Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 302

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 19
Chunk 302
---
. The estimated fair values of these financial instruments approximate their carrying value as presented,
due to their short-term maturities. We consider public warrant liabilities to be Level 1 and private warrants are measured at fair value
using Level 3 inputs.

  Income taxes:  

The Company accounts
for income taxes in accordance with ASC 740, “ Income Taxes” (“ ASC 740”). ASC 740 prescribes the use of the liability
method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and
tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences
are expected to reverse. The Company provides a valuation allowance, to reduce deferred tax assets to their estimated realizable value,
if needed.

ASC 740 contains
a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position
taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than
not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals
or litigation processes. The second step is to measure the tax benefit as the largest amount that ismore than 50% likely to be realizedupon ultimate settlement.

As of December 31,
2023, and 2024 no liability for unrecognized tax benefits was recorded.

F-15

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.)

  Concentration of credit risks:  

Financial instruments
that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, short-term deposits
and restricted deposits.

Cash, cash equivalents,
short-term deposits and restricted deposits are deposited in major banks in Israel, United States and Japan. Such investments in Israel
and abroad may be in excess of insured limits and are not insured in other jurisdictions. Generally, cash and cash equivalents may be
redeemed upon demand and, therefore, bear minimal risk.

  Severance pay:  

All the Company’s
employees who are Israeli citizens have subscribed to Section 14 of Israel’s Severance Pay Law, 5723-1963 (“ Section 14”).
Purs