Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 295

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 19
Chunk 295
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 financial statements have been prepared in U. S. dollars.

A substantial portion
of the Company’s expenses are incurred in New Israeli Shekels. However, the Company finances its operations mainly in U. S. dollars,
a substantial portion of its expenses are incurred in U. S. dollars and revenues from its primary markets are anticipated to be generated
in U. S. dollars. As such, the Company’s management believes that the U. S. dollar is the currency of the primary economic environment
in which the Company operates. Thus, the functional and reporting currency of the Company is the U. S. dollar.

F-9

ALPHA TAU
MEDICAL LTD. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U. S. dollars
in thousands (except share and per share data)

NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.)

A subsidiary’s
functional currency is the currency of the primary economic environment in which the subsidiary operates; normally, that is the currency
of the environment in which a subsidiary primarily generates and expends cash. In making the determination of the appropriate functional
currency for a subsidiary, the Company considers cash flow indicators, local market indicators, financing indicators and the subsidiary’s
relationship with both the parent company and other subsidiaries. For subsidiaries that are primarily a direct and integral component
or extension of the parent entity’s operations, the U. S. dollar is the functional currency.

The Company has determined
the functional currency of its foreign subsidiaries is the U. S. dollar. The foreign operations are considered a direct and integral
part or extension of the Company’s operations. The day-to-day operations of the foreign subsidiaries are dependent on
the economic environment of the U. S. dollar.

Transactions and
balances denominated in U. S. dollars are presented at their original amounts. Monetary accounts maintained in currencies other than the
dollar are re-measured into dollars in accordance with Accounting Standards Codification No. 830, “ Foreign Currency
Matters” (“ ASC 830”). All transaction gains and losses of the re-measurement of monetary balance sheet items
are reflected in the statements of operations as financial income or expenses, as appropriate.

  Principles of consolidation:  

The consolidated
financial statements include the accounts of the Company and its subsidiaries. Intercompany balances have been eliminated upon consolidation.

  Cash equivalents:  

Cash equivalents
are short-term, highly liquid investments that are readily convertible into cash with an