Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 141

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 141
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. Any losses
or damages incurred by the combined company could have a material adverse effect on the combined company’s business. Any armed conflicts
or political instability in the region would likely negatively affect business conditions and could harm the combined company’s
results of operations.

Several countries, principally
in the Middle East, still restrict doing business with Israel and Israeli companies, and additional countries may impose restrictions
on doing business with Israel and Israeli companies, whether as a result of hostilities in the region or otherwise. In addition, there
have been increased efforts by certain countries, activists and organizations to cause companies, research institutions and consumers
to boycott Israeli goods and cooperation with Israeli-related entities based on Israeli government policies. Such actions, particularly
if they become more widespread, may adversely impact the combined company’s ability to collaborate with other third parties.

Additionally, political conditions
within Israel may affect the combined company’s operations. Many citizens and groups have responded strongly against the Israeli
government’s pursuit of judicial reform. To date, these initiatives have been substantially put on hold. Actual or perceived instability
in Israel or any negative changes in the political environment may individually or in the aggregate adversely affect the combined company.

Finally, political conditions
within Israel may affect the combined company’s operations. Israel has held five general elections between 2019 and 2022, and prior
to October 2023, the Israeli government pursued extensive changes to Israel’s judicial system, which sparked extensive political
debate and unrest. To date, these initiatives have been substantially put on hold. Actual or perceived political instability in Israel
or any negative changes in the political environment, may individually or in the aggregate adversely affect the Israeli economy and, in
turn, the combined company’s business, financial condition, results of operations and growth prospects.

Exchange rate fluctuations between the U. S. Dollar
and New Israeli Shekels, or NIS, may negatively affect the combined company’s earnings and could adversely affect its results of
operations.

The combined company incurs
expenses in NIS, U. S. dollars, and Euros, but the combined company’s financial statements are denominated in NIS as its financial
currency. Accordingly, the combined company faces exposure to adverse movements in currency exchange rates. Accordingly, the combined
company faces exposure to adverse movements in the currency exchange rate of the NIS against these foreign currencies, which may have
a negative effect on its revenue and costs. If the NIS weakens against any of these currencies, the translation of these foreign