any additional approval as may be required by the Companies Law (the “Special Bonus”). Any such Special Bonus will not exceed 200 % of the Executive Officer’s annual base salary. A Special Bonus can be paid, in whole or in part, in equity in lieu of cash and the value of any such equity component of a Special Bonus shall be determined in accordance with Section 13.3 below.
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10.2.	Signing Bonus. Steakholder Foods may grant a newly recruited Executive Officer a signing bonus. Any such signing bonus shall be granted and determined at the CEO’s discretion for Executive Officers other than the CEO (and in the CEO’s case, at the Compensation Committee’s and the Board’s discretion), subject to any additional approval as may be required by the Companies Law (the “Signing Bonus”). Any such Signing Bonus will not exceed 100 % of the Executive Officer’s annual base salary.
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10.3.	Relocation/ Repatriation Bonus. Steakholder Foods may grant its Executive Officers a special bonus in the event of relocation or repatriation of an Executive Officer to another geography (the “Relocation Bonus”). Any such Relocation bonus will include customary benefits associated with such relocation and its monetary value will not exceed 100 % of the Executive Officer’s annual base salary.
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11.	Compensation Recovery (“Clawback”)
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11.1.	In the event of an accounting restatement, Steakholder Foods shall be entitled to recover from its Executive Officers the bonus compensation or performance-based equity compensation in the amount in accordance with the clawback policy adopted by the Company from time to time under the applicable stock exchange rules.
---	---
11.3.	Nothing in this Section 11 derogates from any other “Clawback” or similar provisions regarding disgorging of profits imposed on Executive Officers by virtue of applicable securities laws or a separate contractual obligation.
---	---

D. Equity Based Compensation

12.	The Objective
12.1.	The equity-based compensation for Steakholder Foods’ Executive Officers will be designed in a manner consistent with the underlying objectives of the Company in determining the base salary and the annual cash bonus, with its main objectives being to enhance the alignment between the Executive Officers’ interests with the long-term interests of Steakholder Foods and its shareholders, and to strengthen the retention and the motivation of Executive Officers in the long term. In addition, since equity-based awards are structured to vest over several years, their incentive value to recipients is aligned with longer-term strategic plans.
---	---
12.2.	The equity-based compensation offered by Steakholder Foods is intended to be in the form of share options and/or other equity-based awards, such as restricted shares, RSUs or performance stock units, in accordance with the Company’s equity incentive plan in place as may be updated from time to time.
---	---
12.3.	All equity-based incentives granted to Executive Officers (other than bonuses paid in equity in lieu of cash) shall normally be subject to vesting periods in order to promote long-term retention of the awarded Executive Officers. Unless determined otherwise in a specific award agreement or in a specific compensation plan approved by the Compensation Committee and the Board, grants to Executive Officers other than non-employee directors shall vest based on time, gradually over a period of at least 2-4 years, or based on performance. The exercise price of options shall be determined in accordance with Steakholder Foods’ policies, the main terms of which shall be disclosed in the annual report of Steakholder Foods.
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12.4.	All other terms of the equity awards shall be in accordance with Steakholder Foods’ incentive plans and other related practices and policies. Accordingly, the Board may, following approval by the Compensation Committee, make modifications to such awards consistent with the terms of such incentive plans, subject to any additional approval as may be required by the Companies Law.
13.	General Guidelines for theGrant of Awards
---	---
13.1.	The equity-based compensation shall be granted from time to time and be individually determined and awarded according to the performance, educational background, prior business experience, qualifications, corporate role and the personal responsibilities of the Executive Officer.
---	---
13.2.	In determining the equity-based compensation granted to each Executive Officer, the Compensation Committee and the Board shall consider the factors specified in Section 13.1 above, and in any event, the total fair market value of an annual equity-based compensation award at the time of grant (not including bonuses paid in equity in lieu of cash) shall not exceed: (i) with respect to the CEO - 325% of his or her annual base salary; and (ii) with respect to each of the other Executive Officers - 215% of his or her annual base salary.
---	---
13.3.	The fair market value of the equity-based compensation<br> for the Executive Officers will be determined by multiplying the number of shares underlying the grant by the market price of Steakholder<br> Foods’ ordinary shares on or around the time of the grant or according to other acceptable valuation practices at the time of grant,<br> in each case, as determined by the Compensation Committee and the Board.
---	---
13.4	The Company may satisfy tax withholding obligations related to equity-based compensation by net issuance, sale to cover or any other mechanism as determined by the Board from time to time.

E. Retirement and Termination of ServiceArrangements

14.	Advance Notice Period

Steakholder Foods may provide an Executive Officer, on the basis of his/her seniority in the Company, his/her contribution to the Company’s goals and achievements and the circumstances of his/her retirement prior notice of termination of up to twelve (12) months in the case of the CEO and six (6) months in the case of other Executive Officers, during which the Executive Officer may be entitled to all of the compensation elements, and to the continuation of vesting of his/her equity-based compensation. Such advance notice may or may not be provided in addition to severance, provided, however, that the Compensation Committee shall take into consideration the Executive Officer’s entitlement to advance notice in establishing any entitlement to severance and vice versa.

15.	Adjustment Period

Steakholder Foods may provide an additional adjustment period of up to six (6) months to the CEO or to any other Executive Officer according to his/her seniority in the Company, his/her contribution to the Company’s goals and achievements and the circumstances of retirement, during which the Executive Officer may be entitled to all of the compensation elements, and to the continuation of vesting of his/her equity-based compensation.

16.	Additional Retirement and TerminationBenefits

Steakholder Foods may provide additional retirement and terminations benefits and payments as may be required by applicable law (e.g., mandatory severance pay under Israeli labor laws), or which will be comparable to customary market practices.

- 6 -

17.	Non-Compete Grant

Upon termination of employment and subject to applicable law, Steakholder Foods may grant to its Executive Officers a non-compete grant as an incentive to refrain from competing with Steakholder Foods for a defined period of time. The terms and conditions of the non-compete grant shall be decided by the Board and shall not exceed 100 % of the Executive Officer’s annual base salary. The Board shall consider the existing entitlements of the Executive Officer in connection with the consideration of any non-compete grant.

18.	Limitation Retirementand Termination of Service Arrangements

The total non-statutory payments under Section 14-17 above for a given Executive Officer shall not exceed 200% of the Executive Officer’s annual base salary. The limitation under this Section 18 does not apply to benefits and payments provided under other chapters of this Policy.

F. Exculpation, Indemnification andInsurance

19.	Exculpation

Each and every Director and Executive Officer may be exempted in advance for all or any of his/her liability for damage in consequence of a breach of the duty of care, to the fullest extent permitted by applicable law.

20.	Insurance and Indemnification
20.1.	Steakholder Foods may indemnify its directors and Executive Officers to the fullest extent permitted by applicable law, for any liability and expense that may be imposed on the director or the Executive Officer, as provided in the indemnity agreement between such individuals and Steakholder Foods all subject to applicable law and the Company’s articles of association.
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20.2.	Steakholder Foods will provide directors’ and officers’ liability insurance (the “Insurance Policy”)for its directors and Executive Officers as follows:
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20.2.1.	The limit of liability of the insurer shall not exceed the greater of $50 million or 50% of the Company’s shareholders equity based on the most recent financial statements of the Company at the time of approval of the Insurance Policy by the Compensation Committee, and the annual premium may not exceed $2 million; and
---	---
20.2.2.	The Insurance Policy, as well as the limit of liability and the premium for each extension or renewal shall be approved by the Compensation Committee (and, if required by law, by the Board) which shall determine that the sums are reasonable considering Steakholder Foods’ exposures, the scope of coverage and the market conditions and that the Insurance Policy reflects the current market conditions and that it shall not materially affect the Company’s profitability, assets or liabilities.
---	---
20.3.	Upon circumstances to be approved by the Compensation Committee (and, if required by law, by the Board), Steakholder Foods shall be entitled to enter into a “run off” Insurance Policy (the “Run-Off Policy”)of up to seven (7) years, with the same insurer or any other insurance, as follows:
---	---
20.3.1.	The limit of liability of the insurer shall not exceed the greater of $50 million or 50% of the Company’s shareholders equity based on the most recent financial statements of the Company at the time of approval by the Compensation Committee; and
---	---
20.3.2.	The Run-Off Policy, as well as the limit of liability and the premium for each extension or renewal shall be approved by the Compensation Committee (and, if required by law, by the Board) which shall determine that the sums are reasonable considering the Company’s exposures covered under such policy, the scope of coverage and the market conditions and that the Run-Off Policy reflects the current market conditions and that it shall not materially affect the Company’s profitability, assets or liabilities.
---	---
20.4.	Steakholder Foods may extend an Insurance Policy in effect to include coverage for liability pursuant to a future public offering of securities as follows:
---	---
20.4.1.	The Insurance Policy, as well as the additional premium shall be approved by the Compensation Committee (and if required by law, by the Board) which shall determine that the sums are reasonable considering the exposures pursuant to such public offering of securities, the scope of coverage and the market conditions and that the Insurance Policy reflects the current market conditions, and that it does not materially affect the Company’s profitability, assets or liabilities.
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- 7 -

G. Arrangements upon Change of Control

21.	The following benefits may be<br>granted to the Executive Officers(in addition to, or in lieu of, the benefits applicable in the case of any retirement or<br>termination of service) upon or in connection with a “Change of Control” or, where applicable, in the<br>event of a Change of Control following which the employment of the Executive Officer is terminated or adversely adjusted in a material<br>way:
21.1.	Acceleration of vesting of outstanding options or other equity-based awards;
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21.2.	Extension of the exercise period of equity-based grants for Steakholder Foods’ Executive Officers for a period of up to one (1) year, following the date of termination of employment; and
---	---
21.3.	Up to an additional six (6) months of continued base salary and benefits following the date of termination of employment, or twelve (12) months in the case of the CEO (the “Additional Adjustment Period”). For avoidance of doubt, such additional Adjustment Period may be in addition to the advance notice and adjustment periods pursuant to Sections 14 and 15 of this Policy, but subject to the limitation set forth in Section 18 of this Policy.
---	---
21.4.	A cash bonus not to exceed 200% of the Executive Officer’s annual base salary in case of an Executive Officer other than the CEO and 250% in case of the CEO.
---	---

H. Board of Directors Compensation

22.	All Steakholder Foods’ non-employee Board<br>members may be entitled to an annual cash fee retainer of up to $60,000 (and up to $400,000 for the chairperson of Steakholder Foods’<br>Board or lead independent director), an annual committee membership fee retainer of up to $20,000, and an annual committee chairperson<br>cash fee retainer of up to $25,000 (it is being clarified that the payment for the chairpersons would be in lieu of (and not in addition)<br>to the payments referenced above for committee membership).
23.	The compensation of the Company’s<br>external directors, if any are required and elected, shall be in accordance with the Companies Regulations (Rules Regarding the Compensation<br>and Expenses of an External Director), 5760-2000, as amended by the Companies Regulations (Relief for Public Companies Traded in Stock<br>Exchange Outside of Israel), 5760-2000, as such regulations may be amended from time to time.
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24.	Notwithstanding the provisions<br>of Section 22 above, in special circumstances, such as in the case of a professional director, an expert director or a director<br>who makes a unique contribution to the Company, such director’s compensation may be different than the compensation of all other<br>directors and may be greater than the maximum amount allowed under Section 22.
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25.	Each non-employee member<br>of Steakholder Foods’ Board may be granted equity-based compensation. The total fair market value of a “welcome” or<br>an annual equity-based compensation (or the per-annum component of equity-based compensation covering multiple years) at the time of<br>grant shall not exceed $150,000 at the time of approval of the grant by the Board.
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26.	All other terms of the equity<br>awards shall be in accordance with Steakholder Foods’ incentive plans and other related practices and policies. Accordingly, the<br>Board may, following approval by the Compensation Committee, make modifications to such awards consistent with the terms of such incentive<br>plans, subject to any additional approval as may be required by the Companies Law.
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27.	In addition, members of Steakholder<br>Foods’ Board may be entitled to reimbursement of expenses in connection with the performance of their duties.
---	---
28.	The compensation (and limitations)<br>stated under Section H will not apply to directors who serve as Executive Officers.
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I. Miscellaneous

29.	Nothing in this Policy shall be<br>deemed to grant to any of Steakholder Foods’ Executive Officers, employees, directors, or any third party any right or privilege<br>in connection with their employment by or service to the Company, nor deemed to require Steakholder Foods to provide any compensation<br>or benefits to any person. Such rights and privileges shall be governed by applicable personal employment agreements or other separate<br>compensation arrangements entered into between Steakholder Foods and the recipient of such compensation or benefits. The Board may determine<br>that none or only part of the payments, benefits and perquisites detailed in this Policy shall be granted, and is authorized to cancel<br>or suspend a compensation package or any part of it.
30.	An Immaterial Change in the Terms<br>of Employment of an Executive Officer other than the CEO may be approved by the CEO, provided that the amended terms of employment are<br>in accordance with this Policy. An “Immaterial Change in the Terms of Employment” means a change in the terms of employment<br>of an Executive Officer with an annual total cost to the Company not exceeding 15 % of the Executive Officer’s annual base<br>salary.
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31.	In the event that new regulations<br>or law amendment in connection with Executive Officers’ and directors’ compensation will be enacted following the adoption<br>of this Policy, Steakholder Foods may follow such new regulations or law amendments, even if such new regulations are in contradiction<br>to the compensation terms set forth herein.
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*********************

This Policy is designed solely for the benefit of Steakholder Foods and none of the provisions thereof are intended to provide any rights or remedies to any person other than Steakholder Foods.

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Exhibit 8.1

Organizational Structure

The subsidiaries of Steakholder Foods Ltd. and the countries of their incorporation are as follows:

Name	Jurisdiction ofIncorporation	Parent	% Ownership(direct orotherwise)
Steakholder Foods USA, Inc.	Delaware, U.S.	Steakholder Foods Ltd.	100	%
Steakholder Innovation Ltd.	Israel	Steakholder Foods Ltd.	100	%
Steakholder Foods Europe BV<br><br>(commenced dissolution)	Belgium	Steakholder Foods Ltd.	100	%
Peace of Meat BV<br><br> (commenced bankruptcy proceedings)	Belgium	Steakholder Foods Europe BV and Steakholder Foods Ltd.	100	%

Exhibit 12.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-OxleyAct of 2002

I, Arik Kaufman, certify that:

1.	I have reviewed this annual report on Form 20-F of Steakholder<br>Foods Ltd. (the “Company”);
2.	Based on my knowledge, this report does not contain any untrue<br>statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under<br>which such statements were made, not misleading with respect to the period covered by this report;
---	---
3.	Based on my knowledge, the financial statements and other financial<br>information included in this report fairly present in all material respects the financial condition, results of operations, and cash<br>flows of the Company as of, and for, the periods presented in this report;
---	---
4.	The Company's other certifying officer and I are responsible<br>for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and<br>internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
---	---
a.	Designed such disclosure controls and procedures, or caused<br>such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company<br>is made known to us by others within those entities, particularly during the period in which this report is being prepared;
---	---
b.	Designed such internal control over financial reporting, or<br>caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding<br>the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally<br>accepted accounting principles;
---	---
c.	Evaluated the effectiveness of the Company’s disclosure<br>controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures,<br>as of the end of the period covered by this annual report based on such evaluation; and
---	---
d.	Disclosed in this report any change in the Company’s internal<br>control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably<br>likely to materially affect, the Company’s internal control over financial reporting; and
---	---
5.	The Company's other certifying officer and I have disclosed,<br>based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the Company’s<br>audit committee of the Company's board of directors (or persons performing the equivalent functions):
---	---
a.	All significant deficiencies and material weaknesses in the<br>design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s<br>ability to record, process, summarize, and report financial information; and
---	---
b.	Any fraud, whether or not material, that involves management<br>or other employees who have a significant role in the Company’s internal control over financial reporting.
---	---

Date: April 30, 2024

/s/ Arik Kaufman

Arik Kaufman

Chief Executive Officer

Steakholder Foods Ltd.

Exhibit 12.2

Certification of Principal FinancialOfficer

Pursuant to Section 302 of the Sarbanes-OxleyAct of 2002

I, Moran Attar, certify that:

1.	I have reviewed this annual report on Form 20-F of Steakholder<br>Foods Ltd. (the “Company”);
2.	Based on my knowledge, this report does not contain any untrue<br>statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under<br>which such statements were made, not misleading with respect to the period covered by this report;
---	---
3.	Based on my knowledge, the financial statements and other financial<br>information included in this report fairly present in all material respects the financial condition, results of operations, and cash<br>flows of the Company as of, and for, the periods presented in this report;
---	---
4.	The Company's other certifying officer and I are responsible<br>for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and<br>internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
---	---
a.	Designed such disclosure controls and procedures, or caused<br>such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company<br>is made known to us by others within those entities, particularly during the period in which this report is being prepared;
---	---
b.	Designed such internal control over financial reporting, or<br>caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding<br>the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally<br>accepted accounting principles;
---	---
c.	Evaluated the effectiveness of the Company’s disclosure<br>controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures,<br>as of the end of the period covered by this annual report based on such evaluation; and
---	---
d.	Disclosed in this report any change in the Company’s internal<br>control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably<br>likely to materially affect, the Company’s internal control over financial reporting; and
---	---
5.	The Company's other certifying officer and I have disclosed,<br>based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the Company’s<br>audit committee of the Company's board of directors (or persons performing the equivalent functions):
---	---
a.	All significant deficiencies and material weaknesses in the<br>design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s<br>ability to record, process, summarize, and report financial information; and
---	---
b.	Any fraud, whether or not material, that involves management<br>or other employees who have a significant role in the Company’s internal control over financial reporting.
---	---

Date: April 30, 2024

/s/ Moran Attar

Moran Attar

Vice-President of Finance

Steakholder Foods Ltd.

Exhibit 13.1

Certification of the Chief ExecutiveOfficer Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Steakholder Foods Ltd. (the “Company”) hereby certifies, to such officer’s knowledge that:

1.	The accompanying Annual Report on Form 20-F of the Company for<br>the year ended December 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable,<br>of the Securities Exchange Act of 1934, as amended; and
2.	The information contained in the Report fairly presents, in<br>all material respects, the financial condition and results of operations of the Company.
---	---

Date: April 30, 2024

/s/ Arik Kaufman

Arik Kaufman

Chief Executive Officer

Steakholder Foods Ltd.

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. Section 1350, and is not being filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference to any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Exhibit 13.2

Certification of the Principal FinancialOfficer Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906of the Sarbanes-Oxley Act of 2002

1.	The accompanying Annual Report on Form 20-F of the Company for<br>the year ended December 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable,<br>of the Securities Exchange Act of 1934, as amended; and
2.	The information contained in the Report fairly presents, in<br>all material respects, the financial condition and results of operations of the Company.
---	---

Date: April 30, 2024

/s/ Moran Attar

Moran Attar

Vice-President of Finance

Steakholder Foods Ltd.

Exhibit15.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the registration statements on Form S-8 (Nos. 333-255419, 333-267045 and 333-271112) and registration statements on Form F-3 (Nos. 333-264110 and 333-276845) of our report dated April 30, 2024, with respect to the consolidated financial statements of Steakholder Foods Ltd.

/s/ Somekh Chaikin

Somekh Chaikin

Member Firm of KPMG International

Tel Aviv, Israel

April 30, 2024

Exhibit 97.1

STEAKHOLDER FOODS LTD.

POLICY FOR RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION

Steakholder Foods Ltd. (the “Company”) has adopted this Policy for Recovery of Erroneously Awarded Compensation (the “Policy”), effective as of October 2, 2023 (the “Effective Date”). Capitalized terms used in this Policy but not otherwise defined herein are defined in Section 11.

1.	Persons Subject to Policy

This Policy shall apply to and be binding and enforceable on current and former Officers. In addition, the Committee and the Board may apply this Policy to persons who are not Officers, and such application shall apply in the manner determined by the Committee and the Board in their sole discretion.

2.	Compensation Subject to Policy

This Policy shall apply to Incentive-Based Compensation received on or after the Effective Date. For purposes of this Policy, the date on which Incentive-Based Compensation is “received” shall be determined under the Applicable Rules, which generally provide that Incentive-Based Compensation is “received” in the Company’s fiscal period during which the relevant Financial Reporting Measure is attained or satisfied, without regard to whether the grant, vesting or payment of the Incentive-Based Compensation occurs after the end of that period.

3.	Recovery of Compensation

In the event that the Company is required to prepare a Restatement, the Company shall recover, reasonably promptly and in accordance with Section 4 below, the portion of any Incentive-Based Compensation that is Erroneously Awarded Compensation, unless the Committee and the Board have determined that recovery from the relevant current or former Officer would be Impracticable. Such recovery shall be required regardless of whether the applicable Officer engaged in misconduct or otherwise caused or contributed to the requirement for the Restatement and regardless of whether or when restated financial statements are adopted by the Company. For clarity, the recovery of Erroneously Awarded Compensation under this Policy will not give rise to any Officer’s right to voluntarily terminate employment for “good reason” or due to a “constructive termination” (or any similar term of like effect) under any plan, program or policy of or agreement with the Company or any of its affiliates.

4.	Manner of Recovery; Limitation on Duplicative Recovery

The Committee and the Board shall, in its sole discretion, determine the manner of recovery of any Erroneously Awarded Compensation, which may include, without limitation, reduction or cancellation by the Company or an affiliate of the Company of Incentive-Based Compensation or Erroneously Awarded Compensation, reimbursement or repayment by any person subject to this Policy, and, to the extent permitted by law, an offset of the Erroneously Awarded Compensation against other compensation payable by the Company or an affiliate of the Company to such person. Notwithstanding the foregoing, unless otherwise prohibited by the Applicable Rules, to the extent this Policy provides for recovery of Erroneously Awarded Compensation already recovered by the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 or Other Recovery Arrangements, the amount of Erroneously Awarded Compensation already recovered by the Company from the recipient of such Erroneously Awarded Compensation may be credited to the amount of Erroneously Awarded Compensation required to be recovered pursuant to this Policy from such person.

5.	Administration

This Policy shall be administered, interpreted and construed by the Committee, which is authorized to make all determinations necessary, appropriate or advisable for such purpose. The Board may re-vest in itself the authority to administer, interpret and construe this Policy in accordance with applicable law, and in such event references herein to the “Committee” shall be deemed to be references to the Board. Subject to any permitted review by the applicable national securities exchange or association pursuant to the Applicable Rules, all determinations and decisions made by the Committee pursuant to the provisions of this Policy shall be final, conclusive and binding on all persons, including the Company and its affiliates, shareholders and employees. The Committee may delegate administrative duties with respect to this Policy to one or more directors or employees of the Company, as permitted under applicable law, including any Applicable Rules.

6.	Interpretation

This Policy shall be interpreted and applied in a manner that is consistent with the requirements of the Applicable Rules, and to the extent this Policy is inconsistent with such Applicable Rules, it shall be deemed amended to the minimum extent necessary to ensure compliance therewith.

7.	No Indemnification; No Liability

The Company shall not indemnify or insure any person against the loss of any Erroneously Awarded Compensation pursuant to this Policy, nor shall the Company directly or indirectly pay or reimburse any person for any premiums for third-party insurance policies that such person may elect to purchase to fund such person’s potential obligations under this Policy. None of the Company, an affiliate of the Company or any member of the Committee or the Board shall have any liability to any person as a result of actions taken under this Policy.

8.	Application; Enforceability

Except as otherwise determined by the Committee or the Board, the adoption of this Policy does not limit, and is intended to apply in addition to, any Other Recovery Arrangements. Without limiting the foregoing, in the event of a conflict between this Policy and the Compensation Policy, the latter shall prevail, except with respect to the recovery of any portion of Incentive-Based Compensation that is Erroneously Awarded Compensation that would not be recoverable under the Compensation Policy, in which case this Policy shall prevail. Subject to Section 4, the remedy specified in this Policy shall not be exclusive and shall be in addition to every other right or remedy at law or in equity that may be available to the Company or an affiliate of the Company or is otherwise required by applicable law and regulations.

9.	Severability

The provisions in this Policy are intended to be applied to the fullest extent of the law; provided, however, to the extent that any provision of this Policy is found to be unenforceable or invalid under any applicable law, such provision will be applied to the maximum extent permitted, and shall automatically be deemed amended in a manner consistent with its objectives to the extent necessary to conform to any limitations required under applicable law.

10.	Amendment and Termination

The Board or the Committee may amend, modify or terminate this Policy in whole or in part at any time and from time to time in its sole discretion. This Policy will terminate automatically when the Company does not have a class of securities listed on a national securities exchange or association in the U.S.

11.	Definitions

“Applicable Rules” means Section 10D of the Exchange Act, Rule 10D-1 promulgated thereunder, the listing rules of the national securities exchange or association on which the Company’s securities are listed, and any applicable rules, standards or other guidance adopted by the Securities and Exchange Commission or any national securities exchange or association on which the Company’s securities are listed.

“Board” means the Board of Directors of the Company.

“CompensationPolicy” means the Company’s compensation policy for officers and directors, as adopted in accordance with the Israeli Companies Law 5759-1999 and as in effect from time to time.

“Committee” means the Compensation Committee of the Board or, in the absence of such a committee, a majority of the independent directors serving on the Board.

“Erroneously AwardedCompensation” means the amount of Incentive-Based Compensation received by a current or former Officer that exceeds the amount of Incentive-Based Compensation that would have been received by such current or former Officer based on a restated Financial Reporting Measure, as determined on a pre-tax basis in accordance with the Applicable Rules.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Financial ReportingMeasure” means any measure determined and presented in accordance with the accounting principles used in preparing the Company’s financial statements, and any measures derived wholly or in part from such measures, including GAAP, IFRS and non-GAAP/IFRS financial measures, as well as stock price and total shareholder return.

“GAAP” means United States generally accepted accounting principles.

“IFRS” means international financial reporting standards as adopted by the International Accounting Standards Board.

“Impracticable” means (a) the direct expense paid to third parties to assist in enforcing recovery would exceed the Erroneously Awarded Compensation; provided that the Company has (i) made reasonable attempt(s) to recover the Erroneously Awarded Compensation, (ii) documented such reasonable attempt(s) and (iii) provided such documentation to the relevant listing exchange or association, (b) the recovery would violate the Company’s home country laws adopted prior to November 28, 2022 pursuant to an opinion of home country counsel; provided that the Company has (i) obtained an opinion of home country counsel, acceptable to the relevant listing exchange or association, that recovery would result in such a violation and (ii) provided such opinion to the relevant listing exchange or association, or (c) recovery would likely cause an otherwise tax-qualified retirement plan, under which benefits are broadly available to employees of the Company, to fail to meet the requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C. 411(a) and the regulations thereunder.

“Incentive-BasedCompensation” means, with respect to a Restatement, any compensation that is granted, earned, or vested based wholly or in part upon the attainment of one or more Financial Reporting Measures and received by a person: (a) after such person began service as an Officer; (b) who served as an Officer at any time during the performance period for that compensation; (c) while the Company has a class of securities listed on a national securities exchange or association; and (d) during the applicable Three-Year Period.

“Officer” means each person who the Company determines serves as a Company officer, as defined in Section 16 of the Securities Exchange Act of 1934, as amended.

“Other RecoveryArrangements” means any clawback, recoupment, forfeiture or similar policies or provisions of the Company or its affiliates, including any such policies or provisions of such effect contained in any employment agreement, bonus plan, incentive plan, equity-based plan or award agreement thereunder or similar plan, program or agreement of the Company or an affiliate or required under applicable law (including, without limitation, the Compensation Policy).

“Restatement” means an accounting restatement to correct the Company’s material noncompliance with any financial reporting requirement under securities laws, including restatements that correct an error in previously issued financial statements (a) that is material to the previously issued financial statements or (b) that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period*.*

“Three-Year Period” means, with respect to a Restatement, the three completed fiscal years immediately preceding the date that the Board, a committee of the Board, or the officer or officers of the Company authorized to take such action if Board action is not required, concludes, or reasonably should have concluded, that the Company is required to prepare such Restatement, or, if earlier, the date on which a court, regulator or other legally authorized body directs the Company to prepare such Restatement. The “Three-Year Period” also includes any transition period (that results from a change in the Company’s fiscal year) within or immediately following the three completed fiscal years identified in the preceding sentence. However, a transition period between the last day of the Company’s previous fiscal year end and the first day of its new fiscal year that comprises a period of nine to 12 months shall be deemed a completed fiscal year.

ACKNOWLEDGMENT AND CONSENT TO

POLICY FOR RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION

The undersigned has received a copy of the Policy for Recovery of Erroneously Awarded Compensation (the “Policy”) adopted by Steakholder Foods Ltd. (the “Company”), and has read and understands the Policy. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Policy.

As a condition of receiving Incentive-Based Compensation from the Company, the undersigned agrees that any Incentive-Based Compensation received on or after the Effective Date is subject to recovery pursuant to the terms of the Policy. To the extent the Company’s recovery right conflicts with any other contractual rights the undersigned may have with the Company, the undersigned understands that the terms of the Policy shall supersede any such contractual rights. The terms of the Policy shall apply in addition to any right of recoupment against the undersigned under the Compensation Policy or applicable law and regulations.

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