Elron Ventures : Financial Statements as of June 2023

ELRON VENTURES LTD.

English Translation of Periodic Report for the Second Quarter of 2023

Filed with the Israel Securities Authority

Part	Content
I	Material Changes and Updates that Occurred in Elron's Business
II	Board of Directors Report
III	Interim Financial Statements
IV	Effectiveness of the Internal Control over Financial Reporting and
	Disclosure

ELRON VENTURES LTD.

English Translation of Periodic Report for the Second Quarter of 2023

Filed with the Israel Securities Authority

Part I

Material Changes and Updates that Occurred in Elron's Business for the Three Months ended June 30, 2023

Elron Ventures Ltd.

("Elron" or the "Company")

English Translation of Quarterly Report

for the Second Quarter of 2023

Part I

Material Changes and Updates that Occurred in the Company's

Business in the Three Months Ended June 30, 2023

Details according to Regulation 39A of the Israel Securities Regulations (Periodic

and Immediate Reports), 1970

In this section:
"Board of Directors Report"	English Translation of Elron's Board of
	Directors Report for the Second Quarter of
	2023, included in Part II of this report.
"Financial Statements"	English Translation of Elron's Interim
	Consolidated Financial Statements as of June
	30, 2023, included in Part III of this report.
"Annual Report"	Elron's Annual Report for the year ended
	December 31, 2022 filed with the Israeli
	Securities Authority.

The rest of the terms in this report shall have the meaning ascribed to them in the Annual Report, unless stated explicitly otherwise.

The matters described below are in addition to the developments and changes that occurred in the second quarter of 2023 that were already previously described in Part I of the Company's Quarterly Report for the First Quarter of 2023. The matters described below are presented according to the section numbers in Part I of the Annual Report.

1

1. Section 15 of Part I of the Annual Report - Investments

In the first half of 2023, Elron (directly and indirectly) invested approximately $3.3 million in group companies. For further details, see Section 1.4 of the Board of Directors' Report and Note 3 to the Financial Statements.

2. Section 24 of Part I of the Annual Report - CartiHeal

Sections 24.13 and 24.17- during the second quarter of 2023, CartiHeal began marketing the Agili-C implant in the U.S.A and in other countries, for the first time since the return of CartiHeal shares to the selling shareholders and the cancellation of implementation of the transaction for the sale of CartiHeal to Bioventus. Prior to the cancellation of the transaction and the return of shares, Bioventus commenced marketing the implant.

Yaron Elad		Rony Gur Arie
CEO		VP Finance

August 14, 2023, Tel Aviv, Israel

2

ELRON VENTURES LTD.

English Translation of Periodic Report for the Second Quarter of 2023

Filed with the Israel Securities Authority

Part II

Board of Directors Report for the Second

Quarter of 2023