Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 308

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 5
Chunk 308
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 These conditions raise substantial doubt about our ability to continue as a going concern beyond one year from the date of issuance of our 2024 consolidated financial statements.

Since the fiscal year ended December 31, 2024, the Company has undertaken a number of actions which have increased its shareholders’ equity, including, among other actions, (i) the sale of securities for approximately $2.0 million in gross proceeds under the March 2025 SPA, and (ii) signing a Facility SPA, under which the Company has the right from time to time at its option to sell to Alpha up to $25.0 million of the common shares, subject to certain conditions and limitations set forth in the Facility SPA.As a result of these actions, the Company believes that, as of the date of this report, it satisfies the stockholders’ equity requirement of at least $2.5 million pursuant to Nasdaq Listing Rule 5550(b)(1) for continued listing on the Nasdaq Capital Market.

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Accordingly, the 2024 consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate our continuation as a going concern for a period within one year from the issuance of our 2024 financial statements and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in these consolidated financial statements do not necessarily purport to represent realizable or settlement values. Our 2024 consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.

Capital Resources and Liquidity

In connection with the merger transaction, we have prepared the following unaudited pro forma balance sheets to illustrate the impact of this transaction. The following table compares our historical balance sheets as of December 31, 2024 with the pro forma capitalization as adjusted for the implemented transaction. 

●          on       
    an actual basis;
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●                                  On                               
    a pro forma basis to give effect to the net proceeds to us from:
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(i)                               the sale of 161,290 common shares at                           
      a purchase price of $3.10 per share on January 9, 2025 pursuant to December 2024 securities
                      purchase agreement which generated net proceeds of $475,000;               
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(ii)                                                                        the                                                                     
          exercise of warrants for a total of 76,847 common shares in connection with the October 9, 2024 Equity Purchase Agreement and pre-funded  
       warrants provided to certain institutional investors