Company: NCEL
Filing Date: 2025-06-23
Form Type: F-4/A
Source: 0001213900-25-056787
Chunk: 785

Company: NewcelX Ltd.
Filing Date: 2025-06-23
Form: F-4/A
Chunk 785
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 in IFRS9, the embedded derivative must be separated from the primary contract by measuring the fair value of the embedded derivative and attributing the remaining consideration to the primary contract. The embedded derivative component must be measured every period at fair value and the changes are then attributed to profit or loss (hereinafter, “Fair Value Through Profit or Loss”). As a result, when the convertible loan was initially recognized, the Company measured the fair value of the conversion right and attributed the remainder of the consideration received for the total convertible loan to the loan component itself, which constitutes the primary contract, as noted above. This component will be measured in subsequent periods at amortized cost (according to the effective interest method). The issuance expenses totaled USD $55 thousand, of which USD $45 thousand are attributed to profit and loss, and USD $9 thousand were deducted from the amount received in respect of the primary contract. As part of the valuation project that was carried out at the time of completion, the total net consideration received by the Company, USD $1,699 thousand, was first allocated to the conversion component and a financial derivative in respect of the conversion mechanism, which constitutes a financial liability that was measured initially and in subsequent reporting periods at fair value through profit or a loss, in accordance with the provisions of IFRS9, “— Financial Instruments.” The remaining amount was attributed to the debt component, which will be presented at amortized cost and at a discount rate of 370%. In accordance with the above, the breakdown of the components of the convertible loan agreement as of the completion date is as follows :

|                                                                                   |     | Fair value |
|                                                                                   |     |     USD in 
  thousands |
| Consideration attributed to the Loan, at amortized cost – host contract           |     |        293 |
| Consideration attributed to the conversion component and the financial derivative |     |      1,406 |
| Total consideration less the issuance expenses                                    |     |      1,699 |

Annex G-28

KADIMASTEM LTD.
NOTES TO FINANCIAL STATEMENTS NOTE 15: — CONVERTIBLE LOAN AND CONVERSION COMPONENT OF CONVERTIBLE LOAN AND WARRANTS (cont.) The fair value estimate of the financial derivative component as of the completion date, as of December 31, 2023, and December 31, 2024 was calculated as part of a valuation that was carried out using the Monte Carlo model and a binomial model. The parameters used in the calculation