- Sponsored research at The Ohio State University to Generate
Proof-of-Concept Animal Data for AgeX’s Brown Adipose Tissue (BAT)
Cell Therapy Candidate for Diabetes and Obesity
- Announced Preprint Article Relating to Regeneration, Aging, and
Cancer
AgeX Therapeutics, Inc. (“AgeX”; NYSE American: AGE), a
biotechnology company developing therapeutics for human aging and
regeneration, reported its financial and operating results for the
quarter ended March 31, 2021.
Recent Highlights
- AgeX entered into a sponsored research agreement with The Ohio
State University using AgeX’s brown adipocyte tissue (BAT) cell
therapy candidate AgeX-BAT1 in mice to determine whether
transplantation of AgeX-BAT1 cells may improve diet-induced
obesity, metabolic health including glucose metabolism, and cardiac
function. Loss of non-shivering thermogenic BAT, also known as
brown or good fat, in humans with aging is associated with obesity,
type II diabetes, and cardiovascular disease. The research will
utilize AgeX’s proprietary BAT cellular product candidate
AgeX-BAT1.
- AgeX announced the online publication of data relating to
regeneration, aging, and cancer in bioRxiv. The paper titled
“Differential Expression of α, β, and γ Protocadherin Isoforms
During Differentiation, Aging, and Cancer” presents for the first
time data relating to mechanisms cells may use in the process of
regeneration. The paper discloses alterations in certain genes that
may prevent regeneration from occurring in adult humans. It also
provides evidence that the family of genes may be involved in a
wide array of human cancers.
Liquidity and Capital Resources
Disposition of LifeMap Sciences
On March 15, 2021, AgeX received gross proceeds of approximately
$466,400 from the disposition of its interest in a majority owned
subsidiary, LifeMap Sciences, Inc. (“LifeMap Sciences”), through a
cash-out merger. Additionally, as a pre-requisite to the closing of
the cash-out merger, AgeX received $250,000 from LifeMap Sciences
as a repayment of a portion of inter-company indebtedness due to
AgeX.
Amendment to 2019 Loan Agreement
On February 10, 2021, AgeX entered into an amendment to its 2019
Loan Facility Agreement with Juvenescence Limited (“Juvenescence”).
The Amendment extends the maturity date of loans under the
agreement to February 14, 2022 and increases the amount of the loan
facility by $4.0 million. All loans in excess of the initial $2.0
million that AgeX previously borrowed are subject to Juvenescence’s
discretion. In April 2021, AgeX drew $0.5 million from the
increased loan facility.
At-the-Market Offering Facility
During January 2021 AgeX entered into a sales agreement with
Chardan Capital Markets LLC (“Chardan”) for the sale of shares of
AgeX common stock in at-the-market (“ATM”) transactions. In
accordance with the terms of the sales agreement, AgeX may offer
and sell shares of common stock having an aggregate offering price
of up to $12.6 million through Chardan acting as the sales agent.
In March 2021, AgeX raised approximately $496,000 in gross proceeds
through the sale of shares of common stock.
Going Concern Considerations
As 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 Quarterly Report on Form 10-Q for the three months ended
March 31, 2021. These factors raise substantial doubt regarding the
ability of AgeX to continue as a going concern.
Balance Sheet Information
Cash, and cash equivalents, and restricted cash totaled $0.9
million as of March 31, 2021. Since April 1, 2021, AgeX has
received an additional $0.5 million of cash through a loan from
Juvenescence and through research grants.
First Quarter 2021 Operating Results
The following comparisons exclude the impact of the operations
of LifeMap Sciences which have been presented in our consolidated
financial results as discontinued operations. The results of
operations and cash flows for LifeMap Sciences are reported as
discontinued operations for all periods presented in our
consolidated financial statements.
Revenues: Total Revenues for the first quarter of 2021 were
$56,000 as compared with $89,000 in the same period in 2020,
primarily comprised of allowable expenses under a research grant
from the NIH.
Research and development expenses decreased by approximately
$0.9 million to $0.3 million during the three months ended March
31, 2021 from $1.2 million during the same period in 2020. The
decrease was primarily attributable to the scaled down research and
development related activities following the layoff of 11 employees
in May 2020 and shutdown of our laboratory facilities with the
expiration of our lease agreement as of December 31, 2020.
General and administrative expenses for the three months ended
March 31, 2021 increased by $0.1 million to $2.0 million as
compared to $1.9 million during the same period in 2020 due to
certain non-recurring projects during 2021 offset by a decrease in
facilities, rent and overhead expenses following the expiration of
our office and laboratory lease agreement on December 31, 2020.
Effective January 1, 2021, we relocated our principal offices under
a one year leased space at a base monthly rent of $947 that
includes office space, office furniture rental, janitorial
services, utilities and internet service.
Other income, net: Other income, net in 2021 consist primarily
of $437,000 income from the forgiveness of our PPP Loan including
accrued interest on February 19, 2021, offset by amortization of
deferred debt cost to interest expense. Other expense, net in 2020
consists primarily of amortization of deferred debt cost to
interest expense.
About AgeX Therapeutics
AgeX 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.
For more information, please visit www.agexinc.com or connect
with the company on Twitter, LinkedIn, Facebook, and YouTube.
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 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 and Quarterly Report
on Form 10-Q filed with the Securities and Exchange Commissions
(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.
AGEX THERAPEUTICS, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(IN THOUSANDS, EXCEPT PAR
VALUE AMOUNTS)
March 31, 2021
December 31,
2020
ASSETS
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents
$
809
$
527
Accounts and grants receivable, net
48
326
Prepaid expenses and other current
assets
1,285
1,430
Total current assets
2,142
2,283
Deposits and other long-term assets
50
50
Intangible assets, net
968
1,592
TOTAL ASSETS
$
3,160
$
3,925
LIABILITIES AND STOCKHOLDERS’
DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued
liabilities
$
1,198
$
1,656
Loan due to Juvenescence, net of debt
issuance cost, current portion
2,020
1,960
Related party payables, net
71
71
Deferred revenues, current portion
-
275
Paycheck Protection Program Loan
-
436
Insurance premium liability and other
current liabilities
640
959
Total current liabilities
3,929
5,357
Loan due to Juvenescence, net of debt
issuance cost, net of current portion
5,334
3,900
Deferred revenues, net of current
portion
-
64
TOTAL LIABILITIES
9,263
9,321
Commitments and contingencies
STOCKHOLDERS’ DEFICIT
Preferred stock, $0.0001 par value,
authorized 5,000 shares; none issued and outstanding as of March
31, 2021 and December 31, 2020
-
-
Common stock, $0.0001 par value, 100,000
shares authorized; and 37,935 and 37,691 shares issued and
outstanding as of March 31, 2021 and December 31, 2020,
respectively
4
4
Additional paid-in capital
93,095
91,810
Accumulated other comprehensive income
-
143
Accumulated deficit
(99,161)
(97,073)
AgeX Therapeutics, Inc. stockholders’
deficit
(6,062)
(5,116)
Noncontrolling interest
(41)
(280)
Total stockholders’ deficit
(6,103)
(5,396)
TOTAL LIABILITIES AND STOCKHOLDERS’
DEFICIT
$
3,160
$
3,925
AGEX THERAPEUTICS, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER
SHARE DATA)
(UNAUDITED)
Three Months Ended
March 31,
2021
2020
Grant revenues
46
86
Other revenues
10
3
Total revenues
56
89
Cost of sales
(3)
(1)
Gross profit
53
88
Research and development
324
1,221
General and administrative
2,022
1,875
Total operating expenses
2,346
3,096
Gain on deconsolidation of LifeMap
Sciences
106
-
Loss from continuing operations before
interest and other income (expense), net
(2,187)
(3,008)
Interest expense, net
(243)
(30)
Other income, net
437
5
Loss from continuing operations
(1,993)
(3,033)
Loss from discontinued operations
(103)
(189)
NET LOSS
(2,096)
(3,222)
Net loss attributable to noncontrolling
interest from continuing operations
1
-
Net loss attributable to noncontrolling
interest from discontinued operations
7
35
NET LOSS ATTRIBUTABLE TO AGEX
$
(2,088)
$
(3,187)
NET LOSS PER COMMON SHARE:
BASIC AND DILUTED
Continuing operations
$
(0.05)
$
(0.08)
Discontinued operations
(0.01)
(0.00)
(0.06)
(0.08)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING:
BASIC AND DILUTED
37,729
37,651
AMOUNTS ATTRIBUTABLE TO AGEX:
Loss from continuing operations
$
(1,992)
$
(3,033)
Loss from discontinued operations
(96)
(154)
NET LOSS ATTRIBUTABLE TO AGEX
(2,088)
(3,187)
AGEX THERAPEUTICS, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
Three Months Ended
March 31,
2021
2020
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss attributable to AgeX
$
(1,992)
$
(3,031)
Net loss attributable to noncontrolling
interest
(1)
-
Adjustments to reconcile net loss
attributable to AgeX to net cash used in operating activities:
Gain on deconsolidation of LifeMap
Sciences
(106)
-
Forgiveness of Paycheck Protection Program
Loan and accumulated interest
(437)
-
Depreciation expense
-
123
Amortization of intangible assets
33
33
Amortization of right-of-use asset
-
104
Amortization of debt issuance cost
267
47
Stock-based compensation
178
252
Changes in operating assets and
liabilities:
Accounts and grants receivable, net
105
11
Prepaid expenses and other current
assets
117
201
Accounts payable and accrued
liabilities
(346)
345
Related party payables
117
Insurance premium liability
(304)
(314)
Other current liabilities
(54)
(128)
Net cash used in operating activities from
continuing operations
(2,540)
(2,240)
Net cash provided by (used in) operating
activities from discontinued operations
(90)
176
Net cash used in operating activities
(2,630)
(2,064)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Proceeds from the sale of LifeMap
Sciences
466
-
Purchase of equipment
-
(4)
Net cash provided by (used in) investing
activities from continuing operations
466
(4)
Deconsolidation of cash and cash
equivalents from discontinued operations
(50)
-
Net cash provided by (used in) investing
activities
416
(4)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Draw down on loan facility from
Juvenescence
2,000
200
Proceeds from the issuance of common
stock
496
-
Partial collection on loan due from
LifeMap Sciences
250
-
Repayment of financing lease liability
-
(15)
Net cash provided by financing activities
from continuing operations
2,746
185
Partial payment on loan due to AgeX from
discontinued operations
(250)
-
Net cash provided by financing
activities
2,496
185
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
-
(1)
NET INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
282
(1,884)
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH:
At beginning of the period
577
2,452
At end of the period
$
859
$
568
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210517005862/en/
Contact for AgeX: Andrea Park apark@agexinc.com (510)
671-8620
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