Corporate Actions - The company completed a reverse stock split at a ratio of 1:30, reducing the number of outstanding shares from approximately 30.1 million to approximately 1 million shares [131][132]. - The merger agreement with 20/20 Biolabs includes a requirement to raise a minimum of $4 million in concurrent financing, with up to $2 million allowed as debt [134]. - The company acquired substantially all assets of PMGC Holdings Inc. for a total consideration of 38,308 shares of common stock and $56,525 in cash, with additional earnout payments based on future sales [136][137]. - The company closed a private placement on January 2, 2025, generating gross proceeds of approximately $1.85 million [151]. Financial Performance - As of March 31, 2025, the company reported a negative net working capital of $3,805,736 and a net loss from continuing operations of $1,505,867 [149]. - Gross sales for the three months ended March 31, 2025, were $534,943, resulting in net sales of $510,353 and a gross profit of $269,823 [153][154]. - Operating expenses increased by 29% to $1,776,574 for the three months ended March 31, 2025, driven by selling and marketing expenses of $280,549 and general and administrative expenses of $1,275,161 [153][156]. - Research and development expenses decreased by 54% to $196,912 compared to the same period in 2024, reflecting cost-cutting measures [156]. - Net cash used in operating activities decreased by $322,825 to $(752,953) for the three months ended March 31, 2025, compared to the same period in 2024 [165]. - Other expenses, net, significantly decreased to $884 for the three months ended March 31, 2025, compared to $2,172,817 in the same period of 2024 [157]. Compliance and Regulatory Issues - The company received notices from Nasdaq regarding non-compliance with listing requirements, including a market value below $35 million and a minimum bid price below $1 per share [141][142]. - The Nasdaq Hearings Panel granted an additional compliance period until September 2, 2025, to regain compliance with listing requirements [144]. Economic and Operational Challenges - Economic uncertainties, including geopolitical tensions and inflation, could materially affect the company's financial condition and operations [146]. - The company is facing substantial doubt about its ability to continue as a going concern due to recurring losses and negative cash flows from operations [150][161]. - The company had cash of $770,047 as of March 31, 2025, and is exploring additional capital raising options to enhance liquidity [158][161]. Future Projections - The Elevai Acquisition completed on January 16, 2025, is expected to contribute approximately $2.5 million in revenue based on 2024 performance [151][160].
Carmell Therapeutics (CTCX) - 2025 Q1 - Quarterly Report