Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 359

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 359
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 the valuation methodologies, which utilize certain assumptions,
including probability weighting of events, volatility, time to liquidation, risk-free interest rate and discount for lack of marketability.

Preferred Shares

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 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 did not meet any of
the criteria that would preclude equity classification. The Company concluded that the preferred shares were more akin to an equity-type
instrument than a debt-type instrument, therefore the conversion features associated with the convertible preferred shares were deemed
to be clearly and closely related to the host instrument and were not bifurcated as a derivative under ASC 815.

Earnings per Share

Basic net loss per common share is computed by
dividing the net loss applicable to common shareholders by the weighted-average number of common shares outstanding during the year.
Diluted loss per common share is computed similar to basic loss per share, except that the denominator is increased to include the number
of additional potential common shares that would have been outstanding if the potential common shares had been issued and if the additional
common shares were dilutive. Potential common shares are excluded from the diluted loss per common share computation for a period in
which a net loss is reported or if their effect is anti-dilutive. Since the Company was in a loss position for all periods presented,
basic and diluted weighted average shares outstanding are the same, as the inclusion of the incremental shares would be anti-dilutive.

A summary of the potentially dilutive securities that were excluded from diluted net loss per share each year because their effect would be antidilutive are presented as follows:

                                       December 31,                                                               
                                               2024                     2023                   2022               
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Stock Options                                             34,417                 46,591                 33,328  
  Warrants (excluding pre-funded)                        1,455,288                332,450                332,450  
  Convertible preferred shares                             206,452                      -                      -  
                                                         1,696,157                379,041                365,778  

Adjusted for the effect of