Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 34

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 34
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 convertible instruments by removing certain separation models in Accounting
Standards Codification (“ASC”) 470-20, “Debt—Debt with Conversion and Other Options,” (“ASC 470-20”)
for convertible instruments. Under ASU 2020-06, the embedded conversion features no longer are separated from the host contract for convertible
instruments with conversion features that are not required to be accounted for as derivatives under ASC 815, “Derivatives and Hedging,”
or that do not result in substantial premiums accounted for as paid-in capital. For smaller reporting companies, ASU 2020-06 is effective
for fiscal years, and interim periods within those years, beginning after December 15, 2023, with early adoption permitted for fiscal
years beginning after December 15, 2020. The Company is currently assessing the impact of this update on the Company’s consolidated
financial statements.

Business Combination

On October 28, 2021, the FASB issued
ASU 2021-08, which amends ASC 805 to “require acquiring entities to apply Topic 606 to recognize and measure contract assets and
contract liabilities in a business combination.” Under current GAAP, an acquirer generally recognizes such items at fair value on
the acquisition date. According to the FASB, this Update is intended “to improve the accounting for acquired revenue contracts with
customers in a business combination by addressing diversity in practice and inconsistency related to the following:

    ·
    Recognition of an acquired contract liability

    ·
    Payment terms and their effect on subsequent revenue recognized by the acquirer.

ASU 2021-08 06 is effective for fiscal
years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently assessing the impact of
this update on the Company’s consolidated financial statements.

     F-15 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS

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

    NOTE 2:-
    SIGNIFICANT ACCOUNTING POLICIES (Cont.)

Warrants

In May 2021, the Financial Accountings
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-04, “Earnings Per Share (Topic
260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Der