Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 522

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 522
---
, and upon profitable operations. Those factors raise substantial
doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the
Company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when
they become due.

Historically, we have financed our cash flow and
operations from the initial contribution of our majority shareholder and by raising equity, convertible loans and warrants. As of December
31, 2024, our cash and deposit balance was $96 thousand.

On March 1, 2023, Saffron Tech, announced it has
entered into an investment agreement with Korean-based company, Dreamtech Co Ltd (“Dreamtech”), a leading provider
and manufacturer of tech components for innovative products including advanced mobile and medical devices. Under this new agreement, Dreamtech
will fund an initial investment of $1 million followed by an additional $1 million upon successful cultivation of saffron in Korea. Saffron
Tech aims to be the first company to create a large-scale production of saffron using vertical farming technology to meet the growing
demand of the spice for use in beauty, wellness, and pharmaceutical applications. Sativus Tech’s interest in Saffron Tech now totals
54% post-raise.

 9 

Consistent with Section 144 of the Delaware General
Corporation Law, it is our current policy that all transactions between the company and our officers, directors and their affiliates will
be entered into only if such transactions are approved by a majority of the existing directors, are approved by vote of the stockholders,
or are fair to us as a corporation as approved or ratified by the board or authorized officer. We will conduct an appropriate review of
all related party transactions on an ongoing basis, and, where appropriate, we review the potential of conflicts of interest.

Year ended December 31, 2024 as compared to
the year ended December 31, 2023

During the year ended December 31, 2024, the Company’s
overall position of cash and cash equivalents decreased by $80 thousand. This decrease in cash can be attributed to the following:

The Company’s net cash used in operating
activities during the year ended December 31, 2024, was $488 thousand as compared to $932 for the year ended December 31, 2023. This decrease
is mostly due to a significant decrease in accounts receivable offset by an increase in