Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 287

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 287
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 S. dollars or otherwise disposes of it, any subsequent gain or loss in
respect of such CHF arising from exchange rate fluctuations will be U. S. source ordinary exchange gain or loss.

Except as described below
in “ Passive Foreign Investment Companies,” ownership of the Warrants has no tax impact on U. S. Holders since holders of the
Warrants do not receive distributions unless and until the Warrants are exercised and common shares are purchased. As described below,
if we are a PFIC, ownership of the Warrants may impact the holding period of PFIC shares and impact elections under the PFIC tax rules.

Taxation of the Disposition of Common Shares
and Warrants

Except as provided under the
PFIC rules described below under “ Passive Foreign Investment Companies,” upon the sale, exchange or other disposition of our
common shares or the Warrants, a U. S. Holder will recognize capital gain or loss in an amount equal to the difference between such U. S.
Holder’s tax basis for the common shares and Warrants in U. S. dollars and the amount realized on the disposition in U. S. dollar
(or its U. S. dollar equivalent determined by reference to the spot rate of exchange on the date of disposition, if the amount realized
is denominated in a foreign currency). The gain or loss realized on the sale, exchange or other disposition of common shares and Warrants
will be long-term capital gain or loss if the U. S. Holder has a holding period of more than one year at the time of the disposition. Individuals
who recognize long-term capital gains may be taxed on such gains at reduced rates of tax. The deduction of capital losses is subject to
various limitations.

Passive Foreign Investment Companies

Special U. S. federal income
tax laws apply to U. S. taxpayers who own shares and warrants of a corporation that is a PFIC. We will be treated as a PFIC for U. S. federal
income tax purposes for any taxable year that either:

  75%                                                                                                                                       

  At                                                                                                                                           

For this purpose, passive
income generally consists of dividends, interest, rents, royalties, annuities and income from certain commodities transactions and from
notional principal contracts. Cash is treated as generating passive income.

We do not believe that we
will be a PFIC for the current taxable year although we have not determined whether we will be a PFIC in the future. The tests for determining
PFIC status