Alpha Tau(DRTS) - 2025 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 [696]. - Share-based compensation is accounted for under ASC No. 718, requiring the estimation of fair value of equity-based payment awards on the grant date using an option-pricing model [698]. - The company recognizes share-based compensation expense for graded vesting awards on a straight-line basis over the requisite service period, and for performance condition awards, expense is recognized when it is probable that the condition will be achieved [699]. - The fair value of warrants issued during the Merger is classified as a liability and is subject to re-measurement at each balance sheet date until exercised [701]. - The expected term of options is determined using a simplified method, averaging the time-to-vesting and the contractual life of the options [703]. - The fair value of Ordinary shares is determined based on the closing price on NASDAQ on the date of grant, with input from third-party valuation specialists [703]. Foreign Currency Exchange Risk - A 10% unfavorable movement in foreign currency exchange rates would have increased operating expenses by approximately 4.7% and 5.6% for the years ended December 31, 2024 and 2025, respectively [689]. - The company does not currently hedge its foreign currency exchange rate risk but may consider formal currency hedging transactions in the future [690]. Corporate Governance and Compliance - The company intends to rely on exemptions under the JOBS Act, including exemptions from auditor's attestation reports on internal controls until certain revenue thresholds are met [692]. Dividend Policy - The company does not anticipate paying any dividends in the foreseeable future, using 0% as the expected dividend yield [703].