Company: NCEL
Filing Date: 2025-10-17
Form Type: POS AM
Source: 0001213900-25-099986
Chunk: 60

Company: NewcelX Ltd.
Filing Date: 2025-10-17
Form: POS AM
Chunk 60
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 the position, without regard to the likelihood that the tax position may be challenged. If an uncertain tax position meets the “more -likely-than-not” threshold, the largest amount of tax benefit that is more than 50% likely to be recognized upon ultimate settlement with the taxing authority is recorded.

Annex A-10 NLS PHARMACEUTICS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

Share-Based Compensation The Company measures all share -basedawards granted based on the fair value on the date of the grant and recognizes compensation expense with respect to those awards over the requisite service period, which is generally the vesting period of the respective award. Generally, the Company issues awards with only service -basedvesting conditions and records the expense for these awards using the straight -linemethod. The Company recognizes forfeitures related to share -basedcompensation awards as they occur and reverses any previously recognized compensation cost associated with forfeited awards in the period the forfeiture occurs. The Company classifies share -basedcompensation expense in the accompanying consolidated statements of operations and comprehensive loss in the same manner in which the award recipients’ payroll costs are classified or in which the award recipients’ service payments are classified. The fair value of each share option is estimated on the date of grant using the Black -Scholesoption -pricingmodel (“Black -Scholes”). Black -Scholesrequires a number of assumptions, of which the most significant are share price, expected volatility, expected option term (the time from the grant date until the options are exercised or expire), risk -freerate and expected dividend rate. The grant date fair value of a common share is determined by the board of directors (the “Board of Directors”) considering, among other factors, the assistance of a valuation specialist and management. The grant date fair value of a common share is determined using the valuation methodologies, which utilize certain assumptions, including probability weighting of events, volatility, time to liquidation, and risk -freeinterest rate. Preferred Shares and Preferred Participation Certificates Upon issuance of a convertible preferred share instrument, the Company evaluates its classification as either equity or debt. In accordance with ASC 480, the Company’s preferred shares and preferred participation certificates (“PPCs”) were classified as permanent equity as it does not contain any mandatorily redeemable provisions. Further, in accordance with ASC 815 -40, “ Derivatives and Hedging — Contracts in an Entity’s Own Equity,” the preferred shares and PPC