LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT AND OTHERS

12 Months Ended

Dec. 31, 2025

Retirement Benefits [Abstract]

LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT AND OTHERS

NOTE 6 - LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT AND OTHERS

Defined Contribution Plans

Under Israeli labor law, the Company’s subsidiary Israeli employees are generally entitled to severance pay upon dismissal or certain other termination events.

Pursuant to Section 14 of the Israeli Severance Compensation Act, 1963, most of the employees of the Company’s subsidiary in Israel employees are entitled to have monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies. Payments in accordance with section 14 relieve the Company from any future severance payments to these employees. The severance pay expenses for such employees were approximately $376,000 and $293,000 for the years ended December 31, 2025, and 2024, respectively.

The Company sponsors a defined contribution retirement plan for its U.S. employees under Section 401(k) of the Internal Revenue Code. The plan is structured as a Qualified Automatic Contribution Arrangement (QACA) Safe Harbor plan, which includes automatic enrollment and requires the Company to make mandatory employer contributions in accordance with IRS Safe Harbor regulations. Employer contributions under the plan were immaterial for the year ended December 31, 2025. The Company has no further obligation to fund benefits beyond these required contributions.

Postemployment Benefit Plans

The severance pay liability of the Company for the rest of its subsidiary Israeli employees not covered under Section 14 amounting to $1,082 thousand and $1,224 thousand as of December 31, 2025, and 2024, respectively, reflects the undiscounted amount of the liability and is based upon the number of years of service and the latest monthly salary. The severance pay liability is partly covered by insurance policies and by regular deposits with recognized severance payment funds. The Company may only withdraw funds previously deposited for savings in connection with the payment of severance. The severance pay expenses for such employees were approximately $126,000 and $124,000 for the years ended December 31, 2025, and 2024, respectively.

INSPIREMD, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)