Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 247

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 247
---
 legal fees (including
intellectual property and corporate matters), accounting and audit services, IT and other consulting fees.

Finance Expense
and Income

Other
expenses include exchange rate differences and financial expenses related to credit card fees.

Interest
expense relates to interest paid for our financing obligations.

Taxation

NLS
Pharmaceutics is subject to corporate Swiss federal, cantonal and communal taxation in the Canton of Zurich, Switzerland.

We
are entitled under Swiss laws to carry forward any losses incurred for a period of seven years and can offset our losses carried forward
against future taxes. As of December 31, 2024, we had tax loss carryforwards totaling $45.8 million. There is no certainty that we will
make sufficient profits to be able to utilize these tax loss carryforwards in full. As such, we have recorded a 100% valuation on these
tax loss carryforwards.

The
effective corporate income tax rate (federal, cantonal and communal) where we are domiciled is currently 10.6%.

Notwithstanding
the corporate income tax, the corporate capital is taxed at a rate of 0.1% (cantonal and communal tax only, as there is no federal tax
on capital).

Value
Added Tax, or VAT, is charged on all qualifying goods and services by VAT-registered businesses. An amount of 7.7% of the value of the
goods or services is added to all sales invoices and is payable to the Swiss tax authorities. Similarly, VAT paid on purchase invoices
is reclaimable from the Swiss tax authorities.

Results of Operations

The
numbers below have been derived from our audited financial statements included elsewhere herein. The discussion below should be read
along with these consolidated financial statements and it is qualified in its entirety by reference to them.

For
a comparison of the year ended December 31, 2023 to the year ended December 31, 2022, see our annual report on Form 20-F for the year
ended December 31, 2023.

Comparison of the Year Ended December
31, 2024 to the Year Ended December 31, 2023

                                                                   For the Year Ended                                             
                                                                   December 31,                                                   
                                                                   2024                                    2023                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Research and development expenses                                $                          422,051      $           5,908,288  
  General