Lineage Cell Therapeutics(US:LCTX)2024-08-08 20:15Financial Performance - Total revenues for Q2 2024 were $1.408 million, a decrease of 56.5% compared to $3.225 million in Q2 2023[10] - Collaboration revenues for the first half of 2024 were $2.285 million, down 54.2% from $4.992 million in the same period of 2023[10] - Net loss attributable to Lineage for Q2 2024 was $5.760 million, compared to a net loss of $5.229 million in Q2 2023, reflecting a 10.1% increase in losses[10] - The company reported a loss from operations of $5.867 million in Q2 2024, compared to a loss of $5.024 million in Q2 2023, indicating a 16.7% increase in operational losses[10] - Net loss for Q2 2024 was $5,773,000, compared to a net loss of $5,203,000 in Q2 2023, representing an increase of 10.9% year-over-year[6] - Comprehensive loss attributable to Lineage common shareholders for Q2 2024 was $5,459,000, compared to $4,733,000 in Q2 2023, indicating a 15.3% increase[6] - The total comprehensive loss for the first half of 2024 was $11,733,000, compared to $8,647,000 in the first half of 2023, reflecting a 35.5% increase[6] - Net loss attributable to Lineage for the six months ended June 30, 2024, was $12.3 million, compared to a loss of $9.6 million for the same period in 2023[9] Cash and Assets - Cash and cash equivalents decreased to $29.622 million as of June 30, 2024, from $35.442 million at the end of 2023, a decline of 16.3%[9] - Total current assets increased to $40.390 million as of June 30, 2024, compared to $38.441 million at the end of 2023, an increase of 5%[9] - Total shareholders' equity increased to $66.875 million as of June 30, 2024, from $62.023 million at the end of 2023, an increase of 7.1%[9] - The accumulated deficit increased to $397,158,000 as of June 30, 2024, compared to $372,971,000 as of June 30, 2023, reflecting a 6.5% increase[14] - The company has a total of $38.5 million in cash, cash equivalents, and marketable securities as of June 30, 2024[29] - Cash provided by financing activities was $14.13 million for the six months ended June 30, 2024, compared to $5.63 million in the same period of 2023[9] Expenses - Research and development expenses for Q2 2024 were $2.868 million, a decrease of 26% from $3.873 million in Q2 2023[10] - General and administrative expenses for the first half of 2024 were $9.360 million, an increase of 4.3% compared to $8.973 million in the same period of 2023[10] - Stock-based compensation for Q2 2024 amounted to $1,269,000, compared to $1,280,000 in Q2 2023, showing a slight decrease of 0.9%[12] - Depreciation and amortization expense for the six months ended June 30, 2024, was $295,000, compared to $276,000 for the same period in 2023[43] Liabilities - Total liabilities decreased to $35.927 million as of June 30, 2024, down 7.4% from $38.996 million at the end of 2023[9] - Accounts payable increased to $2,388,000 as of June 30, 2024, from $2,050,000 as of December 31, 2023[47] - Total liabilities decreased to $5,018,000 as of June 30, 2024, down from $6,270,000 as of December 31, 2023[47] Shareholder Information - The company reported a total of 188,824,000 common shares outstanding as of June 30, 2024, an increase from 174,439,000 shares as of June 30, 2023[14] - Shares issued through ATM financing totaled 33,000 in Q2 2024, contributing to an increase in common shares outstanding[12] - The number of common shares issued and outstanding increased to 188,823,975 as of June 30, 2024, from 174,986,671 as of December 31, 2023[55] - Lineage's 2021 Equity Incentive Plan was amended to increase the number of common shares that may be issued by 19,500,000[60] Legal and Regulatory Matters - Lineage paid $10.65 million to settle a class action lawsuit related to the Asterias Merger, with $3.53 million paid by Lineage in the first quarter of 2023[96] - Lineage has not recorded any accrual for a contingent liability associated with a legal proceeding, believing that a liability is not probable nor estimable[99] Research and Development - Lineage's lead cell therapy program, OpRegen, is currently in a Phase 2a clinical trial for the treatment of geographic atrophy secondary to age-related macular degeneration[19] - OPC1, an allogeneic oligodendrocyte progenitor cell therapy, is being developed for spinal cord injury and has received a $14.3 million grant from the California Institute for Regenerative Medicine[20] - The company plans to apply for additional funding from CIRM for continued clinical development of OPC1[20] - Lineage's pipeline includes additional programs such as ANP1 for hearing loss and PNC1 for vision loss due to photoreceptor dysfunction[21][23] Lease and Operating Commitments - The cumulative base rent for the Cell Cure lease in Jerusalem is approximately 165,000 ILS per month (approximately $44,000) as of June 30, 2024[74] - Future minimum lease commitments for operating leases total $3,130 million, with $579 million due in 2024 and $1,156 million in 2025[79] - Right-of-use assets for operating leases increased to $2,584 million as of June 30, 2024, compared to $2,522 million as of December 31, 2023, reflecting a growth of 2.5%[77] - Total operating lease liabilities rose to $2,837 million as of June 30, 2024, from $2,809 million as of December 31, 2023, indicating an increase of 1.0%[77] Tax Matters - The company established a full valuation allowance for deferred tax assets as of December 31, 2018, due to uncertainty in realizing future tax benefits[67] - Lineage did not record a deferred tax benefit or provision expense for the three or six months ended June 30, 2024[70]