Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 103

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 103
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 a material adverse effect on its business. Additionally, if the steps taken to maintain its
trade secrets and intellectual property are deemed inadequate, it may have insufficient recourse against third parties for misappropriating
any trade secret.

Third parties may initiate legal proceedings alleging that Kadimastem is infringing their intellectual property rights, the outcome of which would be uncertain and could have a material adverse effect on the success of its business.

Kadimastem’s commercial
success depends upon its ability to develop, manufacture, market and sell its platform technology without infringing the proprietary rights
of third parties. There is considerable intellectual property litigation in the drug substances and product candidates and pharmaceutical
industries. While no such litigation has been brought against it and Kadimastem have not been held by any court to have infringed a third
party’s intellectual property rights, Kadimastem cannot guarantee that its technology or use of its technology does not infringe
third-party patents. It is also possible that it has failed to identify relevant third-party patents or applications. For example, applications
filed before November 29, 2000, and certain applications filed after that date that will not be filed outside the United States remain
confidential until patents issue. Patent applications in the United States and elsewhere are published approximately 18 months after the
earliest filing, which is referred to as the priority date. Therefore, patent applications covering its technology could have been filed
by others without its knowledge. Additionally, pending patent applications which have been published can, subject to certain limitations,
be later amended in a manner that could cover Kadimastem’s technology.

Kadimastem may become party
to, or threatened with, future adversarial proceedings or litigation regarding intellectual property rights with respect to its technology,
including inter parties review, interference, or derivation proceedings before the U.S. PTO and similar bodies in other countries. Third
parties may assert infringement claims against Kadimastem based on existing intellectual property rights and intellectual property rights
that may be granted in the future.

If Kadimastem is found to
infringe a third party’s intellectual property rights, Kadimastem could be required to obtain a license from such third party to
continue developing and marketing its technology. However, Kadimastem may not be able to obtain any required license on commercially reasonable
terms or at all. Any inability to secure licenses or alternative technology could result in delays in the introduction of its products
or lead to prohibition