Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 271

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 271
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ay (a third party at that time, and a director of the Company as of October 28, 2021) in the amount of $100 (“Director Loan”). The loan has a maturity date of July 31, 2022 (“Maturity Date”) and accrues annual interest at a rate of 10%.

The Director Loan is convertible into
Shares, at his discretion, at the lower of a fixed price of $1.02 (the “Fixed Conversion Price”) or 80% of the lowest volume
weighted average price (“VWAP”) of the Company’s common stock during the 10 trading days immediately preceding the conversion
date (the “Market Conversion Price”).

The Company also granted the Mr. Yannay
warrants to purchase 25,000 shares of common stock of the Company at an exercise price of $2.00 per share, such exercise price is subject
to any future price-based anti-dilution adjustments. Accordance with ASU 2017-11 the warrants were classified in shareholders equity.

The fair value of the warrants granted
was $18 using the Black-Scholes-Merton option pricing model using the following assumptions:

    Schedule of assumptions used for valuation 

    August 2020 
  
    Share price 
    $0.86 
  
    Dividend yield 
     0% 
  
    Risk-free interest rate 
     0.21% 
  
    Expected term (in years) 
     5 
  
    Volatility 
     176.96% 

     F-20 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS

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

    NOTE 3:-
    CONVERTIBLE LOANS (Cont.)

The Company accounted for the director’s
loan in accordance with ASC 470-20, Debt with conversion and other Options. The combined intrinsic value of the BCF for the August 2020
Loan was calculated and valued at $129 as of July 31, 2020, and the Company allocated $129 to the BCF as a liability. As of December 31,
2024, the BCF was revalued at $58 ($182 as of December 31, 2023).

The Company estimated the fair value
of BCF using the Monte Carlo option pricing model using the following weighted average assumptions:

     Schedule of assumptions used for valuation 

    July 31, 202