Company: NCEL
Filing Date: 2025-06-23
Form Type: F-4/A
Source: 0001213900-25-056787
Chunk: 736

Company: NewcelX Ltd.
Filing Date: 2025-06-23
Form: F-4/A
Chunk 736
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, impacting license revenues in the period of adjustment. Sales -basedroyalties are recognized when the related sales occur or when the performance obligation is satisfied. Deferred revenue is recorded when payments exceed recognized revenue, including non -refundablepayments. As of December 31, 2024, the Company recognized $ 2.5million from its exclusive license agreement (the “EF License Agreement”) as Other income due to the termination of the EF License Agreement. The amount represents a non -refundableupfront payment, which was retained by the Company after the early termination of the EF License Agreement, and falls outside the scope of ASC 606. See Note 7 for further details. Annex F-11 NLS PHARMACEUTICS LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Research and Development Costs for R&D of products, including vendor expenses and supplies and consultant fees, are expensed as incurred. Clinical trial and other development costs incurred by third parties are expensed as the contracted work is performed. Where contingent milestone payments are due to third parties under research and development arrangements, the obligations are recorded when the milestone results are probable of being achieved. Fair Value Measurements The Company measures and discloses fair value in accordance with ASC 820, “ Fair Value,”which defines fair value, establishes a framework and gives guidance regarding the methods used for measuring fair value, and expands disclosures about fair value measurements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market -basedmeasurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions there exists a three -tierfair -valuehierarchy, which prioritizes the inputs used in measuring fair value as follows:

| Level 1 |     | — |     | unadjusted quoted prices are available in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.                                                                                                                                                                                                                                                                                                                             |
| Level 2 |     | — |     | pricing inputs are other than quoted prices in active markets that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.                                                                                                                                                                                                                                                                                               |
| Level 3 |     | — |     | pricing inputs are unobservable for the non-financial asset or liability and only used when there is little, if