Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 297

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 19
Chunk 297
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 arising from the lease agreement. ROU assets are initially measured at amounts, which represent the discounted
present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured
at lease commencement date based on the discounted present value of minimum lease payments over the lease term. The implicit rate within
the operating leases is generally not determinable, therefore the Company uses the Incremental Borrowing Rate (“ IBR”) based
on the information available at commencement date in determining the present value of lease payments. The Company’s IBR was estimated
to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the
leased asset was located.

Lease term may include
options to extend or terminate the lease when it is reasonably certain that the Company would exercise that option. The Company elected
to not recognize a lease liability ROU asset for leases with a term of twelve months or less. The Company also elected the practical expedient
to not separate lease and non-lease components for its leases.

Payments under the
Company’s lease agreements are primarily fixed; however, certain lease agreements contain variable payments, which are expensed
as incurred and not included in the operating lease ROU assets and liabilities.

Lease expenses for
lease payments are recognized on a straight-line basis over the lease term.

  Research and development expenses, net:  

Research and development
expenses consist of personnel costs (including salaries, benefits and share-based compensation), materials, consulting fees and payments
to subcontractors, costs associated with obtaining regulatory approvals, executing pre-clinical and clinical studies and maintenance and
prosecution of the Company’s intellectual property rights. In addition, research and development expenses include overhead allocations
consisting of various administrative and facilities related costs. The Company charges research and development expenses as expenses when
incurred.

Grants from the Israeli
Innovation Authority (IIA) are recognized at the time the Company is entitled to such grants on the basis of the related costs incurred
and recorded as a deduction from research and development expenses.

F-11

ALPHA TAU
MEDICAL LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U. S. dollars
in thousands (except share and per share data)

NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.)

  Grants and participations:  

Royalty-bearing grants
from the Israeli Innovation Authority (“ IIA”) (previously