Company: NCEL
Filing Date: 2025-07-18
Form Type: F-4/A
Source: 0001213900-25-065783
Chunk: 497

Company: NewcelX Ltd.
Filing Date: 2025-07-18
Form: F-4/A
Chunk 497
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 NLS and Kadimastem in order to show how the Merger might affect the historical financial statements if the transaction had been completed on December31, 2024 for the purposes of the balance sheets ended December31, 2024 and January1, 2024 for purposes of the statement of operations for the twelve months ended December31, 2024. The pro forma condensed combined financial information was prepared in accordance with Article 11 of Regulation S -Xunder Securities Act of 1933, as amended. 271 Upon completion of the Merger, management will conduct a comprehensive review of both entities’ accounting policies. Based on NLS’s initial analysis, currently, adjustments for the acceleration of the stock compensation expense were identified in Note (M) and reflected in the unaudited pro forma condensed combined financial information. For accounting purposes, the Merger is expected to be treated as a reverse triangular merger pursuant to IFRS 3 Business Combinations such that NLS has been identified as the legal acquirer as it intends to issue securities to Kadimastem whose equity interests are acquired (legal acquiree) and will be the acquirer for accounting purposes. The Merger is anticipated to be accounted for using the acquisition method (as a reverse triangular merger), with goodwill and other identifiable intangible assets recorded in accordance with IFRS, as applicable to be determined at the time of Merger. Under this method of accounting, NLS is anticipated to be treated as the “acquired” company for financial reporting purposes, and Kadimastem is determined to be the accounting acquirer based upon the terms of the Merger Agreement and other factors including: (i) Kadimastem security holders are expected to own approximately 80 -85% of the voting interests of the combined company immediately following the Closing; (ii) directors appointed by Kadimastem will constitute the majority of the board of directors of the combined company; and (iii) employees of Kadimastem will constitute the majority of the management of the combined company. Kadimastem is anticipated to be the accounting acquirer because it is anticipated to control the board of directors, management of the combined company, and the preexisting shareholders of Kadimastem are currently anticipated to have the majority voting rights of the combined company. 2.Pro Forma Adjustments The Company is providing the unaudited pro forma condensed combined information for illustrative purposes only and such pro forma information does not represent the consolidated results or financial position of the Company had its