Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 91

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 91
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 also the possibility that defects in the design or manufacture of any of its products might necessitate a product
recall. Although Kadimastem plans to maintain product liability insurance, the coverage limits of these policies may not be adequate to
cover future claims. In the future, Kadimastem may be unable to maintain product liability insurance on acceptable terms or at reasonable
costs and such insurance may not provide it with adequate coverage against potential liabilities. A product liability claim, regardless
of merit or ultimate outcome, or any product recall could result in substantial costs to Kadimastem, damage to its reputation, customer
dissatisfaction and frustration and a substantial diversion of management attention. A successful claim brought against Kadimastem in
excess of, or outside of, its insurance coverage could have a material adverse effect on Kadimastem’s business, financial condition
and results of operations.

Failure in its information technology systems, including by cybersecurity attacks or other data security incidents, could significantly disrupt Kadimastem’s operations.

Kadimastem’s operations
depend, in part, on the continued performance of its information technology systems. Kadimastem’s information technology systems
are potentially vulnerable to physical or electronic break-ins, computer viruses and similar disruptions. Failure of its information technology
systems could adversely affect its business, profitability and financial condition. Although Kadimastem has information technology security
systems, a successful cybersecurity attack or other data security incident could result in the misappropriation and/or loss of confidential
or personal information, create system interruptions, or deploy malicious software that attacks its systems. It is possible that a cybersecurity
attack might not be noticed for some period of time. The occurrence of a cybersecurity attack or incident could result in business interruptions
from the disruption of Kadimastem’s information technology systems, or negative publicity resulting in reputational damage with
its shareholders and other stakeholders and/or increased costs to prevent, respond to or mitigate cybersecurity events. For example, the
loss of clinical trial data from completed or ongoing or planned clinical trials could result in delays in its regulatory approval efforts
and significantly increase its costs to recover or reproduce the data. In addition, the unauthorized dissemination of sensitive personal
information or proprietary or confidential information could expose Kadimastem or other third parties to regulatory fines or penalties,
litigation and potential liability, or otherwise harm its business.

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Unsuccessful compliance with certain European privacy regulations could have an adverse effect on Kadimastem’s