Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 144

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 144
---
’s research and development expenses, the amount of IIA support, the time of
completion of the IIA-supported research project and availability of similar services in Israel and other factors. These
restrictions and requirements for payment may impair its ability to sell, license or otherwise transfer its technology assets
outside of Israel or to outsource or transfer development or manufacturing activities with respect to any product or technology
outside of Israel. Furthermore, the consideration available to the combined company’s shareholders in a transaction involving
the transfer outside of Israel of technology or know-how developed with IIA funding (such as a merger or similar transaction) may be
reduced by any amounts that the combined company are required to pay to the IIA.

The combined company may not be able to
enforce covenants not-to-compete under current Israeli law that might result in added competition for its products.

The combined company have
non-competition agreements with all of its employees, all of which are governed by Israeli law. These agreements prohibit the combined
company employees from competing with or working for its competitors. However, Israeli courts are reluctant to enforce non-compete undertakings
of former employees and tend, if at all, to enforce those provisions for relatively brief periods of time in restricted geographical areas,
and only when the employee has obtained unique value to the employer specific to that employer’s business and not just regarding
the professional development of the employee. If it is not able to enforce non-compete covenants, it may be faced with added competition.

ITEM 4. INFORMATION ON THE COMPANY