Company: RGNT
Filing Date: 2025-02-12
Form Type: DRS/A
Source: 0001213900-25-012299
Chunk: 273

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-02-12
Form: DRS/A
Chunk 273
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 Executive Agency for Small and Medium-sized Enterprises as part of the Horizon 2020 Research and
Innovative Framework Programme. The non-royalty bearing grants for funding the projects are recognized as a reduction in research and
development expense once the Company submits the final report to the Programme and receives approval of the project completion, as the
grantor is entitled to demand a complete reimbursement of the entire grant until the ultimate authorization of the project (see also note
9(4)).

| j. | Convertible notes and short-term loan: |

Proceeds from the issuance of notes with
a conversion feature or short-term loan and warrants are allocated to equity based on the intrinsic value of such conversion feature (if
any) in accordance with ASC 470, Debt, with a corresponding discount on the notes or loan recorded in liabilities which is amortized
in finance expense over the term of the notes or loan. The proceeds from the issuance of notes or loan with conversion features that are
determined to not be beneficial are allocated entirely to liabilities.

| k. | Warrant liability |

The warrants, which are freestanding instruments,
are considered a liability and measured at fair value as the shares underlying the warrants contain liquidation preferences upon certain
“deemed liquidation events” that are not solely within the Company’s control, and which are considered in-substance
contingent redemption features (refer to Note 10 for further discussion on the redemption rights of the convertible preferred D-2 shares).
The warrants are subject to revaluation at each balance sheet date until settlement, with revaluations recognized in financial expense,
net in the statements of comprehensive loss.

| l. | Share-based payment transactions: |

The Company accounts for share-based compensation
in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”), which requires companies to estimate the
fair value of share-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest
is recognized as an expense over the requisite service periods in the Company’s statements of comprehensive loss.

The Company recognizes compensation
expenses for the grant-date fair value of its awards granted based on the vesting attribution approach over the requisite service
period of each of the awards, net of estimated forfeitures. The Company estimates forfeitures at the time of grant and revise such
estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company estimates the fair value of
share options granted using the Black-S