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

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 31
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 convertible loans will be measured
at fair value in each reporting period until they will be converted, with changes in the fair values being recognized in the Company’s
consolidated statement of operations as financial income or expense. The proceeds received for the issuance of the convertible loans were
allocated at fair value conducted on an arm’s-length basis.

     F-12 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS

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

    NOTE 2:-
    SIGNIFICANT ACCOUNTING POLICIES (Cont.)

The Company’s financial assets
and liabilities that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows:

    Schedule of financial assets and liabilities measured value recurring basis 

    Balance as of December 31, 2024 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Fair Value of convertible component in convertible loan, net of discounts and debt issue costs 
    $–  
    $–  
    $771  
    $771 

    Total liabilities 
    $–  
    $–  
    $771  
    $771 

    Balance as of December 31, 2023 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Fair Value of convertible component in convertible loan, net of discounts and debt issue costs 
    $–  
    $–  
    $885  
    $885 

    Total liabilities 
    $–  
    $–  
    $885  
    $885 

    m.
    Income Tax:

The Company account for income taxes
in accordance with ASC 740, “Income Taxes” which prescribes the use of the liability method whereby deferred tax assets and
liability account balances are determined based on differences between financial reporting and tax bases of 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. The Company provides
a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it not is more likely than not
that a portion or all of the deferred tax assets will be realized. Based on ASC 740, a two-step approach is used to recognize