Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 86

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 86
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continue one or more of its research or development
programs or the development or commercialization, if any, of any product candidates or be unable to expand its operations or otherwise
capitalize on its business opportunities, as desired, which could materially affect its business, financial condition and results of operations.

Unstable market and economic conditions,
including inflation, may have serious adverse consequences on Kadimastem’s business, financial condition and share price.

The global economy, including
credit and financial markets, has experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability,
declines in consumer confidence, declines in economic growth, increases in unemployment rates, increases in inflation rates and uncertainty
about economic stability. The current wars in Israel and between Ukraine and Russia have created extreme volatility in the global capital
markets, and are expected to have further global economic consequences, including disruptions of the global supply chain and energy markets.
Any such volatility and disruptions may have adverse consequences on Kadimastem or the third parties on whom Kadimastem rely. If the equity
and credit markets deteriorate, including as a result of political unrest or war, it may make any necessary debt or equity financing more
difficult to obtain in a timely manner or on favorable terms, more costly or more dilutive.

Disruption to the global economy
could also result in a number of follow-on effects on Kadimastem’s business, including a possible slow-down resulting from lower
customer expenditures; inability of customers to pay for products, solutions or services on time, if at all; more restrictive export regulations,
which could limit Kadimastem’s potential customer base; negative impact on Kadimastem’s liquidity and financial condition
and share price, which may impact Kadimastem’s ability to raise capital in the market, obtain financing and secure other sources
of funding in the future on terms favorable to Kadimastem.

Inflation, which increased
significantly during 2024, could adversely affect Kadimastem’s business by increasing the costs of raw material and labor needed
to operate its business and could continue to adversely affect Kadimastem in future periods. If this current inflationary environment
continues, there can be no assurance that Kadimastem would be able to recover related cost increases through price increases, which could
result in downward pressure on Kadimastem’s operating margins. As a result, Kadimastem’s financial condition, results of operations,
and cash flows could be adversely affected over time.

Risks