Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 673

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 673
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 for loss
contingencies arising from claims, litigation and other sources when it is probable that a liability has been incurred and the amount
can be reasonably estimated. These accruals are adjusted periodically as assessments change or additional information becomes available.
Legal costs incurred in connection with loss contingencies are expensed as incurred.

    p.
    Stock-based payments:

The Company measures and recognizes
the compensation expense for all equity-based payments to employees based on their estimated fair values in accordance with ASC 718, “Compensation-Stock
Compensation”. Share-based payments including grants of stock options are recognized in the statement of comprehensive loss as an
operating expense based on the fair value of the award at the date of grant. The fair value of stock options granted is estimated using
the Black-Scholes option-pricing model. The Company has expensed compensation costs, net of estimated forfeitures, applying the accelerated
vesting method, over the requisite service period or over the implicit service period when a performance condition affects the vesting,
and it is considered probable that the performance condition will be achieved.

Share-based payments awarded to consultants
(non-employees) are accounted for in accordance with ASC Topic 505-50, “Equity-Based Payments to Non-Employees”.

For the years ended December 31, 2024,
December 31, 2023, the Company recorded $19, and $156 in share-based compensation, respectively.

     F-14 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS

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

    NOTE 2:-
    SIGNIFICANT ACCOUNTING POLICIES (Cont.)

    q.
    Recent accounting pronouncements:

Financial Instruments – Credit
Losses

In June 2016, the FASB issued ASU 2016-13,
“Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU
2016-13”). ASU 2016-13 replaces the current incurred loss model guidance with a new method that reflects expected credit losses.
Under this guidance, an entity would recognize an allowance for credit losses equal to its estimate of expected credit losses on financial
assets measured at amortized cost. In November 2019, the FASB extended the effective date of ASU 2016-13 for smaller reporting companies.
As a result, ASU 2016-13 is effective for fiscal years,