Revenue and Expenses - AgeX recognized revenues of $9,000 and $19,000 for the three and six months ended June 30, 2023, respectively, compared to $12,000 and $17,000 for the same periods in 2022, indicating a revenue decrease of approximately 25% for the three-month period [166]. - Cost of sales for the three and six months ended June 30, 2023, were $5,000 and $6,000, respectively, down from $6,000 and $7,000 in the same periods of 2022, reflecting a decrease of 16.67% for the three-month period [167]. - Research and development expenses decreased by approximately $0.1 million to $0.16 million for the three months ended June 30, 2023, a 38.2% decrease compared to $0.26 million in 2022 [169]. - General and administrative expenses increased by $0.4 million to $1.7 million for the three months ended June 30, 2023, a 29.3% increase compared to $1.3 million in 2022 [171]. - Total other expense, net for the three months ended June 30, 2023, was $1 million, primarily due to amortization of deferred debt issuance costs [175]. Financial Position and Cash Flow - AgeX incurred an accumulated deficit of $122.2 million as of June 30, 2023, and expects to continue incurring operating losses and negative cash flows [181]. - Net cash used in operating activities for the six months ended June 30, 2023, was $3.9 million, with a net loss attributable to the company of $6 million [190]. - Cash flows from investing activities included a $10 million loan made to Serina during the six months ended June 30, 2023 [191]. - Financing activities provided net cash of $13.5 million, entirely from credit facilities drawn from Juvenescence during the same period [192]. - The difference between net loss and cash used in operating activities was primarily due to non-cash items totaling $2.1 million [190]. - The company may need to modify or suspend operations if financing is unavailable or inadequate [188]. Strategic Initiatives - AgeX is pursuing a potential merger with Serina, which has not yet been finalized or approved by either company's board of directors [160][161]. - The company plans a potential spinoff of its subsidiary Reverse Bio, which would become a separate publicly traded company if completed [160]. - The company has made adjustments to its operating plans to reduce projected cash expenditures, including downsizing its leased office space and workforce [182]. - Operating expenses were reduced by outsourcing research and development, but this has hindered progress in developing target product candidates and technologies [186]. Operational Challenges - The company faced uncertainty regarding the impact of the COVID-19 pandemic on financing availability and overall operations [187]. - The ongoing pandemic's impact on business results remains highly uncertain and difficult to predict [187]. - There were no changes in internal control over financial reporting that materially affected the company's controls [194]. - The company is not currently involved in any material litigation or proceedings [196].
Serina Therapeutics, Inc.(SER) - 2023 Q2 - Quarterly Report