Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 63

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 63
---
 The CCPA may
increase our compliance costs and potential liability, and we may be required to modify our practices and take additional steps in an
effort to comply with the CCPA. Some observers have noted that the CCPA could mark the beginning of a trend toward more stringent state
privacy legislation in the United States, which could increase our potential liability and adversely affect our business.

Similarly, many other
countries and governmental bodies, including the EU member states, have laws and regulations concerning the collection and use of
personal data obtained from individuals located in the EU or by businesses operating within their jurisdiction, which are often more
restrictive than those in the United States. Laws and regulations in these jurisdictions apply broadly to the collection, use,
storage, disclosure and security of personal data that identifies or may be used to identify an individual, such as names, telephone
numbers, email addresses and, in certain circumstances, IP addresses and other online identifiers. For example, the EU has adopted
the GDPR, which enhances data protection obligations for businesses and requires service providers (data processors) processing
personal data on behalf of customers to cooperate with European data protection authorities, implement security measures and keep
records of personal data processing activities. The GDPR also extends the geographical scope of EU data protection law to non-EU
entities under certain conditions, tightens existing EU data protection principles and creates new obligations for companies and new
rights for individuals. Noncompliance with the GDPR can trigger fines equal to or greater of €20 million or 4% of global
annual revenues. Given the breadth and depth of its obligations, working to meet the requirements of the GDPR has required
significant time and resources, including a review of our technology and systems currently in use against the requirements of the
GDPR. There are also additional EU laws and regulations (and member states implementations thereof) which govern the protection of
consumers and of electronic communications. We have taken measures to address certain obligations under the GDPR and to make us GDPR
compliant, but we may be required to take additional steps in order to comply with the GDPR. If our efforts to comply with GDPR or
other applicable EU laws and regulations are not successful, we may be subject to penalties and fines that would adversely impact
our business and operating results, and our ability to conduct business in the EU could be significantly impaired.

We also continue to see jurisdictions
imposing data localization laws, which require personal information, or certain subcategories of personal information to be stored in
the jurisdiction of origin.