Company: NCEL
Filing Date: 2025-09-25
Form Type: F-1
Source: 0001213900-25-091697
Chunk: 77

Company: NewcelX Ltd.
Filing Date: 2025-09-25
Form: F-1
Chunk 77
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 third party (the “sublease”),
the Company assesses whether all the risks and rewards associated with ownership of the right-of-use asset have been transferred. This
assessment includes, inter alia, an evaluation of the sublease term relative to the useful life of the right-of-use asset arising from
the primary lease.

If all the risks and rewards of ownership
of the right-of-use asset have been substantially transferred, the sublease is classified as a finance lease, otherwise it is classified
as an operating lease.

In the sublease entered into during the
year, the risks and rewards were not transferred to the third party, therefore the accounting treatment was a reduction of lease expenses
rather than classification as a financing lease.

<div align='center'>F-10</div>

| F. | Property and equipment |

Property and equipment are presented
at cost, including direct purchase costs, and less accumulated depreciation and accumulated impairment losses, and do not include current
maintenance expenses.

Depreciation is calculated at equal annual
rates based on the straight-line method throughout the asset’s useful life, as follows:

|                                     |     |         % |     | Mainly % |
| Laboratory equipment and clean room |     |        15 |     |          |
| Office furniture and equipment      |     |    8 - 15 |     |       15 |
| Computers and peripheral equipment  |     |        33 |     |          |
| Leasehold improvements              |     | See below |     |          |

Leasehold improvements are depreciated
using the straight-line method over the lease period, or according to the estimated life of the improvement, whichever is shorter.

The useful life, the depreciation method,
and the residual value of each asset are examined, at a minimum, per year end, and any changes are treated as a change in accounting estimate
prospectively. The depreciation of assets ceases on the date on which the asset is classified as an asset held for sale or the date on
which the asset is derecognized, whichever is earlier.

The Company depreciates the fixed assets
according to its economic life.

| G. | Issuance of a unit of securities |

In an issuance of a unit of securities,
the proceeds received (before the issuance expenses) are allocated to the securities issued in the unit in accordance with this order
of allocation: financial derivatives and other financial instruments that are presented at fair value in each period. The fair value is
then determined for financial liabilities