Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 378

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 378
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  Deferred tax assets:                                                                           
  Net benefit from tax loss carryforwards      $         5,536,408        $           5,000,743  
  Deferred revenues                                      -                              264,997  
  Valuation allowance                                    ( 5,536,408                ( 5,265,740  
  Net deferred taxes                           $         -                $                   -  

The Company recorded a valuation allowance in
2024 and 2023 to reduce the net deferred taxes, as the Company deemed it to be more likely than not that the future deferred tax assets
would not be realized in the future based on the lack of sufficient positive evidence in the jurisdictions related to the realization
of the deferred tax assets.

The effective tax rate was0% for the years ended
December 31, 2024, 2023 and 2022. The following table shows the income taxes in 2024, 2023 and 2022:

                                     2024                     2023                       2022                   
  Current tax                        $         -              $         -                $         -            
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Deferred income tax (benefit)                ( 270,668                ( 1,515,501                ( 1,004,681  
                                               ( 270,668                ( 1,515,501                ( 1,004,681  
  Change in valuation allowance                270,668                  1,515,501                  1,004,681    
  Total income tax expense           $         -              $         -                $         -            

F-25

NLS PHARMACEUTICS LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company files income tax returns in Switzerland.
The Company’s income tax position in Switzerland is finally assessed up to the year ended December 31, 2020, so the years ended
December 31, 2021, 2022, 2023 and 2024 are open for examination. Currently the Company does not have any open tax assessments. The following
table shows the reconciliation between expected and effective tax rate:

 ───────────────────────────────────────────────────────────────────────────────────────────
  Statutory tax rate                                          10.6        10.6       10.6  
  Effect