Financial Performance - Total revenues for the three months ended June 30, 2022, were $12,000, a decrease of 67.6% compared to $37,000 for the same period in 2021[22]. - Net loss attributable to AgeX for the six months ended June 30, 2022, was $5,324,000, compared to a net loss of $4,562,000 for the same period in 2021, representing an increase of 16.7%[22]. - The company reported a gross profit of $6,000 for the three months ended June 30, 2022, compared to $24,000 for the same period in 2021, a decline of 75%[22]. - AgeX recognized a gain of $106,000 from the deconsolidation of LifeMap Sciences, which is reported as a taxable transaction resulting in a taxable loss[92]. - The accumulated deficit as of June 30, 2022 was $111.1 million, indicating ongoing operating losses and negative cash flows since inception[185]. Cash and Liquidity - Cash and cash equivalents increased to $702,000 as of June 30, 2022, from $584,000 as of December 31, 2021, reflecting a growth of 20.2%[20]. - AgeX's cash and cash equivalents were $0.7 million as of June 30, 2022, which, along with a potential additional loan of $3.0 million, may not be sufficient to meet its funding requirements for the next twelve months[38]. - AgeX's total cash, cash equivalents, and restricted cash amounted to $752,000 as of June 30, 2022, compared to $634,000 as of December 31, 2021[56]. - Net cash used in operating activities from continuing operations for the six months ended June 30, 2022, was $3,382,000, compared to $4,234,000 for the same period in 2021, a decrease of 20.1%[28]. - The company expects to continue incurring operating losses and negative cash flows, raising substantial doubt about its ability to continue as a going concern[186]. Expenses - Research and development expenses for the three months ended June 30, 2022, were $259,000, a decrease of 46.1% from $481,000 for the same period in 2021[22]. - General and administrative expenses for the six months ended June 30, 2022, were $2,998,000, down 20.5% from $3,770,000 for the same period in 2021[22]. - AgeX incurred approximately $11,000 and $57,000 of allowable expenses under the NIH grant for the three and six months ended June 30, 2021, respectively[68]. - Total other expense, net for the six months ended June 30, 2022 was $1.7 million, consisting of $1.4 million amortization of deferred debt issuance costs and $0.3 million unrealized loss on warrants[179]. - For the six months ended June 30, 2022, stock-based compensation expense totaled $437,000, compared to $464,000 for the same period in 2021[141]. Debt and Financing - AgeX had drawn the full $8.0 million line of credit under the 2020 Loan Agreement, with the outstanding principal balance due on March 30, 2023[98]. - AgeX has drawn $10,160,000 from a $13,160,000 line of credit under the Secured Convertible Promissory Note, with an outstanding principal balance due on February 14, 2024[101]. - The company may sell up to $12.1 million of additional shares of common stock in "at-the-market" transactions to raise capital[188]. - AgeX's total debt balances net of issuance costs amounted to $18.63 million, with debt issuance costs totaling $7.92 million[120]. - The company faces challenges in obtaining necessary capital due to ongoing net operating losses and debt obligations to Juvenescence[203]. Stock and Equity - The weighted average number of common shares outstanding for the three months ended June 30, 2022, was 37,943,000, compared to 37,936,000 for the same period in 2021[22]. - As of June 30, 2022, AgeX had 37,945,108 shares of common stock issued and outstanding, an increase from 37,941,220 shares at December 31, 2021[132]. - AgeX issued warrants to purchase 6,502,442 shares of common stock in connection with $10,160,000 of drawdowns from Juvenescence under the Secured Note during the six months ended June 30, 2022[133]. - AgeX's stockholders' equity was reported to be less than $2,000,000, leading to a deficiency letter from the NYSE American regarding continued listing standards[156]. - AgeX regained compliance with the NYSE American's continued listing standards on April 15, 2021, but remains subject to normal continued listing monitoring[157]. Operational Changes - The company has initiated staff reductions and eliminated laboratory facilities to reduce operating expenses amid the COVID-19 pandemic[39]. - The company has deferred in-house development of its product candidates and technologies due to staffing reductions and the closing of research laboratory facilities[203]. - AgeX's operations and financial results may be impacted by the ongoing COVID-19 pandemic, with uncertainty regarding the duration and scope of its effects[167]. - The ongoing COVID-19 pandemic may adversely impact the availability of financing and disrupt operations, adding to the uncertainty of future capital needs[190]. - The company is exploring options for obtaining additional capital, including the sale of common stock and collaborative research arrangements[203]. Research and Development - AgeX plans to finance its iTR research and development through its subsidiary Reverse Bioengineering, Inc.[46]. - AgeX's research and development expenses consist primarily of personnel costs, stock-based compensation, and outside consultants[72]. - Research and development expenses for the six months ended June 30, 2022 were $0.7 million, reflecting a focus on outsourcing rather than internal development[192]. - The company has a Sponsored Research Agreement with the University of California at Irvine for the derivation of neural stem cells, with initial work expected to conclude during 2022[166]. - AgeX does not expect to earn subscription and advertising revenues in subsequent accounting periods due to the LifeMap Deconsolidation[65].
Serina Therapeutics, Inc.(SER) - 2022 Q2 - Quarterly Report