Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 30

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 30
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’s
employees are included under Section 14, and are entitled only to monthly deposits. Under Israeli employment law, payments in accordance
with Section 14 release the Company from any future severance payments in respect of those employees. The fund is made available to the
employee at the time the employer-employee relationship is terminated, regardless of cause of termination. The severance pay liabilities
and deposits under Section 14 are not reflected in the consolidated balance sheets as the severance pay risks have been irrevocably transferred
to the severance funds.

    l.
    Fair value of financial instruments:

ASC Topic 820, “Fair Value Measurements
and Disclosures” (“ASC 820”), defines fair value as the price that would be received to sell an asset or paid to transfer
a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

In determining fair value, the Company
uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable
inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs
are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent
of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants
would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken
down into three levels based on the inputs as follows:

    Level 1 —
    Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access.

    Level 2 —
    Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

    Level 3 —
    Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The fair value hierarchy also requires
an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The carrying amounts of cash and cash
equivalents, short term deposits, trade receivables, trade payables and short-term loan approximate their fair value due to the short-term
maturity of such instruments.

The Company elected to measure some
of the convertible loans under the fair value option (see note 4). Under the fair value option, the