Company: RVRC
Filing Date: 2025-08-13
Form Type: S-1/A
Source: 0001213900-25-075747
Chunk: 197

Company: Revium Rx.
Filing Date: 2025-08-13
Form: S-1/A
Chunk 197
---
 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-maker in making decisions regarding

resource allocation
and assessing performance. The Company and its chief operating decision-maker view the Company’s operations and manage its business
in one operating segment, which is the research and development of the Company’s drug candidates.

| k. | Legal and other contingencies: |

The Company
accounts for its contingent liabilities in accordance with ASC 450 “Contingencies”. A provision is recorded when it is both
probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions
are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other
information and events pertaining to a particular matter. As of July 23, 2024