Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 172

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 172
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 for financial reporting. Our board
of directors does not believe that it is necessary to have an audit committee because management believes that the functions of an audit
committees can be adequately performed by the board of directors. In addition, we believe that retaining an independent director who would
qualify as an “audit committee financial expert” would be overly costly and burdensome and is not warranted in our circumstances
given the stage of our development and the fact that we have not generated positive cash flow to date.

As we generate revenue in the future, we intend
to form a standing audit committee and identify and appoint a financial expert to serve on our audit committee.

Code of Ethics

The Company has adopted a Code of Ethics for Senior
Financial Officers that is applicable to our principal executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions.

Indemnification

Under our Articles of Incorporation and Bylaws
of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a law suit, because of his
position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. We may advance expenses incurred
in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceeding as to which he is to
be indemnified, we must indemnify him against all expenses incurred, including attorney’s fees. With respect to a derivative action,
indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is
judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the State of
Delaware.

Regarding indemnification for liabilities arising
under the Securities Act of 1933, which may be permitted to directors or officers under Delaware law, we have been advised that, in the
opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore,
unenforceable.

 15 

Family Relationships

No family relationship exists between any director,
executive officer, or any person contemplated to become such.

Director Independence

We currently do not have any independent directors
serving on our board of directors.

Possible Potential Conflicts

The OTCBB where our stock is quoted does not currently
have any director independence requirements.

No member of the Board of Directors will be required