Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 139

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 139
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 along Israel’s border
with the Gaza Strip and in other areas within the State of Israel. Moreover, both Hamas and Hezbollah are designated as terrorist organizations
by the United States, the European Union, Canada, and Israel, reinforcing the international consensus on their use of terror tactics and
destabilizing activities. These attacks resulted in thousands of deaths and injuries, and Hamas additionally kidnapped many Israeli civilians
and soldiers. Following the attack, Israel’s security cabinet declared war against Hamas and commenced a military campaign against
Hamas and Hezbollah and these terrorist organizations in parallel continued rocket and terror attacks. As of May 15, 2025, the ceasefire
with Hamas that had been in place since January 2025 has ended and hostilities have resumed. Other regional hostilities, since October
7, 2023, concurrently became more pronounced. This includes and has included a northern front war between Israel and Hezbollah, which
as of May 15, 2025 is subject to a ceasefire between Israel and Lebanon, hostilities between Israel and Iran, and a continued conflict
between Israel and the Houthi Movement in Yemen, which have included strikes against Israel and subsequent retaliation by Israel. Iran
is also believed to be developing nuclear weapons and to have a strong influence among extremist groups in the region, such as Hamas in
Gaza, Hezbollah in Lebanon, the Houthi movement in Yemen and various rebel militia groups in Syria. These situations may potentially escalate
in the future to more violent events which may affect Israel and the combined company.

In connection with the current
multi-front conflict, Israeli military reservists have been called up to perform military service. As of the date of this annual report,
the combined company has not been impacted by any absences of personnel at its service providers or counterparties located in Israel.
Military service call ups that result in absences of personnel from the combined company for an extended period of time may materially
and adversely affect its business, prospects, financial condition and results of operations.

Since the war broke out on
October 7, 2023, the combined company’s operations have not been adversely affected by this situation, and it has not experienced
any material disruptions to its operations. The combined company has the ability, if necessary, to shift its manufacturing from Israel
to other countries where it has business partners, and it have not had customers in Israel in the last year. However, the intensity and
duration of the war in the Middle East is difficult to predict at this stage, as are