Company: RVRC
Filing Date: 2025-10-03
Form Type: S-1/A
Source: 0001213900-25-096094
Chunk: 210

Company: Revium Rx.
Filing Date: 2025-10-03
Form: S-1/A
Chunk 210
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NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Cont.)

| m. | Share-based payment transactions: |

The Company
accounts for share-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”),
which requires companies to estimate the fair value of equity-based payment awards on the date of grant. The value of the portion of the
award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the statements of comprehensive
loss.

The Company
recognizes compensation expenses for the value of its awards granted based on the vesting attribution approach over the requisite service
period of each of the awards, net of estimated forfeitures. Forfeitures are accounted for as they occur. The Company estimates the fair
value of share options granted using the Black-Scholes option pricing model. The option-pricing model requires a number of assumptions,
including the expected share price volatility, free risk interest rate, dividends and the expected option term. Expected volatility was
calculated based on the average of the standard deviation of a sample of similar companies. The expected option term represents the period
that the Company’s share options are expected to be outstanding and is determined based on the simplified method until sufficient
historical exercise data will support using expected life assumptions.

The risk-free
interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends
and has no foreseeable plans to pay dividends. As a result, the dividend rate was zero.

| n. | Accounting pronouncement recently adopted |

In February
2016, the FASB issued ASU 2016-02 “Leases” to increase transparency and comparability among organizations by recognizing lease
assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For operating leases, the
ASU requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments,
on its balance sheet. The ASU retains the current accounting for lessors and does not make significant changes to the recognition, measurement,
and presentation of expenses and cash flows by a lessee.

Effective January
1, 2022, the Company adopted the new lease accounting standard. The Company elected to apply the practical expedients permitted under
the transition guidance within the new standard. As such, there was no impact on the Company’s financial statements as a result of adopting
ASU 201