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

Company: SATIVUS TECH CORP.
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1
Chunk 10
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 STATEMENTS (Unaudited)
  
    U.S. dollars in thousands

    NOTE 3:-
    CONVERTIBLE LOANS

    a.
    On February 21, 2019, the Company received a convertible loan from third party (“February 2019 Lender”), with a two-year term, in the principal amount of $550, which bears 10% annual interest rate (“February 2019 Loan”).

The Company, at its option, shall have
the right to redeem, in part or in whole, the outstanding principal amount and interest under this loan agreement prior to the maturity
date. The Company shall pay an amount equal to the principal amount being redeemed plus a redemption premium equal to 20% of the outstanding
principal amount being redeemed plus outstanding and accrued interest.

The February 2019 Lender shall be entitled
to convert at its option any portion of the outstanding and unpaid principal or accrued interest into fully paid and non-assessable shares
of common stock, at the lower of the fixed conversion price then in effect or the market conversion price. The number of shares of common
stock issuable upon conversion of any conversion amount shall be determined by dividing (x) such conversion amount by (y) the fixed conversion
price of $20.00 or (z) 80% of the lowest the volume-weighted average price of the Company’s shares of common stock during the 30
trading days immediately preceding the conversion date.

The Company accounted for the February
2019 Loan in accordance with ASC 470-20, Debt with conversion and other Options. As of June 30, 2025, the BCF was revalued at $122.

On November 1, 2024, the loan agreement
was extended until March 31, 2025.

The February 2019 Loan is included in
the convertible loans in current liabilities as of June 30, 2025, in the amount of $407, and $392 as of December 31, 2024.

The Company accounted for the February
2019 Loan in accordance with ASC 470-20, Debt with conversion and other Options. The value of the BCF for the February 2019 Loan was calculated
using Monte Carlo model. As of June 30, 2025 the Company allocated $122 to the BCF as a liability ($144 as of December 31, 2024).

     F-10 

    SATIVUS TECH CORP.