Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 29

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 29
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 changes
in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability,
a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount
of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance
is recorded in statement of comprehensive loss.

    h.
    Concentration of credit risks:

Financial instruments that potentially
subject the Company to credit risk consist of cash and cash equivalents and restricted bank deposit. Cash and cash equivalents and restricted
bank deposit are invested in major banks in Israel and the United States. Such funds in the Israel may be in excess of insured limits
and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Company and its subsidiary’
cash and cash equivalents have high credit ratings.

The Company, have no off-balance-sheet
concentration of credit risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements.

    i.
    Research and development expenses:

Research and development costs are charged
to the consolidated statement of operations as incurred.

    j.
    Royalty-bearing grants:

Royalty-bearing grants from the Israeli
Innovation Authority (the “IIA”) for funding approved research and development projects are recognized at the time Saffron
Tech is entitled to such grants (i.e. at the time that there is reasonable assurance that the Company will comply with the conditions
attached to the grant and that there is reasonable assurance that the grant will be received), on the basis of the costs incurred and
reduce research and development costs. The cumulative research and development grants received by the Company from inception through December
2024 amounted to $452.

As of December 31, 2024, the Company
did not accrue for or pay any royalties to the IIA since no revenues were recognized in respect of the funded projects.

     F-11 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS

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

    NOTE 2:-
    SIGNIFICANT ACCOUNTING POLICIES (Cont.)

    k.
    Liability for employee rights upon retirement pay:

Saffron Tech’s liability for severance
pay is pursuant to Section 14 of the Severance Compensation Act, 1963 (“Section 14”), pursuant to which all the Company