Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 357

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 357
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 mainly to financial gains or losses related to revaluations of convertible component in convertible loans.

Liquidity and Capital Resources

Overview

Since inception on January 16, 2015, the Company
had a cumulative deficit as of December 31, 2024, of $23,608 thousand and we have a working capital deficit of $3,098 thousand as of December
31, 2024. Our future growth is dependent upon achieving further purchase orders and execution, management of operating expenses and ability
of the Company to obtain the necessary financing to fund future obligations, and upon profitable operations. Those factors raise substantial
doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the
Company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when
they become due.

Historically, we have financed our cash flow and
operations from the initial contribution of our majority shareholder and by raising equity, convertible loans and warrants. As of December
31, 2024, our cash and deposit balance was $96 thousand.

On March 1, 2023, Saffron Tech, announced it has
entered into an investment agreement with Korean-based company, Dreamtech Co Ltd (“Dreamtech”), a leading provider
and manufacturer of tech components for innovative products including advanced mobile and medical devices. Under this new agreement, Dreamtech
will fund an initial investment of $1 million followed by an additional $1 million upon successful cultivation of saffron in Korea. Saffron
Tech aims to be the first company to create a large-scale production of saffron using vertical farming technology to meet the growing
demand of the spice for use in beauty, wellness, and pharmaceutical applications. Sativus Tech’s interest in Saffron Tech now totals
54% post-raise.

 9 

Consistent with Section 144 of the Delaware General
Corporation Law, it is our current policy that all transactions between the company and our officers, directors and their affiliates will
be entered into only if such transactions are approved by a majority of the existing directors, are approved by vote of the stockholders,
or are fair to us as a corporation as approved or ratified by the board or authorized officer. We will conduct an appropriate review of
all related party transactions on an ongoing basis, and, where appropriate, we review the potential of conflicts of interest.

Year ended December 31, 2024 as