Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 140

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 140
---
 such war’s economic implications on the combined
company’s business and operations and on Israel’s economy in general. if the war in the other fronts, such as Lebanon, Syria
and the West Bank expands further, the combined company’s operations may be adversely affected.

Any armed conflicts,
terrorist activities or political instability in the region could adversely affect business conditions, could harm the combined
company’s results of operations and could make it more difficult for the combined company to raise capital. Parties with whom
the combined company does business may decline to travel to Israel during periods of heightened unrest or tension, forcing the
combined company to make alternative arrangements when necessary in order to meet the combined company’s business partners
face to face. In addition, the political and security situation in Israel may result in parties with whom the combined company has
agreements involving performance in Israel claiming that they are not obligated to perform their commitments under those agreements
pursuant to force majeure provisions in such agreements. Further, in the past, the State of Israel and Israeli companies have been
subjected to economic boycotts. Several countries still restrict business with the State of Israel and with Israeli companies. These
restrictive laws and policies may have an adverse impact on the combined company’s operating results, financial condition or
the expansion of its business.

Any hostilities involving
Israel or the interruption or curtailment of trade between Israel and its trading partners could adversely affect the combined company’s
operations and results of operations. In recent years, the hostilities involved missile strikes against civilian targets in various
parts of Israel, including areas in which the combined company’s employees and some of its consultants are located, and negatively
affected business conditions in Israel.

The combined company’s
commercial insurance does not cover losses that may occur as a result of events associated with the security situation in the Middle East.
Although the Israeli government currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts
of war, the combined company cannot assure you that this government coverage will be maintained. Any losses or damages incurred by the
combined company could have a material adverse effect on its business. Any armed conflicts or political instability in the region would
likely negatively affect business conditions and could harm the combined company’s results of operations.

Although the Israeli government
currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts of war, we cannot assure you that
this government coverage will be maintained or that it will sufficiently cover the combined company’s potential damages