Company: NCEL
Filing Date: 2025-03-03
Form Type: F-4/A
Source: 0001213900-25-018981
Chunk: 226

Company: NewcelX Ltd.
Filing Date: 2025-03-03
Form: F-4/A
Chunk 226
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 accordance with customary practice, Moore employed generally accepted valuation methodology in rendering its valuation reports to Kadimastem on December 19, 2024. Considering the data set forth below without considering the full narrative description of the financial analyses, including the methodologies and assumptions underlying the analyses, could create a misleading or incomplete view of Kadimastem and NLS valuation analyses. Kadimastem’s and NLS’s valuations were performed under the income approach, using the Risk -AdjustedNet Present Value, or the rNPV Analysis method. This method enhances standard discounted cash flow, or DCF, analysis by adjusting cash flow projections for the probability of success, i.e., adjusting for the probability of successfully advancing through clinical trials and regulatory approval. As a result, this method is also referred to as the expected net present value (eNPV) method. According to the income approach, the value of an economic asset is derived from the future cash flows arising from it. The basic principle underlying the income approach is that an asset/company is an active ongoing concern premise and will operate in the future. The aim of the income approach is to reach the current value based on the firm’s forecast cash flows. The main valuation methodology in the income approach is the DCF Analysis. The method’s principle is that the value of the asset is the present value of free cash flow which is generated during the forecast period (finite or infinite). The first step in this approach is to build a cash flow projection of the entity (based on the entity’s business model). In the second phase, to determine the value of the asset it is required to set an appropriate discount rate which is the basis for discounting future cash flows and translating them into current values. The discount rate reflects the level of activity’s 106 risk. As much as the entity’s activity is dangerous (i.e., the level of uncertainty that exists to realization is lower) then it is required to choose a higher discount rate. As much as the discount rate is higher then, the cash flow’s present value will be lower. Among the various early -stagebiotech valuation methods, the rNPV Analysis method is the most appropriate. This method is suited for valuing: •Preclinical and clinical stage biotech assets •Novel pharma and biotech drugs undergoing development •Other life sciences assets that undergo phased development The mechanics of rNPV involve: •Estimating clinical trial and approval probabilities •Adjusting cash flow projections for risk using these probabilities •Discounting risk -adjustedcash flows