Serina Therapeutics (SER) Q2 2024 earnings summary

Executive summary

• Completed a reverse recapitalization merger with AgeX Therapeutics on March 26, 2024, with Legacy Serina as the accounting acquirer; company now operates as a clinical-stage biotech focused on neurological diseases and pain using POZ drug delivery technology.

• Entered partnership with Enable Injections to develop and commercialize SER-252 (POZ-apomorphine) for Parkinson's disease, with Phase 1 clinical trial planned for 2025.

• Issued Post-Merger Warrants and Incentive Warrants as part of the merger, with significant capital commitments from Juvenescence, a major shareholder.

• Presented data showing POZ-lipid does not induce IgM or IgG antibody response, potentially improving safety of mRNA-LNP medicines.

• Appointed Dr. Srini Tenjarla as SVP of CMC & Formulation, bringing significant industry experience.

Financial highlights

• Net income for Q2 2024 was $5.2 million, compared to $0.8 million in Q2 2023, primarily due to a $9.3 million gain from fair value adjustments of warrant liabilities.

• Revenue for Q2 2024 was $51,000, primarily from NIH grants; operating expenses increased to $3.9 million in Q2 2024 from $1.0 million in Q2 2023.

• Cash, cash equivalents, and restricted cash totaled $6.1 million as of June 30, 2024.

• R&D expenses increased to $1.6 million and G&A expenses to $2.3 million year-over-year.

• Weighted average shares outstanding (basic) were 8.5 million in Q2 2024 versus 2.2 million in Q2 2023.

Outlook and guidance

• Management expects continued operating losses and negative cash flows, with current cash and anticipated warrant proceeds insufficient to fund operations through 2025.

• Plans to submit IND for SER-252 and initiate Phase 1 clinical trial in advanced Parkinson's disease patients in 2025.

• Additional capital will be required to advance clinical programs and maintain operations; failure to secure funding may result in curtailment of activities.