Company: SINT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010496
Chunk: 7

Company: Sintx Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 7
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. Management will work
with the insurance company to continue to fund the repair of the furnace. When the furnace is fully repaired, management intends to sell
the furnace, and related equipment, to a third party. However, the full repair and sale of the furnace, and related equipment, cannot
be assured. Therefore, in the calculation of the $4.6 million impairment charge, management has assumed no proceeds will be received from
a potential sale of the furnace and related equipment.

As explained in Note 2, on February 19, 2025, the
Company entered into an Entity Acquisition Agreement (“the Agreement”) with Tethon Corporation (“Tethon”), pursuant
to which the Company sold to Tethon all of the issued and outstanding shares of TA&T in exchange for the assumption by Tethon of the
outstanding liabilities of TA&T. The Company expects that this will have a positive impact on the reduction of the net loss.

Based on the decrease in expenditures from the reduction
in force and the increase in cash on February 20, 2025, SINTX management has determined that there is no significant uncertainty of the
Company’s ability to continue as a going concern through at least May 15, 2026.

    10

Grant and Contract Revenue

Revenues from grants, contracts, and
awards provided by governmental agencies are recorded based upon the terms of the specific agreements, which generally provide that revenue
is earned when the allowable costs specified in the applicable agreement have been incurred or a milestone has been met. Cash received
from federal grants, contracts, and awards can be subject to
audit by the grantor and, if the examination results in a disallowance of any expenditure, repayment could be required.

Recent
Accounting Pronouncements 

ASU
2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

In
November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to
Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about
significant segment expenses. The standard is effective for full year 2024 reporting, and for interim reporting beginning in 2025. The
adoption of this ASU did not change the way the Company evaluates its reportable segments and, as a result, did not have a material impact
on the Company’s segment-related disclosures