Company: SVREW
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001013762-25-001028
Chunk: 157

Company: SaverOne 2014 Ltd.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 19
Chunk 157
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IAL STATEMENTS (CONT.)

(New
Israeli Shekels in thousands, except per share and share data)

Note
2 - Material accounting policies (Cont.)

  Settlement of financial liabilities through equity instruments  

In
cases in which partial or full settlement is made of financial liabilities through equity instruments, the equity instruments are measured
at the fair value of the equity instrument if it is possible to estimate the fair value reliably. Otherwise, the measurement of the equity
instruments is carried out on the basis of the fair value of the financial liability being settled (or a part thereof), at the date of
settlement. The difference between the fair value of the equity instruments used to settle the financial liability being settled and
the carrying value of the liability is carried to profit and loss.

  Issuance of financial instruments as part of a package  

At
the closing date, the Company allocated total gross proceeds as follows: (i) first, the consideration is allocated to financial instruments
that are under fair value through profit and loss category, (ii) second, the consideration is allocated to financial instruments thar
are measured at amortized costs, (iii) the residual amount, if any, is allocated to instruments that are classified in equity.

Incremental
and direct issuance costs were allocated to the components based on the same proportion as the allocation of the gross proceeds. The
portion of issuance costs that was allocated to instruments under fair value through profit and loss category was recognized immediately
as finance expenses and the portion of issuance costs related to equity instruments was deducted from additional-paid in capital.

  Derivative Warrants Liability  

Certain
Warrants that were issued by the Company to investors through the U. S. IPO (see also Note 13C1) are exercisable into ADSs with a fixed
exercise price, which is denominated in U. S. dollar currency, which is different from the functional currency of the Company (NIS) and
also may be exercisable to a variable number of shares due to the existence of cashless exercise mechanism under certain circumstances.
Accordingly, such Warrants are considered as a current financial liability classified under ‘ Fair value through profit or loss’
category (FVTPL). Changes in the estimated fair value of the outstanding Warrants are recognized each reporting period in the profit
and loss as part of the financing expenses, until such Warrants are exercised or expired.

  Liability in respect of government grants  

Government
grants in respect of a research and development project received from the Israeli