Company: RVRC
Filing Date: 2025-02-14
Form Type: S-1
Source: 0001213900-25-013823
Chunk: 141

Company: Revium Rx.
Filing Date: 2025-02-14
Form: S-1
Chunk 141
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 the acquisition date in accordance with ASC 730, “Research and Development”.

| j. | Severance pay: |

The subsidiary
had no employees as of December 31, 2023. The subsidiary’s liability for severance pay is subject to Section 14 of Israel’s
the Severance Compensation Act, 1963 (“Section 14”), pursuant to which all Subsidiary’s employees are included under
Section 14, and are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in the employee’s name with
insurance companies. Under Israeli employment law, payments in accordance with Section 14 release the subsidiary from any future severance
payments in respect of those employees. The Company has made all of the required payments as of December 31, 2023.

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.

Severance expenses
for the years ended December 31, 2023, and 2022 amounted to $1 and 1$, respectively.

| k. | Income taxes: |

The Company
accounts for income taxes in accordance with ASC No. 740, “Income Taxes”, (“ASC 740”) which prescribes the use
of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial
reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the
differences are expected to reverse.

The Company
provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. As of December 31, 2023,
and 2022, a full valuation allowance was provided by the Company.

ASC 740 contains
a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position
taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than
not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals
or litigation processes. The second step is to measure the tax benefit as the largest amount that is more