Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 32

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 32
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 Konofal may
have interests in the transactions with Aexon that may be different from, or in addition to, the interests of our shareholders and that
may create potential conflicts of interest. Each of us and Aexon expect to be required to obtain additional liquidity in order to fund
operations through the approval of certain of each of the company’s products. Until each company can generate significant revenues,
if ever, each company expects to satisfy its future cash needs through debt or equity financings. Each company cannot be certain that
funding will be available to it on acceptable terms, if at all. If funds are not available, each company may be required to delay, reduce
the scope of, or eliminate research or development plans for, or commercialization efforts with respect to each company’s products.

We expect that we will need to raise substantial
additional funding before we can expect to complete the development of Quilience or any other product candidate. This additional financing
may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay, limit
or terminate our product candidate development efforts or other operations.

As of December 31, 2024, our
cash and cash equivalents were approximately $1.7 million, and we had a positive working capital of $1.4 million and an accumulated deficit
of $74.4 million. Based upon our currently expected level of operating expenditures, we believe that our current cash on hand and access
to existing financial arrangements will not be sufficient to fund our projected operating requirements for a period of one year from the
issuance of these financial statements included elsewhere in this annual report. This raises substantial doubt about our ability to continue
as a going concern. We expect that we will require substantial additional capital to commercialize our product candidates and put in place
multiple options to raise the funds necessary to support our operations. However, our operating plans may change as a result of many factors
that may currently be unknown to us, and we may need to seek additional funds sooner than planned. Our future funding requirements will
depend on many factors, including but not limited to:

  our clinical trial results and the costs for conducting pivotal trials;  

  the cost, timing and outcomes of seeking marketing approval of Quilience and/or Nolazol;  

  the cost of filing and prosecuting patent applications and the cost of defending our patents;  

  the cost of prosecuting patent infringement actions against third parties;  

  development of