Company: NCEL
Filing Date: 2025-09-03
Form Type: F-4/A
Source: 0001213900-25-084157
Chunk: 775

Company: NewcelX Ltd.
Filing Date: 2025-09-03
Form: F-4/A
Chunk 775
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10 NLS PHARMACEUTICS LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Upon retirement or sale, the cost of disposed assets and their related accumulated depreciation are removed from the balance sheet. Any resulting net gains or losses on dispositions of property and equipment are included as a component of operating expenses within the Company’s statements of operating and comprehensive loss. Repair and maintenance costs that do not significantly add value to the property and equipment, or prolong its life, are charged to operating expense as incurred. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk include cash. On December 31, 2024 and 2023, all of the Company’s cash balances are deposited in one banking institution in Switzerland. At various times, the Company has deposits in financial institutions which are in excess of federally insured limits of CHF 100,000($ 109,650) that are protected by esisuisse. Management regularly monitors the creditworthiness and financial stability of these banking institutions to mitigate credit risk. This review includes periodic evaluations of the banks’ financial health, regulatory standings, and credit ratings. Functional Currency The Company has operations in Switzerland and the United States. The Company’s functional currency is the U.S. dollar (“USD”). The results of its non -USDbased operations are translated to USD at the average exchange rates during the year. The Company’s assets and liabilities are translated using the current exchange rate as of the balance sheet date and shareholders’ equity is translated using historical rates. Foreign exchange transaction gains and losses are included in Other income/expense in the Company’s results of operations. Revenue Recognition Under ASC Topic 606 and the related amendments, Revenue from Contracts with Customers, the Company recognizes revenue when control of promised goods or services is transferred to the customer. The five -stepmodel is applied, which includes identifying performance obligations, determining the transaction price, allocating the transaction price, and recognizing revenue when obligations are satisfied. Performance obligations are distinct when the customer can benefit from them independently, and the Company evaluates the distinctiveness considering factors such as intellectual property development and customer capabilities. Variable consideration is estimated based on the likelihood of achievement, with constrained amounts included only if a significant reversal is unlikely. Transaction prices are allocated to performance obligations based on stand -aloneselling prices, which may require judgment and references to comparable transactions, clinical trial probabilities, and expected option exercises. Revenue from development and regulatory milestones is recognized under the most likely amount method, subject to the constraint