Company: RGNT
Filing Date: 2025-09-30
Form Type: F-1/A
Source: 0001213900-25-093302
Chunk: 256

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-09-30
Form: F-1/A
Chunk 256
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 concentrations of credit risk consist principally of cash and cash equivalents. Cash and cash equivalents are
deposited in a major bank in Israel.

Management believes that the banks that
hold the Company’s cash and cash equivalent are financially sound and, accordingly, minimal credit risk exists with respect to
these cash and cash equivalents.

| i. | Royalty bearing grants and non-royalty bearing grants |

Grants received from the Israel Innovation
Authority (the “IIA”) are recognized when the grant becomes receivable, provided there was reasonable assurance that the
Company will comply with the conditions attached to the grant and there was reasonable assurance the grant will be received. The grant
is deducted from the research and development expenses as the applicable costs are incurred. Future royalties will be recorded as part
of costs of goods sold (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”