Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 44

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 44
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Any setbacks in research and development could materially reduce the anticipated benefits of the Merger and impact NLS’ financial
position and future growth potential. Furthermore, intensified research and development efforts may divert resources from other strategic
initiatives, limiting NLS’ ability to respond to unforeseen challenges and competitive pressures in a timely manner.

Kadimastem has a limited operating history.

Kadimastem has a limited operating history and
is subject to all the risks inherent in a new business enterprise. The likelihood of success must be considered in light of the problems,
expenses, difficulties, complications, and delays frequently encountered in connection with a business with limited operating history,
and the competitive and regulatory environment in which Kadimastem operated and will operate, such as under-capitalization, personnel
limitations, and limited financing sources.

The future financial results of NLS will suffer if NLS does not effectively manage its assets or deploy its available capital following the Merger.

Following the Merger, NLS
intends to focus on developing and manufacturing “off-the-shelf”, allogeneic, proprietary cell products. Future financial
results of NLS will suffer if NLS does not effectively manage this shift in business focus. If NLS is unable to obtain capital necessary
to maintain and increase its assets, and the assets of NLS, NLS could be required to reduce or suspend its operations or dispose of assets
at inopportune time or price, which could negatively affect NLS’ financial condition, results of operations and ability to pay or
sustain dividends to NLS’ shareholders.

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NLS and Kadimastem have each had a history of net losses, and NLS expects to continue to incur losses for the foreseeable future, including following the Merger. If NLS ever achieves profitability, it may not be able to sustain it.

Each of NLS and Kadimastem
have incurred losses since its respective inception and expects to continue to incur losses for the foreseeable future, including, with
respect to NLS, following the Merger. NLS’ net loss attributable to holders of our Common Share for the year ended December 31,
2023 and 2022, respectively was approximately $12.2 million and $16.5 million. For the six months ended June 30, 2024 and 2023 NLS’
net loss attributable to holders of our Common Share was approximately $2.0 million and $7.