Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 364

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 364
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rued bonus                                                 -                        960,025  
  Other accrued expenses                                        27,554                    36,643  
  Total other accrued liabilities             $                 311,278      $         1,652,270  

F-17

NLS PHARMACEUTICS LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 7

Deferred Revenues:

In February 2019, the Company entered into the
EF License Agreement, to develop and commercialize its product candidate, Nolazol, in Latin American countries with Eurofarma Laboratorios
S. A., a Brazilian pharmaceutical company. The EF License Agreement covered the grant of non-transferable licenses, without the right to
sublicense, to Eurofarma to develop and commercialize Nolazol in Latin America. The EF License Agreement also specified the Company’s
obligation to advance ongoing development activities with respect to Nolazol in the United States. A joint steering committee oversaw
the development and regulatory activities directed towards marketing approval, manufacturing and commercialization phases. The Company
believed its participation in the joint steering committee was not of material significance to the licenses in the context of the EF License
Agreement on the whole and, as such, management excluded these activities in the determination of its performance obligation(s) under
the EF License Agreement.

The EF License Agreement provided that the parties
would enter into a separate manufacturing and supply agreement during the term of the EF License Agreement.

Under the EF License Agreement, the Company received
a non-refundable, upfront payment, of $2.5million and was further eligible to receive non-refundable milestone payments of up to $16million, based on the achievement of milestones related to regulatory filings, regulatory approvals and the commercialization of Nolazol.
The achievement and timing of the milestones depended on the success of development, approval and sales progress, if any, of Nolazol in
the future. In addition, the Company was also eligible for tiered royalty payments.

The Company identified the licenses granted to
Eurofarma and its obligation to advance development activities with respect to Nolazol in the United States as the material promises under
the EF License Agreement. For purposes of identifying the Company’s performance obligations under the EF License Agreement, management
believed that while the exclusive licenses were granted to Eurofarma at the outset of the EF License Agreement, the grant of