Company: NCEL
Filing Date: 2025-09-25
Form Type: F-1
Source: 0001213900-25-091697
Chunk: 74

Company: NewcelX Ltd.
Filing Date: 2025-09-25
Form: F-1
Chunk 74
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 unknown period of time, and the disruption of economic activity in Israel. The War’s
continuation may have far-reaching consequences for many industries and different geographical areas of the country.

The potential fluctuations in commodity
prices, foreign exchange rates, availability of materials, availability of manpower, local services, and access to local resources may
affect entities that mostly operate with or in Israel.

Since this event is characterized by
high uncertainty, and as of the date hereof, the duration and intensity of its impact on the economy in the medium and long term is unascertainable,
the Company does not have the ability to assess the full impact of the above on the scope of its business and its operating results.

NOTE 2: - ACCOUNTING POLICIES

The following accounting policies have been applied
consistently in the financial statements for all periods presented, unless otherwise stated.

| A. | Basis of presentation of the financial statements |

The financial statements are prepared
in accordance with International Financial Reporting Standards (“IFRS”) Accounting Standards, as issued by the International
Accounting Standards Board (“IASB”).

| B. | Functional currency, presentation currency, and foreign currency |

The functional currency of the Company
is the New Israel Shekel (“NIS”), which represents the primary economic environment in which the Company operates. The presentation
currency of the financial statements is USD.

The financial statements are presented
in USD since the Company believes that financial statements in USD provide more relevant information to the investors and users of the
financial statements, who are located primarily in the US.

<div align='center'>F-8</div>

Assets and liabilities are translated
at the closing rate at each reporting date. Profit or loss items are translated at average exchange rates for all periods presented. The
resulting translation differences are recognized in other comprehensive income (loss). Capital transactions in shareholders’ equity
are translated using historical rates of exchange.

| C. | Government grants |

Government grants are recognized when
there is a reasonable assurance that the grants would be received and that the Company would meet all the conditions for receiving the
grant.

Government grants from the Israel Innovation
Authority (“IIA”) are recognized as a liability at the time of their receipt if there is a reasonable assurance that the research
activity would result in sales that would entitle the State to royalties.

The Company does not anticipate revenues
in the foreseeable future, and therefore, it does not recognize a liability component, and the grant is recorded under profit and loss
as an offset