Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 288

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 288
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 are applied annually, and it is difficult to make accurate projections of future income and assets which are relevant to this
determination. In addition, our PFIC status may depend in part on the market value of our common shares. Accordingly, there can be no
assurance that we currently are not or will not become a PFIC.

If we currently are or become
a PFIC, each U. S. Holder who has not elected to mark the shares to market (as discussed below), would, upon receipt of certain distributions
by us and upon disposition of our common shares and Warrants at a gain: (1) have such distribution or gain allocated ratably over the
U. S. Holder’s holding period for the common shares, as the case may be; (2) the amount allocated to the current taxable year and
any period prior to the first day of the first taxable year in which we were a PFIC would be taxed as ordinary income; and (3) the amount
allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of
taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to the resulting tax attributable
to each such other taxable year. In addition, when shares and warrants of a PFIC are acquired by reason of death from a decedent that
was a U. S. Holder, the tax basis of such shares would not receive a step-up to fair market value as of the date of the decedent’s
death, but instead would be equal to the decedent’s basis if lower, unless all gain were recognized by the decedent. Indirect investments
in a PFIC may also be subject to these special U. S. federal income tax rules.

A U. S. Holder of our Warrants
is taxed in a manner similar to a U. S. holder of common shares if the holder realizes gain on the sale of the Warrants. If the holder
of the Warrants exercises the Warrants to purchase common shares, the holding period over which any income realized is allocated includes
the holding period of the Warrants. The U. S. Warrant holder is treated as a holder of PFIC stock taxable under the ordinary income allocation
and interest charge regime described above.

The PFIC rules described above
would not apply to a U. S. Holder who makes a QEF election for all taxable years that