Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 28

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 28
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 ordinary civil court in Lausanne. The hearing was scheduled for October 9, 2024, at the Tribunal d’arrondissement
de Lausanne. The complaint pertains to an unpaid invoice for research services amounting to $110,179, plus interest at a rate of 5%. At
the hearing on October 9, 2024, Université de Lausanne was not open to discussing a potential settlement. The Company asserts that
the services provided did not meet the required standard of care and intends to defend its position. On 9 May 2025, the Company filed
a statement of defense and asserted a counterclaim in CHF 30,000 plus compensatory interests at a rate of 5% per annum since June 29,
2022.

Regardless of the merits,
responding to allegations, litigation or legal or administration proceedings and defending against litigation can be time-consuming and
costly, and may result in us incurring substantial legal and administrative expenses, as well as divert the attention of our management.
Any such allegations, lawsuits or proceedings could have a material adverse effect on our business operations. Further, unfavorable outcomes
from these claims or lawsuits could adversely affect our business, financial condition and results of operations.

We believe that our current cash on hand
and access to existing financing arrangements will not be sufficient to fund our projected operating requirements for a period of one
year from the issuance of the financial statements included elsewhere in this annual report. This raises substantial doubt about our ability
to continue as a going concern. There can be no assurance that these funds will be available, or if they are available, their availability
will be on terms acceptable to the Company or in an amount sufficient to enable the Company to fully complete its development activities,
sustain operations or pay back its debt.

We believe that our
current cash on hand and access to existing financing arrangements will not be sufficient to fund our projected operating
requirements for a period of one year from the issuance of the financial statements included elsewhere in this annual report. This
raises substantial doubt about our ability to continue as a going concern. We expect that we will be required to obtain additional
liquidity in order to fund our operations through the approval of our lead product candidate. Until we can generate significant
revenues, if ever, we expect to satisfy our future cash needs through debt, equity financing or income from a partnership deal. We
cannot be certain that funding will be available to us on acceptable terms, if at all.