Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 289

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 289
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 such U. S. Holder has held the common shares while
we are a PFIC, provided that we comply with specified reporting requirements. A U. S. Holder of our Warrants may not make a QEF election
regarding our Warrants. Instead, each U. S. Holder who has made such a QEF election is required for each taxable year that we are a PFIC
to include in income such U. S. Holder’s pro rata share of our ordinary earnings as ordinary income and such U. S. Holder’s
pro rata share of our net capital gains as long-term capital gain, regardless of whether we make any distributions of such earnings or
gain. In general, a QEF election is effective only if we make available certain required information. The QEF election is made on a shareholder-by-shareholder
basis and generally may be revoked only with the consent of the IRS. We do not intend to notify U. S. Holders if we believe we will be
treated as a PFIC for any tax year. In addition, we do not intend to furnish U. S. Holders annually with information needed in order to
complete IRS Form 8621 and to make and maintain a valid QEF election for any year in which we or any of our subsidiaries are a PFIC. Therefore,
the QEF election will not be available with respect to our common shares.

In addition, except with respect
to the Warrants (unless exercised), the PFIC rules described above would not apply if we were a PFIC and a U. S. Holder made a mark-to-market
election. A U. S. Holder of our common shares which are regularly traded on a qualifying exchange, including Nasdaq, can elect to mark
the common shares to market annually, recognizing as ordinary income or loss each year an amount equal to the difference as of the close
of the taxable year between the fair market value of the common shares and the U. S. Holder’s adjusted tax basis in the common shares.
Losses are allowed only to the extent of net mark-to-market gain previously included income by the U. S. Holder under the election for
prior taxable years.

U. S. Holders who hold our
common shares and Warrants during a period when we are a PFIC will be subject to the foregoing rules, even if we cease to be a PFIC. U. S.
Holders are strongly urged to consult their tax advisors about the PFIC rules.

Tax