Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 192

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 192
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 by the Company to lenders through convertible bridge
loans and stock warrants transactions should be classified as a component of permanent equity or as derivative liabilities. The Company
utilized a Monte Carlo model to value the derivative bifurcated liabilities, which estimates the fair value of the liabilities based upon
certain assumptions utilizing a probability-weighted analysis of certain future events. Other inputs into the model include volatility,
closing stock prices at various valuation points, and conversion prices as determined by the applicable agreements.

We identified the fair value of the derivative
liability as a critical audit matter, as (i) the assumptions utilized in the model to value the derivative liability required judgment,
and the model is inherently complex. (ii) the accounting for derivative liabilities is complex (iii) the magnitude of the liabilities
and losses recognized in the estimation process.

How the Critical Audit Matter was addressed in our Audit

The primary procedures we performed to address
this critical audit matter involved the assistance of our valuation specialist and included the following: (i) we reviewed the qualifications
of the valuation specialist utilized by the Company (ii) we audited the underlying inputs utilized by the valuation specialist in the
model (iii) we evaluated the reasonableness of management’s assumptions included in the model (iv) we reviewed the underlying source
documents to determine the proper accounting of the transactions (v) we tested the accuracy of those underlying calculations.

/s/ Elkana Amitai CPA

We have served as the Company’s auditor
since 2023.

Mitzpe Netofa, Israel

March 31, 2025

PCAOB 6816

 F-3 

SATIVUS TECH CORP.

CONSOLIDATED BALANCE SHEETS

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

    December 31  
    December 31 

    2024  
    2023 
  
    ASSETS 

    CURRENT ASSETS: 

    Cash and cash equivalents 
    $96  
    $176 
  
    Deposits 
     –  
     637 
  
    Restricted cash 
     11  
     11 
  
    Prepaid expenses and other receivables 
     24  
     313 
  
    Total current assets 
     131  
     1,137 

    NON CURRENT ASSETS 

    Right-of-use asset 
     –  
     15