Company: RGNT
Filing Date: 2025-02-12
Form Type: DRS/A
Source: 0001213900-25-012299
Chunk: 272

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-02-12
Form: DRS/A
Chunk 272
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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.
Valuation allowances in respect of deferred tax assets are provided for, if necessary, to reduce deferred tax assets to amounts more likely
than not to be realized. As of December 31, 2023, and 2022, the Company had a full valuation allowance on its deferred tax assets.

The Company implements a two-step approach
to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax
return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical
merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step
is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement.
As of December 31, 2023, and 2022, no liability for uncertain tax positions has been recognized.

| h. | Concentrations of credit risk: |

Financial instruments that potentially
subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. Cash and cash equivalents are deposited
in a major bank in Israel.

Management believes that the banks that
hold the Company’s cash and cash equivalent are financially sound and, accordingly, minimal credit risk exists with respect to these
cash and cash equivalents.

<div align='center'>F-25</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.) |

| i. | Royalty bearing grants and non-royalty bearing grants |

Grants received from the IIA are recognized when the grant becomes
receivable, provided there was reasonable assurance that the Company will comply with the conditions attached to the grant and there was
reasonable assurance the grant will be received. The grant is deducted from the research and development expenses as the applicable costs
are incurred. Future royalties will be recorded as part of costs of goods sold (see also note 9(1)).

The Company also received non-royalty bearing grants from European
Union through the European Commission