AgeX Therapeutics(AGE) - 2020 Q1 - Quarterly Report

Revenue and Profit - Total revenues for the three months ended March 31, 2020, increased by 32.7% to $515,000 compared to $388,000 for the same period in 2019 [110]. - Subscription and advertisement revenues decreased by 2.0% to $338,000 in Q1 2020 from $345,000 in Q1 2019 [111]. - Grant revenues increased significantly to $86,000 in Q1 2020 from $15,000 in Q1 2019, reflecting a growth of 473.3% [112]. - Gross profit for the three months ended March 31, 2020, was $481,000, up 48.0% from $325,000 in the same period of 2019 [111]. Expenses - Research and development expenses rose by 19.8% to $1.6 million in Q1 2020 from $1.3 million in Q1 2019 [117]. - General and administrative expenses remained stable at $2.1 million for both Q1 2020 and Q1 2019, despite increased costs from leasing and staffing [122]. - Total research and development expenses for the three months ended March 31, 2020, were $1.6 million, while general and administrative expenditures were $2.1 million, resulting in a net loss of $3.2 million for the same period [133]. Operating Loss and Cash Flow - As of March 31, 2020, the company had an accumulated deficit of $89.4 million and expects to continue incurring operating losses and negative cash flows [129]. - Net cash used in operating activities during the three months ended March 31, 2020, amounted to $2.1 million, with a difference attributed to non-cash items including $0.5 million in working capital changes and $0.4 million in depreciation and amortization [133]. Future Outlook and Funding - Operating expenses are expected to decrease in future periods due to staff reductions and budget adjustments [115]. - The company anticipates recognizing approximately $194,800 in restructuring charges related to staffing reductions in Q2 2020 [115]. - The company borrowed an initial $500,000 under the New Loan Agreement, but additional loans are subject to Juvenescence's discretion, raising concerns about future funding availability [131]. - The company does not have any committed sources of funds for additional financing, raising substantial doubt about its ability to continue as a going concern [130]. Financing Activities - Net cash provided by financing activities for the three months ended March 31, 2020, amounted to $0.2 million, attributed to the draw of the remaining $0.2 million from a previous loan facility [134]. - The New Loan Agreement requires the company to issue shares and warrants to Juvenescence, which could dilute existing stockholders' equity interests [132]. Investment Activities - Cash used in investing activities during the three months ended March 31, 2020, was $4,000, entirely for laboratory equipment purchases [134]. Legal Matters - The company has not been involved in any material litigation or proceedings as of the reporting date [138].