Alpha Tau(DRTS) - 2024 Q4 - Annual Report

Financial Reporting and Accounting Standards - The company prepares its consolidated financial statements in accordance with U.S. GAAP, requiring estimates and judgments that affect reported amounts of assets, liabilities, and expenses [717]. - Share-based compensation is accounted for under ASC No. 718, with expenses recognized based on the probability of performance conditions being met [720]. - The fair value of public warrants is determined by the market price on Nasdaq, while private warrants are valued using a blend of market price and the Black-Scholes model [726]. Foreign Currency Exchange Risk - A 10% unfavorable movement in foreign currency exchange rates would increase operating expenses by approximately 4.5% and 4.7% for the years ended December 31, 2023 and 2024, respectively [708]. - The company does not currently hedge foreign currency exchange rate risk but may consider formal currency hedging transactions in the future [709]. Stock Options and Dividends - The expected term of options is determined using a simplified method, averaging the time-to-vesting and the contractual life of the options [727]. - The risk-free interest rate for options is based on the U.S. Treasury yield curve as of the date of grant [727]. - The company anticipates no dividends in the foreseeable future, using 0% as the expected dividend yield [727]. Company Status and Regulatory Considerations - The company remains an emerging growth company until total annual gross revenues exceed $1.235 billion or other specified conditions are met [712]. - The company is evaluating the benefits of relying on exemptions under the JOBS Act, including reduced reporting requirements [712].