Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 198

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 4A
Chunk 198
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We have received royalty bearing
grants from the IIA to finance our research and development programs in Israel, through which we received IIA participation payments in
the aggregate amount of $5,445 through December 31, 2024. In return, we are committed to pay IIA royalties at a rate of 3% of future sales
of the developed products, up to 100% of the amount of grants received plus interest, calculated using LIBOR rate until December 31, 2023,
and SOFR interest thereafter. Through December 31, 2024, no royalties have been paid or accrued. In addition, under the intellectual property
purchase agreement with Althera, we assumed all of Althera’s liabilities towards the IIA totaling $474 of royalty bearing grants
received by Althera (plus accrued interest at LIBOR or SOFR rate). Our liability to the IIA at December 31, 2024, including royalty bearing
grants we received, grants assumed from Althera and the associated interest accrued on all such grants, totaled $7,222.

Under the February 2, 2016
intellectual property purchase agreement with Althera, we are obligated to pay Althera a fixed rate of 2% (plus VAT) of our future gross
revenues (as defined in the agreement) that are derived from the purchased intellectual property, up to a maximum amount of $1,500 (plus
VAT), in the aggregate, with the potential to set off against certain payments made by us to the IIA.

We also entered into intellectual
property agreements with Ramot at Tel Aviv University Ltd., the technology transfer company of Tel Aviv University (“ Ramot”)
on April 21, 2016 and July 14, 2016, all as amended on May 5, 2019, pursuant to which we are obligated to pay Ramot a fixed royalty of
2.5% on net sales of all of our products (as defined in the agreement) by us and our affiliates, with no set maximum. The royalty will
be payable as of the first commercial sale (as defined in the agreement), until the later of: 15 years; or until the last to expire of
the patents or patent applications from research developed at Tel Aviv University and assigned to us, on a country-by-country, product-by-product
basis. We are also obligated to pay a 7% royalty (and in no event less