Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 358

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 358
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 which have terms to maturity approximating the terms of the related liability.

F-14

Remeasurements of the net defined benefit liability,
which comprise actuarial gains and losses, and the return on plan assets (excluding interest), are recognized immediately in Other Comprehensive
Loss. Past service costs, including curtailment gains or losses, are recognized immediately as an allocation between research and development
and general and administrative expenses within the operating results. Settlement gains or losses are recognized in either research and
development and/or general and administrative expenses within the operating results. The Company determines the net interest expense (income)
on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the
beginning of the annual period or in case of any significant events between measurement dates to the then-net defined benefit liability,
taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments.
Net interest expense and other expenses related to defined benefit plans are recognized in the statement of operations and comprehensive
loss.

Stock-Based Compensation

The Company measures all stock-based awards granted
based on the fair value on the date of the grant and recognizes compensation expense with respect to those awards over the requisite service
period, which is generally the vesting period of the respective award. Generally, the Company issues awards with only service-based vesting
conditions and records the expense for these awards using the straight-line method. The Company recognizes forfeitures related to stock-based
compensation awards as they occur and reverses any previously recognized compensation cost associated with forfeited awards in the period
the forfeiture occurs.

The Company classifies stock-based compensation
expense in the accompanying consolidated statements of operations and comprehensive loss in the same manner in which the award recipients’
payroll costs are classified or in which the award recipients’ service payments are classified.

The fair value of each stock option is estimated
on the date of grant using the Black-Scholes option-pricing model (“ Black-Scholes”). Black-Scholes requires a number of assumptions,
of which the most significant are share price, expected volatility, expected option term (the time from the grant date until the options
are exercised or expire), risk-free rate and expected dividend rate. The grant date fair value of a common share is determined by the
board of directors (the “ Board of Directors”) considering, among other factors, the assistance of a valuation specialist and
management. The grant date fair value of a common share is determined using