Company: RVRC
Filing Date: 2025-10-03
Form Type: S-1/A
Source: 0001213900-25-096094
Chunk: 208

Company: Revium Rx.
Filing Date: 2025-10-03
Form: S-1/A
Chunk 208
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 employees are included under Section 14, and are entitled only to monthly deposits, at a rate
of 8.33% of their monthly salary, made in the employee’s name with insurance companies. Under Israeli employment law, payments in
accordance with Section 14 release the subsidiary from any future severance payments in respect of those employees. The Company has made
all of the required payments as of December 31, 2023 and as of July 23, 2024.

The fund is
made available to the employee at the time the employer-employee relationship is terminated, regardless of cause of termination.

The severance
pay liabilities and deposits under Section 14 are not reflected in the balance sheets as the severance pay risks have been irrevocably
transferred to the severance funds.

| h. | Income taxes: |

The Company
accounts for income taxes in accordance with ASC No. 740, “Income Taxes”, (“ASC 740”) which prescribes the use
of the liability method whereby deferred tax asset and liability account balances are determined based on differences between 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, if necessary, to reduce deferred tax assets to their estimated realizable value. As of July 23, 2024 and
December 31, 2023, a full valuation allowance was provided by the Company.

<div align='center'>F-18</div>

REVIUM RX.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Cont.)

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 is more than 50% likely to be realized
upon ultimate settlement. As of July 23, 2024 and December 31, 2023, , no liability for unrecognized tax benefits was recorded as a result
of the