Company: NCEL
Filing Date: 2025-09-03
Form Type: F-4/A
Source: 0001213900-25-084157
Chunk: 315

Company: NewcelX Ltd.
Filing Date: 2025-09-03
Form: F-4/A
Chunk 315
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 set an appropriate discount rate which is the basis for discounting future cash flows and translating them into current values. The discount rate reflects the level of activity’s risk. As much as the entity’s activity is dangerous (i.e., the level of uncertainty that exists to realization is lower) then it is required to choose a higher discount rate. As much as the discount rate is higher then, the cash flow’s present value will be lower. Among the various early -stagebiotech valuation methods, the rNPV Analysis method is the most appropriate. This method is suited for valuing: •Preclinical and clinical stage biotech assets •Novel pharma and biotech drugs undergoing development •Other life sciences assets that undergo phased development The mechanics of rNPV involve: •Estimating clinical trial and approval probabilities •Adjusting cash flow projections for risk using these probabilities •Discounting risk -adjustedcash flows to present value •Summing risk -adjustedcash flows to derive rNPV 140 This captures the risks inherent in biotech drug development. rNPV provides a more accurate asset valuation than basic DCF as it enables conducting pharma and biotech valuation based on the stage (preclinical, Phase 1 -3) of development of assets. As mentioned in the company description, Kadimastem is currently in the process of developing two indications: •AstroRx ®— clinical development of a cell therapy for treating ALS. •IsletRx — a treatment for insulin -dependentdiabetes (type 1 diabetes and type 2 diabetes requiring insulin). Moore has valued Kadimastem under the assumption that these are its’ only two projects, therefore we accounted for expected income and expenses related to these indications alone and did not take into consideration developments that Kadimastem might be performing in the future. Another assumption made for the sake of the current valuation is that Kadimastem will develop the two indications on its own until the successful termination of the Phase II clinical trials and following that will seek for a business agreement with a large pharma company that will perform the Phase III clinical trials (on its own account) and after the successful conclusion of the trials will continue and market the finished products. Kadimastem will be entitled for an upfront payment at the end of Phase II and royalties from the third -partyrevenues. The detailed analysis of the DCF method can be reviewed in the valuation reports attached as Annex E to this proxy statement/prospectus which is incorporated herein by reference. Summary of Analysis Moore began its