Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 161

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 4
Chunk 161
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 as part of the programs under which the grants were given be manufactured
in Israel and that the know-how developed thereunder may not be transferred outside of Israel, unless a prior written approval is received
from the IIA (such approval is not required for the transfer of a portion of the manufacturing capacity which does not exceed, in the
aggregate, 10% of the portion declared to be manufactured outside of Israel in the applications for funding, in which case only notification
is required) and additional payments are required to be made to the IIA. It should be noted, that this does not restrict the export of
products that incorporate the funded know-how. With respect to transfer of know how out of Israel, when an approval is received from the
IIA, a redemption fee must be paid to the IIA. The Innovation Law provides a formula for the calculation of such redemption fee, based
on the value of the transferred know-how, multiplied by the amount of grants received from the IIA (including the accrued interest), and
divided by the total amounts expended by the grant recipient on R& D. To the extent any royalties were paid to the IIA on account of
the grants, such royalties will be deducted from the calculation. The redemption fee is subject to a cap of six times the total amount
of the IIA grants, plus interest accrued thereon, and a floor of equal to the total amounts of the IIA grants, plus the interest accrued.
Upon payment of the redemption fee, the know-how and manufacturing rights developed under the IIA funding cease to be subject to the Innovation
Law. See “Risk Factors- Risks Related to Our Incorporation and Location in Israel” for additional information.

Since our incorporation, we
have received grants from the IIA relating to various projects, of both royalty-bearing and non-royalty-bearing varieties. No royalties
have been paid to the IIA in respect of any grant. Our total outstanding obligation to the IIA at December 31, 2024, including grants
received by the Company, grants assumed from Althera Medical Ltd. and the associated interest accrued on all such grants, including the
interest accrued through, amounts to approximately $7.22 million, of royalty-bearing grants. In addition, through December 31, 2024, we
received IIA participation payments in the aggregate amount of $1,652 thousand under non-royalty-bearing programs from the IIA.

Government Regulation

Our products and operations
are subject