Financial Performance - Operating losses for the years ended December 31, 2020 and 2019 were $10.7 million and $12.6 million, respectively, with an accumulated deficit of $97.1 million as of December 31, 2020[353]. - Significant operating losses are expected to continue for the foreseeable future, necessitating additional financing[353]. - The company expects to continue incurring operating losses and negative cash flows[426]. - The net loss attributable to the company for the year ended December 31, 2020, amounted to $10.9 million, with net cash used in operating activities totaling $7.8 million[433]. - The company has had recurring losses and negative operating cash flows since inception, indicating potential financial instability[439]. Revenue Generation - The company has not generated any revenue from product sales and relies on raising capital to continue operations and research and development programs[352]. - As of December 31, 2020, the company had no products approved for sale and has not generated revenue from product sales[352]. - Total revenues for the year ended December 31, 2020, were $1.868 million, an increase of 8.1% from $1.728 million in 2019[401]. - Subscription and advertising revenues decreased by 2.3% to $1.265 million in 2020 from $1.295 million in 2019[402]. - Grant revenues increased significantly by 70.6% to $307,000 in 2020 compared to $180,000 in 2019[402]. - The company has no therapeutic products approved for sale and does not expect to generate significant revenues from product sales in the foreseeable future[399]. - Income from NIH grants was approximately $307,000 in 2020, compared to $180,000 in 2019[404]. - Other revenues increased to $296,000 in 2020 from $253,000 in 2019, primarily from LifeMap Sciences' online database business[405]. Research and Development - The biotechnology company focuses on developing therapeutics targeting human aging and degenerative diseases, with initial programs aimed at diabetes, obesity, and heart disease[351]. - The company has incurred substantial research and development expenses, which include direct costs and indirect overhead allocated by Lineage[362]. - Research and development expenses have been scaled back due to layoffs and budgetary constraints, impacting future expense projections[400]. - Total research and development expenses for the year ended December 31, 2020, were $5.0 million, while general and administrative expenditures were $7.4 million[433]. - Research and development expenses decreased by 15.7% to $4.978 million in 2020 from $5.904 million in 2019[408]. Financial Position and Capital Needs - The company plans to raise up to $12.6 million through "at-the-market" transactions with Chardan Capital, LLC[430]. - The company received gross proceeds of approximately $466,400 from the disposition of its interest in LifeMap Sciences[429]. - As of December 31, 2020, the company had net operating loss carryforwards of approximately $49.2 million for U.S. federal income tax purposes[420]. - As of December 31, 2020, the company had an accumulated deficit and insufficient cash to fund operations for twelve months, raising substantial doubt about its ability to continue as a going concern[439]. - The company may face dilution of ownership interest for existing stockholders if additional capital is raised through equity or convertible debt securities[432]. Accounting and Compliance - The company has elected to comply with new accounting standards applicable to public companies, as its financial statements are consolidated with those of Lineage[350]. - The company adopted FASB ASU 2014-09 for revenue recognition, which affects how revenues are reported[385]. - The company recognizes stock-based compensation in accordance with FASB ASC 718, using the Black-Scholes option pricing model for estimating the fair value of options granted[371]. Operational Challenges - The ongoing COVID-19 pandemic may adversely impact the availability of financing and disrupt operations, with uncertain effects on business and financial condition[431]. - The company assesses going concern uncertainty to determine if it has sufficient cash and working capital to operate for at least one year from the issuance date of its consolidated financial statements[358]. - Management's plans regarding financial uncertainties are not detailed in the consolidated financial statements, which do not include adjustments for potential outcomes[439]. Expenses and Cost Management - General and administrative expenses decreased by 9.0% to $7.403 million in 2020 from $8.139 million in 2019[408]. - The company incurred approximately $194,800 in restructuring charges related to staff reductions in 2020[406]. - Cost of sales decreased by 35.2% to $158,000 in 2020 from $244,000 in 2019, resulting in a gross profit of $1.710 million, up 15.2% from $1.484 million in 2019[402]. - Cash used in investing activities during the year ended December 31, 2020, was $20,000, entirely for the purchase of laboratory equipment[434].
Serina Therapeutics, Inc.(SER) - 2020 Q4 - Annual Report