Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 47

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 47
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 than expected. Accordingly, NLS
expects that it will need to obtain substantial additional funding in order to continue its operations. To date, NLS has financed its
operations entirely through equity and debt investments by founders and other investors and the incurrence of debt, and it expects to
financing its operations through equity and debt investments by investors in the foreseeable future, including following the Merger. Additional
funding from those or other sources may not be available when or in the amounts needed, on acceptable terms, or at all. If NLS raises
capital through the sale and issuance of equity, or securities convertible into equity, it would result in dilution to its existing shareholders,
which could be significant depending on the price at which it may be able to sell and issue its securities. If it raises additional capital
through the incurrence of additional indebtedness, it would likely become subject to further covenants that could restricting its business
activities, and holders of debt instruments will likely have rights and privileges senior to those of its equity investors. In addition,
servicing the interest and principal repayment obligations under debt facilities could divert funds that would otherwise be available
to support development of new programs and marketing to current and potential new clients. If NLS is unable to raise capital when needed
or on acceptable terms, it could be forced to delay, reduce or eliminate development of new programs or future marketing efforts. Any
of these events could significantly harm NLS’ business, financial condition and prospects.

Without obtaining adequate capital funding or improving its financial performance, NLS may not be able to continue as a going concern.

The report of NLS’ independent
registered public accounting firm on its consolidated financial statements as of and for the year ended December 31, 2023 includes an
explanatory paragraph indicating that there is substantial doubt about its ability to continue as a going concern. If it is unable to
raise sufficient capital when needed, its business, financial condition and results of operations will be materially and adversely affected,
and it will need to significantly modify its operational plans to continue as a going concern. The inclusion of a going concern explanatory
paragraph by NLS’ auditors, its lack of cash resources and its potential inability to continue as a going concern may materially
adversely affect its share price and its ability to raise new capital or to enter into critical contractual relations with third parties.
If it is unable to continue as a going concern, including following the Merger, it might have to liquidate its assets and the