Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 352

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 352
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 received by the Company from the disposition of the Legacy Assets.

The right to the CVRs as evidenced by the CVR
Agreement is a contractual right only and will not be transferable, except in the limited circumstances specified in the CVR Agreement.

Going Concern

As of December 31, 2024, the Company had an accumulated
deficit of approximately $74.4million and the Company incurred an operating loss for the year ended December 31, 2024, of approximately
$4.4million. To date, the Company has dedicated most of its financial resources to achieve and maintain Phase 3 readiness, research and
development, clinical studies associated with its ongoing biopharmaceutical business and general and administrative expenses. The Company
has not generated revenues from its activities and has incurred substantial operating losses.

As of December 31, 2024, the Company’s
cash and cash equivalents were $1.7million. The Company’s existing cash and cash equivalents and access to existing financing
arrangements will not be sufficient to fund operations for a period of one year from the issuance of these consolidated financial
statements. The Company expects to continue to generate operating losses and negative operating cash flows for the next few years
and will need additional funding to support its planned operating activities through profitability. The Company is actively
exploring a range of options to raise funds, including strategic partnerships, out-licensing, or divestment of assets of the
Company, and other future strategic actions. During October 2024, the Company completed a private financing round, debt conversions
and forgiveness, and various vendor buy-outs. Additionally, on November 4, 2024, the Company entered into the Merger Agreement. The
future viability of the Company is dependent on its ability to raise capital for payment of its vendors and to support on-going
operations. There can be no assurance that such capital will be available within a sufficient period of time, in sufficient amounts
or on terms acceptable to the Company. These conditions raise substantial doubt about the Company’s ability to continue as a
going concern beyond one year from the issuance of these consolidated financial statements.

F-10

Accordingly, the accompanying consolidated financial
statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“ U. S.
GAAP”), which contemplate continuation of the Company as a going concern for a period within one year from the issuance of these
consolidated financial statements and the realization of assets and satisfaction of