Financial Performance - Operating losses for the years ended December 31, 2019 and 2018 were $12.6 million and $11.2 million, respectively, with an accumulated deficit of $86.2 million as of December 31, 2019[337]. - Total revenues for the year ended December 31, 2019, were $1.728 million, an increase of 23.8% from $1.396 million in 2018[384]. - Subscription and advertising revenues increased by 8.6% to $1.332 million in 2019 from $1.227 million in 2018[384]. - Grant revenues rose significantly to $180,000 in 2019 from $20,000 in 2018, reflecting a $160,000 increase[384]. - Other revenues increased by 45.0% to $216,000 in 2019 from $149,000 in 2018[384]. - Gross profit for 2019 was $1.484 million, a 43.8% increase from $1.032 million in 2018[384]. - Net loss attributable to the company for the year ended December 31, 2019, amounted to $12.2 million, with net cash used in operating activities totaling $10.2 million[416]. - The accumulated deficit as of December 31, 2019, was $86.2 million, indicating ongoing operating losses and negative cash flows since inception[410]. - The company experienced recurring losses and negative operating cash flows since inception, indicating ongoing financial challenges[423]. 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[335]. - The company has incurred significant expenses related to research and development, including personnel costs, stock-based compensation, and outside consultants[346]. - Research and development expenses decreased by $0.7 million to $5.9 million in 2019, primarily due to the non-recurrence of a $0.8 million in-process research and development expense from 2018[392]. - Total research and development expenses, including acquired in-process research and development, amounted to $5.9 million in 2019, down from $6.6 million in 2018[394]. Operational Challenges - Significant operating losses are expected to continue for the foreseeable future, necessitating additional financing to support operations and research and development programs[337]. - The company expects to continue incurring significant expenses and operating losses, indicating a need for ongoing capital resources[337]. - The company anticipates that its cash and cash equivalents will not be sufficient to meet anticipated operating and funding requirements for the next twelve months[411]. - Management plans to implement a Restructuring Plan if borrowing exceeds $500,000, which may lead to significant staff reductions and impact future operations[383]. - The company expects to borrow an initial $500,000 under a new loan agreement, but additional loans are subject to discretion, raising concerns about future funding[412]. Revenue Sources - The company has not generated any revenue from product sales and relies on subscription and advertising revenue from LifeMap Sciences' online databases[336]. - LifeMap Sciences' revenues are primarily derived from its GeneCards online database, with no products approved for sale[382]. - As of December 31, 2019, $0.3 million was included in deferred revenues, expected to be recognized as subscription revenue over the next twelve months[377]. Expenses - General and administrative expenses increased by $2.5 million to $8.1 million in 2019, with significant contributions from professional fees ($1.0 million) and insurance premiums ($0.8 million)[399]. - General and administrative expenses for LifeMap Sciences accounted for 10.2% of total expenses in 2019, down from 14.9% in 2018[397]. - Non-cash items affecting net loss included $1.9 million in stock-based compensation and $1.0 million in depreciation and amortization[416]. Financial Position - The company recorded a gain of $354,000 on the sale of its Ascendance common stock in 2019, following a previous gain of $3.2 million in 2018[401]. - The company has established a full valuation allowance for deferred tax assets due to uncertainty in realizing future tax benefits[409]. - The company had no off-balance sheet arrangements as of December 31, 2019[419]. - The financial statements were audited and presented fairly in all material respects for the years ended December 31, 2019, and 2018[422]. - The company utilizes the Black-Scholes option pricing model for estimating the fair value of stock options granted under its equity incentive plan[356]. - The Shared Facilities and Services Agreement with Lineage terminated on September 30, 2019, ending the provision of services and facilities[344].
Serina Therapeutics, Inc.(SER) - 2019 Q4 - Annual Report