Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 311

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 19
Chunk 311
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                                           Year ended December 31,                                    
                                           2023                                      2024             
 ──────────────────────────────────────────────────────────────────────────────────────────────────────
  Fair value at beginning of the year      $                              2,228      $           977  
  Change in fair value                                                  ( 1,251                ( 496  
  Fair value at end of the year            $                                977      $           481  

There
were no transfers in or out of Level 3 from other levels in the fair value hierarchy.

NOTE 10:- CONVERTIBLE PREFERRED SHARES AND WARRANTS

  Convertible Preferred shares:  

The Company issued
Series A Convertible Preferred shares in 2018 and Series B Convertible Preferred shares in 2020. The Company classified the Convertible
Preferred shares outside of shareholders’ deficiency as required by ASC 480-10-S99, since these Convertible Preferred shares were entitled
to liquidation preferences which might have triggered a deemed liquidation event that is not solely within the Company’s control.

Upon completion
of the Merger, all convertible preferred shares outstanding, totaling13,739,186shares, were automatically converted into14,270,797Ordinary shares and their carrying value of $53,964was reclassified into shareholders’ equity.

  Warrants to purchase Preferred A shares:  

Under the 2018 SPA,
the Company had initially granted the Preferred A share investors an aggregate number of3,614,960Warrants convertible into Preferred
A shares of the Company (“ Preferred A Warrants”), with an exercise price of $5.04. The number of Warrants issued was subject
to similar adjustments as the conversion ratio of the Preferred A shares.

In connection with
the 2020 SPA, the Warrants agreement was modified, and the Company subsequently granted the Preferred A share investors approximately7% additional Preferred A Warrants, increasing the aggregate number of Preferred A Warrants to3,880,777, and reducing the exercise price
to $3.87per share. Since the Warrants were classified as a liability and subsequently measured at fair value through earnings, the effect
of the Preferred A Warrants modification was reflected in the fair value of the Warrants and recognized in earnings.

Upon completion of the Merger, the3,880,777warrants convertible into Preferred A Shares of the Company were converted into an identical number of warrants convertible
into ordinary shares of the Company until September 2024 at an exercise price of $3.87