Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 538

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 538
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. at the time that there is reasonable assurance that the Company will comply with the conditions
attached to the grant and that there is reasonable assurance that the grant will be received), on the basis of the costs incurred and
reduce research and development costs. The cumulative research and development grants received by the Company from inception through December
2024 amounted to $452.

As of December 31, 2024, the Company
did not accrue for or pay any royalties to the IIA since no revenues were recognized in respect of the funded projects.

     F-11 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS

U.S. dollars in thousands, except per share
data

    NOTE 2:-
    SIGNIFICANT ACCOUNTING POLICIES (Cont.)

    k.
    Liability for employee rights upon retirement pay:

Saffron Tech’s liability for severance
pay is pursuant to Section 14 of the Severance Compensation Act, 1963 (“Section 14”), pursuant to which all the Company’s
employees are included under Section 14, and are entitled only to monthly deposits. Under Israeli employment law, payments in accordance
with Section 14 release the Company from any future severance payments in respect of those employees. 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 consolidated balance sheets as the severance pay risks have been irrevocably transferred
to the severance funds.

    l.
    Fair value of financial instruments:

ASC Topic 820, “Fair Value Measurements
and Disclosures” (“ASC 820”), defines fair value as the price that would be received to sell an asset or paid to transfer
a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

In determining fair value, the Company
uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable
inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs
are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent
of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants
would use in pricing the asset or liability developed based on the