Company: NCEL
Filing Date: 2025-09-25
Form Type: F-1
Source: 0001213900-25-091697
Chunk: 73

Company: NewcelX Ltd.
Filing Date: 2025-09-25
Form: F-1
Chunk 73
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<div align='center'>The attached Notes constitute an integral part
of the financial statements.

F-7

KADIMASTEM LTD.

Notes to the Financial Statements</div>

Note 1: - General

| A. | General description of the company and its activity: |

Kadimastem Ltd. (hereinafter, the “Company”)
was incorporated in Israel on October 6, 2008, and began its business activities on August 27, 2009. On June 6, 2013, the Company completed
a public offering of its shares on the Tel Aviv Stock Exchange (“TASE”). The Company’s offices are located in Ness Ziona,
Israel. The Company is engaged in the development of drugs for the treatment of terminal muscular dystrophy (also known as ALS) and diabetes
in the field of regenerative medicine.

| B. | As of December 31, 2024, the Company’s capital deficiency, accumulated deficit, and negative working                                   
 capital amounted to USD $7,996 thousand, USD $76,530 thousand, and USD $8,119 thousand, respectively. Additionally, for the year ended 
 December 31, 2024, the Company incurred a loss of USD $7,178 thousand and had negative cash flows from operating activities amounting  
 to USD $705 thousand.                                                                                                                  |

The Company’s ability to continue
its operations depends on raising resources to finance its operations. The Company is involved in raising funds by arranging private placements
to investors in Israel and abroad, raising funds on the TASE, and issuing rights to its current shareholders. At present, there is no
certainty as to the Company’s ability to generate income or raise additional capital in the future, if at all.

These factors raise substantial doubt
regarding the Company’s ability to continue as a going concern. The financial statements do not include any adjustments regarding
the carrying amounts of the assets and liabilities and their classification should the Company not continue to operate as a going concern.
Such adjustment could be material.

| C. | The effects of the Swords of Iron War: |

The “Swords of Iron” War
(hereinafter, the “War”) broke out in the State of Israel in October 2023. The continued War has led to a slowdown in business
activity in the Israeli economy due to, among other things, factories in the south and north of the country being closed, infrastructure
damage, the recruitment of reserve personnel for an