Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 680

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 680
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IBLE LOANS (Cont.)

    c.
    On August 7, 2020, the Company received a convertible loan from a third party (“August 2020 Lender”) in the amount of $200 (the “August 2020 Loan”). Per the terms of the Agreement, the August 2020 Loans has a maturity date of August 7, 2022, (“Maturity Date”) and accrues annual interest at a rate of 10%

The August 2020 Loan is convertible
by the August 2020 Lender into Shares, at their discretion, at the lower of a fixed price of $1.02 (the “Fixed Conversion Price”)
or 80% of the lowest volume weighted average price (“VWAP”) of the Company’s common stock during the 10 trading days
immediately preceding the conversion date (the “Market Conversion Price”).

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

The Company also granted the August
2020 Investor warrants to purchase 50,000
shares of common stock of the Company at an exercise price of $2.00 per share, such exercise price is subject to any future
price-based anti-dilution adjustments. In accordance with ASU 2017-11 the warrants were classified in shareholders’ equity.

The fair value of the warrants granted
was $35 using the Black-Scholes-Merton option pricing model using the following assumptions:

    Schedule of assumptions used for valuation 

    August 2020 
  
    Share price 
    $0.86 
  
    Dividend yield 
     0% 
  
    Risk-free interest rate 
     0.21% 
  
    Expected term (in years) 
     5 
  
    Volatility 
     176.96% 

The Company accounted for the August
2020 Loan in accordance with ASC 470-20, Debt with conversion and other Options. The combined intrinsic value of the BCF for the August
2020 Loan was calculated and valued at $249 as of August 7, 2020, and the Company allocated $58 to the BCF as a liability. As of December
31, 2024, the BCF was revalued at $138 ($190 as of December 31, 2023).

     F-19 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS