Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 354

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 354
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 until such time as those
standards apply to private companies. The Company intends to take advantage of the exemptions until it is no longer an EGC.

Cash and Cash Equivalents

The Company considers all highly liquid
investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company deposits
its cash primarily in checking, money market accounts, as well as certificates of deposit. The Company generally does not enter into
investments for trading or speculative purposes rather to preserve its capital for the purpose of funding operations.

F-11

Property and equipment

Property and equipment are recorded at cost, net
of accumulated depreciation and any accumulated impairment losses. Depreciation is computed using the straight-line method over the estimated
useful lives of the assets. The useful lives of property and equipment are five years for furniture and fixtures and three years for software.

Upon retirement or sale, the cost of disposed
assets and their related accumulated depreciation are removed from the balance sheet. Any resulting net gains or losses on dispositions
of property and equipment are included as a component of operating expenses within the Company’s statements of operating and comprehensive
loss. Repair and maintenance costs that do not significantly add value to the property and equipment, or prolong its life, are charged
to operating expense as incurred.

Concentration of Credit Risk

Financial instruments that potentially
subject the Company to concentration of credit risk include cash. On December 31, 2024 and 2023, all of the Company’s cash
balances are deposited in one banking institution in Switzerland. At various times, the Company has deposits in financial
institutions which are in excess of federally insured limits of CHF100,000($109,650) that are protected by esisuisse. Management
regularly monitors the creditworthiness and financial stability of these banking institutions to mitigate credit risk. This review
includes periodic evaluations of the banks’ financial health, regulatory standings, and credit ratings.

Functional Currency

The Company has operations in Switzerland and
the United States. The Company’s functional currency is the U. S. dollar (“ USD”). The results of its non-USD based operations
are translated to USD at the average exchange rates during the year. The Company’s assets and liabilities are translated using the
current exchange rate as of the balance sheet date and shareholders’ equity is translated using historical rates. Foreign exchange
transaction gains and losses are included in Other income/expense in the Company’s results of operations.

Revenue Recognition

Under ASC