Company: SATT
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001683168-25-006219
Chunk: 9

Company: SATIVUS TECH CORP.
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1
Chunk 9
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 and significant to the overall fair value measurement.

The fair value hierarchy also requires
an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

     F-8 

    SATIVUS TECH CORP.
  
    NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
  
    U.S. dollars in thousands

    NOTE 2:-
    SIGNIFICANT ACCOUNTING POLICIES (cont.)

The carrying amounts of cash and cash
equivalents, short term deposits, trade receivables, trade payables and short-term loan approximate their fair value due to the short-term
maturity of such instruments.

The Company elected to measure some
of the convertible loans under the fair value option. Under the fair value option the convertible loans will be measured at fair value
in each reporting period until they will be converted, with changes in the fair values being recognized in the Company’s consolidated
statement of operations as financial income or expense. The proceeds received for the issuance of the convertible loans were allocated
at fair value conducted on an arm’s-length basis.

The Company’s financial assets
and liabilities that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows:

    Schedule of financial assets and liabilities measured value on recurring basis 

    Balance as of June 30, 2025 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Fair Value of convertible component in convertible loan, net of discounts and debt issue costs 
    $–  
    $–  
    $696  
    $696 

    Total liabilities 
    $–  
    $–  
    $696  
    $696 

    Balance as of December 31, 2024 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Fair Value of convertible component in convertible loan, net of discounts and debt issue costs 
    $–  
    $–  
    $771  
    $771 

    Total liabilities 
    $–  
    $–  
    $771  
    $771 

     F-9 

    SATIVUS TECH CORP.
  
    NOTES TO CONDENSED CONSOLIDATED FINANCIAL