Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 263

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 263
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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, and interim periods within those years, beginning after December 15, 2022, with
early adoption permitted. The standard is not expected to have a significant impact on the Company’s consolidated financial statements.

Convertible instruments

In August 2020, the FASB issued ASU
2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s
Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU
2020-06”). ASU 2020-06 simplifies the accounting for convertible instruments by removing certain separation models in Accounting
Standards Codification (“ASC”) 470-20, “Debt—Debt with Conversion and Other Options,” (“ASC 470-20”)
for convertible instruments. Under ASU 2020-06, the embedded conversion features no longer are separated from the host contract for convertible
instruments with conversion features that are not required to be accounted for as derivatives under ASC 815, “Derivatives and Hedging,”
or that do not result in substantial premiums accounted for as paid-in capital. For smaller reporting companies, ASU 2020-06 is effective
for fiscal years, and interim periods within those years, beginning after December 15, 2023, with early adoption permitted for