Revenue Growth - Subscription and advertising revenues increased to $345,000 for the three months ended March 31, 2019, compared to $239,000 for the same period in 2018, representing a 44.4% increase[96] - Total revenues for the three months ended March 31, 2019, were $239,000, an increase of $149,000 or 62.3% compared to the same period in 2018[94] - The company recognized approximately $15,000 in grant income from the NIH during the three months ended March 31, 2019, compared to no grant revenue in the same period in 2018[97] Expense Management - Cost of sales decreased by $46,000 to $63,000 for the three months ended March 31, 2019, a decrease of 42.2% compared to $109,000 in 2018[94] - Research and development expenses decreased by $1.1 million to $1.3 million for the three months ended March 31, 2019, down from $2.4 million in the same period in 2018, primarily due to a decrease in expenses related to specific programs[102] - General and administrative expenses increased by $0.8 million to $2.1 million for the three months ended March 31, 2019, compared to $1.3 million in 2018, driven by increases in stock-based compensation and insurance premiums[108] - The decrease in research and development expenses was also attributed to the nonrecurrence of in-process research and development expenses incurred in March 2018[102] Financial Position - The company reported an accumulated deficit of $77.2 million as of March 31, 2019, indicating ongoing operating losses and negative cash flows since inception[115] - As of March 31, 2019, the company had cash and cash equivalents of $8.6 million, which is expected to sustain operations for at least twelve months[117] - Total research and development expenses for the three months ended March 31, 2019, were $1.3 million, while general and administrative expenditures were $2.1 million, resulting in a net loss of $3.1 million[120] - Net cash used in operating activities during the same period amounted to $2.6 million, with noncash items including $0.5 million in stock-based compensation[120] Future Outlook - The company expects to continue incurring operating losses and negative cash flows in the future[115] - The company anticipates an increase in expenses due to ongoing pre-clinical research and development activities, potential clinical trials, and commercialization efforts[116] - Future capital requirements will depend on various factors, including the scope and progress of research and development work and the ability to establish collaborations[118] - The company does not have committed sources of funds for additional financing and may face dilution of ownership if additional capital is raised through equity or convertible debt[119] - The company plans to defer certain development work to extend the operational period with available cash resources, which may delay progress in research and development[117] - Significant commercialization expenses are expected if marketing approval is obtained for product candidates, necessitating substantial additional funding[116] Tax and Compliance - The company has transitioned to filing separate tax returns from its former parent company, BioTime, starting from the three months ended March 31, 2019[111] - The company has no off-balance sheet arrangements as of March 31, 2019[123] Financing Activities - The company raised $4.5 million in financing activities during the three months ended March 31, 2019, from the exercise of warrants for 1,800,000 shares at an exercise price of $2.50 per share[121]

Financial Performance - For the year ended December 31, 2018, AgeX incurred operating losses of $11.2 million, compared to $6.7 million for 2017, resulting in an accumulated deficit of $74.1 million[371]. - Total revenues for the year ended December 31, 2018, were $1.396 million, a decrease of 0.6% compared to $1.404 million in 2017[420]. - Subscription and advertising revenues decreased by 12.3% to $1.227 million in 2018 from $1.399 million in 2017[421]. - The net loss for 2018 was $7,731,000, compared to a net loss of $6,637,000 in 2017, representing an increase in loss of approximately 16.5%[469]. - AgeX had an accumulated deficit of $74.1 million and incurred a net loss of $7.5 million for the year ended December 31, 2018[446][451]. - The gross profit for the year ended December 31, 2018, was $1.032 million, down 16.5% from $1.236 million in 2017[421]. - Operating expenses increased to $12.477 million in 2018 from $9.653 million in 2017, representing a 29.2% increase[424]. - Research and development expenses, including acquired in-process research and development, rose to $6.630 million in 2018, up from $5.784 million in 2017, a 14.6% increase[426]. - General and administrative expenses increased by 46.0% to $5.647 million in 2018 from $3.869 million in 2017[432]. - The company expects to incur significant operating losses and increased expenses in the coming years as it commences clinical development and expands its operations[419]. Capital and Financing - AgeX raised $10.0 million in cash from investors to finance operations following an asset acquisition from BioTime[363]. - During the warrant sale period from February 28, 2018 to July 10, 2018, AgeX sold 2,000,000 warrants for $0.50 each, generating aggregate cash proceeds of $1,000,000[364]. - On June 7, 2018, AgeX sold 2.0 million shares of common stock for $2.50 per share, resulting in total cash proceeds of $5.0 million[365]. - AgeX had cash and cash equivalents of $6.7 million as of December 31, 2018, plus an additional $4.5 million received from warrant exercises in March 2019[448]. - Net cash provided by financing activities during the year ended December 31, 2018 amounted to $6.0 million, including $5.0 million from the issuance of common stock[454]. - AgeX does not have any committed sources of funds for additional financing and may face dilution of ownership if additional capital is raised through equity sales[449]. - AgeX will need to obtain substantial additional funding for its continuing operations beyond the twelve-month period[488]. Revenue Recognition and Accounting - AgeX's revenues have primarily come from subscription and advertising revenue from LifeMap Sciences' online databases, with no product sales to date[369]. - Revenue from subscription contracts is recognized over the subscription period, which is generally the term of the subscription[408]. - LifeMap Sciences recognized $1.2 million and $1.4 million in subscription and advertisement revenues for the years ended December 31, 2018 and 2017, respectively[412]. - The adoption of Topic 606 on January 1, 2018, had an immaterial impact, with no cumulative effect adjustment made[406]. - AgeX adopted Topic 606 for revenue recognition as of January 1, 2018, with no material impact on financial statements[546]. Assets and Liabilities - Total assets increased to $10,671,000 in 2018, up 10.8% from $9,631,000 in 2017[465]. - Total liabilities rose to $2,440,000 in 2018, an increase of 86.1% from $1,312,000 in 2017[465]. - AgeX's balance at December 31, 2018, included total assets of $81,499,000, an increase from $73,761,000 at December 31, 2017[475]. - AgeX had net operating loss carryforwards of approximately $31.5 million for U.S. federal income tax purposes as of December 31, 2018[440]. - Research and development tax credit carryforwards for federal and state tax purposes were $903,000 and $831,000, respectively, as of December 31, 2018[444]. Research and Development - AgeX's research and development expenses include direct costs and indirect overhead costs allocated by BioTime, with significant allocations from former BioTime research departments[379]. - The company anticipates significant increases in expenses as it commences clinical development and expands its operations as a standalone public company[371]. - AgeX's in-process research and development expenses amounted to $800,000 for the year ended December 31, 2018[475]. - The company has focused on developing therapeutics targeting human aging, including programs for diabetes, obesity, and heart disease[479]. Stock and Ownership - Following a secondary sale on August 30, 2018, BioTime's ownership in AgeX decreased from 80.4% to 40.2%, resulting in AgeX no longer being considered a subsidiary of BioTime[366]. - AgeX's common stock began publicly trading on the NYSE American under the symbol "AGE" following a distribution of shares from BioTime[367]. - BioTime owned approximately 40.2% of AgeX common stock on the Distribution Date, distributing 12,697,028 shares to its shareholders, retaining 4.8% post-distribution[485]. - The weighted average number of common shares outstanding increased to 34,914,000 in 2018 from 30,644,000 in 2017[467]. Taxation - The 2017 Tax Cuts and Jobs Act lowered the U.S. federal tax rate to a 21 percent flat tax rate and eliminated the corporate alternative minimum tax[387]. - AgeX has elected to account for Global Intangible Low Tax Income (GILTI) as a current period expense when incurred[525]. - AgeX's deferred tax assets and liabilities include net operating loss carryforwards and research and development credits as of December 31, 2018[520].