Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 356

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 356
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 value, and expands disclosures about fair value measurements. Fair value is an exit price, representing
the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market
participants would use in pricing an asset or liability. As a basis for considering such assumptions there exists a three-tier fair-value
hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 - unadjusted quoted prices are
available in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.

Level 2 - pricing inputs are other than
quoted prices in active markets that are directly observable for the asset or liability or indirectly observable through corroboration
with observable market data.

Level 3 - pricing inputs are
unobservable for the non-financial asset or liability and only used when there is little, if any, market activity for the
non-financial asset or liability at the measurement date. The inputs into the determination of fair value require significant
management judgment or estimation. Fair value is determined using comparable market transactions and other valuation methodologies,
adjusted as appropriate for liquidity, credit, market and/or other risk factors.

F-13

This hierarchy requires the Company to use observable
market data, when available, and to minimize the use of unobservable inputs when determining fair value.

The Company’s cash and cash equivalents
are carried at fair value, determined according to the fair value hierarchy described above. The carrying value of the Company’s
accounts payable and accruals approximates its fair value due to the short-term nature of these liabilities.

Debt Issuance Costs and Debt Discount

Debt issuance costs related to a recognized debt liability are presented
on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, and are amortized
to interest expense over the term of the related debt using the effective interest method. As of December 31, 2024 and 2023, the Company
had no unamortized debt discount associated with its outstanding debt instruments.

Income Taxes

The Company accounts for income taxes using the
asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred taxes are
determined based