Company: RVRC
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121070
Chunk: 206

Company: Revium Rx.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 206
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 on the vesting attribution approach over the requisite service
period of each of the awards, net of estimated forfeitures. Forfeitures are accounted for as they occur. The Company estimates the fair
value of share options granted using the Black-Scholes option pricing model. The option-pricing model requires a number of assumptions,
including the expected share price volatility, free risk interest rate, dividends and the expected option term. Expected volatility was
calculated based on the average of the standard deviation of a sample of similar companies. The expected option term represents the period
that the Company’s share options are expected to be outstanding and is determined based on the simplified method until sufficient
historical exercise data will support using expected life assumptions.

The risk-free
interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends
and has no foreseeable plans to pay dividends. As a result, the dividend rate was zero.

| n. | Accounting pronouncement recently adopted |

In February
2016, the FASB issued ASU 2016-02 “Leases” to increase transparency and comparability among organizations by recognizing
lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For operating leases,
the ASU requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease
payments, on its balance sheet. The ASU retains the current accounting for lessors and does not make significant changes to the recognition,
measurement, and presentation of expenses and cash flows by a lessee.

Effective
January 1, 2022, the Company adopted the new lease accounting standard. The Company elected to apply the practical expedients permitted
under the transition guidance within the new standard. As such, there was no impact on the Company’s financial statements as a
result of adopting ASU 2016-02.

In June 2016,
the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016-13, Financial Instruments – Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model
with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected
to be collected. The guidance was effective for the Company beginning January 1, 2023, and interim periods therein. The implementation
of