Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 321

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 321
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 2020. The Company is currently assessing the impact of this update on the Company’s consolidated
financial statements.

Business Combination

On October 28, 2021, the FASB issued
ASU 2021-08, which amends ASC 805 to “require acquiring entities to apply Topic 606 to recognize and measure contract assets and
contract liabilities in a business combination.” Under current GAAP, an acquirer generally recognizes such items at fair value on
the acquisition date. According to the FASB, this Update is intended “to improve the accounting for acquired revenue contracts with
customers in a business combination by addressing diversity in practice and inconsistency related to the following:

    ·
    Recognition of an acquired contract liability

    ·
    Payment terms and their effect on subsequent revenue recognized by the acquirer.

ASU 2021-08 06 is effective for fiscal
years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently assessing the impact of
this update on the Company’s consolidated financial statements.

     F-15 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS

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

    NOTE 2:-
    SIGNIFICANT ACCOUNTING POLICIES (Cont.)

Warrants

In May 2021, the Financial Accountings
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-04, “Earnings Per Share (Topic
260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives
and Hedging— Contracts in Entity’s Own Equity (Subtopic 815- 40): Issuer’s Accounting for Certain Modifications or Exchanges
of Freestanding Equity-Classified Written Call Options” (“ASU 2021-04”). The guidance is effective for the Company on
January 1, 2022. The Company has evaluated the impact of adopting this standard and concluded there is no impact on the Company’s
consolidated financial statements.

Income taxes

In December 2019, the FASB issued ASU
2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for
income taxes, eliminates certain exceptions to the  general principles in Topic 740 and clarifies certain