Company: NCEL
Filing Date: 2025-09-25
Form Type: F-1
Source: 0001213900-25-091697
Chunk: 80

Company: NewcelX Ltd.
Filing Date: 2025-09-25
Form: F-1
Chunk 80
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 determine the suitable nominal interest rate for the discounting of
the lease contracts, in accordance with the Company’s financial risk, the lease contract term, and other economic variables.

The weighted average incremental interest
rate used to discount the future lease payments when calculating the outstanding lease liability at the time of the standard’s first-time
implementation is 20%.

The Company has received a convertible
loan from several shareholders, and the loan agreement includes warrants that would be granted to the lenders under certain conditions.
Due to the complexity of the terms of the loan agreement, which includes an embedded conversion component and a right to receive warrants
upon certain conditions, the attribution of the consideration received between the components of the agreement upon initial recognition
requires judgement and the use of various option pricing models. (See Note 15).

<div align='center'>F-12</div>

The Company received a short-term loan
from one of its shareholders at non-market terms. The Company accounts for these transactions as transactions that include a contribution
to equity, while recognizing them according to fair value in accordance with IFRS 9. The contribution amount, which reflects the difference
between the aforementioned fair value and the terms of the transaction, is credited to equity, net of the tax effect. In order to determine
the contribution to equity, the Company must assess the market terms as of the day of the transaction, including the price of the guarantee
under market terms, as if it had been provided by an unrelated third party.

The fair value of share-based payment
transactions is determined upon initial recognition, using an acceptable option pricing model. The model is based on data as to the share
price and the exercise price, in addition to assumptions regarding the expected volatility, expected life expected dividend, and the risk-free
interest rate.

| B. | Estimates and assumptions |

When preparing the financial statements,
the management must use estimates and assumptions that affect the implementation of the accounting policy and the reported total assets,
liabilities, revenues, and expenses. In formulating the accounting estimates, management relies on past experience, various facts, external
factors, and reasonable assumptions, depending on the circumstances. Changes in accounting estimates are recognized in the period in which
the estimate is changed.

Below are the primary assumptions made
in the financial statements in connection with uncertainties as of the reporting date and critical estimates calculated by the Company,
for which a substantial change in the estimates and assumptions may change the value of assets and liabilities in the financial statements
in the following year:

Government grants from