Company: NCEL
Filing Date: 2025-06-09
Form Type: F-4/A
Source: 0001213900-25-052354
Chunk: 281

Company: NewcelX Ltd.
Filing Date: 2025-06-09
Form: F-4/A
Chunk 281
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 method. According to the income approach, the value of an economic asset is derived from the future cash flows arising from it. The basic principle underlying the income approach is that an asset/company is an active ongoing concern premise and will operate in the future. The aim of the income approach is to reach the current value based on the firm’s forecast cash flows. The main valuation methodology in the income approach is the DCF Analysis. The method’s principle is that the value of the asset is the present value of free cash flow which is generated during the forecast period (finite or infinite). The first step in this approach is to build a cash flow projection of the entity (based on the entity’s business model). In the second phase, to determine the value of the asset it is required to set an appropriate discount rate which is the basis for discounting future cash flows and translating them into current values. The discount rate reflects the level of activity’s risk. As much as the entity’s activity is dangerous (i.e., the level of uncertainty that exists to realization is lower) then it is required to choose a higher discount rate. As much as the discount rate is higher then, the cash flow’s present value will be lower. Among the various early -stagebiotech valuation methods, the rNPV Analysis method is the most appropriate. This method is suited for valuing: •Preclinical and clinical stage biotech assets •Novel pharma and biotech drugs undergoing development 137 •Other life sciences assets that undergo phased development The mechanics of rNPV involve: •Estimating clinical trial and approval probabilities •Adjusting cash flow projections for risk using these probabilities •Discounting risk -adjustedcash flows to present value •Summing risk -adjustedcash flows to derive rNPV This captures the risks inherent in biotech drug development. rNPV provides a more accurate asset valuation than basic DCF as it enables conducting pharma and biotech valuation based on the stage (preclinical, Phase 1 -3) of development of assets. As mentioned in the company description, Kadimastem is currently in the process of developing two indications: •AstroRx ®— clinical development of a cell therapy for treating ALS. •IsletRx — a treatment for insulin -dependentdiabetes (type 1 diabetes and type 2 diabetes requiring insulin). Moore has valued Kadimastem under the assumption that these are its’ only two projects, therefore we accounted for expected income and expenses related to these indications alone and did not take into consideration developments