AgeX Therapeutics(AGE) - 2019 Q1 - Quarterly Report

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]