Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 78

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 78
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NLS will need substantial additional funding
to continue its operations, which could result in dilution to its shareholders. NLS may not be able to raise capital when needed, if at
all, which could cause it to have insufficient funds to pursue its operations, or to delay, reduce or eliminate its development of new
programs or commercialization efforts.

NLS expects to incur additional
costs associated with continuing to operate as a public company and to require substantial additional funding to continue to pursue its
business and continue with its expansion plans. NLS may also encounter unforeseen expenses, difficulties, complications, delays and other
unknown factors that may increase its capital needs and/or cause it to spend its cash resources faster 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’s 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’s
independent registered public accounting firm on its consolidated financial statements as of and for the year ended December 31,
2024 includes an explanatory paragraph indicating that there is