Company: REVB
Filing Date: 2025-05-20
Form Type: S-1
Source: 0001213900-25-045828
Chunk: 193

Company: REVELATION BIOSCIENCES, INC.
Filing Date: 2025-05-20
Form: S-1
Chunk 193
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 in which those temporary differences are expected to be realized. The effect on deferred tax assets
and liabilities of a change in tax rates is recognized as income or loss in the period that includes the enactment date. A valuation allowance
is established when necessary to reduce deferred tax assets to the amount expected to be realized. Interest and penalties related to unrecognized
tax benefits are included within the provision of income tax. To date, there have been unrecognized tax benefits balances.

Fair Value

Fair value is defined as the
exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company’s valuation
techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company follows
a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that
may be used to measure fair value. These levels of inputs are the following:

| ● | Level 1 — Quoted prices in active markets for 
 identical assets or liabilities.              |

| ● | Level 2 — Inputs other than Level 1 that are observable,                                                                              
 either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; 
 or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or 
 liabilities.                                                                                                                          |

| ● | Level 3 — Unobservable inputs that are supported                                                         
 by little or no market activity and that are significant to the fair value of the assets or liabilities. |

The Company has determined
that the measurement of the fair value of the Class C Common Stock Warrants (as defined in Note 5) is a Level 3 fair value measurement
and uses the Monte-Carlo simulation model for valuation (see Note 10).

F-10 REVELATION BIOSCIENCES, INC.
Notes to the Consolidated Financial Statements 2. Summary of Significant Accounting Policies(cont.) Warrant Liability The Company reviews the terms of debt instruments, equity instruments, and other financing arrangements to determine whether there are embedded derivative features, including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. Additionally, in connection with the issuance of financing instruments, the Company may issue freestanding options and warrants. The Company accounts for its