Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 246

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 246
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 relating thereto is filed with the SEC, the Company will have the right, but not the obligation, from time to
time at its sole discretion until the first day of the month next following the 36-month period from and after Commencement, to direct
Alpha to purchase up to a specified maximum amount of common shares as set forth in the Facility SPA by delivering written notice to
Alpha prior to the commencement of trading on any trading day. The purchase price of the common shares that the Company elects to sell
to Alpha pursuant to the Facility SPA will be 95% of the volume weighted average price of the common shares during the applicable purchase
date on which the Company has timely delivered written notice to Alpha directing it to purchase common shares under the Facility SPA.

In
connection with the execution of the Facility SPA, the Company agreed to issue a pre-funded warrant, or the Pre-Funded Warrant, to purchase
$250,000 in common shares to Alpha as consideration for its irrevocable commitment to purchase the common shares upon the terms and subject
to the satisfaction of the conditions set forth in the Facility SPA.

A. Operating
Results

Operating Expenses

Our
current operating expenses consist of two components - research and development expenses and general and administrative expenses.

Research and Development Expenses,
net

Our
research and development expenses are expensed as incurred and consist primarily of costs of third-party clinical consultants who conduct
clinical and pre-clinical trials on our behalf and expenses related to lab supplies, materials and facility costs.

Clinical
trial costs are a major component of research and development expenses. We accrue and expense clinical trial activities performed by
third parties based upon actual work completed in accordance with agreements established with clinical research organizations and clinical
sites. We determine the actual costs through monitoring patient enrollment and discussions with internal personnel and external service
providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services.

Our
research and development expenses have materially increased and will continue to increase in the future as we enter into the Phase 2/3
clinical development stage of our product candidates and initiate a number of new research initiatives that are complementary to our
existing and planned research initiatives and thereby recruit additional research and development employees.

General and
Administrative Expenses

General
and administrative expenses include personnel costs, expenses for outside professional services, and all other general and administrative
expenses. Personnel costs consist of salaries, cash bonuses and benefits. Outside professional services consist of