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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

14) SEGMENT REPORTING

 

The Company operates within a single reportable operating segment being the research and development of cellular therapies. The Company has identified its president and chief executive officer as its chief operating decision maker (“CODM”), who regularly reviews the Company’s performance and allocates resources based on information reported at the consolidated entity level.

 

The CODM uses consolidated net loss as a measure of profit and loss and assesses Company performance through the achievement of its business strategy goals. The CODM is regularly provided with forecasted expense information that is used to determine the Company’s liquidity needs and cash allocation to execute its business strategy, and he uses cash as a measure of segment assets in managing the Company. The Company operates in the United States, and all of its assets are located in the United States.

 

The table below provides a breakdown of the Company’s significant operating expenses for the three and six months ended June 30, 2025 and 2024 with a reconciliation to net loss for each of those years.

 

The Company’s revenue and its cost of revenues for the three and six months ended June 30, 2024 relate to a contract with a customer, as discussed in Note 3. There was no revenue or cost of revenue for the three and six months ended June 30, 2025. Depreciation and amortization expense was less than $0.1 million for each of the three and six months ended June 30, 2025 and 2024. During the three and six months ended June 30, 2025, the Company recognized $0.6 million and $6.1 million, respectively, in other expense, net, primarily related to the SPA discussed in Note 12. The Company recognized $0.6 million and $1.4 million in other expense, net, during the three and six months ended June 30, 2024, respectively, due to interest expense of $0.8 million and $1.6 million, respectively, offset by income related to a change in fair value of warrant liabilities of approximately $0.1 million for each of the three and six months ended June 30, 2024, as well as income of approximately $0.1 million for the change in fair value of contingent consideration for each of the three and six months ended June 30, 2024.

 

                 
   Three months ended June 30,   Six months ended June 30, 
   2025   2024   2025   2024 
Revenue  $-   $47   $-   $94 
Cost of revenues   -    95    -    156 
Gross profit (loss)   -    (48)   -    (62)
                     
Operating expenses:                    
Research and development by significant expense:                    
MSA/license fees   663    812    1,300    1,625 
Study fees   60    88    412    152 
Professional fees   202    (15)   358    88 
Payroll and related   114    61    211    386 
Other1   97    41    164    194 
Research and development   1,136    987    2,445    2,445 
                     
General and administrative by significant expense:                    
Stock-based compensation   353    408    839    644 
Payroll and related2   428    335    821    868 
Professional fees2   440    999    826    2,283 
Occupancy expense   8    1,899    15    3,800 
Other2   136    255    285    616 
General and administrative   1,365    3,896    2,786    8,211 
                     
Total operating expenses   2,501    4,883    5,231    10,656 
                     
Loss from operations   (2,501)   (4,931)   (5,231)   (10,718)
                     
Forward sales contract expense   (512)   -    (5,847)   - 
Change in fair value of warrant liabilities   -    136    1    66 
Change in fair value of contingent consideration   -    66    -    66 
Interest (expense) income, net   -    (797)   5    (1,583)
Other expense, net   (123)   -    (258)   - 
Total other expense, net   (635)   (595)   (6,099)   (1,451)
                     
Loss before income taxes   (3,136)   (5,526)   (11,330)   (12,169)
Provision for income taxes   (3)   (3)   (11)   (7)
                     
Net loss  $(3,139)  $(5,529)  $(11,341)  $(12,176)

 

   June 30, 2025   December 31, 2024 
           
Cash  $4,315   $1,729 

 

1Other includes certain lab supply expenses, amounts related to the close out of a former clinical trial, allocated occupancy costs, stock-based compensation, and depreciation.

 

2Other includes expenses related to insurance, information technology, travel, banking, depreciation and other miscellaneous expenses.