Company: SATT
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001683168-25-006219
Chunk: 8

Company: SATIVUS TECH CORP.
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1
Chunk 8
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 Report”). The results for any interim
period are not necessarily indicative of results for any future period.

     F-7 

    SATIVUS TECH CORP.
  
    NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
  
    U.S. dollars in thousands

    NOTE 2:-
    SIGNIFICANT ACCOUNTING POLICIES (cont.)

The unaudited condensed consolidated
financial statements have been prepared on the same basis as the audited financial statements. In the opinion of the Company’s management,
the accompanying unaudited condensed consolidated financial statements contain all adjustments that are necessary to present fairly the
Company’s financial position and results of operations for the interim periods presented. The results for the three months ended
June 30, 2025, are not necessarily indicative of the results for the year ending December 31, 2024, or for any future period.

As of June 30, 2025, there have been
no material changes in the Company’s significant accounting policies from those that were disclosed in the 2024 Annual Report.

Fair value of financial instruments

ASC Topic 820, “Fair Value Measurements
and Disclosures” (“ASC 820”), defines fair value as the price that would be received to sell an asset or paid to transfer
a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

In determining fair value, the Company
uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable
inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs
are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent
of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants
would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken
down into three levels based on the inputs as follows:

    Level 1 —
    Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access.

    Level 2 —
    Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

    Level 3 —
    Valuations based on inputs that are unobservable