AgeX Therapeutics(AGE) - 2019 Q2 - Quarterly Report

Revenue Performance - Total revenues for the three months ended June 30, 2019, were $380,000, a decrease of 18.1% from $464,000 in the same period in 2018[110] - Subscription and advertising revenues for the three months ended June 30, 2019, were $305,000, down 8.4% from $333,000 in 2018[110] - Grant revenues recognized during the three months ended June 30, 2019, amounted to $47,000, with no grant revenue in the same period of 2018[113] - Total revenues for the six months ended June 30, 2019, were $703,000, an increase of 9.2% from $638,000 in the same period in 2018[111] Profitability - Gross profit for the three months ended June 30, 2019, was $327,000, a decrease of 15.1% from $385,000 in 2018[110] - The company reported a gross profit margin of 86% for the three months ended June 30, 2019, compared to 83% in the same period of 2018[110] Expenses - Research and development expenses increased by $0.3 million to $1.7 million during the three months ended June 30, 2019, compared to $1.4 million in 2018, primarily due to increased expenses in specific programs[117] - General and administrative expenses for the three months ended June 30, 2019, were $2.1 million, an increase of 86.7% from $1.1 million in 2018[122] - Operating expenses for the three months ended June 30, 2019, totaled $3.8 million, an increase of 19.2% from $3.2 million in 2018[115] - General and administrative expenses for the three months ended June 30, 2019 increased by $1.0 million to $2.1 million compared to $1.1 million during the same period in 2018[124] - For the six months ended June 30, 2019, general and administrative expenses rose by $1.8 million to $4.2 million from $2.4 million in the same period in 2018[125] - Total research and development expenses for the six months ended June 30, 2019, were $2.99 million, a decrease of 21% from $3.77 million in 2018[120] Financial Position - Total research and development expenses for the six months ended June 30, 2019 were $3.0 million, while general and administrative expenditures were $4.2 million, resulting in a net loss of $6.2 million[138] - Net cash used in operating activities during the six months ended June 30, 2019 amounted to $5.4 million, with non-cash items including $1.0 million in stock-based compensation[138] - Cash provided by financing activities during the six months ended June 30, 2019 amounted to $4.5 million, attributed to proceeds from the exercise of warrants for 1,800,000 shares at an exercise price of $2.50 per share[139] - As of June 30, 2019, the company had an accumulated deficit of $80.3 million and expected to continue incurring operating losses and negative cash flows[132] - The company had cash and cash equivalents of $5.8 million as of June 30, 2019, plus a loan facility from Juvenescence of up to $2.0 million for operating capital[134] Future Outlook - The company recognized a gain of $277,000 on the sale of its Ascendance common stock for the three and six months ended June 30, 2019[127] - The company expects expenses to increase due to ongoing activities, including moving to a new office and laboratory facility and hiring internal administrative personnel[133] - 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 sales[137]