AgeX Therapeutics(AGE) - 2024 Q2 - Quarterly Results

Business Highlights The company reported a debt extension, a strategic partnership, positive technology data, and a key leadership addition - The repayment date for borrowings under the Juvenescence Secured Note was extended to December 31, 2024, and the line of credit was increased by an additional $525,000[3] - Entered a partnership with Enable Injections to develop and commercialize SER-252 for Parkinson's disease, with plans to initiate a Phase 1 trial in 2025[5] - Presented data showing its proprietary POZ-lipid technology does not induce an IgM or IgG antibody response, unlike PEG-lipids used in current mRNA vaccines[5] - Appointed Dr. Srini Tenjarla, formerly of Takeda and Shire, as Senior Vice President of CMC & Formulation[5] Liquidity Position as of June 30, 2024 | Metric | Amount (USD) | | :--- | :--- | | Cash, cash equivalents, and restricted cash | $6.1 million | | Principal and fees owed to Juvenescence Limited | $11.2 million | Financial Results The company reported Q2 net income of $5.2 million due to non-cash gains, despite rising operating expenses and a going concern warning Second Quarter Operating Results Q2 2024 net income of $5.2 million was driven by a $9.3 million non-cash gain, offsetting a significant rise in operating expenses Q2 2024 vs. Q2 2023 Financial Highlights (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Revenues | $51 | $7 | | Operating Expenses | $3,917 | $952 | | Net Income Attributable to Serina | $5,204 | $808 | | Basic EPS | $0.61 | $0.37 | | Diluted EPS | $0.51 | $0.11 | - Research and development (R&D) expenses increased by $1.1 million to $1.6 million YoY, primarily due to severance, increased salaries, and consulting services[7] - General and administrative (G&A) expenses rose by $1.8 million to $2.3 million YoY, mainly from merger-related legal and accounting fees[8] - Net other income for Q2 2024 was $9.0 million, primarily comprised of a $9.3 million non-cash gain from the change in fair value of derivative warrant liabilities[9] Going Concern Considerations Management expressed substantial doubt about the company's ability to continue as a going concern due to insufficient cash reserves - Management has concluded that there is substantial doubt regarding the Company's ability to continue as a going concern[11] - The company's cash and cash equivalents of $6.1 million as of June 30, 2024, are not expected to be sufficient to fund operations for the next twelve months[11] Condensed Consolidated Balance Sheets The balance sheet shows total assets of $10.7 million, total liabilities of $27.1 million, and a stockholders' deficit of $16.4 million Balance Sheet Summary (in thousands) | Account | June 30, 2024 (unaudited) | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $6,064 | $7,619 | | Total Current Assets | $8,917 | $7,619 | | Total Assets | $10,708 | $8,968 | | Total Current Liabilities | $12,633 | $1,413 | | Total Liabilities | $27,101 | $4,858 | | Total Stockholders' Deficit | ($16,393) | ($32,294) | Condensed Consolidated Statements of Operations The company reported a Q2 net income of $5.2 million but a six-month net loss of $9.8 million, reflecting high operating expenses Statement of Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $51 | $56 | | Total Operating Expenses | $3,917 | $6,243 | | Loss from Operations | ($3,866) | ($6,187) | | Total Other Income (Expense), Net | $9,043 | ($3,651) | | Net Income (Loss) Attributable to Serina | $5,204 | ($9,811) | Condensed Consolidated Statements of Cash Flows Net cash used in operations was $9.6 million for the six-month period, with the cash balance decreasing by $1.5 million to $6.1 million Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($9,586) | ($1,573) | | Net cash used in investing activities | ($14) | ($315) | | Net cash provided by financing activities | $8,095 | $10,078 | | Net Change in Cash | ($1,505) | $8,190 | | Cash at end of period | $6,114 | $8,722 | Pipeline and Technology The company is advancing its pipeline, led by SER-252, by leveraging its proprietary POZ Platform™ drug delivery technology SER-252 (POZ-apomorphine) SER-252 is an investigational therapy for Parkinson's disease designed to provide continuous stimulation with a planned clinical start in 2025 - SER-252 is an investigational apomorphine therapy designed to provide continuous dopaminergic stimulation (CDS) to reduce motor complications in Parkinson's disease[12] - Preclinical studies indicate SER-252 has the potential to provide CDS without causing skin reactions[12] - Serina plans to advance SER-252 to clinical testing in 2025[12] POZ Platform™ The POZ Platform™ is a proprietary polymer technology designed to improve drug delivery by enabling precise control over release rates - The POZ technology uses a synthetic, water-soluble, low-viscosity polymer to achieve greater control in drug loading and release[13] - It is designed to improve drugs with narrow therapeutic windows by maintaining more stable blood levels and addressing limitations like toxicity[13] - The platform is being advanced through partnerships, including a non-exclusive license with Pfizer, Inc. for use in lipid nanoparticle (LNP) drug delivery[14] Corporate Overview and Forward-Looking Statements Serina is a clinical-stage biotech company focused on neurological diseases, and its report contains forward-looking statements with inherent risks - Serina is a clinical-stage biotechnology company developing a pipeline of drug candidates to treat neurological diseases and pain[15] - The company's POZ Platform is also being utilized by partners to advance lipid nanoparticle (LNP) delivery technology for novel RNA therapeutics[15] - The report contains forward-looking statements that are subject to substantial risks and uncertainties related to drug development and regulatory approvals[17]