Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 258

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 258
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 based on the achievement of milestones related to regulatory filings, regulatory approvals and
the commercialization of Nolazol, as well as tiered royalty payments. As of December 31, 2023, we had long-term deferred revenues of
$2.5 million, which was going to be recognized when the development services of Nolazol were completed, and the product candidate received
applicable regulatory approval in Latin America that would allow Eurofarma to commence commercialization of Nolazol in accordance with
the EF License Agreement.

On
August 28, 2024, we agreed with Eurofarma to terminate the EF License Agreement effective September 30, 2024. Neither party has any claims
against the other in relation to the EF License Agreement and its termination. As of December 31, 2024, we recognized $2.5 million from
our exclusive EF License Agreement in the Statements of Operations and Comprehensive loss as Other income due to the termination of the
EF License Agreement.

Pension Obligations

We
have a single insurance collective pension plan that is fully insured and operated by an insurance company which covers the
employees. Both we and the participants provide monthly contributions to the pension plan that are based on the covered salary. A
portion of the pension contribution is credited to employees’ savings accounts which earns interest at the rate provided in
the plan. The pension plan provides for retirement benefits as well as benefits on long-term disability and death. The pension plan
qualifies as a defined benefit plan in accordance with U. S. GAAP. As such, the cost of the defined pension arrangement is determined
based on actuarial valuations. An actuarial valuation assumes the estimation of discount rates, estimated returns on assets, future
salary increases, mortality figures and future pension increases. Because of the long-term nature of these pension plans, the
valuation of these is subject to uncertainties. As of December 31, 2024, the Company does not have any active employees participating in a defined benefit pension plan. However, the
Company continues to maintain a capped pension obligation related to survivor benefits payable to orphans of a former employee. This obligation
is fully covered by existing plan assets and does not give rise to any unfunded liability. All other obligations and liabilities associated
with the Company’s prior pension plan have been fully settled and transferred. As a result, the Company has no net pension-related
liability or associated pension expense recognized on its balance sheet as