Lineage Cell Therapeutics(LCTX) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2024, were $3,779,000, a 203$1,246,000 for the same period in 2023[13]. - Collaboration revenues increased to $3,386,000 for the three months ended September 30, 2024, compared to$957,000 in the same period of 2023, representing a 254% growth[13]. - The net loss attributable to Lineage for the three months ended September 30, 2024, was $3,034,000, an improvement from a net loss of$7,110,000 in the same period of 2023[13]. - Total operating expenses for the three months ended September 30, 2024, were $7,619,000, a slight decrease from$7,951,000 in the same period of 2023[13]. - Comprehensive loss attributable to Lineage common shareholders for the three months ended September 30, 2024, was $3,454,000, compared to$6,583,000 in the same period in 2023[14]. - The net loss for the nine months ended September 30, 2024, was $15,336,000, compared to a net loss of$16,711,000 for the same period in 2023, indicating a reduction in losses of about 8.3%[19]. - Total revenue for the nine months ended September 30, 2024, decreased by $226,000, or 3$6.6 million compared to $6.9 million for the same period in 2023[141]. Cash and Liquidity - Cash and cash equivalents decreased to$27,750,000 as of September 30, 2024, down from $35,442,000 as of December 31, 2023[11]. - The total cash, cash equivalents, and restricted cash at the end of the period was$28,306,000, down from $35,992,000 at the beginning of the period, reflecting a decrease of approximately 21$32.7 million in cash, cash equivalents, and marketable securities, indicating sufficient liquidity for planned operations for at least the next twelve months[34]. - The company raised approximately $13.8 million in net proceeds through a registered direct offering of common shares in February 2024[158]. - Cash provided by financing activities for the nine months ended September 30, 2024 was$14.1 million, primarily from the sale of common shares[165]. Research and Development - Research and development expenses for the three months ended September 30, 2024, were $3,171,000, compared to$3,741,000 in the same period of 2023[13]. - Total research and development expenses for the three months ended September 30, 2024, were $3.171 million, a decrease of 15$3.741 million in the same period of 2023[146]. - For the nine months ended September 30, 2024, total research and development expenses were $9.049 million, down 23$11.799 million in the prior year[147]. - The OpRegen program accounted for 55% of total research and development expenses for the three months ended September 30, 2024, compared to 34% in the same period of 2023[149]. Shareholder Equity - The company's shareholders' equity increased to $64,794,000 as of September 30, 2024, up from$62,023,000 as of December 31, 2023[12]. - Total shareholder equity increased to $64,794,000 as of September 30, 2024, up from$62,023,000 at the end of 2023, reflecting a growth of approximately 4.5%[17]. - The weighted-average common shares used to compute basic and diluted net loss per common share were 188,835 for the three months ended September 30, 2024, compared to 174,868 for the same period in 2023[13]. - As of September 30, 2024, Lineage had 188,837,375 common shares issued and outstanding, an increase from 174,986,671 shares as of December 31, 2023[71]. Legal and Regulatory Matters - Lineage incurred approximately $626,000 in legal expenses related to shareholder class action lawsuits from inception through July 2023[68]. - In February 2023, Lineage and certain insurers paid$10.65 million to settle a class action lawsuit related to the Asterias Merger, with Lineage contributing approximately $3.53 million[119]. - The company is subject to legal proceedings, but management believes that the outcomes will not materially harm its financial position[116]. Future Outlook and Funding - The company plans to apply for additional funding from the California Institute for Regenerative Medicine for the continued clinical development of OPC1, which has already received a$14.3 million grant[23]. - Future funding requirements indicate that the company expects to continue incurring losses for several years, necessitating significant additional capital[172]. - The company may seek additional capital through equity offerings, debt financings, or strategic alliances, but there is no assurance that adequate capital will be available on favorable terms[173]. Collaboration and Agreements - The company received a $50 million upfront payment from Roche in January 2022 and is eligible for up to$620 million in milestone payments related to the OpRegen program[22]. - Under the Roche Agreement, Lineage received a $50.0 million upfront payment and is eligible for up to$620.0 million in milestone payments, along with tiered royalties on net sales of OpRegen[102]. - Lineage has obligations under the Roche Agreement, which includes a maximum of 21.5% of milestone payments and up to 50% of royalty payments, capped at 5% of net sales of products[111]. Market and Operational Impact - The ongoing Israel-Hamas war has not materially impacted the company's operations as of the report date, although there are safety concerns and potential disruptions[136][137]. - The company has business continuity plans in place to address potential medium- or long-term disruptions due to the ongoing conflict[138].