Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 381

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 381
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 Aexon Agreement) of a patent identified in the Aexon Agreement and patents owned by Aexon as of the date
of the Aexon Agreement, that covers such pharmaceutical or therapeutic product for the use of such compounds for narcolepsy and other
neuro degenerative disorders in the respective country or region in which it was used. Pursuant to the terms of the Aexon Agreement, the
Company agreed to pay Aexon a royalty on a country-by-country basis of5% to30% depending on (i) earnings by the Company in a specified
region or country for licensed products covered by patents, (ii) whether the applicable patent has not been granted to the applicable
product at the time of commercialization of such product and (iii) whether the Company challenges the validity of a patent.

F-26

NLS PHARMACEUTICS LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company made an upfront payment of $30,000for the option exclusivity and $170,000upon execution of the definitive agreement to exercise the option for the Aexon Agreement, of
which $40,000was paid in cash and the remaining $130,000was paid in23,028common shares. In addition, Aexon will receive15% of all
proceeds earned by the Company in any future sub-licensing agreements. The Company must also make royalty payments to Aexon upon
the occurrence of certain milestones. Such payments upon the occurrence of milestones contemplated in the Aexon Agreement range from $100,000to $300,000, in addition to percentage royalty payments ranging from5% to15% which may decrease or increase up to30% if the Company
challenges the validity of the patents under the agreement, depending on the result of such challenge. Further, pursuant to the Aexon
Agreement, the Company has agreed to pay Aexon a percentage of license fees, milestones and royalties received from sublicensees, ranging
between5% and15% which may decrease or increase up to30% if the Company challenges the validity of the patents under the agreement,
depending on the result of such challenge. For the year ended December 31, 2024, the Company recorded fees to Aexon of $170,000which
is included in research and development expenses on the statement of operating and comprehensive loss.

In October 2024, the Company entered into a