Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 80

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 80
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 be dilutive to earnings, or in the event                                                                            

  potential losses resulting from undiscovered liabilities of                                    
  acquired companies not covered by the indemnification that it may obtain from the seller; and  
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  loss of key employees of the acquired companies.  

The potential termination of the Merger
Agreement and related uncertainties could negatively impact NLS’s business.

The Merger Agreement is subject
to several conditions, including approval by NLS’s shareholders, which must be met or waived prior to the Merger’s completion.
Some conditions are outside of NLS’s control, and there is no assurance that they will be met in a timely manner or at all. The
Merger Agreement could be delayed, may not be completed, or may be terminated under certain circumstances. Uncertainty regarding the Merger
could adversely impact employee morale and retention, disrupt business relationships, and affect the trading price of common shares. Additionally,
management and personnel will need to focus significant time and resources on the Merger, potentially diverting attention from day-to-day
operations. NLS will incur significant transaction costs regardless of whether the Merger is finalized, and such expenses may be higher
than anticipated, especially if the Merger is delayed or terminated.

Unfavorable general economic conditions
may materially adversely affect NLS’s business.

While it is difficult
for NLS to predict the impact of general economic conditions on its business, these conditions could reduce customer demand for some
of its products or services which could cause its revenue to decline. Also, NLS’s customers that are especially reliant on the
credit and capital markets may not be able to obtain adequate access to credit or equity funding, which could affect their ability
to make timely payments to NLS. Moreover, NLS relies on obtaining additional capital and/or additional funding to provide
working capital to support its operations. NLS regularly evaluates alternative financing sources. Further changes in the commercial
capital markets or in the financial stability of its investors and creditors may impact the ability of its investors and creditors
to provide additional financing. For these reasons, among others, if the economic conditions stagnate or decline, NLS’s
operating results and financial condition could be adversely affected.

Economic and political conditions may cause
fluctuations of the future prices, supply, and demand for products NLS and Kadimastem use, which may negatively affect NLS’s revenues.

Revenues generated from NLS’s
production activities