Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 86

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 86
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33%

    Mold & production Equipment

    10%

    Office furniture and equipment

    10%

    f.
    Impairment of long-lived assets:

The Company’s long-lived assets
are reviewed for impairment in accordance with ASC No. 360, “Property, Plant and Equipment” whenever events or changes
in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (or asset
group) to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected
to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount
by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2024 and 2023, no
impairment losses have been recorded.

    g.
    Leases:

In February 2016, the FASB established
Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02. The guidance establishes a right-of-use model (“ROU”)
that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months.
The Group determines if an arrangement is or contains a lease at contract inception.

The Group is a lessee in an operating
lease for a research facility. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current
liabilities, and operating lease liabilities in our consolidated balance sheets.

     F-10 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS

U.S. dollars in thousands, except per share data

    NOTE 2:-
    SIGNIFICANT ACCOUNTING POLICIES (Cont.)

ROU assets represent Company’s
right to use an underlying asset for the lease term and lease liabilities represent Group’s obligation to make lease payments arising
from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments
over the lease term. As our lease does not provide an implicit rate, the Company generally uses the incremental borrowing rate based on
the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating
lease ROU asset also includes any lease payments made and excludes