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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 001-38914

 

Celularity Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

83-1702591

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

170 Park Ave, Florham Park, NJ

(Address of principal executive offices)

07932

(Zip Code)

 

 

(908) 768-2170

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

 

CELU

 

The Nasdaq Stock Market LLC

Warrants, each exercisable for one share of Class A Common Stock at an exercise price of $11.50 per share

 

CELUW

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of December 31, 2023, the registrant had 193,781,641 shares of Class A common stock, $0.0001 par value per share, outstanding.

 

 


 

Table of Contents

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements

1

Condensed Consolidated Balance Sheets

1

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

2

 

Condensed Consolidated Statements of Stockholders’ Equity

3

Condensed Consolidated Statements of Cash Flows

4

Notes to Unaudited Condensed Consolidated Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

36

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

49

Item 4.

Controls and Procedures

49

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

51

Item 1A.

Risk Factors

51

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

51

Item 3.

Defaults Upon Senior Securities

51

Item 4.

Mine Safety Disclosures

51

Item 5.

Other Information

51

Item 6.

Exhibits

51

Signatures

53

 

Unless the context indicates otherwise, references in this quarterly report to the “Company,” “Celularity,” “we,” “us,” “our” and similar terms refer to Celularity Inc. and its consolidated subsidiaries.

The Celularity logo, Celularity IMPACT, Biovance, Interfyl, Lifebank, CentaFlex and other trademarks or service marks of Celularity Inc. appearing in this quarterly report are the property of Celularity Inc. This quarterly report on Form 10-Q also contains registered marks, trademarks and trade names of other companies. All other trademarks, registered marks and trade names appearing herein are the property of their respective holders.

 

i


 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Some of the statements contained in this quarterly report on Form 10-Q, including the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations", constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. These statements relate to our future events, including our anticipated operations, research, development and commercialization activities, clinical trials, operating results and financial condition. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Forward-looking statements may include, but are not limited to, statements about:

our ability to expand our biomaterials business and leverage our core expertise in cellular therapeutic development and manufacturing to generate revenues by providing contract manufacturing and development services to third parties;
the success, cost, timing and potential indications of our cellular therapy candidate development activities and clinical trials, as well as the timing of the initiation, enrollment and completion of planned clinical trials in the United States and foreign countries;
our ability to obtain and maintain regulatory approval of our therapeutic candidates in any of the indications for which we plan to develop them, and any related restrictions, limitations, and/or warnings in the label of any approved therapeutic;
our ability to obtain funding for our operations, including funding necessary to initiate or complete the clinical trials of any of our therapeutic candidates;
our ability and plans to research, develop, manufacture and commercialize our therapeutic candidates, as well as our degenerative disease products;
our ability to attract and retain collaborators with development, regulatory and commercialization expertise;
the size of the markets for our therapeutic candidates and biomaterials products, and our ability to serve those markets;
our ability to successfully commercialize our therapeutic candidates and biomaterials products;
our ability to develop and maintain sales and marketing capabilities, whether alone or with potential future collaborators;
our expenses, future revenues, capital requirements and needs for additional financing;
our use of cash and other resources; and
our expectations regarding our ability to obtain and maintain intellectual property protection for our therapeutic candidates, degenerative disease products, and our ability to operate our business without infringing on the intellectual property rights of others.

These forward-looking statements are based on information available as of the date of this quarterly report, and current expectations, forecasts and assumptions, and involve a number of risks and uncertainties that could cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Some factors that could cause actual results to differ include:

We have incurred net losses in every period since our inception, have no cellular therapeutic candidates approved for commercial sale and we anticipate that we will incur substantial net losses in the future. There is substantial doubt about our ability to continue as a going concern, which may affect our ability to obtain future financing and may require us to curtail our operations. We will need to raise additional capital to support our operations. This additional funding may not be available on acceptable terms or at all. Failure to obtain this necessary capital or address our liquidity needs may force us to delay, limit or terminate our operations, make further reductions in our workforce, discontinue our commercialization efforts for our biomaterials products as well as other clinical trial programs, liquidate all or a portion of our assets or pursue other strategic alternatives, and/or seek protection under the provisions of the U.S. Bankruptcy Code.
We are currently required to make cash payments under our pre-paid advance agreement with YA II PN, Ltd., or Yorkville, and may not have sufficient cash available when such payments are due. We entered into to a letter agreement with Yorkville in September 2023 to extend the maturity date of the outstanding note to December 31, 2023. As part of the agreement to extend the maturity date of the note, we were required to pay Yorkville $2.0 million on or prior to October 5, 2023. We also agreed to pay an additional $0.5 million on or before October 31, 2023. We were not able to make the required payments. There is no assurance that we will have sufficient liquidity to make the payments required by the agreement. If we fail to pay Yorkville when cash payments are due, Yorkville could deem such non-payment an event of default under our pre-paid

ii


 

advance agreement and accelerate repayment of amounts advanced under the agreement, which would impact our liquidity, require us to modify our operations to meet any prepayment obligations and could force us to seek protection under the provisions of the U.S. Bankruptcy Code. We were unable to repay the outstanding note balance as of the December 31, 2023 maturity date. As of the issuance date, Yorkville has not provided notification to us that an event of default has occurred under the terms of the PPA.
We rely on distribution arrangements for the sale of our biomaterials products. We may incur costs to meet demand forecasts that do not materialize or we may be unable to meet demand if our distribution partners do not provide adequate forecasts. We may also incur costs to fulfill purchase orders prior to our distribution partners making agreed payments thereunder.
Our placental-derived cellular therapy candidates represent a novel approach to cancer, infectious and degenerative disease treatments that creates significant challenges.
Development of cellular therapy candidates requires significant resources, time and expertise. If we are unable to obtain regulatory approval for our future lead candidates and effectively commercialize those candidates for the treatment of patients in approved indications, our business could be significantly harmed.
Our commercial biomaterials business may be impacted if regulatory authorities determine that certain of our products, the processes used to produce our products, or our quality documentation related to our production processes do not fully comply with U.S. Food and Drug Administration, or FDA, regulations. For example, in August 2023, the FDA conducted an inspection at our Florham Park, New Jersey manufacturing facility. The FDA issued a Form FDA 483, which is a list of inspectional observations provided at the conclusion of the inspection, relating to our Interfyl and CentaFlex human tissue-based biomaterial products.
Our commercial biomaterials business may be impacted if regulatory authorities determine that certain of our products that are, or are derived from, human cells or tissues do not qualify for reimbursement. For example, during 2022, the Center for Medicare & Medicaid Services, or CMS, began rejecting claims for Interfyl submitted by one of our distribution partners which has not yet been resolved.
We relied on CAR-T viral vectors from Sorrento Therapeutics, Inc., or Sorrento, for our CYCART-19 therapeutic candidate and termination of this license, or any future licenses, could result in the loss of significant rights. On February 13, 2023, Sorrento announced that it commenced voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. At this time, we believe that the bankruptcy may impair Sorrento’s continued ability to perform under the license agreement. After assessing the status of the CYCART-19 Investigational New Drug, or IND, to determine an optional path forward for the program, we elected to terminate development of CYCART-19 for B-cell malignancies. We may continue pre-clinical development of other T-cell candidates.
We have relied on third parties to conduct our clinical trials. If these third parties do not successfully carry out their contractual duties or meet expected deadlines, we may not be able to obtain regulatory approval of, or commercialize, our therapeutic candidates.
The FDA regulatory approval process is lengthy and time-consuming, and we may experience significant delays in the clinical development and regulatory of our therapeutic candidates.
We may not be able to file IND applications to commence additional clinical trials on the timelines we expect, and even if we are able to, the FDA may not permit us to proceed without additional information or at all, and if so, we may encounter substantial delays in our clinical trials or may not be able to conduct our trials on the timelines we expect. For example, we submitted an IND for CYCART-19 in the first quarter of 2022 and FDA requested additional information before we could proceed with the clinical trial.
We operate our own manufacturing and storage facility, which requires significant resources; manufacturing or other failures could adversely affect our clinical trials and the commercial viability of our therapeutic candidates and our biobanking and degenerative diseases businesses. We may not be successful in our plan to leverage our core expertise in cellular therapeutic development and manufacturing to generate revenues by providing contract manufacturing and development services to third parties.
We rely on donors of healthy human full-term post-partum placentas to manufacture our therapeutic candidates and biomaterials products, and if we do not obtain an adequate supply of such placentas from qualified donors, development of our placental-derived allogeneic cells may be adversely impacted.
Our future clinical trials may fail to demonstrate the safety and/or efficacy of any of our therapeutic candidates, which would prevent or delay regulatory approval and commercialization.

iii


 

If our effort to protect the proprietary nature of the intellectual property related to our technologies are inadequate, we may not be able to compete effectively in our market.
We are, and in the future may be, party to agreements with third parties. Disputes may arise with such third parties regarding the terms of such agreements, including terms governing payment obligations, contractual interpretation, or related intellectual property ownership or use rights, which could materially adversely impact us, including by requiring the payment of additional amounts, or requiring us to invest time and money in litigation or arbitration.
Our therapeutic candidates may cause undesirable side effects or have other properties that could halt their clinical development, prevent their regulatory approval, limit their commercial potential or result in significant negative consequences.
We face significant competition from other biotechnology and pharmaceutical companies, and our operating results will suffer if we fail to compete effectively.
Our relationship with customers, physicians, and third-party payors are subject to numerous laws and regulations. If we or our employees, independent contractors, consultants, commercial partners and vendors violate these laws, we could face substantial penalties.
Our business could be materially adversely affected by the effects of health pandemics or epidemics, as well as geopolitical conflicts, inflation, bank failures and recessions, in regions where we or third parties on which we rely have concentrations of clinical trial sites or other business operations.
We will continue to incur significant costs as a result of operating as a public company, and our management will be required to devote substantial time to various compliance initiatives.

For a further discussion of these and other factors that could cause our future results, performance or transactions to differ significantly from those expressed in any forward-looking statement, please see the section titled “Risk Factors” in our annual report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2023, or the 2022 Form 10-K. Given these risks, you should not place undue reliance on any forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements). While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Except to the extent required by applicable law, we are under no obligation (and expressly disclaim any such obligation) to update or revise their forward-looking statements whether as a result of new information, future events, or otherwise.

 

iv


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Celularity Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)

 

 

 

 

September 30,
2023

 

 

December 31,
2022

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

273

 

 

$

13,966

 

Accounts receivable, net of allowance of $2,188 and $1,789 as of September 30,
   2023 and December 31, 2022, respectively

 

 

4,114

 

 

 

4,452

 

Notes receivable

 

 

2,072

 

 

 

2,514

 

Inventory

 

 

4,934

 

 

 

5,308

 

Prepaid expenses and other current assets

 

 

5,105

 

 

 

7,262

 

Total current assets

 

 

16,498

 

 

 

33,502

 

Property and equipment, net

 

 

70,647

 

 

 

75,655

 

Goodwill

 

 

7,347

 

 

 

119,694

 

Intangible assets, net

 

 

11,554

 

 

 

120,994

 

Right-of-use assets - operating leases

 

 

11,039

 

 

 

13,060

 

Restricted cash

 

 

14,825

 

 

 

14,836

 

Inventory, net of current portion

 

 

24,928

 

 

 

22,949

 

Other long-term assets

 

 

354

 

 

 

376

 

Total assets

 

$

157,192

 

 

$

401,066

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

12,931

 

 

$

5,810

 

Accrued expenses and other current liabilities

 

 

10,239

 

 

 

9,069

 

Accrued R&D software

 

 

24,000

 

 

 

7,333

 

Short-term debt ($14,006 at fair value and $16,623 unpaid principal balance at September 30, 2023)

 

 

14,006

 

 

 

37,603

 

Other short-term debt

 

 

2,032

 

 

 

-

 

Other short-term debt - related party

 

 

1,017

 

 

 

-

 

Short-term debt - related parties

 

 

17,949

 

 

 

-

 

Deferred revenue

 

 

2,458

 

 

 

2,273

 

Total current liabilities

 

 

84,632

 

 

 

62,088

 

Deferred revenue, net of current portion

 

 

3,099

 

 

 

2,219

 

Acquisition-related contingent consideration

 

 

1,606

 

 

 

105,945

 

Noncurrent lease liabilities - operating

 

 

26,074

 

 

 

27,985

 

Noncurrent accrued R&D software

 

 

7,494

 

 

 

-

 

Warrant liabilities

 

 

3,735

 

 

 

3,598

 

Deferred income tax liabilities

 

 

9

 

 

 

9

 

Other liabilities

 

 

296

 

 

 

321

 

Total liabilities

 

 

126,945

 

 

 

202,165

 

Commitments and Contingencies (Note 9)

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding
  at September 30, 2023 and December 31, 2022

 

 

-

 

 

 

-

 

Common stock, $0.0001 par value, 730,000,000 shares authorized, 193,659,133 issued
  and outstanding as of September 30, 2023;
730,000,000 shares authorized, 148,921,187 
  issued and outstanding as of December 31, 2022

 

 

19

 

 

 

15

 

Additional paid-in capital

 

 

879,171

 

 

 

844,373

 

Accumulated other comprehensive income

 

 

2,395

 

 

 

9

 

Accumulated deficit

 

 

(851,338

)

 

 

(645,496

)

Total stockholders’ equity

 

 

30,247

 

 

 

198,901

 

Total liabilities and stockholders’ equity

 

$

157,192

 

 

$

401,066

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

1


 

Celularity Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)

(in thousands, except share and per share data)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

Product sales and rentals

 

$

1,684

 

 

$

1,041

 

 

$

3,633

 

 

$

2,920

 

Services

 

 

1,427

 

 

 

1,405

 

 

 

4,062

 

 

 

4,061

 

License, royalty and other

 

 

675

 

 

 

1,689

 

 

 

2,964

 

 

 

6,865

 

Total revenues

 

 

3,786

 

 

 

4,135

 

 

 

10,659

 

 

 

13,846

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (excluding amortization of acquired intangible assets)

 

 

 

 

 

 

 

 

 

 

 

 

Product sales and rentals

 

 

557

 

 

 

812

 

 

 

1,486

 

 

 

1,711

 

Services

 

 

398

 

 

 

899

 

 

 

1,355

 

 

 

3,112

 

Licenses, royalties and other

 

 

2,647

 

 

 

5,502

 

 

 

3,566

 

 

 

9,595

 

Research and development

 

 

5,182

 

 

 

20,351

 

 

 

30,737

 

 

 

67,373

 

Software cease-use costs

 

 

243

 

 

 

-

 

 

 

24,161

 

 

 

-

 

Selling, general and administrative

 

 

10,748

 

 

 

14,907

 

 

 

37,508

 

 

 

46,941

 

Change in fair value of contingent consideration liability

 

 

-

 

 

 

(33,243

)

 

 

(104,339

)

 

 

(73,441

)

Goodwill impairment

 

 

82,714

 

 

 

-

 

 

 

112,347

 

 

 

-

 

IPR&D impairment

 

 

-

 

 

 

-

 

 

 

107,800

 

 

 

-

 

Amortization of acquired intangible assets

 

 

553

 

 

 

553

 

 

 

1,640

 

 

 

1,640

 

Total operating expenses

 

 

103,042

 

 

 

9,781

 

 

 

216,261

 

 

 

56,931

 

Loss from operations

 

 

(99,256

)

 

 

(5,646

)

 

 

(205,602

)

 

 

(43,085

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

23

 

 

 

108

 

 

 

205

 

 

 

155

 

Interest expense

 

 

(971

)

 

 

-

 

 

 

(2,352

)

 

 

-

 

Change in fair value of warrant liabilities

 

 

5,187

 

 

 

9,333

 

 

 

6,788

 

 

 

31,613

 

Change in fair value of debt

 

 

2,003

 

 

 

(291

)

 

 

(354

)

 

 

(291

)

Other income (expense), net

 

 

(862

)

 

 

1,278

 

 

 

(4,527

)

 

 

1,366

 

Total other income (expense)

 

 

5,380

 

 

 

10,428

 

 

 

(240

)

 

 

32,843

 

(Loss) income before income taxes

 

 

(93,876

)

 

 

4,782

 

 

 

(205,842

)

 

 

(10,242

)

Income tax benefit

 

 

-

 

 

 

(17

)

 

 

-

 

 

 

-

 

Net (loss) income

 

$

(93,876

)

 

$

4,799

 

 

$

(205,842

)

 

$

(10,242

)

Change in fair value of debt due to change in credit risk, net of tax

 

 

-

 

 

 

236

 

 

 

2,541

 

 

 

236

 

Other comprehensive income

 

 

-

 

 

 

236

 

 

 

2,541

 

 

 

236

 

Comprehensive (loss) income

 

$

(93,876

)

 

$

5,035

 

 

$

(203,301

)

 

$

(10,006

)

Share information:

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share - basic

 

$

(0.50

)

 

$

0.03

 

 

$

(1.19

)

 

$

(0.07

)

Weighted average shares outstanding - basic

 

 

188,317,262

 

 

 

142,676,953

 

 

 

173,536,134

 

 

 

137,787,645

 

Net (loss) income per share - diluted

 

$

(0.50

)

 

$

0.03

 

 

$

(1.19

)

 

$

(0.07

)

Weighted average shares outstanding - diluted

 

 

188,317,262

 

 

 

150,546,268

 

 

 

173,536,134

 

 

 

137,787,645

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

2


 

Celularity Inc.

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(in thousands, except share amounts)

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated Other Comprehensive

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Equity

 

Balances at December 31, 2022

 

 

148,921,287

 

 

$

15

 

 

$

844,373

 

 

$

(645,496

)

 

$

9

 

 

$

198,901

 

Exercise of stock options

 

 

1,071,000

 

 

 

-

 

 

 

300

 

 

 

-

 

 

 

-

 

 

 

300

 

Common stock issued pursuant to short-term debt conversion

 

 

3,656,118

 

 

 

1

 

 

 

3,509

 

 

 

-

 

 

 

(152

)

 

 

3,358

 

Issuance of common stock in PIPE Offering, net of offering expenses

 

 

9,381,841

 

 

 

1

 

 

 

8,930

 

 

 

-

 

 

 

-

 

 

 

8,931

 

Issuance of common stock for stem-cells to be used in research and development

 

 

1,694,915

 

 

 

-

 

 

 

1,000

 

 

 

-

 

 

 

-

 

 

 

1,000

 

Vesting of restricted stock units

 

 

253,390

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Tax withholding on vesting of restricted stock units

 

 

(81,095

)

 

 

-

 

 

 

(53

)

 

 

-

 

 

 

-

 

 

 

(53

)

Issuance of common stock under ATM Agreement

 

 

132,958

 

 

 

-

 

 

 

136

 

 

 

-

 

 

 

-

 

 

 

136

 

Issuance of warrants on senior secured bridge loan

 

 

-

 

 

 

-

 

 

 

274

 

 

 

-

 

 

 

-

 

 

 

274

 

Stock-based compensation expense

 

 

-

 

 

 

-

 

 

 

3,988

 

 

 

-

 

 

 

-

 

 

 

3,988

 

Change in fair value of debt due to change in credit risk, net of tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,810

 

 

 

2,810

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(64,017

)

 

 

-

 

 

 

(64,017

)

Balances at March 31, 2023

 

 

165,030,414

 

 

$

17

 

 

$

862,457

 

 

$

(709,513

)

 

$

2,667

 

 

$

155,628

 

Exercise of stock options

 

 

15,371

 

 

 

-

 

 

 

4

 

 

 

-

 

 

 

-

 

 

 

4

 

Common stock issued pursuant to short-term debt conversion

 

 

380,848

 

 

 

-

 

 

 

282

 

 

 

-

 

 

 

(10

)

 

 

272

 

Issuance of common stock in PIPE Offering, net of offering expenses

 

 

5,813,945

 

 

 

-

 

 

 

3,750

 

 

 

-

 

 

 

-

 

 

 

3,750

 

Issuance of common stock in Registered Direct Offering, net of offering expenses

 

 

9,230,770

 

 

 

1

 

 

 

1,225

 

 

 

-

 

 

 

-

 

 

 

1,226

 

Vesting of restricted stock units

 

 

391,782

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Tax withholding on vesting of restricted stock units

 

 

(45,885

)

 

 

-

 

 

 

(33

)

 

 

-

 

 

 

-

 

 

 

(33

)

Issuance of warrants on senior secured bridge loans

 

 

-

 

 

 

-

 

 

 

2,016

 

 

 

-

 

 

 

-

 

 

 

2,016

 

Stock-based compensation expense

 

 

-

 

 

 

-

 

 

 

3,856

 

 

 

-

 

 

 

-

 

 

 

3,856

 

Change in fair value of debt due to change in credit risk, net of tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(269

)

 

 

(269

)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(47,949

)

 

 

-

 

 

 

(47,949

)

Balances at June 30, 2023

 

 

180,817,245

 

 

$

18

 

 

$

873,557

 

 

$

(757,462

)

 

$

2,388

 

 

$

118,501

 

Common stock issued pursuant to short-term debt conversion

 

 

1,557,848

 

 

 

-

 

 

 

807

 

 

 

-

 

 

 

7

 

 

 

814

 

Issuance of common stock in Registered Direct Offering, net of offering expenses

 

 

8,571,429

 

 

 

1

 

 

 

95

 

 

 

-

 

 

 

-

 

 

 

96

 

Common stock issued pursuant to short-term debt maturity extension

 

 

2,707,308

 

 

 

-

 

 

 

712

 

 

 

-

 

 

 

-

 

 

 

712

 

Fair value of warrant modification for professional services

 

 

-

 

 

 

-

 

 

 

403

 

 

 

-

 

 

 

-

 

 

 

403

 

Vesting of restricted stock units

 

 

8,052

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Tax withholding on vesting of restricted stock units

 

 

(2,749

)

 

 

-

 

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

(1

)

Stock-based compensation expense

 

 

-

 

 

 

-

 

 

 

3,598

 

 

 

-

 

 

 

-

 

 

 

3,598

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(93,876

)

 

 

-

 

 

 

(93,876

)

Balances at September 30, 2023

 

 

193,659,133

 

 

$

19

 

 

$

879,171

 

 

$

(851,338

)

 

$

2,395

 

 

$

30,247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2021

 

 

124,307,884

 

 

$

12

 

 

$

763,087

 

 

$

(663,681

)

 

$

-

 

 

$

99,418

 

Cumulative effect adjustment ASU 2016-02

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,996

 

 

 

-

 

 

 

3,996

 

Reclassification of previously exercised stock options

 

 

131,253

 

 

 

-

 

 

 

441

 

 

 

-

 

 

 

-

 

 

 

441

 

Exercise of warrants

 

 

13,281,386

 

 

 

2

 

 

 

46,483

 

 

 

-

 

 

 

-

 

 

 

46,485

 

Exercise of stock options

 

 

10,255

 

 

 

-

 

 

 

21

 

 

 

-

 

 

 

-

 

 

 

21

 

Purchase and retirement of common shares

 

 

(3,058

)

 

 

-

 

 

 

(11

)

 

 

-

 

 

 

-

 

 

 

(11

)

Stock-based compensation expense

 

 

-

 

 

 

-

 

 

 

2,422

 

 

 

-

 

 

 

-

 

 

 

2,422

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(62,867

)

 

 

-

 

 

 

(62,867

)

Balances at March 31, 2022

 

 

137,727,720

 

 

$

14

 

 

$

812,443

 

 

$

(722,552

)

 

$

-

 

 

$

89,905

 

Cumulative effect adjustment ASU 2016-02

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3

)

 

 

-

 

 

 

(3

)

Issuance of common stock to PIPE investor, net of issuance costs

 

 

4,054,055

 

 

 

-

 

 

 

7,651

 

 

 

-

 

 

 

-

 

 

 

7,651

 

Exercise of warrants

 

 

304

 

 

 

-

 

 

 

4

 

 

 

-

 

 

 

-

 

 

 

4

 

Exercise of stock options

 

 

609,529

 

 

 

-

 

 

 

313

 

 

 

-

 

 

 

-

 

 

 

313

 

Purchase and retirement of common shares

 

 

(7,441

)

 

 

-

 

 

 

(75

)

 

 

-

 

 

 

-

 

 

 

(75

)

Stock-based compensation expense

 

 

-

 

 

 

-

 

 

 

4,529

 

 

 

-

 

 

 

-

 

 

 

4,529

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

47,826

 

 

 

-

 

 

 

47,826

 

Balances at June 30, 2022

 

 

142,384,167

 

 

$

14

 

 

$

824,865

 

 

$

(674,729

)

 

$

-

 

 

$

150,150

 

Exercise of warrants

 

 

100

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

1

 

Exercise of stock options

 

 

322,093

 

 

 

-

 

 

 

399

 

 

 

-

 

 

 

-

 

 

 

399

 

Issuance of common stock in ATM offering, net of commissions and offering expenses

 

 

1,817,830

 

 

 

-

 

 

 

4,131

 

 

 

-