Company: RGNT
Filing Date: 2025-07-07
Form Type: F-1/A
Source: 0001213900-25-061821
Chunk: 255

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-07-07
Form: F-1/A
Chunk 255
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 entitled to demand a complete reimbursement of the entire grant until the ultimate authorization
of the project (see also note 9(4)).

<div align='center'>F-10</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.) |

| 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 (refer to Note 10 for further discussion on the redemption rights of the convertible preferred
D-2 shares). The warrants are subject to revaluation at each balance sheet date until settlement, with revaluations recognized in financial
expense, net in the statements of comprehensive loss.

| l. | Share-based payment transactions: |

The Company accounts for share-based
compensation in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”), which requires companies to
estimate the fair value of share-based payment awards on the date of grant. The value of the portion of the award that is ultimately
expected to vest is recognized as an expense over the requisite service periods in the Company’s statements of comprehensive loss.

The Company recognizes compensation expenses
for the grant-date fair value of its awards granted based on the vesting attribution approach over the requisite service period of each
of the awards, net of estimated forfeitures. The Company estimates forfeitures at the time of grant and revise such estimates, if necessary,
in subsequent periods if actual forfeitures differ from those estimates.

The Company estimates the fair value
of share options granted using the Black-Scholes option pricing model. The option-pr