Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 379

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 379
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 of temporary differences                              3.1         1.9      ( 4.8  
  Change in valuation allowance on deferred tax assets      ( 13.7      ( 12.5      ( 5.8  
  Effective tax rate                                             -           -          -  

The Company had generated approximately $9.7million
of net operating losses (“ NOLs”) prior to the reorganization in 2019 in which the Company’s preliminary analysis indicates
that such NOLs would not be subject to significant limitations pursuant to applicable income tax regulations. The temporary differences
relate to book to tax differences from the adjustments required to present the consolidated financial statements on a U. S. GAAP basis
from local Swiss GAAP, mainly in the areas of debt, intangible amortization and deferring financing costs.

As of December 31, 2024, 2023, and 2022,
there were no unrecognized tax benefits. If such matters were to arise, the Company would recognize interest and penalties related
to income tax matters in income tax expense. The Company did not incur any material interest or penalties in connection with income
taxes during the years ended December 31, 2024, 2023 and 2022.

Note 12

Related party consulting agreements:

The Company entered into consulting agreements
with some of its senior management.

In January 2017, and as subsequently amended in October 2020, the Company entered into a consulting agreement with CHG BioVenture SA,
an entity controlled by Mr. Hervé Girsault, the Company’s former Head of Business Development. On May 1, 2021, for the continuation
of Mr. Girsault’s engagement with the Company in his then current role. The Company agreed to pay CHG BioVenture SA a monthly fee
of CHF4,375($4,733) plus VAT for its services. In addition, CHG BioVenture SA was eligible for a1% success fee payment in the
event of closing of a partnering agreement in China. The consulting agreement was terminated in October 2024 and provides for a 24-month
non-competition clause along with standard confidentiality provisions. For the years ended December 31, 2024, 2023 and 2022, the Company
recorded fees to CHG BioVenture SA of $79,454, $121,658and $131,941, respectively, included in general and administrative expenses