Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-40442 |
Entity Registrant Name | The Real Brokerage Inc. |
Entity Central Index Key | 0001862461 |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | 701 Brickell Avenue |
Entity Address, Address Line Two | 17th Floor |
Entity Address, City or Town | Miami |
Entity Address, State or Province | FL |
Entity Address, Country | US |
Entity Address, Postal Zip Code | 33131 |
City Area Code | (646) |
Local Phone Number | 859-2368 |
Title of 12(b) Security | Common Shares, no par value |
Trading Symbol | REAX |
Security Exchange Name | NASDAQ |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Entity Common Stock, Shares Outstanding | 183,605,781 |
ICFR Auditor Attestation Flag | false |
Document Financial Statement Error Correction [Flag] | false |
Auditor Firm ID | 1197 |
Auditor Name | Brightman Almagor Zohar & Co |
Auditor Location | Tel Aviv, Israel |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 122 East 42nd Street, 18th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10168 |
City Area Code | 1-800 |
Local Phone Number | 221-0102 |
Contact Personnel Name | Cogency Global Inc. |
Consolidated Statements of Fina
Consolidated Statements of Financial Positions - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 14,707 | $ 10,846 |
Restricted cash | 12,948 | 7,481 |
Investments in financial assets | 14,222 | 7,892 |
Trade receivables | 6,441 | 1,547 |
Other receivables | 63 | 74 |
Prepaid expenses and deposits | 2,132 | 529 |
TOTAL CURRENT ASSETS | 50,513 | 28,369 |
NON-CURRENT ASSETS | ||
Intangible assets | 3,442 | 3,708 |
Goodwill | 8,993 | 10,262 |
Property and equipment | 1,600 | 1,350 |
Right-of-use assets | 73 | |
TOTAL NON-CURRENT ASSETS | 14,035 | 15,393 |
TOTAL ASSETS | 64,548 | 43,762 |
CURRENT LIABILITIES | ||
Accounts payable | 571 | 474 |
Accrued liabilities | 13,374 | 11,866 |
Customer deposits | 12,948 | 7,481 |
Other payables | 302 | 1,188 |
Lease liabilities | 96 | |
TOTAL CURRENT LIABILITIES | 27,195 | 21,105 |
NON-CURRENT LIABILITIES | ||
Warrants outstanding | 269 | 242 |
TOTAL NON-CURRENT LIABILITIES | 269 | 242 |
TOTAL LIABILITIES | 27,464 | 21,347 |
EQUITY ATTRIBUTABLE TO OWNERS | ||
Share premium | 62,567 | 63,204 |
Stock-based compensation reserves | 52,937 | 25,083 |
Deficit | (78,205) | (50,704) |
Other reserves | (167) | (469) |
Treasury stock, at cost | (257) | (14,962) |
EQUITY ATTRIBUTABLE TO OWNERS | 36,875 | 22,152 |
Non-controlling interests | 209 | 263 |
TOTAL EQUITY | 37,084 | 22,415 |
TOTAL LIABILITIES AND EQUITY | $ 64,548 | $ 43,762 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Profit or loss [abstract] | ||
Revenues | $ 689,158 | $ 381,756 |
Commissions and other agent-related costs | 626,285 | 349,806 |
Gross Profit | 62,873 | 31,950 |
General and administrative expenses | 42,913 | 24,155 |
Marketing expenses | 38,611 | 22,674 |
Research and development expenses | 7,359 | 4,867 |
Operating Loss | (26,010) | (19,746) |
Other income (expenses), net | (587) | 729 |
Listing expenses | (151) | |
Finance expenses, net | (619) | (1,167) |
Net Loss | (27,216) | (20,335) |
Net income attributable to noncontrolling interests | 285 | 242 |
Net Loss Attributable to the Owners of the Company | (27,501) | (20,577) |
Other comprehensive income/(loss), Items that will be reclassified subsequently to profit or loss: | ||
Cumulative (gain)/loss on investments in debt instruments classified as FVTOCI reclassified to profit or loss | 330 | (407) |
Foreign currency translation adjustment | (28) | 285 |
Total Comprehensive Loss Attributable to Owners of the Company | (27,199) | (20,699) |
Total Comprehensive Income Attributable to NCI | 285 | 242 |
Total Comprehensive Loss | $ (26,914) | $ (20,457) |
Loss per share | ||
Basic loss per share | $ (0.15) | $ (0.12) |
Diluted loss per share | $ (0.15) | $ (0.12) |
Weighted-average shares, basic | 178,127 | 178,201 |
Weighted-average shares, diluted | 178,127 | 178,201 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Share premium [member] | Reserve of share-based payments [member] | Reserve of exchange differences on translation [member] | Revaluation surplus [member] | Retained earnings [member] | Treasury shares [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] | Total |
Balance at Dec. 31, 2021 | $ 63,397 | $ 6,725 | $ 5 | $ (352) | $ (30,127) | $ (12,644) | $ 27,004 | $ 27,004 | |
IfrsStatementLineItems [Line Items] | |||||||||
Total loss and income | (20,577) | (20,577) | 242 | (20,335) | |||||
Total other comprehensive loss | 285 | (407) | (122) | (122) | |||||
Acquisitions of commons shares for Restricted Share Unit (RSU) plan | (8,060) | (8,060) | (8,060) | ||||||
Release of treasury shares | (5,742) | 5,742 | |||||||
Issuance of Restricted Share Units | 4,886 | (4,886) | |||||||
Exercise of stock options | 663 | (398) | 4,775 | 4,775 | |||||
Equity-settled share-based payment | 18,867 | 18,867 | 18,867 | ||||||
Adjustment arising from change in non-controlling interest | 244 | 21 | 265 | ||||||
Shares issue as part of Expetitle and LemonBrew Acquisitions | 4,775 | 21 | 21 | ||||||
Balance at Dec. 31, 2022 | 63,204 | 25,083 | 290 | (759) | (50,704) | (14,962) | 22,152 | 263 | 22,415 |
IfrsStatementLineItems [Line Items] | |||||||||
Total loss and income | (27,501) | (27,501) | 285 | (27,216) | |||||
Total other comprehensive loss | (28) | 330 | 302 | 302 | |||||
Member draws | (339) | (339) | |||||||
Acquisitions of commons shares for Restricted Share Unit (RSU) plan | (2,865) | (2,865) | (2,865) | ||||||
Release of treasury shares | (17,570) | 17,570 | |||||||
Issuance of Restricted Share Units | 16,407 | (16,407) | |||||||
Exercise of stock options | 888 | (386) | 502 | 502 | |||||
Shares withheld for taxes | (362) | (362) | (362) | ||||||
Equity-settled share-based payment | 44,647 | 44,647 | 44,647 | ||||||
Balance at Dec. 31, 2023 | $ 62,567 | $ 52,937 | $ 262 | $ (429) | $ (78,205) | $ (257) | $ 36,875 | $ 209 | $ 37,084 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (27,216) | $ (20,335) |
Adjustments for: | ||
Depreciation and amortization | 1,128 | 333 |
Impairment of goodwill | 723 | |
Equity-settled share-based payments | 38,403 | 16,201 |
Finance costs | 91 | 167 |
Changes in operating asset and liabilities: | ||
Trade receivables | (4,894) | (1,293) |
Other receivables | 11 | (51) |
Prepaid expenses and deposits | (1,603) | (81) |
Accounts payable | 97 | 420 |
Accrued liabilities | 7,752 | 5,316 |
Customer deposits | 5,467 | 4,170 |
Other payables | (86) | 1,148 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 19,873 | 5,995 |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (629) | (1,408) |
Acquisition of subsidiaries (Note 4 and 5) | (8,152) | |
Investment deposits in debt instruments held at FVTOCI | (6,847) | (125) |
Investment withdrawals in debt instruments held at FVTOCI | 847 | 637 |
NET CASH USED IN INVESTING ACTIVITIES | (6,629) | (9,048) |
FINANCING ACTIVITIES | ||
Purchase of common shares for Restricted Share Unit (RSU) Plan | (2,865) | (8,060) |
Shares withheld for taxes | (362) | |
Proceeds from exercise of stock options | 502 | 265 |
Payment of lease liabilities | (96) | (35) |
Cash payment for contingent consideration | (800) | |
Dividends paid to non-controlling interest | (339) | (19) |
NET CASH USED IN FINANCING ACTIVITIES | (3,960) | (7,849) |
Net change in cash, cash equivalents and restricted cash | 9,284 | (10,902) |
Cash, cash equivalents and restricted cash, beginning of year | 18,327 | 29,129 |
Fluctuations in foreign currency | 44 | 100 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH BALANCE, ENDING BALANCE | 27,655 | 18,327 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||
Share-based compensation as part of Expetitle consideration | 4,325 | |
Share-based compensation as part of LemonBrew consideration | $ 450 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
General Information | |
GENERAL INFORMATION | 1. GENERAL INFORMATION The Real Brokerage Inc. (“ Real Company The consolidated operations of Real include the subsidiaries of Real, including those involved in the brokerage, title and mortgage broker operations. On May 17, 2021, the TSX Venture Exchange (the “ TSXV NCIB NASDAQ 8.9 Common Shares 5 178.3 9.0 5 180 The NCIB is being conducted to acquire Common Shares for the purposes of satisfying restricted share unit (each, an “ RSU Trustee During the year ended December 31, 2023, the Company repurchased 2 2.9 On June 15, 2021, the Company’s Common Shares commenced trading on the NASDAQ under the symbol “REAX”. On July 26, 2022, the Company’s Common Shares commenced trading on the Toronto Stock Exchange (the “ TSX On July 28, 2023, the Company announced that its application for a voluntary delisting of its Common Shares from the TSX had been approved by the Company’s Board of Directors and the TSX. The Common Shares were delisted from the TSX effective as of close of markets on August 11, 2023. The Common Shares continue to be listed and traded on the “NASDAQ under the symbol “REAX”. |
SUMMARY OF MATERIAL ACCOUNTING
SUMMARY OF MATERIAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES The principal accounting policies applied in the preparation of the annual consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended December 31, 2022. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 A. Basis of preparation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These consolidated financial statements were authorized for issuance by the Board of Directors on March 6, 2024. B. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to December 31 of each year. Control is achieved when the Company: ● Has the power over the investee ● Is exposed, or has rights, to variable returns from its involvement with the investee ● Has the ability to use its power to affect its returns The Company reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in profit or loss from the date the Company gains control until the date when the Company ceases to control the subsidiary. Where necessary, adjustments are made to the financial statements of subsidiaries to ensure subsidiaries’ accounting policies are in line with Company’s accounting policies. All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between the members of the Company and its subsidiaries are eliminated on consolidation. C. Functional and presentation currency These consolidated financial statements are presented in U.S. dollars, which is the Company’s functional currency. All amounts have been rounded to the nearest thousands of dollars, unless otherwise noted. D. Foreign currency Foreign currency transactions and balances Transactions in foreign currencies are initially recognized in the financial statements using exchange rates prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the relevant functional currency at the exchange rates prevailing at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. Foreign currency differences arising on translation are recognized in the income statement for determination of net profit or loss during the period. Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to the functional currency at exchange rates at the reporting date. The income and expenses of foreign operations and cash flows are translated using average exchange rates during the period. Any differences arising on such translation are recognized in other comprehensive income. Such differences are included in the foreign currency translation reserve “FCTR” within other components of equity. When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred to profit or loss. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 E. Operating segments The Company uses judgement in determining its operating segments by taking into consideration the Chief Operating Decision Maker’s (“CODM”) assessment of overall performance and decisions such as resource allocations and delegation of authority. The segment information disclosed in these consolidated Financial Statements reflects historical results consistent with the identifiable reportable segments of Real Brokerage Inc. and financial information that the Chief Operating Decision Maker (“CODM”) reviews to evaluate segmental performance and allocate resources among the segments. The CODM is the Company’s Chief Executive Officer. Detailed segment information is disclosed in Note 8 F . Revenue from contracts with customers The Company generates substantially all its revenue from commissions from the sale of real estate properties. Other sources of revenue relate to ancillary services. The Company is contractually obligated to provide services for the fulfillment of transfer of real estate between agents, buyers, and sellers. The Company satisfies its performance obligations through closing of a transaction and provides services between the agents and buyers and sellers as a principal. Accordingly, the Company recognizes revenues in the gross amount of consideration, to which it expects to be entitled to. Please see Note 6 Performance obligations and revenue recognition policies Revenue is measured based on the consideration specified in a contract with a customer. The Company recognizes revenue upon the satisfaction of its performance obligation when it transfers control over a good or service to a customer. The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and related revenue recognition policies. SCHEDULE OF PERFORMANCE OBLIGATIONS AND REVENUE RECOGNITION POLICIES Type of product or service Nature of timing of satisfaction of performance obligations including significant payment terms Revenue recognition policies Commissions from real estate contracts Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received Revenue is recognized at a point in time as the purchase agreement is closed and the sale is executed Title Fees (Escrow and Title Insurance) Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received Revenue is recognized at a point in time when the transaction is closed and paid Mortgage Broker Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received Revenue is recognized at a point in time when the loan has been funded G. Share-based compensation The Company’s real estate agents receive remuneration in the form of share-based compensation, whereby those agents are entitled to restricted share units. In addition, the Company grants its employees and members of the board of directors remuneration in the form of share-based compensation, whereby employees and the board of directors render services in consideration for equity instruments. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 Share-based payment arrangements The grant-date fair value excluding the effect of non-market equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. Restricted share unit plan Under the restricted share unit plans, eligible participants receive restricted share units (RSUs), which generally vest over a period of up to four years. The expense in relation to RSUs earned in recognition of service performance conditions is recognized at grant-date fair value during the applicable vesting period based on the best available estimate of the number of equity instruments expected to vest with a corresponding increase in equity. RSUs granted under the agent stock purchase plan are fully vested at grant date. The expense in relation to such RSUs is recognized at grant-date fair value with a corresponding increase in equity. Please see Note 10.D H. Income tax Income tax expenses comprise of current and deferred tax. It is recognized in profit or loss, or items recognized directly in equity or in other comprehensive income. Current tax Current tax is comprised of expected payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using the tax rates enacted or substantively enacted at the reporting date. Current tax assets and liabilities are offset only if certain criteria are met. Deferred tax Deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for: ‒ Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and ‒ Temporary differences related to investments in subsidiaries to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future. Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognize a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for individual subsidiaries in the Company. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflects uncertainty related to income taxes, if any. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset only if certain criteria are met. I. Property and equipment Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. If significant parts of an item of property and equipment have different useful lives, then they are accounted for as separate items (significant components) of property and equipment. Any gain or loss on disposal of an item of property and equipment is recognized in profit or loss. Depreciation Depreciation is calculated to write off the cost of items of property and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is recognized in profit or loss. The estimated useful lives of property and equipment for current and comparative periods are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Computer equipment: 3 Furniture and fixtures: 5 10 Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted, if appropriate. J. Financial instruments Recognition and initial measurement Financial assets and financial liabilities are recognized on the Company’s consolidated statements of financial position when Real becomes party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Classification and subsequent measurement Financial assets – Policy Financial Assets: Financial assets are comprised of investments in equity and debt securities, trade and other receivables, cash and cash equivalents, restricted cash, and other financial assets. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 Initial recognition: All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset. Subsequent measurement: Financial assets measured at amortized cost: Financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost using effective interest rate (EIR) method. The EIR amortization is recognized as finance income in the Statement of Income. The Company while applying above criteria has classified the following financial assets at amortized cost - Trade receivables - Other financial assets. Financial assets at fair value through other comprehensive income (FVTOCI): Financial assets that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are subsequently measured at FVTOCI. Fair value movements in financial assets at FVTOCI are recognized in other comprehensive income. A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as Financial assets at fair value through profit or loss (FVTPL): ‒ it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and ‒ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets – Business model assessment The Company assesses the objective of the business model in which a financial asset is held at a portfolio level, because this best reflects the way the business is managed, and information is provided to management. The information considered includes: ‒ the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows; ‒ how the performance of the portfolio is evaluated and reported to the Company’s management; THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 ‒ the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; ‒ how managers of the business are compensated – e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and ‒ the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and the expectations of future sales activity. Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales, consistent with the Company’s continuing recognition of the assets. Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL. Financial assets – Subsequent measurement and gains and losses Financial assets at amortized cost These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. Debt investments at FVOCI These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. Derecognition Financial assets The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Financial liabilities The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows or the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss. Offsetting Financial assets and financial liabilities are offset and the net amount presented on the consolidated statements of financial position, only when the Company has a legally enforceable right to offset the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 K. Share capital i. Share Premium Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. Income tax relating to transactions costs of an equity transaction are accounted for in accordance with IAS 12. ii. Non – controlling interests Non-controlling interests represents the portion of net income and net assets which the Company does not own, either directly or indirectly. It is presented as “Attributable to non-controlling interests” separately in the Consolidated Statements of Loss, and separately from shareholders’ equity in the Consolidated Statements of Financial Position. L. Cash and Cash Equivalents In the statement of financial position, cash and bank balances comprise cash (i.e. cash on hand and demand deposits) and cash equivalents. Cash equivalents are short-term (generally with original maturity of three months or less), highly liquid investments that are readily convertible to a known amount of cash and which are subject to an insignificant risk of changes in value. Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. Bank balances for which use by the Company is subject to third party contractual restrictions are included in Restricted cash in the statement of financial position. Restricted cash consists of cash held in escrow by the Company’s brokers and agents on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Once the cash is transferred from escrow, the Company reduces the respective customers’ deposit liability. M. Goodwill Goodwill is the excess of the consideration transferred over the net identifiable assets acquired and liabilities assumed in a business combination. Goodwill is tested annually for impairment, or more regularly if certain indicators are present. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash generating units (CGU) that are expected to benefit from the synergies of the combination and represent the lowest level at which the goodwill is monitored for internal management purposes. The recoverable amount is the higher of the fair value less cost to sell and the value in use; where the value in use is the present value of the future cash flows. Goodwill is evaluated for impairment by comparing the recoverable amount of the Company’s operating segments to the carrying amount of the operating segments to which the goodwill relates. If the recoverable amount is less than the carrying amount an impairment charge is determined. We review goodwill for impairment on an annual basis in the fiscal fourth quarter or on an interim basis if an event occurs or circumstances change that indicate goodwill may be impaired. For the year ended December 31, 2023 and 2022, we performed an assessment of goodwill related to our previous business acquisition which resulted in an impairment charge for the year ended December 31, 2023. (See Note 4 N. Intangible Assets The Company’s intangible assets are finite lived and consist primarily of customer relationships. The Company evaluates its intangible assets for recoverability and potential impairment, or as events or changes in circumstances indicate the carrying value may be impaired. O. Impairment Assets that are subject to depreciation or amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognized in the consolidated statement of loss and other comprehensive loss consistent with the function of the assets, for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows. Prior impairments of non-financial assets (other than goodwill) are reviewed for possible reversal each reporting period. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 P. Provisions Provisions are recognized when present (legal or constructive) obligations as a result of a past event will lead to a probable outflow of economic resources and amounts can be estimated reliably. Provisions are measured at management’s best estimate of the expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. The Company performs evaluations to identify onerous contracts and, where applicable, records provisions for such contracts. All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. In those cases where the possible outflow of economic resources as a result of present obligations is considered remote, no liability is recognized. Q. Leases At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements (i.e. changes in lease term) of the lease liability. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. As of December 31, 2023, the Company is not engaged in long term operational or capital lease arrangements for which right of use asset and lease liability were recognized. R. Business combinations Business combinations are accounted for under the purchase method. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 ‘Business Combinations’, are recognized at their fair value at the acquisition date, except certain assets and liabilities required to be measured as per the applicable standards. Goodwill is recognized when the fair value of purchase consideration and non-controlling interests exceeds the fair value of identifiable net assets acquired on the acquisition date. Goodwill arising on acquisitions is reviewed for impairment annually. Where the fair values of the identifiable assets and liabilities exceed the cost of acquisition, the Company assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the surplus is credited to the consolidated statements of profit or loss in the period of acquisition. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 Where it is not possible to complete the determination of fair values by the date on which the first post-acquisition financial statements are approved, a provisional assessment of fair value is made and any adjustments required to those provisional fair values are finalized within twelve months of the acquisition date. Those provisional amounts are adjusted through goodwill during the measurement period, or additional assets or liabilities are recognized to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. These adjustments are called measurement period adjustments. The measurement period does not exceed twelve months from the acquisition date. Any non-controlling interest in an acquiree is measured at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets. This accounting choice is made on a transaction-by-transaction basis. Acquisition expenses are charged to consolidated statements of profit or loss. If the Company acquires a group of assets in a company that does not constitute a business in accordance with IFRS 3, the cost of the acquired group of assets is allocated to the individual identifiable assets acquired based on their relative fair value. S. Revenue Share The Company has a revenue sharing plan where its agents and brokers can receive additional commission income from real estate transactions consummated by agents and brokers they have attracted to the Company. Agents and brokers are eligible for revenue share based on the number of qualifying active agents they have attracted to the Company. Revenue sharing payments are included as part of Marketing Expenses in the consolidated statements of loss and other comprehensive loss. T. Warrants Accounting Warrants are a financial instrument that allow the holder to purchase stock of the issuer at a specified price during the warrant term. The Company classifies a warrant to purchase shares of its common stock as a liability on its consolidated statements of financial position as this warrant is a free-standing financial instrument that may require the Company to transfer consideration upon exercise. Each warrant is initially recorded at fair value on date of grant using the Black-Scholes model and net of issuance costs, and it is subsequently re-measured to fair value at each subsequent balance sheet date. Changes in fair value of the warrant are recognized as a component of other income (expense), net in the consolidated statement of operations and comprehensive loss. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the warrant. The warrant holder have the ability to exercise 184,227 1.36 U. Treasury Share Company shares held by the Company are recognized at cost of purchase and presented as a deduction from equity. Any gain or loss arising from a purchase, sale, issue or cancellation of treasury shares is recognized directly in equity. During the year ended December 31, 2023, the Company purchased 2 THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 V. Accounting policy development New and amended IFRS Accounting Standards that are effective for the current year Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements – Disclosure of Accounting Policies In February 2021, the International Accounting Standards Board issued narrow-scope amendments to IAS 1, Presentation of Financial Statements, IFRS Practice Statement 2, Making Materiality Judgements and IAS 8, Accounting Polices, Changes in Accounting Estimates and Errors. The amendments are effective for annual periods beginning on or after January 1, 2023, although earlier application is permitted. The amendments will require the disclosure of material accounting policy information rather than disclosing significant accounting policies and clarifies how to distinguish changes in accounting policies from chan |
CRITICAL ACCOUNTING JUDGEMENTS
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY | 3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In preparing these consolidated financial statements, management has made judgments estimates and assumptions that affect the application of the Company’s accounting policies which are described in Note 2 Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively. Information about assumptions and estimation uncertainties that have significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the following notes: – Deferred taxes Deferred tax assets are recognized only if management assesses that these tax assets can be offset against positive taxable income within a foreseeable future. This judgment is made by management on an ongoing basis and is based on budgets and business plans for the coming years. These budgets and business plans are reviewed and approved by the Board of Directors. Since inception, the Company has reported losses, and consequently, the Company has unused tax losses. The deferred tax assets are currently not deemed to meet the criteria for recognition as management is not able to provide any convincing positive evidence that deferred tax assets should be recognized. Therefore, management has concluded that deferred tax assets should not be recognized on December 31, 2023. – Goodwill Goodwill is assessed annually for impairment, or more frequently if there are indicators of impairment, by comparing the carrying value of the CGU to which these assets are allocated to their recoverable amounts. The company principally uses discounted cash flows to estimate the recoverable amount of a CGU to which goodwill has been allocated, and market approaches inclusive of a control premium are used when applicable. Significant judgments and assumptions are required to determine the recoverable amount of a CGU, including forecasted cash flows, discount rates, long term growth rates. The recoverable amount is subject to sensitivity analysis given the uncertainty in preparing forecasts. Details of goodwill including the results of annual impairment tests, are presented in Note 14 – Stock options In estimating the fair value of stock options granted to employees we use the Black-Scholes model which requires management to make significant assumptions including the expected life of the stock options, volatility and risk-free interest rate. The assumptions used to estimate the fair value of the stock options are disclosed in Note 10 THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
EXPETITLE ACQUISITION
EXPETITLE ACQUISITION | 12 Months Ended |
Dec. 31, 2023 | |
Expetitle Inc [Member] | |
IfrsStatementLineItems [Line Items] | |
EXPETITLE ACQUISITION | 4. EXPETITLE ACQUISITION On January 20, 2022, the Company completed the acquisition of 100% Expetitle Expetitle Transaction As part of the Expetitle Transaction, the Company also acquired 51% ownership of five subsidiaries of Expetitle 21 100% 7.4 600 200 800 As part of the Expetitle Transaction, Real granted an aggregate of 700 Options 1.1 4.8 4.3 451 3 3.60 168 We have completed the valuation of the acquired assets and assumed liabilities and have assigned $ 3.4 8.4 The following table summarizes the recognized amounts of assets acquired and liabilities assumed, total consideration, and cash flow related to the Expetitle Transaction (in thousands): SCHEDULE OF FAIR VALUES OF THE ACQUIRED ASSETS AND ASSUMED LIABILITIES Balance at Recognized amounts of assets acquired and liabilities assumed Cash 80 Other Current Assets 42 In Trust Cash 960 Goodwill 8,393 Intangible Assets 3,364 Accounts Payables and Accrued Liabilities (103 ) Held in Trust Funds (960 ) Other Payables (19 ) Net Assets Acquired 11,757 Cash Flow Common shares issued Total Consideration (11,757 ) Acquired Cash 80 Equity-settled share-based payment 4,325 Cash from Investing Activities (7,352 ) The Company conducted an impairment test on its acquired goodwill during the fiscal year ended December 31, 2023. The test was performed in accordance with the requirements of IAS 36, Impairment of Assets. As a result of the impairment test, it was determined that the carrying amount of goodwill related to the Expetitle acquisition exceeded its recoverable amount. Consequently, the Company recognized a goodwill impairment loss of $ 723 THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
LEMONBREW LENDING ACQUISITION
LEMONBREW LENDING ACQUISITION | 12 Months Ended |
Dec. 31, 2023 | |
Lemon Brew Lending Corp [Member] | |
IfrsStatementLineItems [Line Items] | |
LEMONBREW LENDING ACQUISITION | 5. LEMONBREW LENDING ACQUISITION On December 9, 2022, pursuant to the terms of a share purchase agreement dated September 23, 2022 between the Company, LemonBrew Lending Corp. (“ LemonBrew Lending ”) and LemonBrew Technologies Corp. (“ ”), the Company acquired 100% 1.25 ”). The purchase price was satisfied by (i) cash in the amount of $ 800 351,837 ”) at a deemed issued price of $ 1.279 450,000 In connection with the closing of the LemonBrew Transaction, the Company entered into agreements with management and key employees of LemonBrew Lending (the “ LemonBrew Key Employee Agreements ”). The LemonBrew Key Employment Agreements provide for performance-based milestone payments of $ 2.5 2 500 ● LemonBrew achieving at least $500 thousand in EBITDA for the first 12-month period following closing, $1 million in EBITDA for the second 12-month period following closing, and $2 million in EBITDA for the third 12-month period following closing; and ● Certain employees remaining in their roles to be established with Real during the transaction These performance-based payments are considered separate from the aggregate purchase price. Management believes it is a highly unlikely that the performance-based milestones will be achieved and has not recognized any expenses related to the performance-based milestone payment. The Company has determined that the LemonBrew Transaction meets the definition of business combinations within the scope of IFRS 3, Business Combination. The Company has completed the valuation of the acquired assets and assumed liabilities and have assigned $ 529 721 The following table summarizes the recognized amounts of assets acquired and liabilities assumed, total consideration, and cash flow related to the LemonBrew Transaction (in thousands) following the completion of the purchase price allocation: SCHEDULE OF FAIR VALUES OF THE ACQUIRED ASSETS AND ASSUMED LIABILITIES Balance at Recognized amounts of assets acquired Intangible Assets 529 Goodwill 721 Net Assets Acquired 1,250 Consideration Cash 800 Common shares issued 450 Total Consideration 1,250 Cash Flow Total Consideration (1,250 ) Equity-settled share-based payment 450 Cash From Investing Activities (800 ) THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
REVENUE | 6. REVENUE In the following table, revenue (in thousands) from contracts with customers is disaggregated by major service lines. SCHEDULE OF REVENUE STREAMS AND DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 Main revenue streams Commissions 684,873 379,868 Title 2,990 1,869 Mortgage Income 1,295 19 Total Revenue 689,158 381,756 |
EXPENSES BY NATURE
EXPENSES BY NATURE | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
EXPENSES BY NATURE | 7. EXPENSES BY NATURE In the following table, cost of sales represents real estate commissions paid to the Company’s agents, as well as to outside brokerages in Canada, and Title Fee Expenses (in thousands). SCHEDULE OF ATTRIBUTION OF EXPENSES BY NATURE TO THEIR FUNCTION December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 Commissions and other agent-related costs 626,285 349,806 Operating Expenses General and Administrative Expenses 42,913 24,155 Salaries and Benefits 18,940 11,733 Stock Based Compensation 8,607 2,778 Administrative Expenses 3,244 1,803 Professional Fees 8,425 5,893 Depreciation Expense 1,128 333 Other General and Administrative Expenses 2,569 1,615 Marketing Expenses 38,611 22,674 Salaries and Benefits 767 478 Stock Based Compensation for Employees 14 1 Stock Based Compensation for Agents 7,780 5,519 Revenue Share 27,905 14,975 Other Marketing and Advertising Cost 2,145 1,701 Research and Development Expenses 7,359 4,867 Salaries and Benefits 3,749 2,012 Stock Based Compensation 440 212 Other Research and Development 3,170 2,643 Total Cost of Sales and Operating Expenses 715,168 401,502 THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 Finance Expenses The following table provides a detailed breakdown of Finance costs (in thousands) as reported in the consolidated Statement of Income (Loss): SCHEDULE OF FINANCE COST Description December 31, 2023 December 31, 2022 For the Year Ended Description December 31, 2023 December 31, 2022 Unrealized Losses (Gains) 27 (397 ) Realized Losses (Gains) (3 ) 24 Bank Fees 528 400 Finance Costs 68 540 Remeasurement of contingent consideration - 600 Total Finance Expenses 619 1,167 |
OPERATING SEGMENTS DISCLOSURES
OPERATING SEGMENTS DISCLOSURES | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
OPERATING SEGMENTS DISCLOSURES | 8. OPERATING SEGMENTS DISCLOSURES The businesses of the Company is divided operationally into three identified operating segments: North American Brokerage, Real Title and One Real Mortgage. North American Brokerage generates revenue by processing real estate transactions which entitles the Company to commissions. Real Title generates revenue by offering title insurance and closing services for residential and/or commercial transactions. One Real Mortgage derives revenue from premiums associated with facilitating mortgage transactions between borrowers and lenders. The Company has determined that it operates as a single reporting segment - North American Brokerage which comprises of more than 90% of Group’s total revenue and net loss. The other two segments Real Title and One Real Mortgage are not considered as reporting segments as their revenue and net loss do not meet quantitative threshold set for reporting segments. These two segments are disclosed in an ‘other segments’ category below. The presentation in this note for prior periods have been restated based on the current segment reporting. Segment performance is evaluated based on income (loss) from operations and is measured consistently with income or loss in the consolidated financial statements. The following table present significant information about the Company’s reportable operating segments as reported to the Company’s CODM: SCHEDULE OF OPERATING SEGMENTS North American Brokerage Other Segments Total For the Year Ended December 31, 2023 North American Brokerage Other Segments Total Revenues 684,873 4,285 689,158 Commissions and other agent-related costs 625,016 1,269 626,285 Gross Profit 59,857 3,016 62,873 General and administrative expenses 35,653 7,260 42,913 Marketing expenses 38,458 153 38,611 Research and development expenses 7,284 75 7,359 Operating Loss (21,538 ) (4,472 ) (26,010 ) Other income (expenses), net 136 (723 ) (587 ) Listing expenses - - - Finance expenses, net (614 ) (5 ) (619 ) Net Loss (22,016 ) (5,200 ) (27,216 ) THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 North American Brokerage Other Segments Total For the Year Ended December 31, 2022 North American Brokerage Other Segments Total Revenues 379,868 1,888 381,756 Commissions and other agent-related costs 349,464 342 349,806 Gross Profit 30,404 1,546 31,950 General and administrative expenses 21,564 2,591 24,155 Marketing expenses 22,590 84 22,674 Research and development expenses 4,621 246 4,867 Operating Loss (18,370 ) (1,376 ) (19,746 ) Other income (expenses), net 729 - 729 Listing expenses (151 ) - (151 ) Finance expenses, net (1,167 ) - (1,167 ) Net Loss (18,959 ) (1,376 ) (20,335 ) Segment revenue reported above represents revenue generated from external customers. There were no intersegment sales in the current and in the prior year. The assets and liabilities of each segment are not reported to the CODM on a regular basis therefore they are not disclosed in these consolidated financial statements. The amount of revenue from external customers, by geography, is shown in the table below: SCHEDULE OF REVENUE GEOGRAPHY December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 United States 573,658 320,181 Canada 115,500 61,575 Total revenue by region 689,158 381,756 THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
BASIC AND DILUTED LOSS PER SHAR
BASIC AND DILUTED LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
BASIC AND DILUTED LOSS PER SHARE | 9. BASIC AND DILUTED LOSS PER SHARE Basic loss per share is computed by dividing the loss for the period by the weighted average number of Common Shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) less any preferred dividends for the period by the weighted average number of Common Shares outstanding plus, any potentially dilutive Common Shares outstanding during the period. The Company does not pay dividends or have participating shares outstanding. The following table outlines the number of Common Shares (in thousands) and basic and diluted loss per share. SCHEDULE OF DETAILED INFORMATION ABOUT LOSS PER SHARE December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 Issued Common Shares, Balance at the beginning of the year 173,993 170,483 Warrant Exercises - 8,526 Treasury Return - (1,049 ) Purchase of Shares (974 ) - Release of Shares 4,267 - Issuance of Shares 379 21 Exercise of Options 462 220 Weighted-average numbers of Common Shares 178,127 178,201 Loss per share Basic and diluted loss per share (0.15 ) (0.12 ) The following potential ordinary shares are anti-dilutive and are therefore excluded from the weighted average number of ordinary shares for the purpose of diluted earnings per share. SCHEDULE OF Anti -Dilutive Weighted AVERAGE LOSS PER SHARE December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 Options 21,943 21,746 RSU 25,588 16,908 Total 47,531 38,654 |
SHARE-BASED PAYMENT ARRANGEMENT
SHARE-BASED PAYMENT ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SHARE-BASED PAYMENT ARRANGEMENTS | 10. SHARE-BASED PAYMENT ARRANGEMENTS A. Description of share-based payment arrangements Stock option plan (equity-settled) On January 20, 2016, the Company established a stock option plan (the “ Stock Option Plan On February 26, 2022, the Company established an omnibus incentive plan providing for up to 20% 35.6 Omnibus Incentive Plan THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 In connection with the graduation to the TSX, the Company amended its Omnibus Incentive Plan (the “ A&R Plan 15% 70,000,000 The following table depicts the number of Options granted apart from the Company’s various acquisitions (in thousands): SCHEDULE OF TERMS AND CONDITIONS OF SHARE-BASED PAYMENT ARRANGEMENT Grant Date Number of Options Vesting Conditions Contractual Life Balance January 1, 2022 22,287 On March, 2022 240 3 years quarterly vest 10 On May, 2022 320 3 years quarterly vest 10 On August, 2022 4,000 25% on first anniversary, then quarterly vesting 10 On August, 2022 145 3 years quarterly vest 10 On November, 2022 55 3 years quarterly vest 10 On December, 2022 10 3 years quarterly vest 10 Balance December 31, 2022 27,057 Balance January 1, 2023 27,057 On March, 2023 1,500 16.7% on first anniversary, then quarterly vesting 10 On March, 2023 15 3 years quarterly vest 10 On June, 2023 65 33.3% on first anniversary, then quarterly vesting 10 On August, 2023 85 3 years quarterly vest 10 On November, 2023 10 33.3% on first anniversary, then quarterly vesting 10 Balance December 31, 2023 28,732 B. Measurement of fair value The fair value of the Options has been measured using the Black-Scholes formula which was also used to determine the Company’s share value. Service and non-market performance conditions attached to the arrangements were not considered in measuring fair value. The inputs used in the measurement of the fair value at the grant and measurement date were as follows: SCHEDULE OF INDIRECT MEASUREMENT OF FAIR VALUE OF SHARES GRANTED DURING PERIOD December 31, 2023 December 31, 2022 Share price $ 1.25 1.67 $ 1.35 2.45 Expected volatility (weighted-average) 95.0% 108.0% 108.0 % Expected life (weighted-average) 10 10 Expected dividends - % - % Risk-free interest rate (based on US government bonds) 3.62 3.95% 1.95 2.89% Expected volatility has been based on an evaluation of historical volatility of the company’s share price. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 C. Reconciliation of outstanding stock-options The following table outlines the number of Options (in thousands) and weighted-average exercise price: SCHEDULE OF NUMBER AND WEIGHTED AVERAGE EXERCISE PRICES OF SHARE OPTIONS December 31, 2023 December 31, 2022 Number of Options Weighted-Average Exercise Price Number of Options Weighted-Average Exercise Price Outstanding at beginning of year 21,746 $ 0.87 20,815 $ 0.71 Granted 1,675 1.28 4,770 1.61 Forfeited/ Expired (312 ) 1.41 (2,450 ) 2.35 Exercised (1,166 ) 0.36 (1,389 ) 0.23 Outstanding at end of year 21,943 $ 0.92 21,746 $ 0.87 Exercisable at end of year 15,566 0.72 11,046 0.55 The Options outstanding as of December 31, 2023 had a weighted average exercise price of $ 0.92 0.87 8.8 8.8 D. Restricted share unit plan Restricted share unit plan Under the Company’s agent performance grant program, the Company issues RSUs to agents based on an agent meeting certain performance metrics, and successfully attracting other performing agents to the Company. Each RSU, which have a vesting term of up to 3 years and subject to forfeiture in certain circumstances, entitles the holder to one Common Share. 5.5 Under the Company’s agent stock purchase program, agents purchase RSUs, which vest after a year, using a percentage of the agent’s commission that is withheld by the Company. Each RSU entitles the holder to one Common Share. The RSUs are expensed in the period in which they are issued with a corresponding increase in equity. Each agent pays the Company 15% of commissions until the commission paid to the Company totals that agent’s “cap” amount (the “ Cap the Company issues additional RSUs (“ Bonus RSUs Stock compensation awards granted to full time employees (“ FTEs THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 The following table illustrates the Company’s stock activity (in thousands of units) for the restricted share units under its equity plan. Once fully vested, all awards are settled in stock SCHEDULE OF STOCK ACTIVITY FOR RESTRICTED SHARE UNIT PLAN Restricted Share Units Balance at, December 31, 2021 3,965 Granted 16,053 Vested and Issued (2,504 ) Forfeited (606 ) Balance at, December 31, 2022 16,908 Granted 23,400 Vested and Issued (10,631 ) Forfeited (4,089 ) Balance at, December 31, 2023 25,588 Stock Based Compensation Expense The following table provides a detailed breakdown of the stock-based compensation expense (in thousands) as reported in the Consolidated Statement of Loss and Comprehensive Loss. SCHEDULE OF OF EFFECT OF SHARE-BASED PAYMENTS ON ENTITY'S PROFIT OR LOSS Options Expense RSU Expense Total Options Expense RSU Expense Total For the Year Ended December 31, 2023 December 31, 2022 Options Expense RSU Expense Total Options Expense RSU Expense Total COGS – - 21,562 21,562 - 8,008 8,008 Marketing Expenses – 2,209 5,571 7,780 1,215 4,304 5,519 Marketing Expenses – 7 7 14 - 1 1 Research and Development – 142 298 440 111 101 212 General and Administrative – 5,914 2,693 8,607 1,702 1,076 2,778 Total Stock Based Compensation 8,272 30,131 38,403 3,028 13,490 16,518 On May 20, 2021, the Company began transacting under the NCIB to purchase up to 7.2 5% 143 8.9 5% 178.3 9 5% 180 The Company appointed the Trustee for the purposes of arranging for the acquisition of the Common Shares and to hold the Common Shares in trust for the purposes of satisfying RSU payments as well as deal with other administration matters. Through the Trustee, RBC Capital Markets was engaged to undertake purchases under the NCIB for the purposes of the RSU Plan, the Option Plan, the Omnibus Incentive Plan, and the A&R Plan. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
INVESTMENTS IN AVAILABLE FOR SA
INVESTMENTS IN AVAILABLE FOR SALE SECURITIES AT FAIR VALUE | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
INVESTMENTS IN AVAILABLE FOR SALE SECURITIES AT FAIR VALUE | 11. INVESTMENTS IN AVAILABLE FOR SALE SECURITIES AT FAIR VALUE The following table provides a detailed breakdown of short-term investments (in thousands) as reported in the Consolidated Statements of Financial Positions: SCHEDULE OF DETAILED INFORMATION ABOUT INVESTMENT IN AVAILABLE FOR SALE SECURITIES AT FAIR VALUE Description Estimated Fair Value December 31, 2022 Deposit / (Withdraw) Dividends, Interest & Income Gross Unrealized Gains / (Losses) Estimated Fair Value December 31, 2023 Cash Investments - 6,368 163 - 6,531 Fixed Income 6,997 277 - 323 7,597 Fixed Income – 840 (847 ) - 7 - Investment Certificate 55 39 - - 94 Total 7,892 5,837 163 330 14,222 Investment securities are recorded at fair value. The Company’s investment securities portfolio consists primarily of cash investments, debt securities issued by U.S. government agencies, local municipalities and certain corporate entities. The products in the Company’s investment portfolio have maturity dates ranging from less than one year to over 20 The fair value of investment securities is impacted by interest rates, credit spreads, market volatility, and liquidity conditions. Net unrealized gains and losses in the portfolio are included in Other Comprehensive Income (Loss). |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
PROPERTY AND EQUIPMENT | 12. PROPERTY AND EQUIPMENT Reconciliation of Carrying Amounts (in thousands) SCHEDULE OF DETAILED INFORMATION ABOUT PROPERTY, PLANT AND EQUIPMENT Computer Equipment Software Furniture and Equipment Total Cost Balance at December 31, 2021 205 - 69 274 Additions 321 969 27 1,317 Balance at December 31, 2022 526 969 96 1,591 Disposals - - (86 ) (86 ) Additions 138 449 - 587 Balance at December 31, 2023 664 1,418 10 2,092 Accumulated Depreciation Balance at December 31, 2021 39 - 65 104 Disposals Depreciation 79 57 1 137 Balance at December 31, 2022 118 57 66 241 Beginning balance 118 57 66 241 Disposals - - (65 ) (65 ) Depreciation 125 191 - 316 Balance at December 31, 2023 243 248 1 492 Ending balance 243 248 1 492 Carrying Amounts Balance at December 31, 2022 408 912 30 1,350 Ending balance 408 912 30 1,350 Balance at December 31, 2023 421 1,170 9 1,600 Ending balance 421 1,170 9 1,600 THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
INTANGIBLE ASSETS | 13. INTANGIBLE ASSETS The Company’s intangible assets are finite lived and consist primarily of relationships which is amortized on a straight-line basis over its useful life of 5 years Reconciliation of Carrying Amounts (in thousands) SCHEDULE OF DETAILED INFORMATION ABOUT INTANGIBLE ASSETS Intangible Assets Cost Balance at December 31, 2021 563 Additions 3,370 Purchase Price Allocation Adjustment - Depreciation - Balance at December 31, 2022 3,933 Purchase Price Allocation Adjustment 530 Balance at December 31, 2023 4,463 Accumulated Depreciation Balance at December 31, 2021 113 Depreciation 112 Balance at December 31, 2022 225 Beginning balance 225 Depreciation 796 Balance at December 31, 2023 1,021 Ending balance 1,021 Carrying Amounts Balance at December 31, 2022 3,708 Ending balance 3,708 Balance at December 31, 2023 3,442 Ending balance 3,442 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
GOODWILL | 14. GOODWILL We record goodwill associated with acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and intangible assets acquired. We review goodwill for impairment on an annual basis in the fiscal fourth quarter or on an interim basis if an event occurs or circumstances change that indicate goodwill may be impaired. For the year ended December 31, 2023, as part of the annual review, we performed an assessment of goodwill which resulted in an impairment charge for the goodwill allocated to Expetitle CGU, which is presented as part of Other Segment (see Note 8 24.5% SCHEDULE OF DETAILED INFORMATION ABOUT ACQUISITIONS OF BUSINESS Realty Crunch Expetitle LemonBrew Total Cost Balance at December 31, 2021 602 - - 602 Additions - 8,393 1,267 9,660 Balance at December 31, 2022 602 8,393 1,267 10,262 Impairment - (723 ) - (723 ) Adjustments - - (546 ) (546 ) Balance at December 31, 2023 602 7,670 721 8,993 Ending balance 602 7,670 721 8,993 Carrying Amounts Balance at December 31, 2022 602 8,393 1,267 10,262 Balance at December 31, 2022 602 8,393 1,267 10,262 Balance at December 31, 2023 602 7,670 721 8,993 Balance at December 31, 2023 602 7,670 721 8,993 THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
CAPITAL AND RESERVES
CAPITAL AND RESERVES | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
CAPITAL AND RESERVES | 15. CAPITAL AND RESERVES Share capital and share premium All Common Shares rank equally with regards to the Company’s residual assets. The following table is presented in thousands: SCHEDULE OF DETAILED INFORMATION ABOUT RESERVES WITHIN EQUITY December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Authorized Issued and Paid December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Ordinary shares no-par value unlimited unlimited 183,605 179,922 During the year ended December 31, 2023, the company issued 1.2 2.5 Total number of shares held in treasury is 175 5.9 |
LIQUIDITY AND CAPITAL RESOURCES
LIQUIDITY AND CAPITAL RESOURCES | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
LIQUIDITY AND CAPITAL RESOURCES | 16. LIQUIDITY AND CAPITAL RESOURCES Real defines capital as its equity. It is comprised of share premium, stock-based compensation reserves, deficit, other reserves, treasury stock, and no-controlling interests. The Company’s capital management framework is designed to maintain a level of capital that funds the operations and business strategies and builds long-term shareholder value. The Company’s objective is to manage its capital structure in such a way as to diversify its funding sources, while minimizing its funding costs and risks. The Company sets the amount of capital in proportion to the risk and adjusts by considering changes in economic conditions and the characteristic risk of underlying assets. To maintain or adjust the capital structure, the Company may repurchase shares, return capital to shareholders, issue new shares or sell assets to reduce debt. Real’s objective is met by retaining adequate liquidity to provide the possibility that cash flows from its assets will not be sufficient to meet operational, investing and financing requirements. There have been no changes to the Company’s capital management policies during the years ended December 31, 2023, and December 31, 2022. The following table presents the Company’s liquidity (in thousands): SCHEDULE OF DETAILED INFORMATION ABOUT LIQUIDITY December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 Cash 14,707 10,846 Other Receivables 63 74 Investments in Financial Assets 14,222 7,892 Total 28,992 18,812 THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
LEASE LIABILITY AND RIGHT OF US
LEASE LIABILITY AND RIGHT OF USE ASSET | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
LEASE LIABILITY AND RIGHT OF USE ASSET | 17. LEASE LIABILITY AND RIGHT OF USE ASSET The Company leased a corporate office in New York, NY under a lease agreement dated December 1, 2017, which expired on June 30, 2023. A summary of the changes in the right-of-use asset (in thousands) for the years ended December 31, 2023, and December 31, 2022 is as follows: SCHEDULE OF DETAILED INFORMATION ABOUT RIGHT-OF-USE ASSETS Right-of-Use Asset Cost Balance at December 31, 2021 502 Additions 107 Acquired Depreciation Depreciation Depreciation (Adjustment) Balance at December 31, 2022 609 Additions (Adjustment) (69 ) Balance at December 31, 2023 540 Accumulated Depreciation - Balance at December 31, 2021 393 Acquired Depreciation 59 Depreciation 84 Balance at December 31, 2022 536 Depreciation (Adjustment) (12 ) Depreciation 16 Balance at December 31, 2023 540 Carrying Amounts Balance at December 31, 2022 73 Balance at December 31, 2023 - As of December 31, 2023, there is no lease liability remaining in respect to the corporate office in New York, NY. A summary of the changes in the lease liability (in thousands) during the years ended December 31, 2023 and December 31, 2022 is as follows: SCHEDULE OF DETAILED INFORMATION ABOUT CHANGES IN THE LEASE LIABILITY DURING THE YEARS December 31, 2023 December 31, 2022 Maturity analysis – contractual undiscounted cash flows Less than one year - 96 One year to five years - - More than five years - - Total undiscounted lease liabilities - 96 Lease liabilities included in the balance sheet - 96 Current - 96 Non-current - - THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
FINANCIAL INSTRUMENTS _ FAIR VA
FINANCIAL INSTRUMENTS – FAIR VALUE AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
FINANCIAL INSTRUMENTS – FAIR VALUE AND RISK MANAGEMENT | 18. FINANCIAL INSTRUMENTS – FAIR VALUE AND RISK MANAGEMENT Accounting classifications and fair value (in thousands) SCHEDULE OF CARRYING VALUES OF FINANCIAL INSTRUMENTS Financial Assets at Amortized Cost Other Financial Liabilities Total Level 1 Level 2 Total For the Year Ended December 31, 2023 Carrying Amount Fair Value Financial Assets at Amortized Cost Other Financial Liabilities Total Level 1 Level 2 Total Financial Assets Measured at Fair Value (FV) Investments in Financial Assets - - - 14,222 - 14,222 Total Financial Assets Measured at Fair Value (FV) - - - 14,222 - 14,222 Financial Liabilities Measured at Fair Value (FV) Warrants - - - - 269 269 Total Financial Liabilities Measured at Fair Value (FV) - - - - 269 269 Financial Assets Not Measured at Fair Value (FV) Cash and Cash Equivalents 14,707 - 14,707 - - - Restricted Cash 12,948 - 12,948 - - - Trade Receivables 6,441 - 6,441 - - - Other Receivables 63 - 63 - - - Total Financial Assets Not Measured at Fair Value (FV) 34,159 - 34,159 - - - Financial Liabilities Not Measured at Fair Value (FV) Accounts Payable - 571 571 - - - Accrued Liabilities - 13,374 13,374 - - - Customer Deposits - 12,948 12,948 - - - Other Payables - 302 302 - - - Total Financial Liabilities Not Measured at Fair Value (FV) - 27,195 27,195 - - - Financial Assets at Amortized Cost Other Financial Liabilities Total Level 1 Level 2 Total For the Year Ended December 31, 2022 Carrying Amount Fair Value Financial Assets at Amortized Cost Other Financial Liabilities Total Level 1 Level 2 Total Financial Assets Measured at Fair Value (FV) Investments in Financial Assets - - - 7,892 - 7,892 Total Financial Assets Measured at Fair Value (FV) - - - 7,892 - 7,892 Financial Liabilities Measured at Fair Value (FV) Warrants - - - - 242 242 Total Financial Liabilities Measured at Fair Value (FV) - - - - 242 242 Financial Assets Not Measured at Fair Value (FV) Cash and Cash Equivalents 10,846 - 10,846 - - - Restricted Cash 7,481 - 7,481 - - - Trade Receivables 1,547 - 1,547 - - - Other Receivables 74 - 74 - - - Total Financial Assets Not Measured at Fair Value (FV) 19,948 - 19,948 - - - Financial Liabilities Not Measured at Fair Value (FV) Accounts Payable - 474 474 - - - Accrued Liabilities - 11,866 11,866 - - - Customer Deposits - 7,481 7,481 - - - Other Payables - 1,188 1,188 - - - Total Financial Liabilities Not Measured at Fair Value (FV) - 21,009 21,009 - - - THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 A. Transfers between levels During the years ended December 31, 2023, and December 31, 2022, there have been no transfers between Level 1, Level 2 and Level 3. B. Financial risk management The Company has exposure to the following risks arising from financial instruments: ‒ credit risk (see (ii)); ‒ liquidity risk (see (iii)); ‒ market risk (see (iv)); and ‒ investment risk (see (v)). i. Risk management framework The Company’s activity exposes it to a variety of financial risks, including credit risk, liquidity risk, market risk and investment risk. These financial risks are managed by the Company under policies approved by the Board of Directors. The principal financial risks are actively managed by the Company’s finance department, within the policies and guidelines. On an ongoing basis, the finance department actively monitors the market conditions, with a view of minimizing exposure of the Company to changing market factors, while at the same time limiting the funding costs of the Company. The Company’s Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. ii. Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s receivables from customers. The receivables are processed through an intermediary trustee, as part of the structure of every deal, which ensures collection on the close of a successful transaction. In order to mitigate the residual risk, the Company contracts exclusively with reputable and credit-worthy partners. The carrying amount of financial assets represents the maximum credit exposure. Trade receivables The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers other factors may influence the credit risk of the customer base, including the default risk associated with the industry and the country in which the customers operate. The Company does not require collateral in respect to trade and other receivables. The Company does not have trade receivable and contract assets for which no loss allowance is recognized because of collateral. Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of delinquency to write-off. Roll rates are calculated separately for exposures in different Cash Generating Units based on the following common credit risk characteristics – geographic region, credit information about the customer and the type of home purchased. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 Loss rates are based on actual credit loss experience. These rates are multiplied by scalar factors to reflect differences between economic conditions during the period over which the historical data has been collected, compared to current conditions of the Company’s view of economic conditions over the expected lives of the receivables. As of December 31, 2023, the exposure to credit risk for trade receivables and contract asset (in thousands) by geographic region was as follows: SCHEDULE OF DETAILED INFORMATION ABOUT CREDIT RISK TRADE RECEIVABLES AND CONTRACT ASSET BY GEOGRAPHIC REGION December 31, 2023 December 31, 2022 US 4,607 1,105 Other Regions 1,834 442 Trade Receivables 6,441 1,547 iii. Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to maintaining liquidity is to ensure, as far as possible, that it will have sufficient cash and cash equivalents and other liquid assets to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. iv. Market risk Market risk is the risk that changes in market prices – e.g. foreign exchange rates, interest rates and equity prices – will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. Currency risk The Company is exposed to transactional foreign currency risk to the extent there is a mismatch between currencies in which purchases and receivables are denominated and the respective functional currencies of the Company. The currencies in which transactions are primarily denominated are US dollars, Israeli shekel and Canadian dollars. Sensitivity analysis A reasonably possible strengthening (weakening) of the U.S. dollar (USD), Israeli shekel (ILS), or Canadian Dollar (CAD) against all other currencies in which the Company operates as of December 31, 2023 and December 31, 2022 would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The following table is presented in thousands: SCHEDULE OF DETAILED INFORMATION ABOUT NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS Average Rate Period-end Spot Rate Strengthening Weakening Strengthening Weakening Balance at, December 31, 2023 CAD (-5% movement) 485 (485 ) 655 (655 ) ILS (-5% movement) 33 (33 ) 121 (121 ) Balance at, December 31, 2022 CAD (-5% movement) 355 (355 ) 456 (456 ) ILS (-5% movement) 2 (2 ) 6 (6 ) Foreign Currency Risk Management The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilizing forward foreign exchange contracts. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities (in thousands) at the reporting date are as follows: SCHEDULE OF DETAILED INFORMATION ABOUT FOREIGN CURRENCY RISK MANAGEMENT Liabilities Assets December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 CAD (13,463 ) (7,058 ) 4,949 3,474 ILS (178 ) (82 ) 7,494 7,724 Total Exposure (13,641 ) (7,140 ) 12,443 11,198 v. Investment risk The Company invested into a managed investment portfolio, exposing it to risk of losses based on market fluctuations. Securities are purchased on behalf of the Company and are actively managed through multiple investment accounts. Funds apportioned for investment are allocated accordingly to the investment guidelines set forth by Management. Investments are made in U.S. currency. The Company follows a conservative investment approach with limited risk for investment activities and has allocated the funds in Level 1 assets to reduce market risk exposure. Information about the Company’s investment activity is included in Note 11 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES The Company may have various other contractual obligations in the normal course of operations. The Company is not materially contingently liable with respect to litigation, claims and environmental matters. Any settlement of claims in excess of amounts recorded will be charged to profit or loss as and when such determination is made. In December 2023, the Company was named as a defendant in a putative class action lawsuit, captioned Umpa v. The National Association of Realtors, et al., which was filed in the United States District Court for the Western District of Missouri (“Class Action”). The Class Action alleges that certain real estate brokerages, including the Company, participated in practices resulting in inflated buyer broker commissions, in violation of federal antitrust laws. The Company will vigorously defend against the claims asserted in the Class Action, but is unable to predict the outcome of this action. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
RELATED PARTY TRANSACTIONS | 20. RELATED PARTY TRANSACTIONS Balances and transactions between the company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. The Company’s key management personnel are comprised of its Chief Executive Officer, Chief Financial Officer, President, Chief Technology Officer, and Chief Marketing Officer, and other members of the executive team. Executive officers participate in the A&R Plan (see Note 10.A SCHEDULE OF DETAILED INFORMATION ABOUT RELATED PARTY December 31, 2023 December 31, 2022 Year Ended December 31, 2023 December 31, 2022 Salaries and Benefits 3,465 2,435 Stock-Based Compensation 7,470 2,164 Compensation Expenses for Related Parties 10,934 4,599 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS On January 1, 2024, the Company updated the Bonus RSUs structure to matching (i) 10% of the commission withheld (the percentage was 15% previously) if an agent has not met the Cap and (ii) 20% of the commission withheld (the percentage was 30% previously) if an agent has met the Cap |
SUMMARY OF MATERIAL ACCOUNTIN_2
SUMMARY OF MATERIAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Basis of preparation | A. Basis of preparation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These consolidated financial statements were authorized for issuance by the Board of Directors on March 6, 2024. |
Basis of consolidation | B. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to December 31 of each year. Control is achieved when the Company: ● Has the power over the investee ● Is exposed, or has rights, to variable returns from its involvement with the investee ● Has the ability to use its power to affect its returns The Company reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in profit or loss from the date the Company gains control until the date when the Company ceases to control the subsidiary. Where necessary, adjustments are made to the financial statements of subsidiaries to ensure subsidiaries’ accounting policies are in line with Company’s accounting policies. All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between the members of the Company and its subsidiaries are eliminated on consolidation. |
Functional and presentation currency | C. Functional and presentation currency These consolidated financial statements are presented in U.S. dollars, which is the Company’s functional currency. All amounts have been rounded to the nearest thousands of dollars, unless otherwise noted. |
Foreign currency | D. Foreign currency Foreign currency transactions and balances Transactions in foreign currencies are initially recognized in the financial statements using exchange rates prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the relevant functional currency at the exchange rates prevailing at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. Foreign currency differences arising on translation are recognized in the income statement for determination of net profit or loss during the period. Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to the functional currency at exchange rates at the reporting date. The income and expenses of foreign operations and cash flows are translated using average exchange rates during the period. Any differences arising on such translation are recognized in other comprehensive income. Such differences are included in the foreign currency translation reserve “FCTR” within other components of equity. When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred to profit or loss. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
Operating segments | E. Operating segments The Company uses judgement in determining its operating segments by taking into consideration the Chief Operating Decision Maker’s (“CODM”) assessment of overall performance and decisions such as resource allocations and delegation of authority. The segment information disclosed in these consolidated Financial Statements reflects historical results consistent with the identifiable reportable segments of Real Brokerage Inc. and financial information that the Chief Operating Decision Maker (“CODM”) reviews to evaluate segmental performance and allocate resources among the segments. The CODM is the Company’s Chief Executive Officer. Detailed segment information is disclosed in Note 8 |
Revenue from contracts with customers | F . Revenue from contracts with customers The Company generates substantially all its revenue from commissions from the sale of real estate properties. Other sources of revenue relate to ancillary services. The Company is contractually obligated to provide services for the fulfillment of transfer of real estate between agents, buyers, and sellers. The Company satisfies its performance obligations through closing of a transaction and provides services between the agents and buyers and sellers as a principal. Accordingly, the Company recognizes revenues in the gross amount of consideration, to which it expects to be entitled to. Please see Note 6 Performance obligations and revenue recognition policies Revenue is measured based on the consideration specified in a contract with a customer. The Company recognizes revenue upon the satisfaction of its performance obligation when it transfers control over a good or service to a customer. The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and related revenue recognition policies. SCHEDULE OF PERFORMANCE OBLIGATIONS AND REVENUE RECOGNITION POLICIES Type of product or service Nature of timing of satisfaction of performance obligations including significant payment terms Revenue recognition policies Commissions from real estate contracts Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received Revenue is recognized at a point in time as the purchase agreement is closed and the sale is executed Title Fees (Escrow and Title Insurance) Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received Revenue is recognized at a point in time when the transaction is closed and paid Mortgage Broker Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received Revenue is recognized at a point in time when the loan has been funded |
Share-based compensation | G. Share-based compensation The Company’s real estate agents receive remuneration in the form of share-based compensation, whereby those agents are entitled to restricted share units. In addition, the Company grants its employees and members of the board of directors remuneration in the form of share-based compensation, whereby employees and the board of directors render services in consideration for equity instruments. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 Share-based payment arrangements The grant-date fair value excluding the effect of non-market equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. Restricted share unit plan Under the restricted share unit plans, eligible participants receive restricted share units (RSUs), which generally vest over a period of up to four years. The expense in relation to RSUs earned in recognition of service performance conditions is recognized at grant-date fair value during the applicable vesting period based on the best available estimate of the number of equity instruments expected to vest with a corresponding increase in equity. RSUs granted under the agent stock purchase plan are fully vested at grant date. The expense in relation to such RSUs is recognized at grant-date fair value with a corresponding increase in equity. Please see Note 10.D |
Income tax | H. Income tax Income tax expenses comprise of current and deferred tax. It is recognized in profit or loss, or items recognized directly in equity or in other comprehensive income. Current tax Current tax is comprised of expected payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using the tax rates enacted or substantively enacted at the reporting date. Current tax assets and liabilities are offset only if certain criteria are met. Deferred tax Deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for: ‒ Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and ‒ Temporary differences related to investments in subsidiaries to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future. Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognize a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for individual subsidiaries in the Company. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflects uncertainty related to income taxes, if any. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset only if certain criteria are met. |
Property and equipment | I. Property and equipment Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. If significant parts of an item of property and equipment have different useful lives, then they are accounted for as separate items (significant components) of property and equipment. Any gain or loss on disposal of an item of property and equipment is recognized in profit or loss. Depreciation Depreciation is calculated to write off the cost of items of property and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is recognized in profit or loss. The estimated useful lives of property and equipment for current and comparative periods are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Computer equipment: 3 Furniture and fixtures: 5 10 Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted, if appropriate. |
Financial instruments | J. Financial instruments Recognition and initial measurement Financial assets and financial liabilities are recognized on the Company’s consolidated statements of financial position when Real becomes party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Classification and subsequent measurement Financial assets – Policy Financial Assets: Financial assets are comprised of investments in equity and debt securities, trade and other receivables, cash and cash equivalents, restricted cash, and other financial assets. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 Initial recognition: All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset. Subsequent measurement: Financial assets measured at amortized cost: Financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost using effective interest rate (EIR) method. The EIR amortization is recognized as finance income in the Statement of Income. The Company while applying above criteria has classified the following financial assets at amortized cost - Trade receivables - Other financial assets. Financial assets at fair value through other comprehensive income (FVTOCI): Financial assets that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are subsequently measured at FVTOCI. Fair value movements in financial assets at FVTOCI are recognized in other comprehensive income. A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as Financial assets at fair value through profit or loss (FVTPL): ‒ it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and ‒ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets – Business model assessment The Company assesses the objective of the business model in which a financial asset is held at a portfolio level, because this best reflects the way the business is managed, and information is provided to management. The information considered includes: ‒ the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows; ‒ how the performance of the portfolio is evaluated and reported to the Company’s management; THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 ‒ the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; ‒ how managers of the business are compensated – e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and ‒ the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and the expectations of future sales activity. Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales, consistent with the Company’s continuing recognition of the assets. Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL. Financial assets – Subsequent measurement and gains and losses Financial assets at amortized cost These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. Debt investments at FVOCI These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. Derecognition Financial assets The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Financial liabilities The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows or the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss. Offsetting Financial assets and financial liabilities are offset and the net amount presented on the consolidated statements of financial position, only when the Company has a legally enforceable right to offset the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
Share capital | K. Share capital i. Share Premium Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. Income tax relating to transactions costs of an equity transaction are accounted for in accordance with IAS 12. ii. Non – controlling interests Non-controlling interests represents the portion of net income and net assets which the Company does not own, either directly or indirectly. It is presented as “Attributable to non-controlling interests” separately in the Consolidated Statements of Loss, and separately from shareholders’ equity in the Consolidated Statements of Financial Position. |
Cash and Cash Equivalents | L. Cash and Cash Equivalents In the statement of financial position, cash and bank balances comprise cash (i.e. cash on hand and demand deposits) and cash equivalents. Cash equivalents are short-term (generally with original maturity of three months or less), highly liquid investments that are readily convertible to a known amount of cash and which are subject to an insignificant risk of changes in value. Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. Bank balances for which use by the Company is subject to third party contractual restrictions are included in Restricted cash in the statement of financial position. Restricted cash consists of cash held in escrow by the Company’s brokers and agents on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Once the cash is transferred from escrow, the Company reduces the respective customers’ deposit liability. |
Goodwill | M. Goodwill Goodwill is the excess of the consideration transferred over the net identifiable assets acquired and liabilities assumed in a business combination. Goodwill is tested annually for impairment, or more regularly if certain indicators are present. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash generating units (CGU) that are expected to benefit from the synergies of the combination and represent the lowest level at which the goodwill is monitored for internal management purposes. The recoverable amount is the higher of the fair value less cost to sell and the value in use; where the value in use is the present value of the future cash flows. Goodwill is evaluated for impairment by comparing the recoverable amount of the Company’s operating segments to the carrying amount of the operating segments to which the goodwill relates. If the recoverable amount is less than the carrying amount an impairment charge is determined. We review goodwill for impairment on an annual basis in the fiscal fourth quarter or on an interim basis if an event occurs or circumstances change that indicate goodwill may be impaired. For the year ended December 31, 2023 and 2022, we performed an assessment of goodwill related to our previous business acquisition which resulted in an impairment charge for the year ended December 31, 2023. (See Note 4 |
Intangible Assets | N. Intangible Assets The Company’s intangible assets are finite lived and consist primarily of customer relationships. The Company evaluates its intangible assets for recoverability and potential impairment, or as events or changes in circumstances indicate the carrying value may be impaired. |
Impairment | O. Impairment Assets that are subject to depreciation or amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognized in the consolidated statement of loss and other comprehensive loss consistent with the function of the assets, for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows. Prior impairments of non-financial assets (other than goodwill) are reviewed for possible reversal each reporting period. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
Provisions | P. Provisions Provisions are recognized when present (legal or constructive) obligations as a result of a past event will lead to a probable outflow of economic resources and amounts can be estimated reliably. Provisions are measured at management’s best estimate of the expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. The Company performs evaluations to identify onerous contracts and, where applicable, records provisions for such contracts. All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. In those cases where the possible outflow of economic resources as a result of present obligations is considered remote, no liability is recognized. |
Leases | Q. Leases At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements (i.e. changes in lease term) of the lease liability. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. As of December 31, 2023, the Company is not engaged in long term operational or capital lease arrangements for which right of use asset and lease liability were recognized. |
Business combinations | R. Business combinations Business combinations are accounted for under the purchase method. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 ‘Business Combinations’, are recognized at their fair value at the acquisition date, except certain assets and liabilities required to be measured as per the applicable standards. Goodwill is recognized when the fair value of purchase consideration and non-controlling interests exceeds the fair value of identifiable net assets acquired on the acquisition date. Goodwill arising on acquisitions is reviewed for impairment annually. Where the fair values of the identifiable assets and liabilities exceed the cost of acquisition, the Company assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the surplus is credited to the consolidated statements of profit or loss in the period of acquisition. THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 Where it is not possible to complete the determination of fair values by the date on which the first post-acquisition financial statements are approved, a provisional assessment of fair value is made and any adjustments required to those provisional fair values are finalized within twelve months of the acquisition date. Those provisional amounts are adjusted through goodwill during the measurement period, or additional assets or liabilities are recognized to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. These adjustments are called measurement period adjustments. The measurement period does not exceed twelve months from the acquisition date. Any non-controlling interest in an acquiree is measured at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets. This accounting choice is made on a transaction-by-transaction basis. Acquisition expenses are charged to consolidated statements of profit or loss. If the Company acquires a group of assets in a company that does not constitute a business in accordance with IFRS 3, the cost of the acquired group of assets is allocated to the individual identifiable assets acquired based on their relative fair value. |
Revenue Share | S. Revenue Share The Company has a revenue sharing plan where its agents and brokers can receive additional commission income from real estate transactions consummated by agents and brokers they have attracted to the Company. Agents and brokers are eligible for revenue share based on the number of qualifying active agents they have attracted to the Company. Revenue sharing payments are included as part of Marketing Expenses in the consolidated statements of loss and other comprehensive loss. |
Warrants Accounting | T. Warrants Accounting Warrants are a financial instrument that allow the holder to purchase stock of the issuer at a specified price during the warrant term. The Company classifies a warrant to purchase shares of its common stock as a liability on its consolidated statements of financial position as this warrant is a free-standing financial instrument that may require the Company to transfer consideration upon exercise. Each warrant is initially recorded at fair value on date of grant using the Black-Scholes model and net of issuance costs, and it is subsequently re-measured to fair value at each subsequent balance sheet date. Changes in fair value of the warrant are recognized as a component of other income (expense), net in the consolidated statement of operations and comprehensive loss. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the warrant. The warrant holder have the ability to exercise 184,227 1.36 |
Treasury Share | U. Treasury Share Company shares held by the Company are recognized at cost of purchase and presented as a deduction from equity. Any gain or loss arising from a purchase, sale, issue or cancellation of treasury shares is recognized directly in equity. During the year ended December 31, 2023, the Company purchased 2 THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 |
Accounting policy development | V. Accounting policy development New and amended IFRS Accounting Standards that are effective for the current year Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements – Disclosure of Accounting Policies In February 2021, the International Accounting Standards Board issued narrow-scope amendments to IAS 1, Presentation of Financial Statements, IFRS Practice Statement 2, Making Materiality Judgements and IAS 8, Accounting Polices, Changes in Accounting Estimates and Errors. The amendments are effective for annual periods beginning on or after January 1, 2023, although earlier application is permitted. The amendments will require the disclosure of material accounting policy information rather than disclosing significant accounting policies and clarifies how to distinguish changes in accounting policies from changes in accounting estimates. We have assessed the impacts of the amended standards, which have had no material effect on our financial disclosures by the application of the amendments. |
SUMMARY OF MATERIAL ACCOUNTIN_3
SUMMARY OF MATERIAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF PERFORMANCE OBLIGATIONS AND REVENUE RECOGNITION POLICIES | The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and related revenue recognition policies. SCHEDULE OF PERFORMANCE OBLIGATIONS AND REVENUE RECOGNITION POLICIES Type of product or service Nature of timing of satisfaction of performance obligations including significant payment terms Revenue recognition policies Commissions from real estate contracts Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received Revenue is recognized at a point in time as the purchase agreement is closed and the sale is executed Title Fees (Escrow and Title Insurance) Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received Revenue is recognized at a point in time when the transaction is closed and paid Mortgage Broker Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received Revenue is recognized at a point in time when the loan has been funded |
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT | SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Computer equipment: 3 Furniture and fixtures: 5 10 |
EXPETITLE ACQUISITION (Tables)
EXPETITLE ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Expetitle Inc [Member] | |
IfrsStatementLineItems [Line Items] | |
SCHEDULE OF FAIR VALUES OF THE ACQUIRED ASSETS AND ASSUMED LIABILITIES | The following table summarizes the recognized amounts of assets acquired and liabilities assumed, total consideration, and cash flow related to the Expetitle Transaction (in thousands): SCHEDULE OF FAIR VALUES OF THE ACQUIRED ASSETS AND ASSUMED LIABILITIES Balance at Recognized amounts of assets acquired and liabilities assumed Cash 80 Other Current Assets 42 In Trust Cash 960 Goodwill 8,393 Intangible Assets 3,364 Accounts Payables and Accrued Liabilities (103 ) Held in Trust Funds (960 ) Other Payables (19 ) Net Assets Acquired 11,757 Cash Flow Common shares issued Total Consideration (11,757 ) Acquired Cash 80 Equity-settled share-based payment 4,325 Cash from Investing Activities (7,352 ) |
LEMONBREW LENDING ACQUISITION (
LEMONBREW LENDING ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lemon Brew Lending Corp [Member] | |
IfrsStatementLineItems [Line Items] | |
SCHEDULE OF FAIR VALUES OF THE ACQUIRED ASSETS AND ASSUMED LIABILITIES | The following table summarizes the recognized amounts of assets acquired and liabilities assumed, total consideration, and cash flow related to the LemonBrew Transaction (in thousands) following the completion of the purchase price allocation: SCHEDULE OF FAIR VALUES OF THE ACQUIRED ASSETS AND ASSUMED LIABILITIES Balance at Recognized amounts of assets acquired Intangible Assets 529 Goodwill 721 Net Assets Acquired 1,250 Consideration Cash 800 Common shares issued 450 Total Consideration 1,250 Cash Flow Total Consideration (1,250 ) Equity-settled share-based payment 450 Cash From Investing Activities (800 ) |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF REVENUE STREAMS AND DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS | In the following table, revenue (in thousands) from contracts with customers is disaggregated by major service lines. SCHEDULE OF REVENUE STREAMS AND DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 Main revenue streams Commissions 684,873 379,868 Title 2,990 1,869 Mortgage Income 1,295 19 Total Revenue 689,158 381,756 |
EXPENSES BY NATURE (Tables)
EXPENSES BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF ATTRIBUTION OF EXPENSES BY NATURE TO THEIR FUNCTION | In the following table, cost of sales represents real estate commissions paid to the Company’s agents, as well as to outside brokerages in Canada, and Title Fee Expenses (in thousands). SCHEDULE OF ATTRIBUTION OF EXPENSES BY NATURE TO THEIR FUNCTION December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 Commissions and other agent-related costs 626,285 349,806 Operating Expenses General and Administrative Expenses 42,913 24,155 Salaries and Benefits 18,940 11,733 Stock Based Compensation 8,607 2,778 Administrative Expenses 3,244 1,803 Professional Fees 8,425 5,893 Depreciation Expense 1,128 333 Other General and Administrative Expenses 2,569 1,615 Marketing Expenses 38,611 22,674 Salaries and Benefits 767 478 Stock Based Compensation for Employees 14 1 Stock Based Compensation for Agents 7,780 5,519 Revenue Share 27,905 14,975 Other Marketing and Advertising Cost 2,145 1,701 Research and Development Expenses 7,359 4,867 Salaries and Benefits 3,749 2,012 Stock Based Compensation 440 212 Other Research and Development 3,170 2,643 Total Cost of Sales and Operating Expenses 715,168 401,502 |
SCHEDULE OF FINANCE COST | The following table provides a detailed breakdown of Finance costs (in thousands) as reported in the consolidated Statement of Income (Loss): SCHEDULE OF FINANCE COST Description December 31, 2023 December 31, 2022 For the Year Ended Description December 31, 2023 December 31, 2022 Unrealized Losses (Gains) 27 (397 ) Realized Losses (Gains) (3 ) 24 Bank Fees 528 400 Finance Costs 68 540 Remeasurement of contingent consideration - 600 Total Finance Expenses 619 1,167 |
OPERATING SEGMENTS DISCLOSURES
OPERATING SEGMENTS DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF OPERATING SEGMENTS | The following table present significant information about the Company’s reportable operating segments as reported to the Company’s CODM: SCHEDULE OF OPERATING SEGMENTS North American Brokerage Other Segments Total For the Year Ended December 31, 2023 North American Brokerage Other Segments Total Revenues 684,873 4,285 689,158 Commissions and other agent-related costs 625,016 1,269 626,285 Gross Profit 59,857 3,016 62,873 General and administrative expenses 35,653 7,260 42,913 Marketing expenses 38,458 153 38,611 Research and development expenses 7,284 75 7,359 Operating Loss (21,538 ) (4,472 ) (26,010 ) Other income (expenses), net 136 (723 ) (587 ) Listing expenses - - - Finance expenses, net (614 ) (5 ) (619 ) Net Loss (22,016 ) (5,200 ) (27,216 ) THE REAL BROKERAGE INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 and 2022 North American Brokerage Other Segments Total For the Year Ended December 31, 2022 North American Brokerage Other Segments Total Revenues 379,868 1,888 381,756 Commissions and other agent-related costs 349,464 342 349,806 Gross Profit 30,404 1,546 31,950 General and administrative expenses 21,564 2,591 24,155 Marketing expenses 22,590 84 22,674 Research and development expenses 4,621 246 4,867 Operating Loss (18,370 ) (1,376 ) (19,746 ) Other income (expenses), net 729 - 729 Listing expenses (151 ) - (151 ) Finance expenses, net (1,167 ) - (1,167 ) Net Loss (18,959 ) (1,376 ) (20,335 ) |
SCHEDULE OF REVENUE GEOGRAPHY | The amount of revenue from external customers, by geography, is shown in the table below: SCHEDULE OF REVENUE GEOGRAPHY December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 United States 573,658 320,181 Canada 115,500 61,575 Total revenue by region 689,158 381,756 |
BASIC AND DILUTED LOSS PER SH_2
BASIC AND DILUTED LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF DETAILED INFORMATION ABOUT LOSS PER SHARE | The following table outlines the number of Common Shares (in thousands) and basic and diluted loss per share. SCHEDULE OF DETAILED INFORMATION ABOUT LOSS PER SHARE December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 Issued Common Shares, Balance at the beginning of the year 173,993 170,483 Warrant Exercises - 8,526 Treasury Return - (1,049 ) Purchase of Shares (974 ) - Release of Shares 4,267 - Issuance of Shares 379 21 Exercise of Options 462 220 Weighted-average numbers of Common Shares 178,127 178,201 Loss per share Basic and diluted loss per share (0.15 ) (0.12 ) |
SCHEDULE OF Anti -Dilutive Weighted AVERAGE LOSS PER SHARE | The following potential ordinary shares are anti-dilutive and are therefore excluded from the weighted average number of ordinary shares for the purpose of diluted earnings per share. SCHEDULE OF Anti -Dilutive Weighted AVERAGE LOSS PER SHARE December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 Options 21,943 21,746 RSU 25,588 16,908 Total 47,531 38,654 |
SHARE-BASED PAYMENT ARRANGEME_2
SHARE-BASED PAYMENT ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF TERMS AND CONDITIONS OF SHARE-BASED PAYMENT ARRANGEMENT | The following table depicts the number of Options granted apart from the Company’s various acquisitions (in thousands): SCHEDULE OF TERMS AND CONDITIONS OF SHARE-BASED PAYMENT ARRANGEMENT Grant Date Number of Options Vesting Conditions Contractual Life Balance January 1, 2022 22,287 On March, 2022 240 3 years quarterly vest 10 On May, 2022 320 3 years quarterly vest 10 On August, 2022 4,000 25% on first anniversary, then quarterly vesting 10 On August, 2022 145 3 years quarterly vest 10 On November, 2022 55 3 years quarterly vest 10 On December, 2022 10 3 years quarterly vest 10 Balance December 31, 2022 27,057 Balance January 1, 2023 27,057 On March, 2023 1,500 16.7% on first anniversary, then quarterly vesting 10 On March, 2023 15 3 years quarterly vest 10 On June, 2023 65 33.3% on first anniversary, then quarterly vesting 10 On August, 2023 85 3 years quarterly vest 10 On November, 2023 10 33.3% on first anniversary, then quarterly vesting 10 Balance December 31, 2023 28,732 |
SCHEDULE OF INDIRECT MEASUREMENT OF FAIR VALUE OF SHARES GRANTED DURING PERIOD | The fair value of the Options has been measured using the Black-Scholes formula which was also used to determine the Company’s share value. Service and non-market performance conditions attached to the arrangements were not considered in measuring fair value. The inputs used in the measurement of the fair value at the grant and measurement date were as follows: SCHEDULE OF INDIRECT MEASUREMENT OF FAIR VALUE OF SHARES GRANTED DURING PERIOD December 31, 2023 December 31, 2022 Share price $ 1.25 1.67 $ 1.35 2.45 Expected volatility (weighted-average) 95.0% 108.0% 108.0 % Expected life (weighted-average) 10 10 Expected dividends - % - % Risk-free interest rate (based on US government bonds) 3.62 3.95% 1.95 2.89% |
SCHEDULE OF NUMBER AND WEIGHTED AVERAGE EXERCISE PRICES OF SHARE OPTIONS | The following table outlines the number of Options (in thousands) and weighted-average exercise price: SCHEDULE OF NUMBER AND WEIGHTED AVERAGE EXERCISE PRICES OF SHARE OPTIONS December 31, 2023 December 31, 2022 Number of Options Weighted-Average Exercise Price Number of Options Weighted-Average Exercise Price Outstanding at beginning of year 21,746 $ 0.87 20,815 $ 0.71 Granted 1,675 1.28 4,770 1.61 Forfeited/ Expired (312 ) 1.41 (2,450 ) 2.35 Exercised (1,166 ) 0.36 (1,389 ) 0.23 Outstanding at end of year 21,943 $ 0.92 21,746 $ 0.87 Exercisable at end of year 15,566 0.72 11,046 0.55 |
SCHEDULE OF STOCK ACTIVITY FOR RESTRICTED SHARE UNIT PLAN | The following table illustrates the Company’s stock activity (in thousands of units) for the restricted share units under its equity plan. Once fully vested, all awards are settled in stock SCHEDULE OF STOCK ACTIVITY FOR RESTRICTED SHARE UNIT PLAN Restricted Share Units Balance at, December 31, 2021 3,965 Granted 16,053 Vested and Issued (2,504 ) Forfeited (606 ) Balance at, December 31, 2022 16,908 Granted 23,400 Vested and Issued (10,631 ) Forfeited (4,089 ) Balance at, December 31, 2023 25,588 |
SCHEDULE OF OF EFFECT OF SHARE-BASED PAYMENTS ON ENTITY'S PROFIT OR LOSS | The following table provides a detailed breakdown of the stock-based compensation expense (in thousands) as reported in the Consolidated Statement of Loss and Comprehensive Loss. SCHEDULE OF OF EFFECT OF SHARE-BASED PAYMENTS ON ENTITY'S PROFIT OR LOSS Options Expense RSU Expense Total Options Expense RSU Expense Total For the Year Ended December 31, 2023 December 31, 2022 Options Expense RSU Expense Total Options Expense RSU Expense Total COGS – - 21,562 21,562 - 8,008 8,008 Marketing Expenses – 2,209 5,571 7,780 1,215 4,304 5,519 Marketing Expenses – 7 7 14 - 1 1 Research and Development – 142 298 440 111 101 212 General and Administrative – 5,914 2,693 8,607 1,702 1,076 2,778 Total Stock Based Compensation 8,272 30,131 38,403 3,028 13,490 16,518 |
INVESTMENTS IN AVAILABLE FOR _2
INVESTMENTS IN AVAILABLE FOR SALE SECURITIES AT FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF DETAILED INFORMATION ABOUT INVESTMENT IN AVAILABLE FOR SALE SECURITIES AT FAIR VALUE | The following table provides a detailed breakdown of short-term investments (in thousands) as reported in the Consolidated Statements of Financial Positions: SCHEDULE OF DETAILED INFORMATION ABOUT INVESTMENT IN AVAILABLE FOR SALE SECURITIES AT FAIR VALUE Description Estimated Fair Value December 31, 2022 Deposit / (Withdraw) Dividends, Interest & Income Gross Unrealized Gains / (Losses) Estimated Fair Value December 31, 2023 Cash Investments - 6,368 163 - 6,531 Fixed Income 6,997 277 - 323 7,597 Fixed Income – 840 (847 ) - 7 - Investment Certificate 55 39 - - 94 Total 7,892 5,837 163 330 14,222 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF DETAILED INFORMATION ABOUT PROPERTY, PLANT AND EQUIPMENT | SCHEDULE OF DETAILED INFORMATION ABOUT PROPERTY, PLANT AND EQUIPMENT Computer Equipment Software Furniture and Equipment Total Cost Balance at December 31, 2021 205 - 69 274 Additions 321 969 27 1,317 Balance at December 31, 2022 526 969 96 1,591 Disposals - - (86 ) (86 ) Additions 138 449 - 587 Balance at December 31, 2023 664 1,418 10 2,092 Accumulated Depreciation Balance at December 31, 2021 39 - 65 104 Disposals Depreciation 79 57 1 137 Balance at December 31, 2022 118 57 66 241 Beginning balance 118 57 66 241 Disposals - - (65 ) (65 ) Depreciation 125 191 - 316 Balance at December 31, 2023 243 248 1 492 Ending balance 243 248 1 492 Carrying Amounts Balance at December 31, 2022 408 912 30 1,350 Ending balance 408 912 30 1,350 Balance at December 31, 2023 421 1,170 9 1,600 Ending balance 421 1,170 9 1,600 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF DETAILED INFORMATION ABOUT INTANGIBLE ASSETS | SCHEDULE OF DETAILED INFORMATION ABOUT INTANGIBLE ASSETS Intangible Assets Cost Balance at December 31, 2021 563 Additions 3,370 Purchase Price Allocation Adjustment - Depreciation - Balance at December 31, 2022 3,933 Purchase Price Allocation Adjustment 530 Balance at December 31, 2023 4,463 Accumulated Depreciation Balance at December 31, 2021 113 Depreciation 112 Balance at December 31, 2022 225 Beginning balance 225 Depreciation 796 Balance at December 31, 2023 1,021 Ending balance 1,021 Carrying Amounts Balance at December 31, 2022 3,708 Ending balance 3,708 Balance at December 31, 2023 3,442 Ending balance 3,442 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF DETAILED INFORMATION ABOUT ACQUISITIONS OF BUSINESS | SCHEDULE OF DETAILED INFORMATION ABOUT ACQUISITIONS OF BUSINESS Realty Crunch Expetitle LemonBrew Total Cost Balance at December 31, 2021 602 - - 602 Additions - 8,393 1,267 9,660 Balance at December 31, 2022 602 8,393 1,267 10,262 Impairment - (723 ) - (723 ) Adjustments - - (546 ) (546 ) Balance at December 31, 2023 602 7,670 721 8,993 Ending balance 602 7,670 721 8,993 Carrying Amounts Balance at December 31, 2022 602 8,393 1,267 10,262 Balance at December 31, 2022 602 8,393 1,267 10,262 Balance at December 31, 2023 602 7,670 721 8,993 Balance at December 31, 2023 602 7,670 721 8,993 |
CAPITAL AND RESERVES (Tables)
CAPITAL AND RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF DETAILED INFORMATION ABOUT RESERVES WITHIN EQUITY | SCHEDULE OF DETAILED INFORMATION ABOUT RESERVES WITHIN EQUITY December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Authorized Issued and Paid December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Ordinary shares no-par value unlimited unlimited 183,605 179,922 |
LIQUIDITY AND CAPITAL RESOURC_2
LIQUIDITY AND CAPITAL RESOURCES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF DETAILED INFORMATION ABOUT LIQUIDITY | The following table presents the Company’s liquidity (in thousands): SCHEDULE OF DETAILED INFORMATION ABOUT LIQUIDITY December 31, 2023 December 31, 2022 For the Year Ended December 31, 2023 December 31, 2022 Cash 14,707 10,846 Other Receivables 63 74 Investments in Financial Assets 14,222 7,892 Total 28,992 18,812 |
LEASE LIABILITY AND RIGHT OF _2
LEASE LIABILITY AND RIGHT OF USE ASSET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF DETAILED INFORMATION ABOUT RIGHT-OF-USE ASSETS | SCHEDULE OF DETAILED INFORMATION ABOUT RIGHT-OF-USE ASSETS Right-of-Use Asset Cost Balance at December 31, 2021 502 Additions 107 Acquired Depreciation Depreciation Depreciation (Adjustment) Balance at December 31, 2022 609 Additions (Adjustment) (69 ) Balance at December 31, 2023 540 Accumulated Depreciation - Balance at December 31, 2021 393 Acquired Depreciation 59 Depreciation 84 Balance at December 31, 2022 536 Depreciation (Adjustment) (12 ) Depreciation 16 Balance at December 31, 2023 540 Carrying Amounts Balance at December 31, 2022 73 Balance at December 31, 2023 - |
SCHEDULE OF DETAILED INFORMATION ABOUT CHANGES IN THE LEASE LIABILITY DURING THE YEARS | SCHEDULE OF DETAILED INFORMATION ABOUT CHANGES IN THE LEASE LIABILITY DURING THE YEARS December 31, 2023 December 31, 2022 Maturity analysis – contractual undiscounted cash flows Less than one year - 96 One year to five years - - More than five years - - Total undiscounted lease liabilities - 96 Lease liabilities included in the balance sheet - 96 Current - 96 Non-current - - |
FINANCIAL INSTRUMENTS _ FAIR _2
FINANCIAL INSTRUMENTS – FAIR VALUE AND RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF CARRYING VALUES OF FINANCIAL INSTRUMENTS | SCHEDULE OF CARRYING VALUES OF FINANCIAL INSTRUMENTS Financial Assets at Amortized Cost Other Financial Liabilities Total Level 1 Level 2 Total For the Year Ended December 31, 2023 Carrying Amount Fair Value Financial Assets at Amortized Cost Other Financial Liabilities Total Level 1 Level 2 Total Financial Assets Measured at Fair Value (FV) Investments in Financial Assets - - - 14,222 - 14,222 Total Financial Assets Measured at Fair Value (FV) - - - 14,222 - 14,222 Financial Liabilities Measured at Fair Value (FV) Warrants - - - - 269 269 Total Financial Liabilities Measured at Fair Value (FV) - - - - 269 269 Financial Assets Not Measured at Fair Value (FV) Cash and Cash Equivalents 14,707 - 14,707 - - - Restricted Cash 12,948 - 12,948 - - - Trade Receivables 6,441 - 6,441 - - - Other Receivables 63 - 63 - - - Total Financial Assets Not Measured at Fair Value (FV) 34,159 - 34,159 - - - Financial Liabilities Not Measured at Fair Value (FV) Accounts Payable - 571 571 - - - Accrued Liabilities - 13,374 13,374 - - - Customer Deposits - 12,948 12,948 - - - Other Payables - 302 302 - - - Total Financial Liabilities Not Measured at Fair Value (FV) - 27,195 27,195 - - - Financial Assets at Amortized Cost Other Financial Liabilities Total Level 1 Level 2 Total For the Year Ended December 31, 2022 Carrying Amount Fair Value Financial Assets at Amortized Cost Other Financial Liabilities Total Level 1 Level 2 Total Financial Assets Measured at Fair Value (FV) Investments in Financial Assets - - - 7,892 - 7,892 Total Financial Assets Measured at Fair Value (FV) - - - 7,892 - 7,892 Financial Liabilities Measured at Fair Value (FV) Warrants - - - - 242 242 Total Financial Liabilities Measured at Fair Value (FV) - - - - 242 242 Financial Assets Not Measured at Fair Value (FV) Cash and Cash Equivalents 10,846 - 10,846 - - - Restricted Cash 7,481 - 7,481 - - - Trade Receivables 1,547 - 1,547 - - - Other Receivables 74 - 74 - - - Total Financial Assets Not Measured at Fair Value (FV) 19,948 - 19,948 - - - Financial Liabilities Not Measured at Fair Value (FV) Accounts Payable - 474 474 - - - Accrued Liabilities - 11,866 11,866 - - - Customer Deposits - 7,481 7,481 - - - Other Payables - 1,188 1,188 - - - Total Financial Liabilities Not Measured at Fair Value (FV) - 21,009 21,009 - - - |
SCHEDULE OF DETAILED INFORMATION ABOUT CREDIT RISK TRADE RECEIVABLES AND CONTRACT ASSET BY GEOGRAPHIC REGION | As of December 31, 2023, the exposure to credit risk for trade receivables and contract asset (in thousands) by geographic region was as follows: SCHEDULE OF DETAILED INFORMATION ABOUT CREDIT RISK TRADE RECEIVABLES AND CONTRACT ASSET BY GEOGRAPHIC REGION December 31, 2023 December 31, 2022 US 4,607 1,105 Other Regions 1,834 442 Trade Receivables 6,441 1,547 |
SCHEDULE OF DETAILED INFORMATION ABOUT NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS | SCHEDULE OF DETAILED INFORMATION ABOUT NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS Average Rate Period-end Spot Rate Strengthening Weakening Strengthening Weakening Balance at, December 31, 2023 CAD (-5% movement) 485 (485 ) 655 (655 ) ILS (-5% movement) 33 (33 ) 121 (121 ) Balance at, December 31, 2022 CAD (-5% movement) 355 (355 ) 456 (456 ) ILS (-5% movement) 2 (2 ) 6 (6 ) |
SCHEDULE OF DETAILED INFORMATION ABOUT FOREIGN CURRENCY RISK MANAGEMENT | The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities (in thousands) at the reporting date are as follows: SCHEDULE OF DETAILED INFORMATION ABOUT FOREIGN CURRENCY RISK MANAGEMENT Liabilities Assets December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 CAD (13,463 ) (7,058 ) 4,949 3,474 ILS (178 ) (82 ) 7,494 7,724 Total Exposure (13,641 ) (7,140 ) 12,443 11,198 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF DETAILED INFORMATION ABOUT RELATED PARTY | SCHEDULE OF DETAILED INFORMATION ABOUT RELATED PARTY December 31, 2023 December 31, 2022 Year Ended December 31, 2023 December 31, 2022 Salaries and Benefits 3,465 2,435 Stock-Based Compensation 7,470 2,164 Compensation Expenses for Related Parties 10,934 4,599 |
GENERAL INFORMATION (Details Na
GENERAL INFORMATION (Details Narrative) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
May 24, 2023 | May 19, 2022 | May 20, 2021 | Dec. 31, 2023 | Apr. 20, 2021 | |
General Information | |||||
Maximum number of shares purchased under NCIB | 9 | 8.9 | 7.2 | ||
Percentage of common shares issued and outstanding as shares purchased in NCIB | 5% | 5% | 5% | ||
Common shares outstanding | 180 | 178.3 | 143 | ||
Number of shares repurchased | 2 | ||||
Repurchased common stock value | $ 2.9 |
SCHEDULE OF PERFORMANCE OBLIGAT
SCHEDULE OF PERFORMANCE OBLIGATIONS AND REVENUE RECOGNITION POLICIES (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Commissions From Real Estate Contracts [Member] | |
IfrsStatementLineItems [Line Items] | |
Nature of timing of satisfaction of performance obligations including significant payment terms | Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received |
Revenue recognition policies | Revenue is recognized at a point in time as the purchase agreement is closed and the sale is executed |
Title Fees (Escrow and Title Insurance) [Member] | |
IfrsStatementLineItems [Line Items] | |
Nature of timing of satisfaction of performance obligations including significant payment terms | Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received |
Revenue recognition policies | Revenue is recognized at a point in time when the transaction is closed and paid |
Mortgage Broker [Member] | |
IfrsStatementLineItems [Line Items] | |
Nature of timing of satisfaction of performance obligations including significant payment terms | Customers obtain control of real estate property on the closing date, which is ordinarily when consideration is received |
Revenue recognition policies | Revenue is recognized at a point in time when the loan has been funded |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Computer equipment [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 3 years |
Fixtures and fittings [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 5 years |
Fixtures and fittings [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 10 years |
SUMMARY OF MATERIAL ACCOUNTIN_4
SUMMARY OF MATERIAL ACCOUNTING POLICIES (Details Narrative) shares in Millions | 12 Months Ended |
Dec. 31, 2023 $ / shares $ / shares shares | |
IfrsStatementLineItems [Line Items] | |
Warrants exercise | $ 184,227 |
Exercise price of warrants | $ 1.36 |
Treasury shares [member] | |
IfrsStatementLineItems [Line Items] | |
Number of treasury shares repurchased | shares | 2 |
SCHEDULE OF FAIR VALUES OF THE
SCHEDULE OF FAIR VALUES OF THE ACQUIRED ASSETS AND ASSUMED LIABILITIES (Details) - USD ($) | Dec. 09, 2022 | Jan. 21, 2022 |
Expetitle Inc [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Cash | $ 80,000 | |
Other Current Assets | 42,000 | |
In Trust Cash | 960,000 | |
Goodwill | 8,393,000 | |
Intangible Assets | 3,364,000 | |
Accounts Payables and Accrued Liabilities | (103,000) | |
Held in Trust Funds | 960,000 | |
Other Payables | (19,000) | |
Net Assets Acquired | 11,757,000 | |
Total Consideration | (11,757,000) | |
Equity-settled share-based payment | 4,325,000 | |
Cash from Investing Activities | $ (7,352,000) | |
Lemon Brew Lending Corp [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Cash | $ 800,000 | |
Goodwill | 721,000 | |
Intangible Assets | 529,000 | |
Net Assets Acquired | 1,250,000 | |
Common shares issued | 450,000 | |
Total Consideration | (1,250,000) | |
Equity-settled share-based payment | 450,000 | |
Cash from Investing Activities | (800,000) | |
Total Consideration | $ 1,250,000 |
EXPETITLE ACQUISITION (Details
EXPETITLE ACQUISITION (Details Narrative) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Jan. 20, 2022 USD ($) shares $ / shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Jan. 23, 2023 USD ($) | Jan. 21, 2022 USD ($) | |
IfrsStatementLineItems [Line Items] | |||||
Options granted | shares | 1,675 | 4,770 | |||
Post transactions with employees | $ 7,470 | $ 2,164 | |||
Cash | 14,707 | $ 10,846 | |||
Goodwill impairment loss | $ 723 | ||||
Expetitle Inc [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Percentage of equity interests acquired | 100% | ||||
Description of acquiree | As part of the Expetitle Transaction, the Company also acquired 51% ownership of five subsidiaries of Expetitle | ||||
Non-controlling interest | $ 21 | ||||
Cash consideration | 7,400 | ||||
Contingent consideration | 600 | ||||
Cash payment | $ 200 | ||||
Contingent terms in escrow | $ 800 | ||||
Options granted | shares | 700 | ||||
Aggregate purchase price | $ 1,100 | ||||
Fair value of stock options | 4,800 | ||||
Fair value to be part of consideration | 4,300 | ||||
Post transactions with employees | $ 451 | ||||
Options, vesting period | $ / shares | $ 3 | ||||
Exercise price of share options | $ / shares | $ 3.60 | ||||
Cash | $ 168 | ||||
Proprietary technology | $ 3,400 | ||||
Goodwill | $ 8,393 |
SCHEDULE OF REVENUE STREAMS AND
SCHEDULE OF REVENUE STREAMS AND DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Main revenue streams | ||
Commissions | $ 684,873 | $ 379,868 |
Title | 2,990 | 1,869 |
Mortgage Income | 1,295 | 19 |
Total Revenue | $ 689,158 | $ 381,756 |
SCHEDULE OF ATTRIBUTION OF EXPE
SCHEDULE OF ATTRIBUTION OF EXPENSES BY NATURE TO THEIR FUNCTION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Commissions and other agent-related costs | $ 626,285 | $ 349,806 |
Operating Expenses | ||
General and Administrative Expenses | 42,913 | 24,155 |
Salaries and Benefits | 3,465 | 2,435 |
Stock Based Compensation | 7,470 | 2,164 |
Marketing Expenses | 38,611 | 22,674 |
Research and Development Expenses | 7,359 | 4,867 |
Total Cost of Sales and Operating Expenses | 715,168 | 401,502 |
Selling, general and administrative expense [member] | ||
Operating Expenses | ||
General and Administrative Expenses | 42,913 | 24,155 |
Salaries and Benefits | 18,940 | 11,733 |
Stock Based Compensation | 8,607 | 2,778 |
Administrative Expenses | 3,244 | 1,803 |
Professional Fees | 8,425 | 5,893 |
Depreciation Expense | 1,128 | 333 |
Other General and Administrative Expenses | 2,569 | 1,615 |
Marketing Expenses [Member] | ||
Operating Expenses | ||
Salaries and Benefits | 767 | 478 |
Stock Based Compensation | 14 | 1 |
Marketing Expenses | 38,611 | 22,674 |
Stock Based Compensation for Agents | 7,780 | 5,519 |
Revenue Share | 27,905 | 14,975 |
Other Marketing and Advertising Cost | 2,145 | 1,701 |
Research And Development Expenses [Member] | ||
Operating Expenses | ||
Salaries and Benefits | 3,749 | 2,012 |
Stock Based Compensation | 440 | 212 |
Research and Development Expenses | 7,359 | 4,867 |
Other Research and Development | $ 3,170 | $ 2,643 |
SCHEDULE OF FINANCE COST (Detai
SCHEDULE OF FINANCE COST (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Notes and other explanatory information [abstract] | ||
Unrealized Losses (Gains) | $ 27 | $ (397) |
Realized Losses (Gains) | (3) | 24 |
Bank Fees | 528 | 400 |
Finance Costs | 68 | 540 |
Remeasurement of contingent consideration | 600 | |
Total Finance Expenses | $ 619 | $ 1,167 |
SCHEDULE OF OPERATING SEGMENTS
SCHEDULE OF OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Revenues | $ 689,158 | $ 381,756 |
Commissions and other agent-related costs | 626,285 | 349,806 |
Gross Profit | 62,873 | 31,950 |
General and administrative expenses | 42,913 | 24,155 |
Marketing expenses | 38,611 | 22,674 |
Research and development expenses | 7,359 | 4,867 |
Operating Loss | (26,010) | (19,746) |
Other income (expenses), net | (587) | 729 |
Listing expenses | (151) | |
Finance expenses, net | (619) | (1,167) |
Net Loss | (27,216) | (20,335) |
North American Brokerage [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Revenues | 684,873 | 379,868 |
Commissions and other agent-related costs | 625,016 | 349,464 |
Gross Profit | 59,857 | 30,404 |
General and administrative expenses | 35,653 | 21,564 |
Marketing expenses | 38,458 | 22,590 |
Research and development expenses | 7,284 | 4,621 |
Operating Loss | (21,538) | (18,370) |
Other income (expenses), net | 136 | 729 |
Listing expenses | (151) | |
Finance expenses, net | (614) | (1,167) |
Net Loss | (22,016) | (18,959) |
OtherSegments [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Revenues | 4,285 | 1,888 |
Commissions and other agent-related costs | 1,269 | 342 |
Gross Profit | 3,016 | 1,546 |
General and administrative expenses | 7,260 | 2,591 |
Marketing expenses | 153 | 84 |
Research and development expenses | 75 | 246 |
Operating Loss | (4,472) | (1,376) |
Other income (expenses), net | (723) | |
Listing expenses | ||
Finance expenses, net | (5) | |
Net Loss | $ (5,200) | $ (1,376) |
SCHEDULE OF REVENUE GEOGRAPHY (
SCHEDULE OF REVENUE GEOGRAPHY (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Total revenue by region | $ 689,158 | $ 381,756 |
United States [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total revenue by region | 573,658 | 320,181 |
Canada [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total revenue by region | $ 115,500 | $ 61,575 |
SCHEDULE OF DETAILED INFORMATIO
SCHEDULE OF DETAILED INFORMATION ABOUT LOSS PER SHARE (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Notes and other explanatory information [abstract] | ||
Issued Common Shares, Balance at the beginning of the year | 173,993 | 170,483 |
Warrant Exercises | 8,526 | |
Treasury Return | (1,049) | |
Purchase of Shares | (974) | |
Release of Shares | 4,267 | |
Issuance of Shares | 379 | 21 |
Exercise of Options | 462 | 220 |
Weighted-average numbers of Common Shares | 178,127 | 178,201 |
Loss per share | ||
Basic earnings (loss) per share | $ (0.15) | $ (0.12) |
Diluted earnings (loss) per share | $ (0.15) | $ (0.12) |
SCHEDULE OF Anti -Dilutive Weig
SCHEDULE OF Anti -Dilutive Weighted AVERAGE LOSS PER SHARE (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Total | 47,531 | 38,654 |
Share options [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 21,943 | 21,746 |
Restricted share units [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 25,588 | 16,908 |
LEMONBREW LENDING ACQUISITION_2
LEMONBREW LENDING ACQUISITION (Details Narrative) - USD ($) | Dec. 09, 2022 | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | |||
Cash | $ 14,707,000 | $ 10,846,000 | |
Number of shares issued | 1,200,000 | ||
Lemon Brew Lending Corp [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of equity interests acquired | 100% | ||
Aggregate purchase price | $ 1,250,000 | ||
Cash | $ 800,000 | ||
Number of shares issued | 351,837 | ||
Deemed per share price | $ 1.279 | ||
Equity-settled shared-based consideration | $ 450,000 | ||
Performance based milestone payments | 2,500,000 | ||
Payable in cash | 2,000,000 | ||
Payable in restricted share units | $ 500,000 | ||
Performance based milestones description | LemonBrew achieving at least $500 thousand in EBITDA for the first 12-month period following closing, $1 million in EBITDA for the second 12-month period following closing, and $2 million in EBITDA for the third 12-month period following closing; and | ||
Intangible Assets | $ 529,000 | ||
Goodwill | $ 721,000 |
SCHEDULE OF TERMS AND CONDITION
SCHEDULE OF TERMS AND CONDITIONS OF SHARE-BASED PAYMENT ARRANGEMENT (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 27,057,000 | 22,287,000 |
Contractual Life of Options | 8 years 9 months 18 days | 8 years 9 months 18 days |
Ending balance | 28,732,000 | 27,057,000 |
On March, 2022 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 240 | |
Instrument vesting conditions | 3 years quarterly vest | |
Contractual Life of Options | 10 years | |
On May, 2022 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 320 | |
Instrument vesting conditions | 3 years quarterly vest | |
Contractual Life of Options | 10 years | |
On August, 2022 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 4,000 | |
Instrument vesting conditions | 25% on first anniversary, then quarterly vesting | |
Contractual Life of Options | 10 years | |
On August, 2022 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 145 | |
Instrument vesting conditions | 3 years quarterly vest | |
Contractual Life of Options | 10 years | |
On November, 2022 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 55 | |
Instrument vesting conditions | 3 years quarterly vest | |
Contractual Life of Options | 10 years | |
August, 2022 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 10 | |
Instrument vesting conditions | 3 years quarterly vest | |
Contractual Life of Options | 10 years | |
On March, 2023 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 1,500 | |
Instrument vesting conditions | 16.7% on first anniversary, then quarterly vesting | |
Contractual Life of Options | 10 years | |
On March, 2023 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 15 | |
Instrument vesting conditions | 3 years quarterly vest | |
Contractual Life of Options | 10 years | |
On June, 2023 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 65 | |
Instrument vesting conditions | 33.3% on first anniversary, then quarterly vesting | |
Contractual Life of Options | 10 years | |
On August, 2023 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 85 | |
Instrument vesting conditions | 3 years quarterly vest | |
Contractual Life of Options | 10 years | |
On November, 2023 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of Instruments granted | 10 | |
Instrument vesting conditions | 33.3% on first anniversary, then quarterly vesting | |
Contractual Life of Options | 10 years |
SCHEDULE OF INDIRECT MEASUREMEN
SCHEDULE OF INDIRECT MEASUREMENT OF FAIR VALUE OF SHARES GRANTED DURING PERIOD (Details) Year in Thousands | 12 Months Ended | |
Dec. 31, 2023 Year $ / shares | Dec. 31, 2022 Year $ / shares | |
IfrsStatementLineItems [Line Items] | ||
Expected volatility (weighted-average) | 108% | |
Expected life (weighted-average) | Year | 10 | 10 |
Expected dividends | ||
Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Share price | $ 1.25 | $ 1.35 |
Expected volatility (weighted-average) | 95% | |
Risk-free interest rate (based on US government bonds) | 3.62% | 1.95% |
Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Share price | $ 1.67 | $ 2.45 |
Expected volatility (weighted-average) | 108% | |
Risk-free interest rate (based on US government bonds) | 3.95% | 2.89% |
SCHEDULE OF NUMBER AND WEIGHTED
SCHEDULE OF NUMBER AND WEIGHTED AVERAGE EXERCISE PRICES OF SHARE OPTIONS (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | |
Notes and other explanatory information [abstract] | ||
Outstanding at beginning of year | shares | 21,746 | 20,815 |
Outstanding at beginning of year | $ / shares | $ 0.87 | $ 0.71 |
Granted | shares | 1,675 | 4,770 |
Granted | $ / shares | $ 1.28 | $ 1.61 |
Forfeited/ Expired | shares | (312) | (2,450) |
Forfeited/ Expired | $ / shares | $ 1.41 | $ 2.35 |
Exercised | shares | (1,166) | (1,389) |
Exercised | $ / shares | $ 0.36 | $ 0.23 |
Outstanding at end of year | shares | 21,943 | 21,746 |
Outstanding at end of year | $ / shares | $ 0.92 | $ 0.87 |
Exercisable as at end of year | shares | 15,566 | 11,046 |
Outstanding at end of year | $ / shares | $ 0.72 | $ 0.55 |
SCHEDULE OF STOCK ACTIVITY FOR
SCHEDULE OF STOCK ACTIVITY FOR RESTRICTED SHARE UNIT PLAN (Details) - Restricted Stock Units [Member] - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 16,908 | 3,965 |
Granted | 23,400 | 16,053 |
Vested and Issued | (10,631) | (2,504) |
Forfeited | (4,089) | (606) |
Ending balance | 25,588 | 16,908 |
SCHEDULE OF OF EFFECT OF SHARE-
SCHEDULE OF OF EFFECT OF SHARE-BASED PAYMENTS ON ENTITY'S PROFIT OR LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
COGS – Agent Stock Based Compensation | $ 21,562 | $ 8,008 |
Marketing Expenses – Agent Stock Based Compensation | 7,780 | 5,519 |
Marketing Expenses – FTE Stock Based Compensation | 14 | 1 |
Research and Development – FTE Stock Based Compensation | 440 | 212 |
General and Administrative – FTE Stock Based Compensation | 8,607 | 2,778 |
Total Stock Based Compensation | 38,403 | 16,518 |
Options [Member] | ||
IfrsStatementLineItems [Line Items] | ||
COGS – Agent Stock Based Compensation | ||
Marketing Expenses – Agent Stock Based Compensation | 2,209 | 1,215 |
Marketing Expenses – FTE Stock Based Compensation | 7 | |
Research and Development – FTE Stock Based Compensation | 142 | 111 |
General and Administrative – FTE Stock Based Compensation | 5,914 | 1,702 |
Total Stock Based Compensation | 8,272 | 3,028 |
Restricted Stock Units [Member] | ||
IfrsStatementLineItems [Line Items] | ||
COGS – Agent Stock Based Compensation | 21,562 | 8,008 |
Marketing Expenses – Agent Stock Based Compensation | 5,571 | 4,304 |
Marketing Expenses – FTE Stock Based Compensation | 7 | 1 |
Research and Development – FTE Stock Based Compensation | 298 | 101 |
General and Administrative – FTE Stock Based Compensation | 2,693 | 1,076 |
Total Stock Based Compensation | $ 30,131 | $ 13,490 |
SCHEDULE OF DETAILED INFORMAT_2
SCHEDULE OF DETAILED INFORMATION ABOUT INVESTMENT IN AVAILABLE FOR SALE SECURITIES AT FAIR VALUE (Details) - Financial assets available-for-sale, category [member] $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
IfrsStatementLineItems [Line Items] | |
Financial assets, at fair value | $ 7,892 |
Deposit withdraw | 5,837 |
Investment income | 163 |
Gains (losses) on available-for-sale financial assets | 330 |
Financial assets, at fair value | 14,222 |
Cash Investments [Member] | |
IfrsStatementLineItems [Line Items] | |
Financial assets, at fair value | |
Deposit withdraw | 6,368 |
Investment income | 163 |
Gains (losses) on available-for-sale financial assets | |
Financial assets, at fair value | 6,531 |
Fixed Incomes [Member] | |
IfrsStatementLineItems [Line Items] | |
Financial assets, at fair value | 6,997 |
Deposit withdraw | 277 |
Investment income | |
Gains (losses) on available-for-sale financial assets | 323 |
Financial assets, at fair value | 7,597 |
Fixed Income Mutual Funds [Member] | |
IfrsStatementLineItems [Line Items] | |
Financial assets, at fair value | 840 |
Deposit withdraw | (847) |
Investment income | |
Gains (losses) on available-for-sale financial assets | 7 |
Financial assets, at fair value | |
Investment Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Financial assets, at fair value | 55 |
Deposit withdraw | 39 |
Investment income | |
Gains (losses) on available-for-sale financial assets | |
Financial assets, at fair value | $ 94 |
SHARE-BASED PAYMENT ARRANGEME_3
SHARE-BASED PAYMENT ARRANGEMENTS (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||||
May 24, 2023 | Jul. 14, 2022 | May 19, 2022 | Feb. 26, 2022 | May 20, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 20, 2021 | |
IfrsStatementLineItems [Line Items] | |||||||||
Number of shares issued | 1,200,000 | ||||||||
Weighted average exercise price | $ 0.92 | $ 0.87 | $ 0.71 | ||||||
Weighted average remaining contractual life | 8 years 9 months 18 days | 8 years 9 months 18 days | |||||||
Maximum number of shares purchased under NCIB | 9,000,000 | 8,900,000 | 7,200,000 | ||||||
Percentage Of Common Shares Issued And Outstanding As Shares Purchased In Ncib | 5% | 5% | 5% | ||||||
Number of shares outstanding | 180,000,000 | 178,300,000 | 143,000,000 | ||||||
Restricted Stock Units [Member] | |||||||||
IfrsStatementLineItems [Line Items] | |||||||||
Vesting term description | Each RSU, which have a vesting term of up to 3 years and subject to forfeiture in certain circumstances, entitles the holder to one Common Share. | ||||||||
Expense from share-based payment transactions | $ 5.5 | ||||||||
Bonus Restricted Stock Units [Member] | |||||||||
IfrsStatementLineItems [Line Items] | |||||||||
Vesting term description | the Company issues additional RSUs (“Bonus RSUs”) with a value of (i) 15% of the commission withheld (the percentage was 25% prior to June 16, 2022) if an agent has not met the Cap and (ii) 30% of the commission withheld (the percentage was 50% prior to June 16, 2022) if an agent has met the Cap. The Bonus RSUs have a one-year vesting term and are subject to forfeiture in certain circumstances. The RSUs purchased under the program are expensed to cost of goods sold and the Bonus RSUs are expensed to stock-based compensation expense. Both are amortized over the vesting period with a corresponding increase in stock-based compensation reserve. | ||||||||
Omnibus Incentive Plan [Member] | |||||||||
IfrsStatementLineItems [Line Items] | |||||||||
Percentage of common stock issued and outstanding | 15% | 20% | |||||||
Number of shares issued | 35,600,000 | ||||||||
Number of shares authorized | 70,000,000 |
SCHEDULE OF DETAILED INFORMAT_3
SCHEDULE OF DETAILED INFORMATION ABOUT PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance | $ 1,350 | |
Ending balance | 1,600 | $ 1,350 |
Accumulated depreciation, amortisation and impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 241 | 104 |
Disposals | (65) | |
Ending balance | 492 | 241 |
Depreciation | 316 | 137 |
Computer equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 408 | |
Ending balance | 421 | 408 |
Computer equipment [member] | Accumulated depreciation, amortisation and impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 118 | 39 |
Disposals | ||
Ending balance | 243 | 118 |
Depreciation | 125 | 79 |
Computer software [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 912 | |
Ending balance | 1,170 | 912 |
Computer software [member] | Accumulated depreciation, amortisation and impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 57 | |
Disposals | ||
Ending balance | 248 | 57 |
Depreciation | 191 | 57 |
Fixtures and fittings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 30 | |
Ending balance | 9 | 30 |
Fixtures and fittings [member] | Accumulated depreciation, amortisation and impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 66 | 65 |
Disposals | (65) | |
Ending balance | 1 | 66 |
Depreciation | 1 | |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 1,591 | 274 |
Additions | 587 | 1,317 |
Disposals | (86) | |
Ending balance | 2,092 | 1,591 |
Gross carrying amount [member] | Computer equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 526 | 205 |
Additions | 138 | 321 |
Disposals | ||
Ending balance | 664 | 526 |
Gross carrying amount [member] | Computer software [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 969 | |
Additions | 449 | 969 |
Disposals | ||
Ending balance | 1,418 | 969 |
Gross carrying amount [member] | Fixtures and fittings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 96 | 69 |
Additions | 27 | |
Disposals | (86) | |
Ending balance | $ 10 | $ 96 |
INVESTMENTS IN AVAILABLE FOR _3
INVESTMENTS IN AVAILABLE FOR SALE SECURITIES AT FAIR VALUE (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Investment portfolio maturity period | 20 years |
SCHEDULE OF DETAILED INFORMAT_4
SCHEDULE OF DETAILED INFORMATION ABOUT INTANGIBLE ASSETS (Details) - Other intangible assets [member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance | $ 3,708 | |
Ending balance | 3,442 | $ 3,708 |
Accumulated depreciation, amortisation and impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 225 | 113 |
Depreciation | 796 | 112 |
Ending balance | 1,021 | 225 |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 3,933 | 563 |
Additions | 3,370 | |
Purchase Price Allocation Adjustment | 530 | |
Ending balance | $ 4,463 | 3,933 |
Gross carrying amount [member] | Accumulated depreciation, amortisation and impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Depreciation |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Intangible asset useful lives | 5 years |
SCHEDULE OF DETAILED INFORMAT_5
SCHEDULE OF DETAILED INFORMATION ABOUT ACQUISITIONS OF BUSINESS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Balance at December 31, 2022 | $ 10,262 | |
Balance at December 31, 2023 | 8,993 | $ 10,262 |
Realty Crunch In [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at December 31, 2022 | 602 | |
Balance at December 31, 2023 | 602 | 602 |
Expetitle [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at December 31, 2022 | 8,393 | |
Balance at December 31, 2023 | 7,670 | 8,393 |
Lemon Brew [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at December 31, 2022 | 1,267 | |
Balance at December 31, 2023 | 721 | 1,267 |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at December 31, 2022 | 10,262 | 602 |
Additions | 9,660 | |
Impairment | (723) | |
Adjustments | (546) | |
Balance at December 31, 2023 | 8,993 | 10,262 |
Gross carrying amount [member] | Realty Crunch In [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at December 31, 2022 | 602 | 602 |
Additions | ||
Impairment | ||
Adjustments | ||
Balance at December 31, 2023 | 602 | 602 |
Gross carrying amount [member] | Expetitle [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at December 31, 2022 | 8,393 | |
Additions | 8,393 | |
Impairment | (723) | |
Adjustments | ||
Balance at December 31, 2023 | 7,670 | 8,393 |
Gross carrying amount [member] | Lemon Brew [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at December 31, 2022 | 1,267 | |
Additions | 1,267 | |
Impairment | ||
Adjustments | (546) | |
Balance at December 31, 2023 | $ 721 | $ 1,267 |
SCHEDULE OF DETAILED INFORMAT_6
SCHEDULE OF DETAILED INFORMATION ABOUT RESERVES WITHIN EQUITY (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Authorized [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Authorized shares, description | unlimited | unlimited |
Issued And Paid [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Authorized shares, description | 183,605 | 179,922 |
GOODWILL (Details Narrative)
GOODWILL (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Tax rate effect of impairment of goodwill | 24.50% |
SCHEDULE OF DETAILED INFORMAT_7
SCHEDULE OF DETAILED INFORMATION ABOUT LIQUIDITY (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Notes and other explanatory information [abstract] | ||
Cash | $ 14,707 | $ 10,846 |
Other Receivables | 63 | 74 |
Investments in Financial Assets | 14,222 | 7,892 |
Total | $ 28,992 | $ 18,812 |
SCHEDULE OF DETAILED INFORMAT_8
SCHEDULE OF DETAILED INFORMATION ABOUT RIGHT-OF-USE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance | $ 73 | |
Ending balance | $ 73 | |
Accumulated depreciation and amortisation [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 536 | 393 |
Acquired Depreciation | 59 | |
Depreciation | 16 | 84 |
Depreciation Adjustment | (12) | |
Ending balance | 540 | 536 |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 609 | 502 |
Additions | 107 | |
Additions Adjustment | (69) | |
Ending balance | $ 540 | $ 609 |
SCHEDULE OF DETAILED INFORMAT_9
SCHEDULE OF DETAILED INFORMATION ABOUT CHANGES IN THE LEASE LIABILITY DURING THE YEARS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Total undiscounted lease liabilities | $ 96 | |
Lease liabilities included in the balance sheet | 96 | |
Current | 96 | |
Non-current | ||
Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total undiscounted lease liabilities | 96 | |
Later Than One Year To Not Later Than Five Year [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total undiscounted lease liabilities | ||
Later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total undiscounted lease liabilities |
SCHEDULE OF CARRYING VALUES OF
SCHEDULE OF CARRYING VALUES OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Investments in Financial Assets | $ 14,222 | $ 7,892 |
Cash | 14,707 | 10,846 |
Restricted Cash | 12,948 | 7,481 |
Trade Receivables | 6,441 | 1,547 |
Other Receivables | 63 | 74 |
Accrued Liabilities | 13,374 | 11,866 |
Customer Deposits | 12,948 | 7,481 |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Cash | 14,707 | 10,846 |
Restricted Cash | 12,948 | 7,481 |
Trade Receivables | 6,441 | 1,547 |
Other Receivables | 63 | 74 |
Total Financial Assets Not Measured at Fair Value (FV) | 34,159 | 19,948 |
Accounts Payable | 571 | 474 |
Accrued Liabilities | 13,374 | 11,866 |
Customer Deposits | 12,948 | 7,481 |
Other Payables | 302 | 1,188 |
Total Financial Liabilities Not Measured at Fair Value (FV) | 27,195 | 21,009 |
Gross carrying amount [member] | Financial assets at amortised cost, category [member] | ||
IfrsStatementLineItems [Line Items] | ||
Cash | 14,707 | 10,846 |
Restricted Cash | 12,948 | 7,481 |
Trade Receivables | 6,441 | 1,547 |
Other Receivables | 63 | 74 |
Total Financial Assets Not Measured at Fair Value (FV) | 34,159 | 19,948 |
At fair value [member] | ||
IfrsStatementLineItems [Line Items] | ||
Investments in Financial Assets | 14,222 | 7,892 |
Total Financial Assets Measured at Fair Value (FV) | 14,222 | 7,892 |
Total Financial Liabilities Measured at Fair Value (FV) | 242 | |
Cash | ||
Restricted Cash | ||
Trade Receivables | ||
Other Receivables | ||
Total Financial Assets Not Measured at Fair Value (FV) | ||
Accounts Payable | 571 | 474 |
Accrued Liabilities | 13,374 | 11,866 |
Customer Deposits | 12,948 | 7,481 |
Other Payables | 302 | 1,188 |
Total Financial Liabilities Not Measured at Fair Value (FV) | 27,195 | 21,009 |
At fair value [member] | Warrants [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Financial Liabilities Measured at Fair Value (FV) | 269 | 242 |
Level 1 of fair value hierarchy [member] | At fair value [member] | ||
IfrsStatementLineItems [Line Items] | ||
Investments in Financial Assets | 14,222 | 7,892 |
Total Financial Assets Measured at Fair Value (FV) | 14,222 | 7,892 |
Cash | ||
Restricted Cash | ||
Trade Receivables | ||
Other Receivables | ||
Total Financial Assets Not Measured at Fair Value (FV) | ||
Level 2 of fair value hierarchy [member] | At fair value [member] | ||
IfrsStatementLineItems [Line Items] | ||
Investments in Financial Assets | ||
Total Financial Liabilities Measured at Fair Value (FV) | 242 | |
Cash | ||
Restricted Cash | ||
Trade Receivables | ||
Other Receivables | ||
Total Financial Assets Not Measured at Fair Value (FV) | ||
Level 2 of fair value hierarchy [member] | At fair value [member] | Warrants [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Financial Liabilities Measured at Fair Value (FV) | $ 269 | $ 242 |
SCHEDULE OF DETAILED INFORMA_10
SCHEDULE OF DETAILED INFORMATION ABOUT CREDIT RISK TRADE RECEIVABLES AND CONTRACT ASSET BY GEOGRAPHIC REGION (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Trade Receivables | $ 6,441 | $ 1,547 |
United States [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade Receivables | 4,607 | 1,105 |
Other Regions [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade Receivables | $ 1,834 | $ 442 |
SCHEDULE OF DETAILED INFORMA_11
SCHEDULE OF DETAILED INFORMATION ABOUT NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (Details) ₪ in Thousands, $ in Thousands | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 ILS (₪) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 ILS (₪) |
Foreign Exchange Rate, Strengthening [Member] | Currency Risk Five Percent Movement [Member] | Average Rate [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Interest rates | $ | $ 485 | $ 355 | ||
Foreign Exchange Rate, Strengthening [Member] | Currency Risk Five Percent Movement [Member] | Period End Spot Rate [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Interest rates | $ | 655 | 456 | ||
Foreign Exchange Rate, Strengthening [Member] | Currency Risk Five Percent Movement In Ils [Member] | Period End Spot Rate [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Interest rates | ₪ | ₪ 121 | ₪ 6 | ||
Average Foreign Exchange Rate, Weakening Member [Member] | Currency Risk Five Percent Movement [Member] | Average Rate [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Interest rates | $ | (485) | (355) | ||
Average Foreign Exchange Rate, Weakening Member [Member] | Currency Risk Five Percent Movement In Ils [Member] | Average Rate [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Interest rates | ₪ | (33) | (2) | ||
Closing Foreign Exchange Rate Weakening [Member] | Currency Risk Five Percent Movement [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Interest rates | $ | $ (655) | $ (456) | ||
Closing Foreign Exchange Rate Weakening [Member] | Currency Risk Five Percent Movement In Ils [Member] | Period End Spot Rate [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Interest rates | ₪ | (121) | (6) | ||
Average Foreign Exchange Rate, Strengthening Member [Member] | Currency Risk Five Percent Movement In Ils [Member] | Average Rate [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Interest rates | ₪ | ₪ 33 | ₪ 2 |
SCHEDULE OF DETAILED INFORMA_12
SCHEDULE OF DETAILED INFORMATION ABOUT FOREIGN CURRENCY RISK MANAGEMENT (Details) ₪ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 ILS (₪) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 ILS (₪) |
Notes and other explanatory information [abstract] | ||||||
Foreign currency denominated monetary liabilities | $ (13,641) | $ (13,463) | ₪ (178) | $ (7,140) | $ (7,058) | ₪ (82) |
Foreign currency denominated monetary assets | $ 12,443 | $ 4,949 | ₪ 7,494 | $ 11,198 | $ 3,474 | ₪ 7,724 |
SCHEDULE OF DETAILED INFORMA_13
SCHEDULE OF DETAILED INFORMATION ABOUT RELATED PARTY (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Notes and other explanatory information [abstract] | ||
Salaries and Benefits | $ 3,465 | $ 2,435 |
Stock-Based Compensation | 7,470 | 2,164 |
Compensation Expenses for Related Parties | $ 10,934 | $ 4,599 |
CAPITAL AND RESERVES (Details N
CAPITAL AND RESERVES (Details Narrative) - USD ($) $ in Thousands, shares in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Number of shares issued | 1.2 | |
Capital reserve | $ 2,500 | |
Treasury shares | 257 | $ 14,962 |
Capital reserve [member] | ||
IfrsStatementLineItems [Line Items] | ||
Treasury shares | $ 175 | $ 5,900 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Jan. 01, 2024 |
Notes and other explanatory information [abstract] | |
Bonus RSUs structure description | (i) 10% of the commission withheld (the percentage was 15% previously) if an agent has not met the Cap and (ii) 20% of the commission withheld (the percentage was 30% previously) if an agent has met the Cap |