AgeX Therapeutics(AGE) - 2024 Q3 - Quarterly Results

Serina Therapeutics Third Quarter 2024 Financial Results and Business Highlights Recent Highlights The company highlighted a collaboration with Enable Injections to enhance drug delivery for its Parkinson's disease candidate - The company is partnering with Enable Injections to combine its lead candidate SER-252 with the enFuse™ wearable drug delivery platform for Advanced Parkinson's Disease treatment[2] Third Quarter Operating Results Net income decreased to $1.4 million in Q3 2024, as a significant rise in operating expenses offset higher other income Q3 2024 vs. Q3 2023 Financial Summary (in millions, except per share data) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Grant Revenues | $0.014 | $0.029 | -51.7% | | Operating Expenses | $5.3 | $1.5 | +253.3% | | Other Income, net | $6.7 | $3.2 | +109.4% | | Net Income | $1.4 | $1.8 | -22.2% | | Diluted EPS | $0.13 | $0.23 | -43.5% | - Research and development (R&D) expenses increased by $1.8 million year-over-year to $2.4 million, driven by higher costs for headcount, patents, and outside research services[4] - General and administrative (G&A) expenses grew by $2.0 million year-over-year to $2.9 million, primarily due to stock compensation, consulting, and severance costs[5] Liquidity and Going Concern The company's current cash position is insufficient to fund operations for the next twelve months, raising going concern doubts - Cash, cash equivalents, and restricted cash totaled $3.2 million as of September 30, 2024[8] - Management has determined there is substantial doubt about its ability to continue as a going concern due to insufficient funding for the next twelve months[9] Company and Technology Overview About SER-252 (POZ-apomorphine) SER-252 is an investigational therapy for Parkinson's disease designed for continuous stimulation, with clinical trials planned for 2025 - SER-252 is an investigational therapy for Parkinson's disease designed for continuous dopaminergic stimulation (CDS) to reduce motor complications[10] - Serina plans to advance SER-252 to clinical testing in 2025[10] About the POZ Platform™ The proprietary POZ Platform™ uses a synthetic polymer to improve drug profiles and is being pursued for licensing opportunities - The POZ technology uses a synthetic polymer to control drug release, aiming to improve the safety and efficacy profiles of drugs with narrow therapeutic windows[11] - The company's strategy includes out-licensing, highlighted by a non-exclusive license agreement with Pfizer for use in lipid nanoparticle (LNP) drug delivery[12] About Serina Therapeutics Serina is a clinical-stage biotech company using its POZ Platform to develop drug candidates for neurological diseases - Serina is a clinical-stage biotechnology company developing drug candidates for neurological diseases using its POZ Platform[13] Financial Statements Condensed Consolidated Balance Sheets The balance sheet shows a decline in assets and a significant increase in liabilities, widening the stockholders' deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 (unaudited) | Dec 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $3,185 | $7,619 | | Total current assets | $5,423 | $7,619 | | Total Assets | $7,435 | $8,968 | | Liabilities & Stockholders' Deficit | | | | Total current liabilities | $13,514 | $1,413 | | Warrant liability | $6,744 | $— | | Total Liabilities | $21,263 | $4,858 | | Total stockholders' deficit | ($13,828) | ($32,294) | | Total Liabilities & Stockholders' Deficit | $7,435 | $8,968 | Condensed Consolidated Statements of Operations The company reported a net income of $1.4 million for Q3 2024 but a significant net loss of $8.4 million for the nine-month period Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $14 | $29 | $70 | $66 | | Total Operating Expenses | $5,326 | $1,492 | $11,569 | $3,436 | | Loss from Operations | ($5,312) | ($1,463) | ($11,499) | ($3,370) | | Total Other Income, net | $6,695 | $3,215 | $3,044 | $7,588 | | Net Income (Loss) | $1,383 | $1,752 | ($8,455) | $4,218 | | Diluted EPS | $0.13 | $0.23 | ($1.24) | $0.57 | Condensed Consolidated Statements of Cash Flows Cash used in operations increased significantly, and a net decrease in cash of $4.4 million was recorded for the nine-month period Cash Flow Summary for the Nine Months Ended September 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($12,548) | ($2,597) | | Net cash used in investing activities | ($17) | ($434) | | Net cash provided by financing activities | $8,181 | $10,080 | | Net change in cash | ($4,384) | $7,049 | | Cash at beginning of period | $7,619 | $532 | | Cash at end of period | $3,235 | $7,581 |