Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 301

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 19
Chunk 301
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 and remeasured to fair value through earnings at each balance sheet date thereafter.

The Company has
classified the SPAC warrants assumed during the Merger (both public and private) as a liability pursuant to ASC 815-40 since the
warrants do not meet the equity classification conditions. Accordingly, the Company measured the warrants at their fair value. The
warrants liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is
recognized in the statement of comprehensive loss.

As of December 31,
2023, the Company had2,313,976warrants classified as equity. On September 16, 2024, all of these warrants expired unexercised.

In addition, as of
both December 31, 2023 and 2024, the Company has2,142,000and13,605,561Public and Private Warrants, respectively, which are classified
as a liability (see also notes 8 and 9).

F-14

ALPHA TAU MEDICAL
LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS

U. S. dollars
in thousands (except share and per share data)

NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.)

  Fair value of financial instruments:  

Fair value is defined
as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants on the measurement date.

The Company measures
financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize
the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

A financial instrument’s
classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
Three levels of inputs may be used to measure fair value:

  Level 1 — quoted prices in active markets for identical assets or liabilities.  

  Level 2 — inputs other than Level 1 that are observable, either directly or indirectly, such as                                        

  Level 3 — unobservable inputs that are supported by little or no market activity and that are significant  

Financial instruments
consist among others of cash equivalents, short-term deposits, restricted deposits, other accounts receivable, trade payables and other
accounts payable and accrued expenses