Orgenesis(ORGS) - 2024 Q4 - Annual Report

Corporate Actions - The company implemented a 1-for-10 reverse stock split on September 20, 2024, retroactively adjusting all share and per share amounts in the financial statements [306]. - A 1-for-10 reverse stock split was implemented, adjusting the number of authorized shares to 14,583,333 [333]. - The company acquired 100% of the equity interests of Octomera on January 29, 2024, through a Unit Purchase Agreement, previously deconsolidated from financial statements [322]. - The company entered into an Asset Purchase Agreement with Broaden Bioscience for assets valued at up to $11,000,000, with a debt adjustment of $10,767,000 [331]. - An Asset Purchase Agreement with Theracell was established for an aggregate purchase price of $13,000,000, with a debt adjustment of $10,324,000 [332]. - An Asset Purchase and Strategic Collaboration Agreement with Germfree was signed on April 5, 2024, for the sale of five OMPULs for an aggregate purchase price of $8,340, with $6,720 paid as of December 31, 2024 [326]. Financial Performance - Revenues for the year ended December 31, 2024, were $1,035,000, representing a 95% increase from $530,000 in 2023 [336]. - The company reported an operating loss of $39,768,000 for 2024, compared to a loss of $53,636,000 in 2023 [336]. - Net loss for the year ended December 31, 2024 was $49,013, an improvement from a net loss of $64,918 in 2023 [355]. - The share in net loss of associated company decreased by 99% to $8,000 in 2024 from $734,000 in 2023 [344]. - The company incurred a loss from extinguishment of $5,422,000 in 2024, compared to $283,000 in 2023 [347]. - Financial expenses, net for the year ended December 31, 2024 were $4,508, representing an increase of 80% compared to $2,499 for 2023, primarily due to interest on new loan agreements [349]. - Convertible loans induced conversion expenses for 2024 were $4,304, compared to $0 for 2023, attributed to a charge from a debt equity conversion [350]. - Impairment expenses for 2024 were $18,338, significantly higher than $699 in 2023, due to impairments of goodwill, property, plant and equipment, and intangible assets [351]. - Tax expense for 2024 was $97, a decrease of 79% from $473 in 2023, mainly due to changes in tax treatment of research and experimentation expenditures [352]. Cost Management - Cost of revenues decreased by 69% to $1,928,000 in 2024 from $6,255,000 in 2023, primarily due to reduced costs in the Octomera segment [339]. - Total expenses for selling, general, and administrative costs decreased by 58% to $14,822,000 in 2024 from $35,134,000 in 2023 [341]. - The cost of development services and research and development expenses decreased by 9% to $9,622,000 in 2024 from $10,623,000 in 2023 [340]. Strategic Initiatives - The company plans to out-license therapies for market approval in preferred geographical regions, aiming to lower overall development costs [318]. - The company is expanding its pipeline of innovative therapies designed to optimize production platforms, targeting significantly lower production costs [313]. - The company is developing advanced therapies with the goal of entering into out-licensing agreements, addressing high costs associated with unique production facilities [315]. - The company is focused on partnerships with hospitals and research centers to supply products and develop therapies, leveraging its decentralized cell processing platform [311]. Financial Position - Current assets decreased by $3,315 from December 31, 2023 to December 31, 2024, primarily due to declines in cash and cash equivalents, prepaid expenses, and receivables [353]. - Current liabilities increased by $10,513 between December 31, 2023 and December 31, 2024, mainly due to increases in accounts payable and accrued expenses [354]. - As of December 31, 2024, the company had an accumulated deficit of $224,787 and cash and cash equivalents of approximately $0.1 million, raising substantial doubt about its ability to continue as a going concern [361]. - The company plans to raise additional capital to fund operations and repay outstanding loans, while exploring avenues to increase revenue and reduce capital expenditures [363]. Revenue Recognition - Revenue from POCare Cell processing is recognized either over time or at a point in time, with progress measured based on units produced [384]. - Revenue from hospital supplies is recognized when products and services are received by the customer [383]. Credit Losses - The company has adopted the Current Expected Credit Losses (CECL) standard effective January 1, 2023, to estimate losses from customer payment defaults [386]. - The allowance for estimated credit losses considers historical collection experience and current and future economic conditions [387]. - The company has not experienced significant credit losses in cash and cash equivalents, bank deposits, and certain receivables held with highly rated financial institutions [385].