Celularity (US:CELU)2025-11-14 21:09Financial Performance - Total net revenues for Q3 2025 were $5.284 million, a decrease of 43.3% compared to $9.296 million in Q3 2024[17] - Product sales, net for Q3 2025 were $894 thousand, down 73.7% from $3.393 million in Q3 2024[17] - Total operating expenses for Q3 2025 were $18.184 million, a decrease of 8.0% compared to $20.823 million in Q3 2024[17] - Net loss for Q3 2025 was $23.076 million, compared to a net loss of $16.098 million in Q3 2024, representing a 43.5% increase in losses[17] - The company reported a comprehensive loss of $23.073 million for Q3 2025, compared to a comprehensive loss of $16.100 million in Q3 2024[17] - For the nine months ended September 30, 2025, the company reported a net loss of $67,354,000 compared to a net loss of $44,599,000 for the same period in 2024[22] Cash and Liquidity - Cash and cash equivalents decreased to $120 thousand as of September 30, 2025, down from $738 thousand as of December 31, 2024[16] - The company incurred an operating loss of $39,250,000 and net cash used in operating activities of $8,151,000 for the nine months ending September 30, 2025[32] - Cash paid for interest increased to $1,771,000 for the nine months ended September 30, 2025, compared to $144,000 for the same period in 2024[23] - The company reported net cash provided by financing activities of $7,429,000 for the nine months ended September 30, 2025[22] - The company is actively seeking to secure additional outside capital to fund its operations[32] Assets and Liabilities - Total current liabilities increased to $65.314 million as of September 30, 2025, compared to $53.680 million as of December 31, 2024, reflecting a 21.7% increase[16] - Total assets decreased to $114.239 million as of September 30, 2025, down from $132.682 million as of December 31, 2024[16] - As of September 30, 2025, the company had an accumulated deficit of $967,101,000[32] - The company's total debt stood at $4,284 as of September 30, 2025, down from $42,288 on December 31, 2024, indicating a significant reduction in liabilities[90] Stock and Equity - The weighted average shares outstanding for Q3 2025 were 26,347,818, compared to 21,976,339 in Q3 2024[17] - As of September 30, 2025, the total number of common stock shares increased to 28,216,485, reflecting a growth of approximately 14.5% from the previous quarter[19] - The total common stock shares increased from 19,378,192 on January 1, 2024, to 21,984,614 by September 30, 2024, reflecting an increase of approximately 13.5%[18] Research and Development - Research and development expenses for Q3 2025 were $4.598 million, an increase of 17.4% from $3.915 million in Q3 2024[17] Legal and Regulatory Matters - The Company is currently involved in multiple legal proceedings, including a complaint against Evolution Biologyx for approximately $2,350 in unpaid invoices[157] - The Company has accrued $668 for amounts owed to Hackensack Meridian Health related to clinical trial costs, with ongoing disputes regarding improper charges[159] - The Company has not achieved any clinical or regulatory milestones under the Sirion License as of the reporting date[154] Financing Activities - Celularity Inc. issued 2,141,098 shares in a PIPE offering, raising $6,000,000 net of offering expenses[18] - The Company completed a registered direct offering on April 10, 2023, raising approximately $6,000 in gross proceeds from the sale of 923,076 shares and warrants, with net proceeds of $5,505 used to repay obligations[172] - The Company also completed a registered direct offering on July 31, 2023, generating approximately $3,000 in gross proceeds from 857,142 shares, with net proceeds of $2,740 allocated for working capital[174] Asset Acquisitions - The Company entered into an asset purchase agreement to acquire Sequence LifeScience's Rebound™ product for up to $5.5 million, including an upfront payment of $1 million and milestone payments based on net sales[53] - As of September 30, 2025, the Company accrued $3.045 million for milestone payments due to Sequence, including $2.395 million accrued during the nine months ended September 30, 2025[53] Stock-Based Compensation - The company recognized stock-based compensation expenses of $2,966,000 for the quarter ending March 31, 2024, and $2,672,000 for the quarter ending June 30, 2024[18] - The company incurred stock-based compensation expense of $7,126,000 for the nine months ended September 30, 2025[22] Debt and Interest - The Company entered into a loan agreement for $3,000 with a 15.0% interest rate, which was extended to December 31, 2025[105][107] - The Starr Bridge Loan of $5,000 has an interest rate of 12.0%, increasing to 15.0% in the event of default, and was set to mature on March 17, 2025[109] - The Company recognized a loss on extinguishment of debt of $233 due to a substantial modification of the convertible promissory note[96] Inventory and Expenses - As of September 30, 2025, the company's net inventory was $9,515, a decrease of 47% from $17,996 on December 31, 2024[77] - The total prepaid expenses and other current assets increased to $1,208 as of September 30, 2025, from $857 on December 31, 2024, marking a 41% increase[80] - The Company recognized write-offs of capitalized bulk material costs amounting to $1,387 and $3,903 for the three and nine months ended September 30, 2025, respectively[78] Accounting and Fair Value - The Company is currently evaluating the impact of recently issued accounting pronouncements on its consolidated financial statements[49] - The fair value measurement of the warrant liabilities utilizes Level 3 inputs, including expected volatility based on historical data of comparable public companies[72]