Company: RVRC
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121070
Chunk: 204

Company: Revium Rx.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 204
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 terminated, regardless of cause of termination.

The severance
pay liabilities and deposits under Section 14 are not reflected in the balance sheets as the severance pay risks have been irrevocably
transferred to the severance funds.

| h. | Income taxes: |

The Company
accounts for income taxes in 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 July 23, 2024
and December 31, 2023, a full valuation allowance was provided by the Company.

<div align='center'>F-18</div>

REVIUM RX.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Cont.)

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 July 23, 2024 and December 31, 2023, , no liability for unrecognized tax benefits was recorded
as a result of the implementation of ASC 740.

| i. | 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.

| j. | Segment Information |

Operating
segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation
by the chief operating decision