Revenue Performance - Revenue for the three months ended June 30, 2024, was $12,320, reflecting a 100% increase due to the launch of the first three cosmetic skincare products [163]. - Revenue for the six months ended June 30, 2024, was $12,320, reflecting a 100% increase due to the launch of three cosmetic skincare products [172]. Gross Profit and Expenses - Gross profit for the same period was $12,028, with a cost of goods sold of $292, indicating strong initial sales performance [164]. - Gross profit for the same period was $12,028, with a cost of goods sold of $292 [172]. - Research and development expenses decreased by $719,591 to $104,066, a reduction of 87%, due to a strategic realignment focusing on near-term commercial products [166]. - Research and development expenses decreased by $1,030,496 to $533,486, a reduction of 66% compared to the same period in 2023 [174]. - General and administrative expenses increased to $1,064,874, up 67% from $637,453 in the prior year, primarily driven by higher insurance costs and personnel expenses [167]. - General and administrative expenses increased to $1,992,268, up 74% from $1,147,898 in 2023 [175]. - Other expenses, net, were $2,113,051, a decrease of 45% from $3,821,568 in the same period of 2023, reflecting improved financial management [168]. Cash Flow and Financial Position - Cash as of June 30, 2024, was $2,198,275, with an accumulated deficit of $65,078,898 and total liabilities of $6,405,627, raising concerns about the company's ability to continue as a going concern [161]. - Net cash used in operating activities increased by $1,258,117 to $2,214,254 for the six months ended June 30, 2024 [185]. - Net cash provided by financing activities was $2,248,864, significantly higher than $874,378 in the same period of 2023 [187]. - As of June 30, 2024, the company had cash of $2,198,275 and an accumulated deficit of $65,078,898 [179]. - The company faces substantial doubt about its ability to continue as a going concern due to insufficient cash to operate for the next 12 months [181]. Strategic Initiatives - The company plans to commercially launch its line of cosmetic skincare products in the first half of 2024, utilizing an omni-channel distribution strategy [151]. - The appointment of Kendra Bracken-Ferguson as Chief Executive Officer is expected to enhance the company's strategic direction and market presence [152]. - The company anticipates revenue growth from its cosmetic skincare products and is exploring haircare product development based on the Carmell Secretome™ [180]. Dispositions and Financing - The company closed a Private Placement on April 11, 2024, raising gross proceeds of $3,001,235 from the sale of 1,331,452 shares of Common Stock [156]. - The AxoBio Disposition was completed on March 26, 2024, resulting in the cancellation of $8,000,000 in notes payable and the termination of related obligations [157]. Net Loss - Net loss from continuing operations was $6,857,700, a 4% improvement from a loss of $7,137,667 in the prior year [171].
ALPHA HEALTHCARE(ALPA) - 2024 Q2 - Quarterly Report