Company: RVRC
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121070
Chunk: 197

Company: Revium Rx.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 197
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 accordance with ASC No. 740, “Income Taxes”, (“ASC 740”) which prescribes the use
of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial
reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the
differences are expected to reverse.

The Company
provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. As of December 31, 2024
a full valuation allowance was provided by the Company.

ASC 740 contains
a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position
taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than
not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related
appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to
be realized upon ultimate settlement. As of December 31, 2024 no liability for unrecognized tax benefits was recorded as a result of
the implementation of ASC 740

<div align='center'>F-12</div>

REVIUM RX.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Cont.)

| l. | Concentrations of credit risk: |

Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. Cash
and cash equivalents are invested in major banks in Israel.

Management
believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, minimal credit
risk exists with respect to these investments.

| m. | Fair value of financial instruments: |

ASC 820, “Fair
Value Measurements and Disclosures” (“ASC 820”), defines fair value as the price that would be received to sell an
asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the
measurement date.

In determining
fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that
maximizes the use of observable inputs and minimizes the use of unobservable