Company: RGNT
Filing Date: 2025-01-24
Form Type: DRS
Source: 0001213900-25-006245
Chunk: 271

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-01-24
Form: DRS
Chunk 271
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 (refer to Note 10 for further discussion on the redemption rights of the convertible preferred D-2 shares).
The warrants are subject to revaluation at each balance sheet date until settlement, with revaluations recognized in financial expense,
net in the statements of comprehensive loss.

| l. | Share-based payment transactions: |

The Company accounts for share-based compensation
in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”), which requires companies to estimate the
fair value of share-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest
is recognized as an expense over the requisite service periods in the Company’s statements of comprehensive loss.

The Company recognizes compensation
expenses for the grant-date fair value of its awards granted based on the vesting attribution approach over the requisite service
period of each of the awards, net of estimated forfeitures. The Company estimates forfeitures at the time of grant and revise such
estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company estimates the fair value of
share options granted using the Black-Scholes option pricing model. The option-pricing model requires a number of assumptions, of which
the most significant are the expected share price volatility and the expected option term. Expected share price volatility was estimated
based on volatility of the share price of similar companies in the biotechnology sector. The expected option term represents the
period that the Company’s share options are expected to be outstanding and is determined based on the simplified method until sufficient
historical exercise data will support using expected option term assumptions. The risk-free interest rate is based on the yield from U.S.
treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends.

| m. | Basic and diluted loss per share: |

Basic loss per share is computed by dividing
the loss for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the
period.

<div align='center'>F-26</div>

REGENTIS BIOMATERIALS LTD.

NOTES TO FINANCIAL STATEMENTS

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

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |

For the years ended December 31,
2023 and 2022, all outstanding share options, preferred shares and warrants have been excluded from the calculation of the diluted net
loss per share as