Orgenesis(ORGS) - 2024 Q1 - Quarterly Report

Financial Performance - Revenues for the three months ended March 31, 2024, were $141, a decrease of 1% compared to $142 for the same period in 2023[101] - Gross profit improved to a loss of $351, compared to a loss of $2,580 in the same quarter of 2023[100] - Operating loss for the quarter was $8,930, down from $19,596 in the prior year, indicating a reduction of approximately 54%[100] - Net loss for the three months ended March 31, 2024, was $10,005, compared to a net loss of $23,377 for the same period in 2023, representing a decrease of about 57%[100] - Net loss for Q1 2024 was $10,005, compared to a net loss of $23,377 in Q1 2023, indicating improved financial performance[114] Cost Management - Cost of revenues significantly decreased to $492 from $2,722 in the prior year, reflecting a reduction of approximately 82%[102] - Cost of revenues for Q1 2024 decreased by 82% to $492, compared to $2,722 in Q1 2023, primarily due to reduced activities in the Octomera segment[104] - Research and development expenses for Q1 2024 were $2,370, down 28% from $3,281 in Q1 2023, attributed to reduced activities in the Octomera segment[105] - Selling, general and administrative expenses for Q1 2024 were $6,056, a decrease of 55% from $13,528 in Q1 2023, mainly due to reduced salaries and legal fees[108] Asset and Liability Changes - Current assets decreased by $2,120 from December 31, 2023, to March 31, 2024, primarily due to a decline in cash and cash equivalents[112] - Current liabilities increased by $12,624 during the same period, mainly due to the reconsolidation of Octomera[113] Financing and Investments - The company received gross proceeds of approximately $2.3 million from a private placement of 2,272,719 shares at a price of $1.03 per share[98] - On May 10, 2024, the company issued 150,000 shares at $1.03 per share, raising gross proceeds of approximately $154[121] - The company faces substantial doubt about its ability to continue as a going concern and plans to seek additional financing to fund operations[124] Strategic Developments - The company recognized a loss of $285 due to the deconsolidation of Orgenesis Biotech Israel Ltd. (OBI) following a trustee appointment[97] - On January 29, 2024, the company acquired all preferred units of Octomera, reconsolidating it into its accounts[95] - The company plans to pay 5% of net revenues generated by Octomera during 2025-2027 to Metalmark Capital Partners as part of the acquisition agreement[99] - The POCare Services segment aims to expand the number and scope of POCare Centers to provide efficient and scalable pathways for CGT therapies[88] Cash Flow Management - Net cash used in operating activities for Q1 2024 was approximately $4,441, a decrease from $7,240 in Q1 2023, reflecting improved cash flow management[115] - The company entered into an Asset Purchase Agreement with Germfree for the sale of five OMPULs for an aggregate purchase price of $8,340[120]