Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 672

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 672
---
.
    Income Tax:

The Company account for income taxes
in accordance with ASC 740, “Income Taxes” which prescribes the use of the liability method whereby deferred tax assets 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 if it not is more likely than not
that a portion or all of the deferred tax assets will be realized. Based on ASC 740, a two-step approach is used to recognize and measure
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, and 2023,
no liability for unrecognized tax positions has been recorded. Accordingly, no interest or penalties related to uncertain tax positions
are recorded, either. It is the Company’s policy that any interest or penalties associated with unrecognized tax positions would
be reflected in income tax expense.

     F-13 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS

U.S. dollars in thousands, except per share
data

    NOTE 2:-
    SIGNIFICANT ACCOUNTING POLICIES (Cont.)

    n.
    Basic and diluted net loss per share

Basic net loss per share is computed
by dividing the net loss by the weighted-average number of shares of Ordinary shares outstanding during the period.

Diluted net loss per share is computed
by giving effect to all potential shares of Ordinary shares, to the extent dilutive, all in accordance with ASC No. 260, “Earning
Per Share”.

For the years ended December 31, 2024,
and 2023, all outstanding shares warrants have been excluded from the calculation of the diluted net loss per share as all such securities
are anti-dilutive for all years presented.

    o.
    Contingencies:

The Company records accruals