Company: RGNT
Filing Date: 2025-07-07
Form Type: F-1/A
Source: 0001213900-25-061821
Chunk: 254

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-07-07
Form: F-1/A
Chunk 254
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 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, 2024 and 2023, 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, 2024 and 2023, 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 and cash equivalents are
deposited in a major bank in Israel.

Management believes that the banks that
hold the Company’s cash and cash equivalent are financially sound and, accordingly, minimal credit risk exists with respect to
these cash and cash equivalents.

| i. | Royalty bearing grants and non-royalty bearing grants |

Grants received from the Israel Innovation
Authority (the “IIA”) are recognized when the grant becomes receivable, provided there was reasonable assurance that the
Company will comply with the conditions attached to the grant and there was reasonable assurance the grant will be received. The grant
is deducted from the research and development expenses as the applicable costs are incurred. Future royalties will be recorded as part
of costs of goods sold (see also note 9(1)).

The Company also received non-royalty
bearing grants from European Union through the European Commission Executive Agency for Small and Medium-sized Enterprises as part of
the Horizon 2020 Research and Innovative Framework Programme. The non-royalty bearing grants for funding the projects are recognized
as a reduction in research and development expense once the Company submits the final report to the Programme and receives approval of
the project completion, as the grantor is