Full Press Release Details
Therapeutics Reports Fourth Quarter and Annual 2022 Financial Results
Calif.-(BUSINESS WIRE)-March 31, 2023-AgeX Therapeutics, Inc. ("AgeX"; NYSE American: AGE), a biotechnology
company developing therapeutics for human aging and regeneration, reported its financial and operating results for fourth quarter and
the full year ended December 31, 2022.
cash equivalents, and restricted cash totaled $0.7 million as of December 31, 2022. As of December 31, 2022, AgeX owed Juvenescence Limited
$21.4 million in principal and origination fees on account of loans extended to AgeX.
Quarter and Annual 2022 Operating Results
following comparisons exclude the impact of the operations of AgeX's former subsidiary LifeMap Sciences, Inc. which have been presented
in AgeX's consolidated financial results as discontinued operations for all periods presented due to the disposition of AgeX's
shares of LifeMap Sciences in a cash-out merger during March 2021.
Total revenues for the fourth quarter of 2022 were $8,000 as compared with $27,000 for the fourth quarter of 2021. Total revenues
for the year ended December 31, 2022 were $34,000 as compared with $144,000 in the same period of 2021. Revenues in 2022 are primarily
comprised of sales of research products including stem cell products while 2021 also includes allowable expenses under a research grant
from the National Institutes of Health.
expenses: Operating expenses for the three months ended December 31, 2022 were $1.8 million as compared with $1.9 million for the
same period of 2021. Operating expenses for the full year 2021 were $7.0 million as compared with $8.2 million in the same period of
and development expenses for the year ended December 31, 2022 decreased by more than $0.4 million to $1.0 million as compared to approximately
$1.5 million in 2021. The net decrease was primarily attributable to decreases of: $0.2 million in scientific consulting; $0.1 million
in outside research and services expenses; $0.1 million in fees incurred related to sponsored research agreement with a university; and
$0.1 million in cash and noncash stock-based compensation expense to employees.
and administrative expenses for the year ended December 31, 2022 decreased by $0.7 million to $6.0 million as compared to $6.7 million
in 2021. The net decrease is attributable to decreases of $0.4 million in consulting expenses, $0.2 million in professional fees for
legal services, $0.2 million in annual minimum royalties due under certain license agreements and patent and license maintenance related
fees, and $0.1 million in noncash stock-based compensation expense to directors. These decreases were offset to some extent by increases
of $0.1 million in insurance expense and $0.1 million in professional fees for tax and accounting services.
expense, net: Net other expense for the year ended December 31, 2022 consists primarily of $3.3 million of amortization of deferred
debt costs on loans from Juvenescence while in 2021 the $1.1 million amortization of deferred debt costs on loans from Juvenescence were
offset by approximately $437,000 gain recognized upon forgiveness of Paycheck Protection Program loan indebtedness.
loss attributable to AgeX: The net loss attributable to AgeX for the year ended December 31, 2022 was $10.5 million, or ($0.28) per
share (basic and diluted) compared to $8.7 million, or ($0.23) per share (basic and diluted), for 2021. Increased net loss attributable
to AgeX for the year ended December 31, 2022 as compared to 2021, despite the decrease in operating expenses from $8.2 million to $7.0
million, is largely attributable to increased amortization of deferred debt costs on loans from Juvenescence by approximately $2.2 million
Concern Considerations
required under Accounting Standards Update 2014-15, Presentation of Financial Statements-Going Concern (ASC 205-40), AgeX evaluates
whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due
within one year after the date its financial statements are issued. Based on AgeX's most recent projected cash flows, AgeX believes
that its cash and cash equivalents and available sources of debt and equity capital would not be sufficient to satisfy AgeX's anticipated
operating and other funding requirements for the twelve months following the filing of AgeX's Annual Report on Form 10-K for the
year ended December 31, 2022. These factors raise substantial doubt regarding the ability of AgeX to continue as a going concern.
Therapeutics, Inc. (NYSE American: AGE) is focused on developing and commercializing innovative therapeutics to treat human diseases
to increase healthspan and combat the effects of aging. AgeX's PureStem and UniverCyte manufacturing and
immunotolerance technologies are designed to work together to generate highly defined, universal, allogeneic, off-the-shelf pluripotent
stem cell-derived young cells of any type for application in a variety of diseases with a high unmet medical need. AgeX has two preclinical
cell therapy programs: AGEX-VASC1 (vascular progenitor cells) for tissue ischemia and AGEX-BAT1 (brown fat cells) for Type II diabetes.
AgeX's revolutionary longevity platform induced tissue Regeneration (iTR ) aims to unlock cellular immortality and regenerative
capacity to reverse age-related changes within tissues. HyStem is AgeX's delivery technology to stably engraft
PureStem or other cell therapies in the body. AgeX is seeking opportunities to establish licensing and collaboration arrangements around
its broad IP estate and proprietary technology platforms and therapy product candidates.
more information, please visit www.agexinc.com or connect with the company on Twitter, LinkedIn, Facebook,
statements contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Any statements that are not historical fact including, but not limited to statements that contain words such as "will,"
"believes," "plans," "anticipates," "expects," "estimates" should also be
considered forward-looking statements. Forward-looking statements involve risks and uncertainties. Actual results may differ materially
from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties
that affect the business of AgeX Therapeutics, Inc. and its subsidiaries, particularly those mentioned in the cautionary statements found
in more detail in the "Risk Factors" section of AgeX's most recent Annual Report on Form 10-K filed with the Securities
and Exchange Commission (copies of which may be obtained at www.sec.gov). Subsequent events and developments may cause these forward-looking
statements to change. AgeX specifically disclaims any obligation or intention to update or revise these forward-looking statements as
a result of changed events or circumstances that occur after the date of this release, except as required by applicable law.
THERAPEUTICS, INC. AND SUBSIDIARIES
thousands, except par value amounts)
| December 31, | ||||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 645 | $ | 584 | ||||
| Accounts and grants receivable, net | 4 | 25 | ||||||
| Prepaid expenses and other current assets | 1,804 | 1,625 | ||||||
| Total current assets | 2,453 | 2,234 | ||||||
| Restricted cash | 50 | 50 | ||||||
| Intangible assets, net | 738 | 870 | ||||||
| TOTAL ASSETS | $ | 3,241 | $ | 3,154 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 1,034 | $ | 771 | ||||
| Loan due to Juvenescence, net of debt issuance costs, current portion | 7,646 | 7,140 | ||||||
| Related party payables, net | 141 | 70 | ||||||
| Warrant liability | 180 | - | ||||||
| Insurance premium liability and other current liabilities | 1,077 | 986 | ||||||
| Total current liabilities | 10,078 | 8,967 | ||||||
| Loan due to Juvenescence, net of debt issuance costs, net of current portion | 10,478 | 6,062 | ||||||
| TOTAL LIABILITIES | 20,556 | 15,029 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' deficit: | ||||||||
| Preferred stock, $0.0001 par value, 5,000 shares authorized; none issued and outstanding | - | - | ||||||
| Common stock, $0.0001 par value, 200,000 and 100,000 shares authorized, respectively; 37,949 and 37,941 shares issued and outstanding, respectively | 4 | 4 | ||||||
| Additional paid-in capital | 98,994 | 93,912 | ||||||
| Accumulated deficit | (116,210 | ) | (105,748 | ) | ||||
| Total AgeX Therapeutics, Inc. stockholders' deficit | (17,212 | ) | (11,832 | ) | ||||
| Noncontrolling interest | (103 | ) | (43 | ) | ||||
| Total stockholders' deficit | (17,315 | ) | (11,875 | ) | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 3,241 | $ | 3,154 |
THERAPEUTICS, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
thousands, except per share data)
| Year Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| REVENUES | ||||||||
| Grant revenues | $ | - | $ | 104 | ||||
| Other revenues | 34 | 40 | ||||||
| Total revenues | 34 | 144 | ||||||
| Cost of sales | (13 | ) | (19 | ) | ||||
| Gross profit | 21 | 125 | ||||||
| OPERATING EXPENSES | ||||||||
| Research and development | 1,025 | 1,456 | ||||||
| General and administrative | 5,971 | 6,708 | ||||||
| Total operating expenses | 6,996 | 8,164 | ||||||
| Gain on deconsolidation of LifeMap Sciences | - | 106 | ||||||
| Loss from operations | (6,975 | ) | (7,933 | ) | ||||
| OTHER EXPENSE, NET | ||||||||
| Interest expense, net | (3,335 | ) | (1,097 | ) | ||||
| Change in fair value of warrants | (225 | ) | - | |||||
| Other income, net | 13 | 448 | ||||||
| Total other expense, net | (3,547 | ) | (649 | ) | ||||
| NET LOSS FROM CONTINUING OPERATIONS | (10,522 | ) | (8,582 | ) | ||||
| NET LOSS FROM DISCONTINUED OPERATIONS | - | (103 | ) | |||||
| NET LOSS | (10,522 | ) | (8,685 | ) | ||||
| Net loss attributable to noncontrolling interest from continuing operations | 60 | 3 | ||||||
| Net loss attributable to noncontrolling interest from discontinued operations | - | 7 | ||||||
| NET LOSS ATTRIBUTABLE TO AGEX | $ | (10,462 | ) | $ | (8,675 | ) | ||
| NET LOSS PER COMMON SHARE: | ||||||||
| BASIC AND DILUTED | ||||||||
| Continuing operations | $ | (0.28 | ) | $ | (0.23 | ) | ||
| Discontinued operations | - | - | ||||||
| $ | (0.28 | ) | $ | (0.23 | ) | |||
| WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||
| BASIC AND DILUTED | 37,945 | 37,886 | ||||||
| AMOUNTS ATTRIBUTABLE TO AGEX: | ||||||||
| Loss from continuing operations | $ | (10,462 | ) | $ | (8,579 | ) | ||
| Loss from discontinued operations | - | (96 | ) | |||||
| NET LOSS ATTRIBUTABLE TO AGEX | $ | (10,462 | ) | $ | (8,675 | ) |
THERAPEUTICS, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
| Year Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| OPERATING ACTIVITIES: | ||||||||
| Net loss attributable to AgeX from continuing operations | $ | (10,462 | ) | $ | (8,579 | ) | ||
| Net loss attributable to noncontrolling interest | (60 | ) | (3 | ) | ||||
| Adjustments to reconcile net loss attributable to AgeX to net cash used in operating activities: | ||||||||
| Gain on deconsolidation of LifeMap Sciences | - | (106 | ) | |||||
| Gain on extinguishment of debt (Paycheck Protection Program loan) | - | (437 | ) | |||||
| Change in fair value of warrants | 225 | - | ||||||
| Amortization of intangible assets | 132 | 131 | ||||||
| Amortization of debt issuance costs | 3,137 | 1,114 | ||||||
| Stock-based compensation | 760 | 999 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts and grants receivable | 21 | 128 | ||||||
| Prepaid expenses and other current assets | 896 | 760 | ||||||
| Accounts payable and accrued liabilities | 144 | (772 | ) | |||||
| Related party payables | 255 | - | ||||||
| Insurance premium liability | (983 | ) | (921 | ) | ||||
| Other current liabilities | (4 | ) | (79 | ) | ||||
| Net cash used in operating activities from continuing operations | (5,939 | ) | (7,765 | ) | ||||
| Net cash used in operating activities from discontinued operation | - | (90 | ) | |||||
| Net cash used in operating activities | (5,939 | ) | (7,855 | ) | ||||
| INVESTING ACTIVITIES: | ||||||||
| Proceeds from the sale of LifeMap Sciences | - | 466 | ||||||
| Partial collection on loan due from LifeMap Sciences | - | 250 | ||||||
| Net cash provided by investing activities from continuing operations | - | 716 | ||||||
| Deconsolidation of cash and cash equivalents from discontinued operations | - | (50 | ) | |||||
| Net cash provided by investing activities | - | 666 | ||||||
| FINANCING ACTIVITIES: | ||||||||
| Draw down on loan facilities from Juvenescence | 6,000 | 7,000 | ||||||
| Proceeds from the issuance of common stock | - | 496 | ||||||
| Net cash provided by financing activities from continuing operations | 6,000 | 7,496 | ||||||
| Partial payment on loan due to AgeX from discontinued operations | - | (250 | ) | |||||
| Net cash provided by financing activities | 6,000 | 7,246 | ||||||
| NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 61 | 57 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | ||||||||
| At beginning of the year | 634 | 577 | ||||||
| At end of the year | $ | 695 | $ | 634 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Cash paid during the year for interest | $ | 14 | $ | 13 | ||||
| SUPPLEMENTAL SCHEDULE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | ||||||||
| Issuance of common stock upon vesting of restricted stock units | $ | 8 | $ | 16 | ||||
| Issuance of warrants for debt issuance under the 2020 Loan Agreement | $ | 178 | $ | 757 | ||||
| Issuance of warrants for debt issuance under the Secured Note | $ | 4,148 | $ | - | ||||
| Debt refinanced with new debt | $ | 7,160 | $ | - |