Company: NCEL
Filing Date: 2025-06-23
Form Type: F-4/A
Source: 0001213900-25-056787
Chunk: 152

Company: NewcelX Ltd.
Filing Date: 2025-06-23
Form: F-4/A
Chunk 152
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 United States, which would involve significant time and cost and could result in variations, which could be material, between historical financial results and as reported under U.S. GAAP. It may also be required to make changes in its corporate governance practices in accordance with various SEC and Nasdaq rules. The regulatory and compliance costs to NLS under U.S. securities laws if it is required to comply with the reporting requirements applicable to a U.S. domestic issuer may be significantly higher than the cost it would incur as a foreign private issuer. As a result, NLS expects that a loss of foreign private issuer status would increase NLS legal and financial compliance costs and would make some activities highly time -consumingand costly. If it loses its foreign private issuer status and is unable to devote adequate funding and the resources needed to maintain compliance with U.S. securities laws, while continuing its operations, NLS could be forced to deregister with the SEC. A deregistration would substantially reduce or effectively terminate the trading of its securities in the United States. We also expect that if NLS were required to comply with the rules and regulations applicable to U.S. domestic issuers, it would make it more difficult and expensive for it to obtain director and officer liability insurance, and it may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These rules and regulations could also make it more difficult for NLS to attract and retain qualified directors. The requirements associated with being a public company require significant company resources and management attention. NLS is subject to the reporting requirements of the Exchange Act, Nasdaq listing requirements and other applicable securities rules and regulations. The Exchange Act requires that NLS file periodic reports with respect to its business and financial condition and maintain effective disclosure controls and procedures and internal control over financial reporting. In addition, subsequent rules implemented by the SEC and Nasdaq may also impose various additional requirements on public companies. As a result, NLS will incur additional legal, accounting and other expenses, particularly after NLS is no longer an EGC as defined in the JOBS Act. NLS estimates that these expenses will be 55 in excess of one million dollars annually. NLS has made changes to its corporate governance standards, disclosure controls and financial reporting and accounting systems to meet its reporting obligations. The measures NLS take, however, may not be sufficient to satisfy its obligations as a public company, which could subject it to delisting of its NLS Common Shares, fines, sanctions and other regulatory action and potentially civil litigation. After NLS is