Company: NCEL
Filing Date: 2025-11-06
Form Type: POS AM
Source: 0001213900-25-106799
Chunk: 69

Company: NewcelX Ltd.
Filing Date: 2025-11-06
Form: POS AM
Chunk 69
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 determined the incremental value provided to the preferred shareholder for the reduction in the conversion price from $ 4.96to $ 3.10and $ 3.10to $ 1.65using a Black -Scholesmodel to determine the fair value of the Preferred Shares outstanding pre and post modification to the conversion price caused by the January and March 2025 Triggers. Further, the Company determined the incremental value provided to the warrant holders for the reduction in the exercise price from $ 4.25to $ 1.65. The incremental values computed using the Black -Scholesmodel on the Preferred Shares and warrants was $ 571,331and $ 42,608, respectively, or a total of $ 613,939. The Black -Scholesmodel incorporates the following inputs: expected term .25– 4.50years, risk free rate 4.05– 4.24%, share price $ 1.54– $ 2.06, volatility 121.24% -175.32%, and dividends of 0.00%. Make Whole Provision Pursuant to the March 2025 Offering, the Company agreed to a make whole arrangement with Alpha. The Company agreed to issue Alpha 435,000Preferred Shares to compensate Alpha for the common shares that would have been issued to Alpha under the Debt SPA and December 2024 SPA related to an alleged claim that the Company did not timely honor its price -protectionand registration obligations. In return, Alpha would waive any and all liquidated damages arising from such claims. This make whole provision settled on June 27, 2025 with the issuance of 485,000pre -fundedcommon share warrants with an exercise price equal to par value and Alpha agreed that the issuance fully satisfied any and all claims. Given the nominal exercise price the fair value of the pre -fundedwarrants was based on the market price of the Company’s common shares on the settlement date of $ 2.54. The Company recognized a deemed dividend of $ 1,231,900for the aggregate value of the pre -fundedwarrants. During the six months ended June 30, 2025, the Company has reflected a total of $ 1,845,839in deemed dividends for the above transactions which has been presented within shareholders’ equity and increases the net loss available to common shareholders in the computation of loss per share on the statements of operations. Annex A-17 NLS PHARMACEUTICS LTD