Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 152

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 152
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ible Instruments and Contracts in an Entity s Own Equity. ASU 2020-06 will simplify the accounting
for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock.
Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared
with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features
that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a
scope exception from derivative accounting and(2) convertible debt instruments issued with substantial premiums for which the premiums
are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s
own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective for public companies for fiscal years
beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than
fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating
the impact that the adoption of ASU 2020-06 will have on the Company’s consolidated financial statement presentation or disclosures.

Other new pronouncements issued but
not effective as of December 31, 2024, are not expected to have a material impact on the Company’s consolidated financial statements.

     F-16 

SATIVUS TECH CORP.

NOTES TO FINANCIAL STATEMENTS

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

    NOTE 3:-
    CONVERTIBLE LOANS

    a.
    On February 21, 2019, the Company received a convertible loan from third party (“February 2019 Lender”), with a two-year term, in the principal amount of $550, which bears 10% annual interest rate (“February 2019 Loan”).

The Company, at its option, shall have
the right to redeem, in part or in whole, the outstanding principal amount and interest under this loan agreement prior to the
maturity date. The Company shall pay an amount equal to the principal amount being redeemed plus a redemption premium equal to 20%
of the outstanding principal amount being redeemed plus outstanding and accrued interest.

The February 2019 Lender shall be entitled
to convert at its