AgeX Therapeutics(AGE) - 2024 Q1 - Quarterly Report

Financial Performance - The company reported a $9.7 million change in other income (expense), net, resulting in $7.1 million of other expense for the three months ended March 31, 2024, compared to $2.6 million of other income in the same period in 2023[201] - As of March 31, 2024, the company had an accumulated deficit of $5.4 million, indicating significant operating losses since inception[204] - The net loss for the three months ended March 31, 2024, amounted to $9.4 million, with net cash used in operating activities of $1.6 million, reflecting a 122.4% increase in cash used compared to the same period in 2023[214] - The company faces substantial doubt about its ability to continue as a going concern due to negative operating cash flows and accumulated deficits[206] Research and Development Expenses - Research and development expenses increased to $1.1 million for the three months ended March 31, 2024, up 177.2% from $0.4 million in the same period in 2023[197] - The increase in research and development expenses for Q1 2024 was primarily due to $0.5 million in outside research services and $0.1 million in patent-related professional fees[199] - The company expects research and development expenses to increase substantially in the foreseeable future as it continues to invest in clinical trials and product development[188] - The company anticipates continued increases in research and development expenses, general and administrative expenses, and capital expenditures[208] General and Administrative Expenses - General and administrative expenses rose to $1.2 million for the three months ended March 31, 2024, reflecting a 105.7% increase from $0.6 million in the same period in 2023[197] - General and administrative expenses for Q1 2024 included $0.5 million in professional legal and accounting services related to a merger that occurred on March 26, 2024[200] - The company anticipates that its general and administrative expenses will continue to rise as it expands operations and maintains compliance with public company regulations[194] Financing and Cash Flow - The company has financed operations through $46.9 million in net proceeds from convertible preferred stock and convertible notes, along with $2.4 million drawn from a secured convertible promissory note[204] - The company expects to incur substantial expenditures for product development and will require additional financing to continue operations beyond 2025, with current cash and expected proceeds from Juvenescence estimated insufficient[209] - Net cash provided by financing activities for the three months ended March 31, 2024, was $2.7 million, primarily from credit facilities drawn from Juvenescence[216] - The company may need to modify or suspend operations if financing is unavailable to meet future capital needs[207] - Any additional capital raised through equity offerings may dilute existing stockholders' ownership interests[209] Cash and Investments - As of March 31, 2024, the company had $8.7 million in cash and cash equivalents, with primary cash usage for operating expenses, mainly in research and development[205] - The net cash used in investing activities during the three months ended March 31, 2024, was $14,000, entirely related to office and laboratory equipment purchases[215] Future Funding Requirements - Future funding requirements will depend on various factors, including the progress and costs of clinical trials for the lead product candidate SER 252[210]