Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 249

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 249
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,908,288 for the year ended December 31, 2023. The decrease was primarily due to delayed liquidity events and subsequent change in
strategy, as we reduced R& D costs and activities, terminated subcontractor and other R& D agreements. In 2024, we focused on Aexon
licensing for pre-clinical DOXA.

General and
Administrative Expenses

Our general and administrative expenses totaled $3,214,224 for the
year ended December 31, 2024, representing a decrease of $2,684,551, or 46%, compared to $5,898,775 for the year ended December 31, 2023.
This reduction was primarily attributable to decreases in costs related to professional services, employee payroll, directors’ and
officers’ insurance, information technology, marketing and communication, and travel.

Merger transaction costs

Our merger transaction costs
totaled $743,838 for the year ended December 31, 2024, compared to $0 for the year ended December 31, 2023. These costs were primarily
attributable to increase in legal counsel, audit and accounting fees related to the ongoing Merger transaction.

Operating
Loss

As
a result of the foregoing, our operating loss totaled $4,380,113 for the year ended December 31, 2024, representing a decrease of $7,426,950
or 63%, compared to $11,807,063 for the year ended December 31, 2023. Our operating loss reflects ongoing investment in R& D and clinical
trials as we advance our pipeline along with general and administrative operational costs.

Other Income
for Termination of EF License Agreement

Other income for termination
of EF License Agreement for the year ended December 31, 2024 was $2.5 million. On August 28, 2024, we agreed with Eurofarma to terminate
the EF License Agreement effective September 30, 2024 and we recognized $2.5 million from the EF License Agreement as Other income for
termination of EF License Agreement. This termination reflects a change in the Company’s strategic direction, as management has
decided to discontinue the development and commercialization of its product candidate, Nolazol, in Latin American countries through a
strategic partnership with Eurofarma, a Brazilian pharmaceutical company.

Other Income
(Expense), net

Other income (expense) consists of exchange rate differences. We recognized