AgeX Therapeutics Reports First Quarter 2019 Financial Results and Provides Business Update

ALAMEDA, Calif.--(BUSINESS WIRE)-- AgeX Therapeutics, Inc. (“AgeX”: NYSE American: AGE), a biotechnology company focused on therapeutics for human aging, reported financial and operating results for the first quarter ended March 31, 2019.

“We are building AgeX into what we believe will be a leading company focused on extending human healthspan, and we continued to make solid progress toward that goal in the first quarter of the year,” said Michael D. West, Ph.D., founder and Chief Executive Officer. “Among other accomplishments, we published data in the peer-reviewed journal Stem Cell Research & Therapy relating to our product in development for Type II diabetes designated AgeX-BAT1. Our paper disclosed data on the purity and identity of the product manufactured using our proprietary PureStem^® technology. In addition, our presentation of induced Tissue Regeneration (iTR^TM) technology in meetings around the world is generating excitement in the aging research community as a novel strategy to not only restore functionality to aged tissues, but also to reverse molecular markers of aging.”

Additional Recent Highlights

• Dr. West participated at four industry and investor conferences during the quarter. These included presentations at the Emerging Therapeutics Showcase at Precision Medicine World Congress (PMWC), January 20-23 in Silicon Valley, in a session chaired by MIT’s Feng Zhang; the Longevity Leaders Conference, February 4 in London, England; Undoing Aging, March 28-30 in Berlin, Germany; Master Investor Show, April 6, in London, England.
• AgeX’s subsidiary LifeMap Sciences announced that Tianjin Novogene Medical Laboratory and Shanghai Shanyi have become distributors of LifeMap Sciences genomics technology software products in China.
• AgeX received $4.5 million from the exercise of AgeX common stock warrants. Warrant holders purchased a total of 1,800,000 shares of AgeX common stock through the exercise of warrants.
• Signed sublease for an office and research facility where AgeX will construct a modern, cGMP compliant, laboratory facility for the manufacture of cell lines and its cell-based product candidates.

Balance Sheet Highlights

Cash and cash equivalents totaled $8.6 million as of March 31, 2019, as compared with $6.7 million as of December 31, 2018. AgeX strengthened its balance sheet by $4.5 million in proceeds from warrant exercises in March 2019.

First Quarter 2019 Operating Results

Revenues: Total Revenues for the first quarter of 2019 were $388,000, as compared with $239,000 for the first quarter of 2018. AgeX revenues are primarily generated by its subsidiary LifeMap Sciences, Inc. as subscription and advertising revenues from its GeneCards^® online database.

Operating expenses: Operating expenses reported for the three months ended March 31, 2019 were $3.4 million as compared to $3.7 million for the same period in 2018. On an as-adjusted basis, operating expenses for the three months ended March 31, 2019 were $2.8 million as compared to $2.5 million for the same period in 2018.

The reconciliation between GAAP and non-GAAP operating expenses is provided in the financial tables included with this earnings release.

Research and development expenses and acquired in-process research and development (“IPR&D”) decreased by $1.1 million to $1.3 million during the three months ended March 31, 2019 from $2.4 million during the same period in 2018. The decrease was primarily attributable to a decrease of $0.3 million for programs utilizing PureStem^® cell lines and iTR technology and also the non-recurrence of in-process research and development expense that was incurred during March 2018 in connection with the purchase of certain assets primarily related to stem cell derived cardiomyocytes (heart muscle cells) to be developed by us.

General and administrative expenses for the three months ended March 31, 2019 increased by $0.8 million to $2.1 million as compared to $1.3 million during the same period in 2018. This increase was primarily attributable to the following increases in expenses: a $0.3 million of noncash stock-based compensation expense; $0.2 million in insurance premiums; $0.1 million in consulting, travel and related expenses; $0.1 million in legal and accounting expenses; and $0.1 million in patent and license filing and maintenance related expenses.

Other Income, net: Other income in the first quarter of 2018 was $3.2 million compared to an insignificant amount in the current quarter. We received $3.2 million and recognized a gain on sale of our ownership interest in Ascendance Biotechnology, Inc. when that company was acquired by a third party in 2018.

About AgeX Therapeutics

AgeX Therapeutics, Inc. (NYSE American: AGE) is focused on developing and commercializing innovative therapeutics for human aging. Its 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. AGEX-iTR1547 is an iTR-based formulation in preclinical development. HyStem^® is AgeX’s delivery technology to stably engraft PureStem cell therapies in the body. AgeX is developing its core product pipeline for use in the clinic to extend human healthspan, and is seeking opportunities to establish licensing and collaboration arrangements around its broad IP estate and proprietary technology platforms.

For more information, please visit www.agexinc.com or connect with the company on Twitter, 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 Annual Report on Form 10-K and other reports 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190515005942/en
/