AgeX Therapeutics Reports Fourth Quarter and Annual 2018 Financial Results and Provides Business Update
04/01/2019- Ends 2018 with triad of innovative cell therapy technologies: UniverCyte™ for immune tolerance, PureStem® for cell derivation and manufacturing, and HyStem® for cell delivery
- Potential to generate any human cell type with clinical and commercial friendly characteristics of hypoimmunogenicity, low COGS and availability off-the-shelf
-
Juvenescence increased ownership by paying
BioTime, Inc. $43.2M to become largest shareholder - Became public company with common stock traded on the NYSE American under ticker “AGE”
- Board and management strengthened with seasoned professionals in financing, R&D and cell therapies
-
Secured almost
$10M from sale of a non-core asset, equity financing and NIH Grant
“2018 has been a transformative year for AgeX. We became a public company, listed on the NYSE American, and made progress toward becoming a leader in the cell therapy and longevity sectors,” said Michael D. West, Ph.D., Chief Executive Officer. “One highlight was that we acquired an immune tolerance technology, UniverCyte™, with the potential to produce hypoimmunogenic cells for new therapies. Considering the number of high-profile publications and deals in this space, we would expect this platform to hold us in good stead for both our current product development programs and the potential for third party collaborations. We think this technology could help us deliver nearer and longer term value to our stockholders.”
“AgeX has both exciting cell- and iTR™-based platforms. Using
UniverCyte™ in combination with our pluripotent stem cell-based PureStem®
cell derivation and manufacturing technology, we aim to generate
universal, off-the-shelf cells for therapeutic products with reduced
COGS,” said
Additional Recent Highlights
- Secured
$5M strategic investment from Juvenescence inJune 2018 . -
Received approximately
$3.2M from the sale of Ascendance Biotechnology, a non-core asset. -
Received
$4.5M from the exercise of warrants inMarch 2019 . -
Secured
$386,000 in non-dilutive funding in the form of a grant award from theNational Institutes of Health . -
Made progress in moving our preclinical cellular and iTR™ programs
forward, as reflected in part by our papers published in peer-reviewed
scientific journals:
Stem Cell Research & Therapy , related to our brown adipose tissue cell therapy program AGEX-BAT1 for metabolic disorders such as Type II Diabetes and obesity, and Oncotarget, identifying genes implicated in tissue regeneration and cancer, in support of our iTR™ program -
Appointed seasoned biotech investor
Gregory Bailey , M.D., as Chairman of the Board. Dr. Bailey is the CEO of Juvenescence, AgeX’s largest shareholder, and was an initial financier and board member ofMedivation, Inc. which went public and later was acquired by Pfizer for$14.3Bn . -
Appointed experienced life science thought leader, Dr.
Annalisa Jenkins , to the Board. Dr. Jenkins previously served as President and CEO of Dimension Therapeutics, a leading gene therapy company, and had prior global R&D leadership roles at Merck Serono andBristol Myers-Squibb . -
Appointed
John F. Mauldin to the Board, a well-known financial writer, publisher, andNew York Times best-selling author. Mr. Mauldin appears regularly on CNBC, Yahoo Tech Ticker, and Bloomberg TV. Mr. Mauldin serves as Chairman of Mauldin Economics, an investment newsletter and information publishing firm. -
Appointed Dr.
Nafees Malik , a specialist in the strategy, execution and commercialization of cell therapies as Chief Operating Officer. Dr. Malik also serves as the Head of Cellular Therapy at Juvenescence. His prior roles have spanned clinical medicine, healthcare investment banking and biopharmaceutical companies.
Balance Sheet Highlights
Cash and cash equivalents totaled
Fourth Quarter and Annual 2018 Operating Results
Revenues: Total Revenues for the fourth quarter of 2018 were
Operating expenses: Operating expenses for the three months ended
Operating expenses for 2018 were
The reconciliation between GAAP and non-GAAP operating expenses is provided in the financial tables included with this earnings release.
R&D Expenses: R&D expenses for the year ended
G&A Expenses: General and administrative expenses for the
three months ended
Other Income, net: We received approximately
About
For more information, please visit www.agexinc.com
or connect with the company on Twitter,
Forward-Looking Statements
Certain 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 SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
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(IN THOUSANDS) |
||||||||
December 31, | ||||||||
2018 | 2017 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 6,707 | $ | 7,375 | ||||
Accounts and grants receivable, net | 131 | 107 | ||||||
Prepaid expenses and other current assets | 1,015 | 111 | ||||||
Total current assets | 7,853 | 7,593 | ||||||
Equipment and furniture, net | 90 | 129 | ||||||
Deposits and other long-term assets | 19 | 35 | ||||||
Intangible assets, net | 2,709 | 1,874 | ||||||
TOTAL ASSETS | $ | 10,671 | $ | 9,631 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | 1,416 | $ | 768 | ||||
Related party payables to BioTime and Juvenescence | 82 | 210 | ||||||
Deferred revenues | 317 | 180 | ||||||
Other current liabilities | 625 | 154 | ||||||
TOTAL LIABILITIES | 2,440 | 1,312 | ||||||
Commitments and contingencies |
||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred stock, $0.0001 par value, authorized 5,000 shares; none issued and outstanding as of December 31, 2018 and 2017 |
- | - | ||||||
Common shares, $0.0001 par value, 100,000 shares authorized; 35,830 and 33,750 shares issued and outstanding as of December 31, 2018 and 2017, respectively | 4 | 3 | ||||||
Additional paid-in capital | 81,499 | 73,761 | ||||||
Accumulated other comprehensive income (loss) | (2 | ) | 68 | |||||
Accumulated deficit | (74,054 | ) | (66,552 | ) | ||||
AgeX Therapeutics, Inc. stockholders’ equity | 7,447 | 7,280 | ||||||
Noncontrolling interest | 784 | 1,039 | ||||||
Total stockholders’ equity | 8,231 | 8,319 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 10,671 | $ | 9,631 | ||||
AGEX THERAPEUTICS, INC. AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(IN THOUSANDS, EXCEPT PER SHARE DATA) | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
REVENUES: | ||||||||||||||||
Subscription and advertisement revenues | $ | 282 | $ | 455 | $ | 1,227 | $ | 1,399 | ||||||||
Service and other revenues | 11 | 3 | 149 | 5 | ||||||||||||
Grant revenues | 20 | - | 20 | - | ||||||||||||
Total revenues | 313 | 458 | 1,396 | 1,404 | ||||||||||||
Cost of sales | (180 | ) | (54 | ) | (364 | ) | (168 | ) | ||||||||
Gross profit | 133 | 404 | 1,032 | 1,236 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Research and development | (1,523 | ) | (1,267 | ) | (5,830 | ) | (5,784 | ) | ||||||||
Acquired in-proces research and development | - | - | (800 | ) | - | |||||||||||
General and administrative | (1,968 | ) | (695 | ) | (5,647 | ) | (3,869 | ) | ||||||||
Total operating expenses | (3,491 | ) | (1,962 | ) | (12,277 | ) | (9,653 | ) | ||||||||
Gain on sale of assets | - | - | - | 1,754 | ||||||||||||
Loss from operations | (3,358 | ) | (1,558 | ) | (11,245 | ) | (6,663 | ) | ||||||||
OTHER INCOME/(EXPENSES): | ||||||||||||||||
Interest income (expense), net | 32 | 16 | 116 | (12 | ) | |||||||||||
Gain on sale of equity method investment in Ascendance | - | - | 3,215 | - | ||||||||||||
Other income (expense), net | 52 | (2 | ) | 183 | 38 | |||||||||||
Total other income, net | 84 | 14 | 3,514 | 26 | ||||||||||||
NET LOSS | (3,274 | ) | (1,544 | ) | (7,731 | ) | (6,637 | ) | ||||||||
Net loss attributable to noncontrolling interest | 88 | 37 | 229 | 57 | ||||||||||||
NET LOSS ATTRIBUTABLE TO AGEX | $ | (3,186 | ) | $ | (1,507 | ) | $ | (7,502 | ) | $ | (6,580 | ) | ||||
NET LOSS PER COMMON SHARE: BASIC AND DILUTED | $ | (0.09 | ) | $ | (0.04 | ) | $ | (0.21 | ) | $ | (0.21 | ) | ||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC AND DILUTED | 35,830 | 33,750 | 34,914 | 30,644 | ||||||||||||
AGEX THERAPEUTICS, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(IN THOUSANDS) |
||||||||
Year Ended December 31, | ||||||||
2018 | 2017 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss attributable to AgeX | $ | (7,502 | ) | $ | (6,580 | ) | ||
Net loss attributable to noncontrolling interest | (229 | ) | (57 | ) | ||||
Adjustments to reconcile net loss attributable to AgeX to net cash used in operating activities: | ||||||||
Gain on sale of equity method investment in Ascendance | (3,215 | ) |
- |
|||||
Acquired in-process research and development | 800 |
- |
||||||
Depreciation expense | 58 | 165 | ||||||
Amortization of intangible assets | 477 | 517 | ||||||
Amortization of deferred license fees | - | 17 | ||||||
Gain on sale of assets | - | (1,754 | ) | |||||
Stock-based compensation | 1,285 | 114 | ||||||
Stock-based compensation allocated from BioTime | 184 | 411 | ||||||
Subsidiary stock-based compensation | 4 | 227 | ||||||
Bad debt expense | - | (121 | ) | |||||
Foreign currency remeasurement (gain) and other | (68 | ) | - | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable and other receivables | (24 | ) | 322 | |||||
Prepaid expenses and other current assets | (293 | ) | 10 | |||||
Accounts payable and accrued liabilities | 648 | 267 | ||||||
Related party payable to BioTime | (128 | ) | - | |||||
Deferred revenues | 137 | (84 | ) | |||||
Other | (129 | ) | 261 | |||||
Net cash used in operating activities | (7,995 | ) | (6,285 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from the sale of equity method investment in Ascendance | 3,215 | - | ||||||
Purchase of in-process research and development | (1,872 | ) | - | |||||
Purchase of equipment and other assets | (21 | ) | (1 | ) | ||||
Removal of cash upon deconsolidation of LifeMap Solutions | - | (3 | ) | |||||
Security deposit received and other, net | 5 | 9 | ||||||
Net cash provided by investing activities | 1,327 | 5 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Contributions from BioTime | - | 1,971 | ||||||
Advances from BioTime | - | 1,304 | ||||||
Proceeds from sale of common shares | 5,000 | 10,000 | ||||||
Proceeds from sale of warrants | 1,000 | - | ||||||
Net cash provided by financing activities | 6,000 | 13,275 | ||||||
Effect of exchange rate changes on cash and cash equivalents | - | 121 | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (668 | ) | 7,116 | |||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of year | 7,375 | 259 | ||||||
End of year | $ | 6,707 | $ | 7,375 | ||||
Non-GAAP Financial Measures
This press release includes operating expenses prepared in accordance
with accounting principles generally accepted in
Furthermore, management uses these non-GAAP financial measures in the aggregate and on an entity basis to establish budgets and operational goals, to manage AgeX’s business and to evaluate its performance and its programs in clinical development.
AGEX THERAPEUTICS, INC. AND SUBSIDIARIES |
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURE |
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ADJUSTED OPERATING EXPENSES |
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|
Amounts In Thousands | |||||||
For the Three Months Ended |
For the Year Ended |
|||||||
GAAP Operating Expenses - as reported | $ | 3,491 | $ | 12,277 | ||||
Stock-based compensation expense (1) | (797 | ) | (1,473 | ) | ||||
Depreciation and amortization expense (1) | (150 | ) | (535 | ) | ||||
Acquired in-process research and development expense (2) | - | (800 | ) | |||||
Non-GAAP Operating Expenses, as adjusted | $ | 2,544 | $ | 9,469 | ||||
GAAP Operating Expenses - by entity | ||||||||
AgeX and subsidiaries other than LifeMap Sciences (3) | $ | 2,897 | $ | 9,946 | ||||
LifeMap Sciences, Inc. and subsidiary (4) | 594 | 2,331 | ||||||
GAAP Operating Expenses - by entity | $ | 3,491 | $ | 12,277 | ||||
Non-GAAP Operating Expenses - as adjusted, by entity | ||||||||
AgeX and subsidiaries other than LifeMap Sciences | $ | 2,066 | $ | 7,589 | ||||
LifeMap Sciences, Inc. and subsidiary | 478 | 1,880 | ||||||
Non-GAAP Operating Expenses - as adjusted, by entity | $ | 2,544 | $ | 9,469 | ||||
(1) | Noncash charges | |
(2) | AgeX acquired certain in-process research and development in March 2018, considered to be a nonrecurring item. | |
(3) | AgeX Therapeutics, Inc. includes ReCyte Therapeutics, Inc., a majority-owned and consolidated subsidiary. | |
(4) | LifeMap Sciences Inc. includes LifeMap Sciences Ltd., both consolidated subsidiaries of AgeX Therapeutics, Inc. | |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190401005894/en/
Source:
Media Contact for AgeX:
Bill
Douglass
Gotham
Communications, LLC
bill@gothamcomm.com
(646)
504-0890