Company: NCEL
Filing Date: 2025-03-03
Form Type: F-4/A
Source: 0001213900-25-018981
Chunk: 320

Company: NewcelX Ltd.
Filing Date: 2025-03-03
Form: F-4/A
Chunk 320
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 increase was primarily due to the revaluation of loans from related parties and non -cashfinancing expenses of lease liabilities. Net Loss The net loss for the six months ended June 30, 2024, was $1,236,329, representing a decrease of $683,771 (35.6%), compared to a net loss of $1,920,100 for the six months ended June 30, 2023. The decrease is primarily due to the decrease in operating loss. Kadimastem Efficiency Program Kadimastem implemented an efficiency program aimed at optimizing operational costs and reducing expenditures across various functional areas. The program focused primarily on: 1. Reduction in Workforce and Service Providers— Kadimastem streamlined its workforce by reducing headcount, leading to lower salary expenses and associated costs such as benefits and social security contributions. Additionally, engagements with external service providers were scaled back to align with the company’s reduced operational scope. 2. Cost Optimization in Administrative Functions— Kadimastem sought to cut costs in its general and administrative departments, including reductions in office space utilization, renegotiation of contracts with third -partyvendors, and implementation of stricter budget controls. 3. Elimination of Sales and Marketing Expenses— The company ceased all sales and marketing -relatedexpenditures, eliminating related salaries, advertising, public relations, and promotional activities. Impact on Research and Development (R&D) ExpensesFor the six months ended June 30, 2024, research and development expenses totaled $410,395, reflecting a significant decrease of $638,881 (60.9%) from $1,049,276 during the six months ended June 30, 2023. The primary contributors to this reduction were: • Workforce Reduction— Decreased personnel costs resulting from the downsizing of R&D staff. • Reduction in External Research Services— Reduced expenditures on third -partyresearch contracts and consultants. • Lower Laboratory Operational Costs— Streamlined research activities led to a decrease in material costs and laboratory maintenance expenses. Impact on General and Administrative (G&A) ExpensesGeneral and administrative expenses for the six months ended June 30, 2024, were $376,286, a decline of $497,222 (44.5%) from $678,452 in the six months ended June 30, 2023. The reduction was achieved through: • Personnel Cost Savings— Decreased salaries and benefits for administrative staff due to layoffs. • Reduced Overhead and Office Expenses— Cost -cuttinginitiatives