Company: NCEL
Filing Date: 2025-02-05
Form Type: F-3
Source: 0001213900-25-010223
Chunk: 105

Company: NewcelX Ltd.
Filing Date: 2025-02-05
Form: F-3
Chunk 105
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 affect Kadimastem’s operations. Israel has held five general elections between 2019 and 2022, and prior to October 2023, the Israeli government pursued extensive changes to Israel’s judicial system, which sparked extensive political debate and unrest. To date, these initiatives have been substantially put on hold. Actual or perceived political instability in Israel or any negative changes in the political environment, may individually or in the aggregate adversely affect the Israeli economy and, in turn, Kadimastem’s business, financial condition, results of operations and growth prospects.

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Exchange rate fluctuations between the U.S. Dollar and the New Israeli Shekels, or NIS, may negatively affect Kadimastem’s earnings and could adversely affect its results of operations.

Kadimastem incurs expenses in NIS, U.S. dollars, and Euros, but Kadimastem’s financial statements are denominated in NIS as its financial currency. Accordingly, Kadimastem faces exposure to adverse movements in currency exchange rates. Accordingly, Kadimastem faces exposure to adverse movements in the currency exchange rate of the NIS against these foreign currencies, which may have a negative effect on its revenue and costs. If the NIS weakens against any of these currencies, the translation of these foreign currency denominated transactions will result in decreased revenue in NIS. Changes in currency exchange rates may have a negative effect on its financial results.

The termination or reduction of tax and other incentives that the Israeli government provides to Israeli companies may increase Kadimastem’s costs and taxes.

The Israeli government currently provides tax and capital investment incentives to Israeli companies, as well as grant and loan programs relating to research and development and marketing and export activities. In recent years, the Israeli government has reduced the benefits available under these programs and the Israeli governmental authorities may in the future further reduce or eliminate the benefits of these programs. Kadimastem may take advantage of these benefits and programs in the future; however, there can be no assurance that such benefits and programs will be available to it. If it qualifies for such benefits and programs and fail to meet the conditions thereof, the benefits could be cancelled and it could be required to refund any benefits it might already have enjoyed and become subject to penalties. Additionally, if Kadimastem qualifies for such benefits and programs and they are subsequently terminated or reduced, it could have an adverse effect on Kadimastem’s financial condition and results of operations.

Kadimastem may