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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

14) SEGMENT REPORTING

 

The Company operates within a single reportable operating segment, 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 nine months ended September 30, 2025 and 2024 with a reconciliation to net loss for each of those periods.

 

The Company’s revenue and its cost of revenues for the three and nine months ended September 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 nine months ended September 30, 2025.

 

Depreciation and amortization expense less than $0.1 million for each of the three months ended September 30, 2025 and 2024. For each of the nine months ended September 30, 2025 and 2024, depreciation and amortization expense was approximately $0.1 million.

 

During the three months ended September 30, 2025, the Company recognized $0.7 million of other income, net, primarily related to $0.7 million of a gain on extinguishment of debt from time-barred liabilities, as discussed more fully in Note 6. During the nine months ended September 30, 2025, the Company recognized $5.3 million of other expense, net, primarily related to the forward sales contract expense of $5.8 million discussed in Note 12, offset by the $0.7 million gain on extinguishment of debt for the time-barred liabilities.

 

During the three and nine months ended September 30, 2024, the Company recognized $24.3 million and $25.8 million in other expense, net, respectively, primarily related to the $22.4 million loss on extinguishment of debt and $1 million expense for the fair value adjustments to the Bridge Notes derivable liability discussed in Note 12 in each of the three and nine months ended September 30, 2024, as well as interest expense of $1.7 million and $3.3 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 nine months ended September 30, 2024.

 

   2025   2024   2025   2024 
   Three months ended September 30,   Nine months ended September 30, 
   2025   2024   2025   2024 
Revenue  $-   $487   $-   $581 
Cost of revenues   -    (60)   -    96 
Gross profit   -    547    -    485 
Operating expenses:                    
Research and development by significant expense:                    
MSA/license fees   510    767    1,810    2,392 
Study fees   60    48    472    200 
Professional fees   233    64    591    152 
Payroll and related   123    71    365    518 
Other1   109    51    242    184 
Research and development   1,035    1,001    3,480    3,446 
General and administrative by significant expense:                    
Stock-based compensation   284    392    1,123    1,036 
Payroll and related   313    367    1,134    1,234 
Professional fees   215    1,125    1,041    3,409 
Occupancy expense   6    1,267    21    5,068 
Other2   140    230    426    845 
General and administrative   958    3,381    3,745    11,592 
Gain on lease termination   -    (1,576)   -    (1,576)
Total operating expenses   1,993    2,806    7,225    13,462 
Loss from operations   (1,993)   (2,259)   (7,225)   (12,977)
Other income (expense), net                    
Forward sales contract expense   -    -    (5,847)   - 
Gain (loss) on extinguishment of debt   734    (22,440)   734    (22,440)
Fair value adjustments to bridge notes derivative liability   -    (1,038)   -    (1,038)
Change in fair value of warrant liabilities   -    831    1    897 
Change in fair value of contingent consideration   -    -    -    66 
Interest income (expense), net   31    (1,686)   36    (3,269)
Other expense, net   (6)   -    (264)   - 
Total other income (expense), net   759    (24,333)   (5,340)   (25,784)
Loss before income taxes   (1,234)   (26,592)   (12,565)   (38,761)
Provision for income taxes   (6)   (12)   (17)   (19)
Net loss  $(1,240)  $(26,604)  $(12,582)  $(38,780)

 

  

September 30, 2025

   December 31, 2024 
Cash  $3,047   $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.