Renovaro Biosciences (RENB) - 2025 Q1 - Quarterly Report

Financial Performance - Renovaro Cube incurred a net loss of $44,212,036 for the quarter ended September 30, 2024, compared to a net loss of$9,175,028 for the same quarter in 2023, indicating a significant increase in losses[167]. - Total operating expenses for the three months ended September 30, 2024, were $53,338,554, an increase of$44,454,440 or approximately 500% compared to $8,884,114 in the same period of 2023[173]. - Net loss for the three months ended September 30, 2024, was$44,212,036, an increase of $35,037,008 or approximately 382$9,175,028 in the same period of 2023[177]. - As of September 30, 2024, Renovaro Cube had cash and cash equivalents of $220,571 and an accumulated deficit of$368,891,461, raising concerns about its ability to continue as a going concern[167]. - Renovaro Cube's working capital deficit stood at $21,087,220 as of September 30, 2024, indicating financial strain[167]. - As of September 30, 2024, the company had$220,571 in cash and working capital of $(21,087,220), a decrease of 26$(28,312,274) as of June 30, 2024[180]. - Total assets decreased to $121,832,637 as of September 30, 2024, from$163,129,450 as of June 30, 2024, primarily due to goodwill impairment[182]. - Total liabilities decreased to $23,745,639 as of September 30, 2024, from$31,152,306 as of June 30, 2024, mainly due to a $9,250,000 decrease in contingent consideration liability[183]. - Cash used in operating activities for the three months ended September 30, 2024, was$(2,016,328), a decrease of $760,879 compared to$(2,777,207) in the same period of 2023[184]. - Cash provided by financing activities for the three months ended September 30, 2024, was $2,029,183, compared to$2,562,817 in the same period of 2023[186]. Business Development and Strategy - Renovaro Biosciences aims to develop advanced allogeneic cell and gene therapies for long-term cancer remission and serious infectious diseases, contingent on funding[105]. - The acquisition of GEDi Cube Intl Ltd. on February 13, 2024, has shifted the Company's focus to the development of Renovaro Cube technologies[105]. - The company is actively pursuing partnerships with leading academic cancer centers and pathology centers in Europe, the USA, and the Middle East to enhance its multi-omic and multi-modal capabilities[152]. - The Company intends to secure additional funding through equity or debt financing to support its operations and product commercialization efforts[168]. Technology and Innovation - Renovaro Cube's AI platform analyzes genetics using Explainable AI to provide earlier and more accurate cancer diagnosis[117]. - The Company is developing multi-cancer early detection blood tests that analyze cell-derived molecules to detect cancer at an early stage[122]. - Renovaro Cube's technology aims to assist in clinical trials by providing insights into patient cohort selection and response tracking[130]. - The Company plans to extend biomarker panels to include multi-omics data for higher accuracy in cancer detection and monitoring[132]. - Renovaro Cube focuses on recurrence monitoring through regular blood sequencing to detect early signals of cancer recurrence[131]. - Renovaro Cube's AI platform is designed to support AI-assisted patient diagnostics, multi-omic data analysis, and pan-cancer analysis, aiming to improve early cancer detection[141]. - The AI technology developed by Renovaro Cube has identified biomarker panels for various cancers, including bladder, breast, and lung cancer, enhancing early detection capabilities[139]. - Renovaro Cube aims to commercialize products and test kits for healthcare providers, focusing on proprietary panel mining algorithms and explainable AI to enhance diagnostic accuracy[155]. Operational Efficiency - The company has streamlined its organization to focus on the development and validation of its AI-driven cancer diagnostics platform, reducing overhead and administrative costs[168]. - The company plans to hire additional staff to accelerate the development of its AI platform and expand its infrastructure for storage and networking[153]. Expense Management - Goodwill impairment accounted for $47,614,729 of the increase in operating expenses, while general and administrative expenses decreased by$2,988,959 or 36% to $5,301,251[174][173]. - Research and development expenses decreased by$176,455 or approximately 31% to $390,189, primarily due to reduced expenses related to discontinued product candidates[175]. - Other income for the three months ended September 30, 2024, was$9,126,518, a change of $9,417,432 or 3,237$290,914 in the same period of 2023[176].