Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 375

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 375
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 of a “ Fundamental Transaction” in Section 3(e) of the Existing Warrants. In exchange
for the Amendment, the Company agreed to adjust the exercise price in the Common Warrants to CHF0.80and issued to the holders Pre-Funded
Warrants to purchase up to136,648Common Shares, or the Pre-Funded Warrants. Each Pre-Funded Warrant is exercisable for one Common Share
at an exercise price of CHF0.80per share. The Pre-Funded Warrants are immediately exercisable and may be exercised at any time until
all of the Pre-Funded Warrants are exercised in full.

On September 16, 2024, the Company and an institutional
investor entered into a warrant amendment agreement to amend warrants to purchase up to172,836common shares, par value CHF0.80. The
amendment adjusted the definition of a “ Fundamental Transaction” and the exercise price to CHF0.80. Following an increase
in authorized common shares, the Company will issue pre-funded warrants to purchase up to191,431common shares for aggregate proceeds
of $153,144.

The Company has reflected a deemed dividend totaling $2,076,180for the incremental value from the modification of the warrants’ exercise price and the fair value of the warrants issued as consideration
for executing the Amendment. The deemed has been reflected within stockholders’ deficit and as an increase to loss attributable
to common stockholders for the purposes of computing loss per share.

The incremental value due to the modification
was determined to be $366,684using a Black-Scholes option pricing model to compute the fair value of the warrant pre and post modification
and recording the difference.

The fair value of the aggregate warrants issued
as consideration for executing the Amendment was determined to be $1,709,496computed using a Black-Scholes option pricing model.

The following input assumptions were utilized
in the Black-Scholes model: expected term ofoneyear, volatility of148%, risk-free rates ranging from3.96% to4.24%, and dividend rate
of0%.

F-23

NLS PHARMACEUTICS LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the common share
warrant activity for the year ended December 31, 2024:

  Balance at January 1, 2024          476,128  
  Issuances