Company: NCEL
Filing Date: 2025-09-03
Form Type: F-4/A
Source: 0001213900-25-084157
Chunk: 779

Company: NewcelX Ltd.
Filing Date: 2025-09-03
Form: F-4/A
Chunk 779
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 beginning of the annual period or in case of any significant events between measurement dates to the then -netdefined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in the statement of operations and comprehensive loss. Stock-Based Compensation The Company measures all stock -basedawards granted based on the fair value on the date of the grant and recognizes compensation expense with respect to those awards over the requisite service period, which is generally the vesting period of the respective award. Generally, the Company issues awards with only service -basedvesting conditions and records the expense for these awards using the straight -linemethod. The Company recognizes forfeitures related to stock -basedcompensation awards as they occur and reverses any previously recognized compensation cost associated with forfeited awards in the period the forfeiture occurs. The Company classifies stock -basedcompensation expense in the accompanying consolidated statements of operations and comprehensive loss in the same manner in which the award recipients’ payroll costs are classified or in which the award recipients’ service payments are classified. The fair value of each stock option is estimated on the date of grant using the Black -Scholesoption -pricingmodel (“Black -Scholes”). Black -Scholesrequires a number of assumptions, of which the most significant are share price, expected volatility, expected option term (the time from the grant date until the options are exercised or expire), risk -freerate and expected dividend rate. The grant date fair value of a common share is determined by the board Annex F-13 NLS PHARMACEUTICS LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

of directors (the “Board of Directors”) considering, among other factors, the assistance of a valuation specialist and management. The grant date fair value of a common share is determined using the valuation methodologies, which utilize certain assumptions, including probability weighting of events, volatility, time to liquidation, risk -freeinterest rate and discount for lack of marketability. Preferred Shares Upon issuance of a convertible preferred share instrument, the Company evaluates its classification as either equity or debt. In accordance with ASC 480, the Company’s preferred shares were classified as permanent equity as it does not contain any mandatorily redeemable provisions. Further, in accordance with ASC 815 -40, Derivatives and Hedging — Contracts in an Entity’s Own Equity, the preferred shares did not