Company: NCEL
Filing Date: 2025-09-10
Form Type: 424B3
Source: 0001213900-25-086600
Chunk: 418

Company: NewcelX Ltd.
Filing Date: 2025-09-10
Form: 424B3
Chunk 418
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 and Development Foundation, or the BIRD Foundation, and iTolerance, Inc., or iTolerance, entered into a Pharma Cooperation and Project Funding Agreement for the clinical development of iTol -102, or the Proposal, and collectively, the iTolerance Co -DevelopmentAgreement. Under the iTolerance Co -DevelopmentAgreement, the BIRD Foundation agreed to fund the Proposal of up to $1,000,000, or the Foundation Grant, with repayment made from any gross revenues received from any products developed under the Proposal, or a Product. Following the earlier of (1) one year following an IND approval (or equivalent to any regulatory agency); (b) commencement of the marketing of any Product; or (c) the continuation of the development of the Product, the Foundation Grant shall become immediately payable to the BIRD Foundation, with the amounts to be repaid each year subject to certain maximum limits on the amount of gross sales to be repaid each year. Under the iTolerance Co -DevelopmentAgreement, the governments of Israel and the United States were granted a non -exclusive, irrevocable, royalty -freelicense to use any product for any purpose. The BIRD Foundation has the right to revoke the Foundation Grant upon the occurrence, among other events, a fundamental breach of the agreement, insolvency, change in business, dispute between, or material advance change in financial position of either Kadimastem or iTolerance. On July16, 2025, the BIRD Foundation has approved another milestone -basedfunding under the iTolerance Co -DevelopmentAgreement. The milestone payment is based on the significant progress demonstrated by the companies in the co -developmentof iTOL -102. The milestone payment approved by the BIRD Foundation amounts to approximately NIS 564,400 (approximately $166,000 USD), bringing the total support from the BIRD Foundation to nearly NIS 3million (approximately $833,000 USD) to date. Israel Innovation Authority Grant Framework Under a general framework agreement with the IIA, Kadimastem received approximately $13.9 million in grants, or the Grant, from the IIA under Incentive Track No. 1 — The R&D Fund, or the Fund, under which it agreed to pay royalties ranging from 3% – 3.5% on sales derived from products developed with grant funding received from the Fund, as long as total sales are under $70 million, or 5% of such sales if they exceed $70 million, until