Recent developments include strategic repositioning of the company, arbitration confirming rights to the 'Net Force' franchise, and ongoing efforts related to the biotech platform and diagnostic device.

• NovelStem announced material developments and strategic repositioning of the company in May 2025 [N1].
• An arbitration confirmed NovelStem's joint venture rights to exploit the 'Tom Clancy's Net Force' franchise globally across multiple media formats in July 2023 [N2].
• NovelStem reported 2022 results highlighting its focus on a patented genetic platform technology for anti-cancer therapies in March 2023 [N3].
• NovelStem's affiliate NewStem announced a collaboration to validate its software diagnostic device for oncology indications and therapies in December 2022 [N4].
• NovelStem secured commitment for up to $600K in bridge funding and became an SEC-reporting company in October 2022 [N5].
• NovelStem announced FDA pre-submission and EMA in vitro diagnostic device filing for a diagnostic device by 30%-owned NewStem in April 2022 [N6].
• The company reviewed efforts to maximize value from its legacy entertainment asset in February 2022 [N7].
• NewStem was selected by Illumina for its Global Illumina Accelerator in September 2021 [N8].

NovelStem retains a significant financial interest in the monetization of a proprietary stem cell technology license originally held by NewStem, which could generate value if successfully commercialized by Yissum or other licensees. The company has demonstrated the ability to reduce operating expenses and reported net income in 2025 after prior losses. The sale of the NetCo interest settled significant debt, potentially improving financial stability. Collaborations and regulatory filings related to the diagnostic device indicate ongoing efforts to validate and commercialize innovative biotech products. The company's strategic repositioning and management's experience may support future value realization from its intellectual property assets [N1][N3][N4][N5][N6].

NovelStem faces significant risks due to the liquidation of its key biotech subsidiary NewStem and the sale of its entertainment joint venture, resulting in a lack of operating business and revenue. The company's liquidity position is constrained, with current liabilities substantially exceeding current assets as of 2025 year-end. The realization of value from the retained license interest is uncertain and dependent on third-party commercialization efforts by Yissum or others. The biotech sector's regulatory environment and rapid technological changes pose additional challenges. The company relies on bridge loans and shareholder support to continue operations, with no assurance of successful financing or monetization. The absence of FDA approval for the diagnostic device and the cessation of NewStem's operations further increase execution risk [S1][N1].

NovelStem's moat historically derived from its exclusive equity interest in NewStem Ltd and its proprietary stem cell-based biotechnology platform, as well as its joint venture interest in the 'Net Force' entertainment franchise. The exclusive license from Yissum and The New York Stem Cells Foundation provided NewStem with worldwide rights to develop and commercialize therapeutics and diagnostics based on innovative stem cell technology. However, the liquidation of NewStem and the sale of NetCo have significantly altered the company's asset base. NovelStem now primarily holds rights to future profits from the license reverted to Yissum, which may provide some residual value but lacks direct operational control or current revenue streams. The biotech field is subject to rapid technological change and regulatory challenges, which may affect the competitive position of any future licensee.

• Liquidity Risk: Current liabilities significantly exceed current assets, indicating potential challenges in meeting short-term obligations without additional financing or monetization of assets.
• Operational Risk: The liquidation of NewStem and sale of NetCo mean NovelStem currently has no operating business and relies on future monetization of license rights, which is uncertain.
• Regulatory Risk: Biotech products and diagnostics are subject to extensive FDA and international regulatory requirements, with no FDA approval currently for NewStem's diagnostic device.
• Technological and Competitive Risk: Rapid technological changes in biotech and competition may reduce the value or applicability of the licensed technology.
• Financing Risk: The company depends on bridge loans and shareholder support to fund operations, with no guarantee of securing sufficient capital on acceptable terms.

• NovelStem International Corp. is a holding company whose principal asset as of 2025 is rights to profits from a license held by Yissum Research Development Company, Hebrew University's technology transfer company, previously held through its ownership interest in NewStem Ltd [S1].
• NovelStem formerly owned approximately 31% equity interest in NewStem Ltd, an Israeli biotech company focused on stem cell-based technology for anti-cancer therapies, which was liquidated in October 2025 [S1].
• NovelStem owned a 50% equity interest in NetCo Partners, a joint venture owning the 'Net Force' entertainment franchise, which was sold in May 2025 in a noncash transaction settling significant debt [S1].
• NewStem developed a discovery bio-platform based on haploid human embryonic stem cell technology for genome-wide screenings, oncology drug discovery, and a personalized diagnostic for early detection of chemotherapy resistance [S1].
• NewStem's diagnostic device received CE Mark from the European Medicines Agency but does not have FDA approval; it filed an FDA Pre-Submission [S1].
• NovelStem has no current employees and relies on consultants for operations [S1].
• The company reported net income of approximately $2.38 million for the year ended December 31, 2025, compared to a net loss of $3.23 million in 2024 [S1].
• As of December 31, 2025, NovelStem had current assets of approximately $15,786 and current liabilities of approximately $2,157,000, indicating liquidity challenges [S1].
• The company’s financial statements are prepared assuming it will continue as a going concern, dependent on profitability improvement and financial support from shareholders and Yissum's ability to commercialize the license [S1].
• NovelStem has incurred general and administrative expenses primarily related to professional fees, insurance, and stock-based compensation, which decreased from 2024 to 2025 [S1].
• The company has outstanding convertible debt and bridge loans with interest rates around 10%, with maturity dates extended to June 30, 2026 [S1].
• NovelStem retains a financial interest of up to $3.75 million in any future monetization of the license reverted to Yissum after NewStem liquidation [S1].
• The company’s business model shifted from media to biotech in 2018 with the acquisition of NewStem, but currently conducts no other business and has no operating revenue or cost of revenue [S1].
• NovelStem sold its interest in NetCo in May 2025 to settle litigation funding debt [S1].
• The company’s principal operations coincided with those of NewStem until its liquidation; no dividends or distributions were received from NewStem in 2024 and 2025, and minimal distributions from NetCo in 2025 [S1].
• NovelStem’s technology and license are subject to rapid technological change and regulatory risks including FDA approval processes and compliance with ongoing regulatory requirements [S1].
• The company’s executive chairman, Jan Loeb, serves as President and Executive Chairman and has played a significant role in management and strategic planning [S1].
• NovelStem has announced material developments and strategic repositioning of the company as of May 2025 [N1].
• An arbitration confirmed NovelStem’s joint venture rights to exploit the 'Tom Clancy's Net Force' franchise globally across multiple media as of July 2023 [N2].
• NovelStem reported 2022 results on Form 10-K highlighting its focus on patented genetic platform technology for anti-cancer therapies [N3].
• NovelStem’s affiliate NewStem announced collaborations to validate its software diagnostic device for oncology indications and therapies in December 2022 [N4].
• NovelStem secured commitment for up to $600K in bridge funding and became an SEC-reporting company in October 2022 [N5].
• NovelStem announced FDA pre-submission and EMA in vitro diagnostic device filing for a diagnostic device by 30%-owned NewStem in April 2022 [N6].
• NovelStem reviewed efforts to maximize value from its legacy entertainment asset in February 2022 [N7].
• NewStem was selected by Illumina for its Global Illumina Accelerator in September 2021 [N8].