Company: NCEL
Filing Date: 2025-03-03
Form Type: F-4/A
Source: 0001213900-25-018981
Chunk: 795

Company: NewcelX Ltd.
Filing Date: 2025-03-03
Form: F-4/A
Chunk 795
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 the Company’s Chairman of the Board of Directors, and Gian -MarcoRinaldi, a member of the Company’s Board of Directors, agreed to lend $ 350,000and $ 80,000, respectively, with respect to the offering. Pursuant to the note agreement, the interest rate was 10% per annum, which was required to be paid upon conversion or repayment and were due to be repaid within 90 days following the execution of the note agreement, or November 17, 2022. In addition, the notes were able to be voluntarily converted into common shares of the Company prior to the maturity date at a 20% discount (i) to any subsequent qualified equity financing round of at least $6 million in the aggregate or (ii) upon a change of control.Management determined that no separate accounting or bifurcation was required for this conversion feature as it doesn’t meet the definition of a derivative because the net settlement criterion is not met. In addition, pursuant to the note agreement, the noteholders received unregistered warrants to purchase common shares of the Company equal to an aggregate of 10% of the note amount of each noteholder, divided by $0.4970, which was the closing price as determined on the closing date of the issuance of the notes, or an aggregate of 307,844common shares. The warrants have an exercise price equal to $ 0.4970per share and will expire 24 months following their issuance. The warrants were evaluated under ASC Topic 480, “Distinguishing Liabilities from Equity” and ASC

Annex F-130 NLS PHARMACEUTICS LTD.
NOTES TO THE FINANCIAL STATEMENTS Topic 815, “Derivatives and Hedging”, and the Company determined that equity classification was appropriate. The relative fair value of the warrants issued of $ 67,008was accounted for as debt discount and amortized to interest expense using the effective interest rate method over the note term. On October 7, 2022, the Company and the noteholders agreed to convert the notes concurrently with the Company’s October 2022 financing. The total principal balance plus all accrued interest were converted into 2,516,429common shares. Additionally, the noteholders received additional warrants to purchase up to 1,258,215common shares with an exercise price of $ 0.70, that are exercisable six months after their issuance and will expire fiveyears following the date that the warrants are initially