Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 103

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 3
Chunk 103
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, for instance, a downgrade in Israel’s
credit rating by rating agencies (such as by Moody’s, S& P Global, and Fitch).

In connection with the ongoing
war, several hundred thousand Israeli military reservists were drafted to perform immediate military service, and military reservists
are expected to perform long reserve duty service in the coming years. As of the date of this annual report, only several of our employees
are called to active military duty. The absence of our employees due to their military service in the current or future wars or other
armed conflicts may materially and adversely affect our ability to conduct our operations.

Our commercial insurance does
not cover losses that may occur as a result of events associated with war and terrorism. Although the Israeli government currently covers
the reinstatement value of certain direct damages that are caused by terrorist attacks or acts of war, we cannot assure you that such
government coverage will be maintained or that it will sufficiently cover our potential damages. Any losses or damages incurred by us
could have a material adverse effect on our business.

The global perception of Israel
and Israeli companies, influenced by actions by international judicial bodies, may lead to increased sanctions and other negative measures
against Israel, as well as Israeli companies and academic institutions. There is also a growing movement among countries, activists, and
organizations to boycott Israeli goods, services and academic research or restrict business with Israel, which could affect business operations.
If these efforts become widespread, along with any future rulings from international tribunals against Israel, they could significantly
and negatively impact business operations.

We may become subject to claims for remuneration
or royalties for assigned service invention rights by our employees, which could result in litigation and adversely affect our business.

A significant portion of our
intellectual property has been developed by our employees in the course of their employment by us. Under the Israeli Patents Law, 5727-1967
(the “ Patents Law”), inventions conceived by an employee during and as a result of his or her employment with a company are
regarded as “service inventions,” which belong to the employer, absent an agreement between the employee and employer providing
otherwise. The Patents Law also provides that if there is no agreement between an employer and an employee determining whether the employee
is entitled to receive consideration for service inventions and on what terms, this will be determined by the Israeli Compensation and
Royalties Committee (the “ Committee”), a body constituted under the Patents Law. Case law clarifies that the right to