Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 76

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 76
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 Merger, NLS
intends to focus on developing and manufacturing “off-the-shelf”, allogeneic, proprietary cell products. Future financial
results of NLS will suffer if NLS does not effectively manage this shift in business focus. If NLS is unable to obtain capital necessary
to maintain and increase its assets, and the assets of NLS, NLS could be required to reduce or suspend its operations or dispose of assets
at inopportune time or price, which could negatively affect NLS’s financial condition, results of operations and ability to pay
or sustain dividends to NLS’s shareholders.

NLS and Kadimastem have each had a history
of net losses, and NLS expects to continue to incur losses for the foreseeable future, including following the Merger. If NLS ever achieves
profitability, it may not be able to sustain it.

Each of NLS and
Kadimastem have incurred losses since its respective inception and expects to continue to incur losses for the foreseeable future,
including, with respect to NLS, following the Merger. NLS’s net loss attributable to holders of our common shares for the
years ended December 31, 2024 and 2023, respectively was approximately $4.1 million and $12.2 million. As of
December 31, 2024 and December 31, 2023 NLS had an accumulated deficit of approximately $74.4 million and
$70.4 million, respectively, and total equity of $1.4 million and $(8.8) million. Substantially all of our operating losses
resulted from costs incurred in connection with our clinical development program and from general and administrative costs
associated with our operations. Kadimastem reported net losses of approximately $7.2 million, $3.3 million and
$6.8 million for the years ended December 31,2024, 2023 and 2022, respectively, As of December 31, 2024 and
2023, Kadimastem had a total equity of approximately $(8.0) million and $(1.2) million, respectively, and accumulated deficit of
approximately $(76.5) million and $(69.3) million, respectively. NLS expects to incur net losses from continuing operations and
net cash used in operating activities, including following the Merger. NLS may need to raise additional working capital to continue
its normal and planned operations