Company: NCEL
Filing Date: 2025-10-17
Form Type: POS AM
Source: 0001213900-25-099986
Chunk: 14

Company: NewcelX Ltd.
Filing Date: 2025-10-17
Form: POS AM
Chunk 14
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 assumptions and known or unknown risks and uncertainties. The following financial data in this narrative are expressed in thousands of U.S. dollars, except for share and per share data or as otherwise noted. Our current operating expenses consist of two components — research and development expenses and general and administrative expenses. Research and Development Expenses Our research and development expenses are expensed as incurred and consist primarily of costs of third -partyclinical consultants who conduct clinical and pre -clinicaltrials on our behalf as well as 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 -uponfee to be paid for such services. 6

Our research and development expenses have materially increased and will continue to increase in the future as we enter into the Phase 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 legal fees (including intellectual property and corporate matters), accounting and audit services, IT and other consulting fees. Finance Expense and Income Other expenses include exchange rate differences and financial expenses related to credit card fees. Interest expense relates to interest paid for our financing obligations. Taxation NLS Pharmaceutics is subject to corporate Swiss federal, cantonal and communal taxation in Canton of Zurich, Switzerland. We are entitled under Swiss laws to carry forward any losses incurred for a period of seven years and can offset our losses carried forward against future taxes. As of June 30, 2025, we had tax loss carryforwards totaling $54.6 million. It is not likely that we will make sufficient profits to be able to utilize these tax loss carryforwards in full. As such, we have recorded a 100% valuation on these tax loss carryforwards. The effective corporate income tax rate (federal, cantonal and communal) where we are domiciled is currently 10.6%. Notwithstanding the corporate income tax, the corporate capital is taxed at