Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 298

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 19
Chunk 298
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 known as Office of the Chief Scientist) of the Ministry of Economy
and Industry in Israel for funding of approved research and development projects are recognized at the time the Company is entitled to
such grants, on the basis of the costs incurred, and are presented as a deduction from research and development expenses.

Since the payment
of royalties is not probable when the grants are received, the Company does not record a liability for amounts received from IIA until
the related revenues are recognized. In the event of failure of a project that was partly financed by IIA, the Company will not be
obligated to pay any royalties or repay the amounts received.

The Company recognized
IIA’s participations in research and development as a reduction from research and development expenses in the amount of $1,343, $841and
$87for the years ended December 31, 2022, 2023 and 2024, respectively.

Additionally, the
Company received non-royalty-bearing grants from the Jerusalem Development Authority and the Authority for Investments and Development
of the Industry and Economy. For the years ended December 31, 2023, and 2024, these grants reduced the Company’s research and development
expenses by $483and $1,181, respectively.

  Accounting for share-based payments:  

The Company accounts
for share-based compensation in accordance with ASC No. 718, “ Compensation - Stock Compensation” that requires companies
to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model.

For graded vesting
awards with no market or performance conditions, the Company recognizes the related share-based compensation expense on a straight-line
basis over the requisite service period of the awards. For awards with performance conditions the share-based compensation expense is
recognized if and when the Company concludes that it is probable that the performance condition will be achieved and where the performance
condition awards include graded vesting, the share-based compensation expense is recognized based on the accelerated method. The Company
reassesses the probability of vesting at each reporting period for awards with performance conditions and adjust compensation cost based
on its probability assessment.

The Company recognizes
forfeitures of awards as they occur.

The Company selected
the Black-Scholes option-pricing model as the most appropriate fair value method for its option awards. The option-pricing model requires
a number of assumptions, of which the most significant are the share price, volatility and the expected option term.

The Company measures
the