Company: RGNT
Filing Date: 2025-01-24
Form Type: DRS
Source: 0001213900-25-006245
Chunk: 84

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-01-24
Form: DRS
Chunk 84
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 Royalties Committee, or the Committee,
a body constituted under the Patent Law, shall determine whether the employee is entitled to remuneration for these inventions. The Committee
has not yet determined the method for calculating this Committee-enforced remuneration. While it has previously been held that an employee
may waive his or her rights to remuneration in writing, orally or by conduct, litigation is pending in the Israeli labor court is questioning
whether such waiver under an employment agreement is enforceable. Although our Israeli employees have agreed that we exclusively own any
rights related to their inventions, we may face claims demanding remuneration in consideration for employees’ service inventions.
As a result, we could be required to pay additional remuneration or royalties to our current and/or former employees, or be forced to
litigate such claims, which could negatively affect our business.

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We received Israeli government grants for certain of our research and development activities, the terms of which may require us to pay royalties and to satisfy specified conditions in order to manufacture products and transfer technologies outside of Israel. If we fail to satisfy these conditions, we may be required to pay penalties and refund grants previously received.

Our research and development efforts have been financed in part through
royalty-bearing grants in an aggregate amount of $2.6 million (including interest at the amount of $0.3 million) that we received from
the Israel Innovation Authority, or IIA as of December 31, 2023. With respect to the royalty-bearing grants we are committed to pay royalties
at a rate between 3% and 4.5% on sales proceeds from our products that were developed under the IIA, programs up to the total amount of
grants received, linked to the U.S. dollar and bearing interest at an annual rate of the Term Secured Overnight Financing Rate, or SOFR,
applicable to U.S. dollar deposits. Due to the accrual of interest, the total amount of the grants that will be repaid through royalties
will increase until repayments begin. We are further required to comply with the requirements of the Israeli Encouragement of Industrial
Research, Development and Technological Innovation Law, 5744-1984, as amended, and related regulations, or the Research Law, with respect
to those past grants. When a company develops know-how, technology or products using IIA grants, the terms of these grants and the Research
Law restrict the transfer or license of such