Company: RGNT
Filing Date: 2025-10-24
Form Type: F-1/A
Source: 0001213900-25-101900
Chunk: 256

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-10-24
Form: F-1/A
Chunk 256
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 (see also note 9(1)).

The Company also received non-royalty
bearing grants from European Union through the European Commission Executive Agency for Small and Medium-sized Enterprises as part of
the Horizon 2020 Research and Innovative Framework Programme. The non-royalty bearing grants for funding the projects are recognized
as a reduction in research and development expense once the Company submits the final report to the Programme and receives approval of
the project completion, as the grantor is entitled to demand a complete reimbursement of the entire grant until the ultimate authorization
of the project (see also note 9(4)).

<div align='center'>F-10</div>

REGENTIS BIOMATERIALS LTD.

NOTES TO FINANCIAL STATEMENTS

U.S. dollars in thousands, except share and per share data

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |

| j. | Convertible notes and short-term loan: |

Proceeds from the issuance of notes with
a conversion feature or short-term loan and warrants are allocated to equity based on the intrinsic value of such conversion feature
(if any) in accordance with ASC 470, Debt, with a corresponding discount on the notes or loan recorded in liabilities which is
amortized in finance expense over the term of the notes or loan. The proceeds from the issuance of notes or loan with conversion features
that are determined to not be beneficial are allocated entirely to liabilities.

| k. | Warrant liability |

The warrants, which are freestanding
instruments, are considered a liability and measured at fair value as the shares underlying the warrants contain liquidation preferences
upon certain “deemed liquidation events” that are not solely within the Company’s control, and which are considered
in-substance contingent redemption features (refer to Note 10 for further discussion on the redemption rights of the convertible preferred
D-2 shares). The warrants are subject to revaluation at each balance sheet date until settlement, with revaluations recognized in financial
expense, net in the statements of comprehensive loss.

| l. | Share-based payment transactions: |

The Company accounts for share-based
compensation in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”), which requires companies to
estimate the fair value of share-based payment awards on the date of grant. The value of the portion of the award that is ultimately
expected to vest is recognized as an expense over the requisite service periods in the Company’s statements of comprehensive