Company: NCEL
Filing Date: 2025-07-29
Form Type: F-4/A
Source: 0001213900-25-068765
Chunk: 787

Company: NewcelX Ltd.
Filing Date: 2025-07-29
Form: F-4/A
Chunk 787
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 grant using the Black -Scholesoption -pricingmodel (“Black -Scholes”). Black -Scholesrequires a number of assumptions, of which the most significant are share price, expected volatility, expected option term (the time from the grant date until the options are exercised or expire), risk -freerate and expected dividend rate. The grant date fair value of a common share is determined by the board Annex F-13 NLS PHARMACEUTICS LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

of directors (the “Board of Directors”) considering, among other factors, the assistance of a valuation specialist and management. The grant date fair value of a common share is determined using the valuation methodologies, which utilize certain assumptions, including probability weighting of events, volatility, time to liquidation, risk -freeinterest rate and discount for lack of marketability. Preferred Shares Upon issuance of a convertible preferred share instrument, the Company evaluates its classification as either equity or debt. In accordance with ASC 480, the Company’s preferred shares were classified as permanent equity as it does not contain any mandatorily redeemable provisions. Further, in accordance with ASC 815 -40, Derivatives and Hedging — Contracts in an Entity’s Own Equity, the preferred shares did not meet any of the criteria that would preclude equity classification. The Company concluded that the preferred shares were more akin to an equity -typeinstrument than a debt -typeinstrument, therefore the conversion features associated with the convertible preferred shares were deemed to be clearly and closely related to the host instrument and were not bifurcated as a derivative under ASC 815. Earnings per Share Basic net loss per common share is computed by dividing the net loss applicable to common shareholders by the weighted -averagenumber of common shares outstanding during the year. Diluted loss per common share is computed similar to basic loss per share, except that the denominator is increased to include the number of additional potential common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Potential common shares are excluded from the diluted loss per common share computation for a period in which a net loss is reported or if their effect is anti -dilutive. Since the Company was in a loss position for all periods presented, basic and diluted weighted average shares outstanding are the same, as the inclusion of the incremental shares would be anti -dilutive.

A summary of the potentially dilutive securities that were