Company: NCEL
Filing Date: 2025-07-18
Form Type: F-4/A
Source: 0001213900-25-065783
Chunk: 175

Company: NewcelX Ltd.
Filing Date: 2025-07-18
Form: F-4/A
Chunk 175
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 to report any material weaknesses in such internal control. Section 404 of the Sarbanes -OxleyAct of 2002, or the Sarbanes -OxleyAct, requires that NLS include a report from management on the effectiveness of its internal control over financial reporting in its annual report on Form 20 -F. In addition, once NLS ceases to be an EGC as such term is defined in the JOBS Act, its independent registered public accounting firm must attest to and report on the effectiveness of its internal control over financial reporting. According to the U.S. Public Company Accounting Oversight Board, a material weakness is a deficiency or combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of its financial statements will not be prevented or detected on a timely basis. If NLS fails to remediate the material weaknesses, or are otherwise unable to maintain effective internal control over financial reporting, management could be required to expend significant resources and NLS could fail to meet its public reporting requirements on a timely basis, and be subject to fines, penalties, investigations or judgements, all of which could negatively affect investor confidence and adversely impact its stock price. As of December 31, 2024, NLS has material weaknesses in its internal control over financial reporting, relating to a lack of sufficient number of trained professionals with an appropriate level of accounting knowledge to design and maintain controls over the preparation of financial statements, and relating to a lack of maintaining appropriate segregation of duties. During the year ended December 31, 2024, NLS has taken steps to remediate the material weaknesses and to strengthen its internal control over financial reporting. NLS conducted an analysis to identify the underlying reasons for the material weaknesses. This involved assessing risk factors, understanding process gaps, and pinpointing areas that needed improvement. As part of its remediation, NLS has transitioned the accounting processes to a dedicated team with U.S. GAAP and SEC reporting knowledge, with the support of additional external advisors. While NLS believes that these efforts will improve its internal control over financial reporting in accordance with U.S. GAAP and SEC 53 reporting requirements, the implementation of these measures is ongoing and will require validation and testing of the design and operating effectiveness of internal controls over a sustained period of financial reporting cycles. NLS cannot assure you that the measures NLS has taken to date, and are continuing to implement, will be sufficient to establish and maintain effective internal control over financial reporting. The W