Company: RGNT
Filing Date: 2025-09-30
Form Type: F-1/A
Source: 0001213900-25-093302
Chunk: 83

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-09-30
Form: F-1/A
Chunk 83
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 service inventions, even if the ownership rights were assigned to the employer, the Israeli Compensation and 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 June 30, 2025. 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