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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 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 months ended March 31 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 months ended March 31, 2024 relate to a contract with a customer, as discussed in Note 3. There was no revenue or cost of revenue for the three months ended March 31, 2025. Depreciation and amortization expense was less than $0.1 million for each of the three months ended March 31, 2025 and 2024. During the three months ended March 31, 2025, the Company recognized $5.4 million in other expense, net, primarily related to the SPA discussed in Note 12. The Company recognized $0.9 million in other expense, net, during the three months ended March 31, 2024 due to interest expense of $0.8 million and $0.1 million related to the change in fair value of warrant liabilities.

 

   2025   2024 
   Three months ended March 31, 
   2025   2024 
Revenue  $-   $47 
Cost of revenues   -    61 
Gross profit (loss)   -    (14)
           
Operating expenses:          
Research and development by significant expense:          
MSA/license fees   637    812 
Study fees   352    64 
Professional fees   156    103 
Payroll and related   96    325 
Other1   68    154 
Research and development   1,309    1,458 
           
General and administrative by significant expense:          
Stock-based compensation   486    237 
Payroll and related2   394    532 
Professional fees2   386    1,285 
Occupancy expense   7    1,901 
Other2   148    360 
General and administrative   1,421    4,315 
           
Total operating expenses   2,730    5,773 
           
Loss from operations   (2,730)   (5,787)
           
Forward sales contract expense   (5,335)   - 
Change in fair value of warrant liabilities   1    (70)
Interest income (expense), net   5    (786)
Other expense, net   (135)   - 
Total other expense, net   (5,464)   (856)
           
Loss before income taxes   (8,194)   (6,643)
Provision for income taxes   (8)   (4)
           
Net loss  $(8,202)  $(6,647)

 

  

March 31,

2025

  

December 31,

2024

 
Cash  $1,918   $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.