Company: RGNT
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006676
Chunk: 270

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 270
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 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.

<div align='center'>F-25</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.) |

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

Grants received from 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)).

| 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” that are not solely within the Company’s control, and which are considered in-substance
contingent redemption features