AgeX Therapeutics(AGE) - 2020 Q2 - Quarterly Report

Financial Performance - Total revenues for the three months ended June 30, 2020, were $414,000, an increase of 8.9% compared to $380,000 for the same period in 2019[115] - Subscription and advertisement revenues for the three months ended June 30, 2020, were $298,000, up 8.4% from $275,000 in 2019[116] - Grant revenues decreased by 23.4% to $36,000 for the three months ended June 30, 2020, compared to $47,000 in 2019[116] - Total revenues for the six months ended June 30, 2020, were $929,000, a 21.0% increase from $768,000 in 2019[117] Profit and Loss - Gross profit for the three months ended June 30, 2020, was $378,000, reflecting a decrease of 15.6% from $327,000 in 2019[116] - Total research and development expenses for the six months ended June 30, 2020 amounted to $3.0 million, with general and administrative expenditures at $3.7 million, resulting in a net loss of $5.9 million[143] - The accumulated deficit as of June 30, 2020 was $92.1 million, indicating ongoing operating losses and negative cash flows since inception[138] Expenses - Operating expenses for the three months ended June 30, 2020, included a reduction in research and development expenses by $300,000 to $1.4 million[125] - General and administrative expenses decreased by 22.0% to $2.1 million for the three months ended June 30, 2020[124] - General and administrative expenses for the three months ended June 30, 2020 decreased to $1.7 million from $2.1 million in the same period in 2019, primarily due to reductions in noncash stock-based compensation and other operational costs[132] - General and administrative expenses for the six months ended June 30, 2020 were $3.726 million, down from $4.228 million in 2019[131] Cash Flow and Financing - Cash used in operating activities during the six months ended June 30, 2020 was $1.6 million, with significant adjustments for depreciation and stock-based compensation[143] - Net cash provided by financing activities during the six months ended June 30, 2020 was $3.0 million, primarily from draws against loan facilities and Paycheck Protection Program loan proceeds[144] - AgeX borrowed an additional $1.0 million under the New Loan Agreement, bringing total borrowings to $3.5 million[109] - The company borrowed a total of $3.5 million under the New Loan Agreement, with additional loans subject to discretion and approval from Juvenescence[140] Future Outlook - The company anticipates needing to raise additional capital in the near term to meet operating expenses, raising concerns about its ability to continue as a going concern[139] - The ongoing COVID-19 pandemic may adversely impact the company's financing availability and operational capabilities[141] Restructuring - The company recognized approximately $194,800 in restructuring charges related to staff reductions in May 2020[122] - Research and development expenses for the six months ended June 30, 2020, were consistent at $3.0 million compared to the same period in 2019[126] - Total research and development expenses for the year 2020 were $2.953 million, slightly down from $2.988 million in 2019[1]