Company: RVRC
Filing Date: 2025-02-14
Form Type: S-1
Source: 0001213900-25-013823
Chunk: 145

Company: Revium Rx.
Filing Date: 2025-02-14
Form: S-1
Chunk 145
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 goodwill.                                                                       |

When determining
the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect
to intangible assets. Significant estimates in valuing certain intangible assets include but are not limited to future expected cash flows
from acquired technology and acquired customer relationships from a market participant perspective, useful lives and discount rates. Management’s
estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and,
as a result, actual results may differ from estimates

| q. | Share-based payment transactions: |

The Company
accounts for share-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”),
which requires companies to estimate the fair value of equity-based payment awards on the date of grant. The value of the portion of the
award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the statements of comprehensive
loss.

The Company
recognizes compensation expenses for the value of its awards granted based on the vesting attribution approach over the requisite service
period of each of the awards, The Company estimates the fair value of share options granted using the Black-Scholes option pricing model.
The option-pricing model requires a number of assumptions, including the expected share price volatility, free risk interest rate, dividends
and the expected option term. Expected volatility was calculated based on the average of the standard deviation of a sample of similar
companies. The expected option term represents the period that the Company’s share options are expected to be outstanding and is
determined based on the simplified method until sufficient historical exercise data will support using expected life assumptions.

| r. | Goodwill: |

Goodwill is
recorded as a result of acquisition. Goodwill represents the excess of the purchase price in a business combination over the fair value
of identifiable net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test.

| s. | Accounting pronouncement recently adopted |

In February
2016, the FASB issued ASU 2016-02 “Leases” to increase transparency and comparability among organizations by recognizing lease
assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For operating leases, the
ASU requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments,
on its balance sheet. The ASU retains the