Company: NCEL
Filing Date: 2025-09-25
Form Type: F-1
Source: 0001213900-25-091697
Chunk: 78

Company: NewcelX Ltd.
Filing Date: 2025-09-25
Form: F-1
Chunk 78
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 that are measured at amortized cost, and the consideration allocated for equity instruments
is determined as the residual value. The issuance costs are allocated to each component on a pro rata basis, according to the amounts
determined for each component of the unit.

| H. | Change in accounting policy - first-time implementation of new financial reporting standards and amendments 
 to accounting standards                                                                                     |

| 1. | Amendment to IAS 1, Presentation of financial statements |

In January 2020, the IASB published an
amendment to International Accounting Standards (“IAS”) 1, Presentation of Financial Statements (“IAS 1”),
regarding the requirements for classifying liabilities as current or non-current (hereinafter, the “Original Amendment”).
In October 2022, the IASB published a subsequent amendment to amend the Original Amendment (hereinafter, the “Subsequent Amendment”).

The Subsequent Amendment stated that:

| ● | Only financial covenants that an entity must meet before or at the end of the reporting period would affect 
 the classification of that liability as a current liability or a non-current liability.                     |

| ● | For liabilities for which compliance with the financial covenant is examined within 12 consecutive months                                       
 of the reporting date, a disclosure must be made in a way that would allow the users of the financial statements to assess the risks related    
 to that liability. That is, the Subsequent Amendment states that a disclosure must be made with regard to the carrying amount of the liability, 
 information on the financial covenants, and any facts and circumstances at the end of the reporting period that may lead to the conclusion      
 that the entity will have difficulty in complying with the financial covenants.                                                                 |

The Original Amendment stated that the
right to convert a liability would affect the entire liability’s classification as a current or a non-current liability, except
if the conversion component is equity-based.

The Original Amendment and the Subsequent
Amendment were applied retroactively as of the annual periods commencing January 1, 2024.

<div align='center'>F-11</div>

The Company has a loan (see Note 15)
that is immediately convertible into ordinary shares of the Company, with the conversion component classified in the financial statements
as a financial liability. As a result of the aforementioned amendments, the liability related to the convertible loan and the liability
related to the conversion component and options, amounting to USD $230 thousand and USD $1,002 thousand