Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 79

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 79
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 substantial doubt about its ability to continue as a going concern. If
it is unable to raise sufficient capital when needed, its business, financial condition and results of operations will be materially and
adversely affected, and it will need to significantly modify its operational plans to continue as a going concern. The inclusion of a
going concern explanatory paragraph by NLS’s auditors, its lack of cash resources and its potential inability to continue as a going
concern may materially adversely affect its share price and its ability to raise new capital or to enter into critical contractual relations
with third parties. If it is unable to continue as a going concern, including following the Merger, it might have to liquidate its assets
and the values it receives for its assets in liquidation or dissolution could be significantly lower than the values reflected in its
financial statement.

Increased operating and capital costs could
affect NLS’s profitability.

Costs for any particular
product are subject to variation due to a number of factors, such as regulatory costs and research and development expenses. In
addition, costs are affected by the price and availability of input commodities, electricity, labor, chemical reagents, and
processing related equipment and facilities. Product costs are, at times, subject to volatile price movements, including increases
that could make production at certain operations less profitable. Further, changes in laws and regulations can affect product
prices, uses and transport. Reported costs may also be affected by changes in accounting standards. A material increase in costs
could have a significant effect on NLS’s profitability and operating cash flow.

NLS could have significant
increases in capital and operating costs over the next several years in connection with the development of new projects and in the
sustaining and/or expansion of existing operations. Costs associated with capital expenditures may increase in the future as a result
of factors beyond NLS’s control. Increased capital expenditures may have an adverse effect on the profitability of and cash flow
generated from existing operations, as well as the economic returns anticipated from new projects.

NLS may seek to grow through acquisitions.

NLS may seek to grow through
acquisitions. Factors which may affect its ability to grow successfully through acquisitions include:

  inability to obtain financing;  

  difficulties and expenses in connection with integrating the  

  diversion of management’s attention from current operations;  

  the possibility that it may be adversely affected by risk  
  factors facing the acquired companies;                     
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  acquisitions could