Company: RGNT
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006676
Chunk: 269

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 269
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 quoted prices for identical or similar assets or liabilities in active markets and quoted prices for identical or similar assets of liabilities in markets that are not active; |

| Level 3 | – | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |

<div align='center'>F-24</div>

REGENTIS BIOMATERIALS LTD.

NOTES TO FINANCIAL STATEMENTS

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

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |

The convertible notes and warrant liability
are classified within Level 3 of the fair value hierarchy because their fair values are estimated by utilizing valuation models and significant
unobservable inputs.

| f. | Research and development expenses: |

Research and development expenses are
charged to the statements of comprehensive loss as incurred.

| g. | Income taxes: |

The Company accounts for income taxes
in accordance with ASC 740, Income Taxes(“ASC 740”). ASC 740 prescribes the use of the liability method whereby deferred
tax assets 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.
Valuation allowances in respect of deferred tax assets are provided for, if necessary, to reduce deferred tax assets to amounts more likely
than not to be realized. As of December 31, 2023, and 2022, the Company had a full valuation allowance on its deferred tax assets.

The Company implements a two-step approach
to recognize and measure 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% (cumulative basis) likely to be realized upon ultimate settlement.
As of December 31, 2023, and 2022, no liability for uncertain tax positions has been recognized.

| h. | Concentrations of credit risk: |

Financial instruments that potentially
subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. Cash