Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 253

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 253
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most recent private financing round, in addition to our 2024 financing rounds, debt conversion and forgiveness, vendor buy-outs, and
the ongoing Merger opportunity. Our future viability depends on our ability to extend payment terms with third-party creditors until
additional funds have been raised.

Going Concern

As of December 31, 2024, we had an accumulated
deficit of approximately $74.4 million and we incurred an operating loss for the year ended December 31, 2024, of approximately $4.4 million.
To date, we have dedicated most of our financial resources to achieve and maintain Phase 3 readiness, research and development, clinical
studies associated with its ongoing biopharmaceutical business and general and administrative expenses. We have not generated revenues
from our activities and have incurred substantial operating losses.

As of December
31, 2024, our cash and cash equivalents were $1.7 million. Our existing cash and cash equivalents and access to existing financing arrangements
will not be sufficient to fund operations for a period of one year from the issuance of these consolidated financial statements. We expect
to continue to generate operating losses and negative operating cash flows for the next few years and will need additional funding to
support its planned operating activities through profitability. We are actively exploring a range of options to raise funds, including
strategic partnerships, out-licensing, or divestment of our assets, and other future strategic actions. During October 2024, we completed
a private financing round, debt conversions and forgiveness, and various vendor buy-outs. Additionally, on November 4, 2024, we entered
into the Merger Agreement. Our future viability is dependent on our ability to raise capital for payment of our vendors and to support
on-going operations. There can be no assurance that such capital will be available within a sufficient period of time, in sufficient
amounts or on terms acceptable to us. These conditions raise substantial doubt about our ability to continue as a going concern beyond
one year from the date of issuance of our 2024 consolidated financial statements.

Since the fiscal year ended
December 31, 2024, the Company has undertaken a number of actions which have increased its shareholders’ equity, including, among
other actions, (i) the sale of securities for approximately $2.0 million in gross proceeds under the March 2025 SPA, and (ii) signing
a Facility SPA, under which the Company has the right from time to time at its