Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 109

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 109
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 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 be required to pay monetary remuneration to its Israeli employees for their inventions, even if the rights to such inventions have been duly assigned to us.

Kadimastem enters into agreements
with its Israeli employees pursuant to which such individuals agree that any inventions created in the scope of their employment are either
owned exclusively by Kadimastem or are assigned to it, depending on the jurisdiction, without the employee retaining any rights. A portion
of Kadimastem’s intellectual property has been developed by its Israeli employees during their employment for it. Under the Israeli
Patent Law, 5727-1967, or the Patent Law, inventions conceived by an employee during the course of his or her employment and within the
scope of said employment are considered “service inventions. Service inventions belong to the employer by default, absent a specific
agreement between the employee and employer otherwise. The Patent Law also provides that if there is no agreement regarding the remuneration
for the service inventions, even if the ownership rights were assigned to the employer, the Israeli Compensation and Royalties Committee,
or the Committee, a body