Company: SVREW
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001013762-25-001028
Chunk: 163

Company: SaverOne 2014 Ltd.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 19
Chunk 163
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generate future economic benefits and when it is possible to estimate the development costs in a reliable manner. In determining whether
an expense qualified for capitalization, management estimates the cash flows expected to derive from the asset, the timing of such flows,
the discounting rates and the expected benefit period. As noted in Note 2I above, as of the reported periods, management determined that
the aforesaid conditions were not met and thus development costs were not capitalized.

F-23

SAVERONE
2014 LTD.

NOTES
TO THE FINANCIAL STATEMENTS (CONT.)

(New
Israeli Shekels in thousands, except per share and share data)

Note
3 - Significant accounting estimates and considerations (Cont.)

  Liability                        

Government
grants in respect of a research and development project and marketing project are recognized as a liability and are measured at their
fair value as of the receipt date, unless at that date, it is reasonably assured that the amount received will not be refunded. In determining
these assumptions, management makes use of a forecast regarding revenues expected to derive from the items in respect of which the grants
were received and the royalties that have to be paid in respect thereof. There exists a degree of uncertainty in respect of the estimated
future cash flows, timing of such cash flows and estimate of the discount rate used in determining the amount of the liability. See also
Note 11 below.

  Share-based  

The
Company evaluates the fair value of share-based payments to employees and other parties rendering similar service, at the grant date,
using a Black and Scholes model, which include assumptions that include the Company’s share price, the expected share price volatility,
the risk-free interest rate, the expected dividend and the expected option term. In addition, upon grant of options to non-employees,
the Company is required to estimate the fair value of the services received under agreements.

For
evaluating of share-based payments to be recognized, inter alia, management assess the estimated number of options expected to be vest,
see also Note 14 below.

  Measurement                

With
respect to customers and contract assets, the Company measures the provision for expected credit losses in an amount equals to expected
credit losses over the life of the instrument. Credit losses are calculated based on the present value of the difference between the
contractual cash flows that the Company is entitled to receive under the contract and the cash flows the Company expects it to receive
when the capitalization of such cash flows is based on the original effective