Serina Therapeutics, Inc. (AGE)·Q4 2023 Earnings Summary

Executive Summary

• Q4 2023 was dominated by balance sheet restructuring and transaction costs: operating expenses rose to $3.6M (vs $1.8M in Q4’22) largely due to legal, accounting, consulting, and other merger-related spending tied to the Serina transaction .
• Cash, cash equivalents, and restricted cash were $0.395M at year-end (cash and equivalents $0.345M), and management reiterated “substantial doubt” about going concern without additional financing, underscoring near-term liquidity risk .
• Capital structure pivoted: $36M of debt was exchanged for preferred stock (July 2023), preferred converted to common on Feb 1, 2024, the line of credit was increased by $4.4M, and the repayment date of borrowings was extended to May 9, 2024—key catalysts heading into the Serina merger close process .
• No earnings call or quantitative guidance; S&P Global consensus estimates for Q4 2023 were unavailable for AGE at this time (we attempted to retrieve but no mapping was available), limiting “beat/miss” analysis .

What Went Well and What Went Wrong

• What Went Well

  • Eliminated $36M of indebtedness via preferred stock issuance; preferred converted to common on Feb 1, 2024, sharply improving reported equity and simplifying the capital stack .
  • Increased secured, convertible line of credit by $4.4M (Nov 8, 2023), and extended the repayment date to May 9, 2024, creating near-term funding runway ahead of merger milestones .
  • Pro forma equity turned positive in Q3 (illustrative) and GAAP equity improved by year-end: Q3 pro forma stockholders’ equity $8.313M; FY23 GAAP stockholders’ equity $5.358M vs $(17.315)M at FY22 .

• What Went Wrong

  • Liquidity remained very tight: year-end cash and equivalents of $0.345M and restricted cash $0.050M; management disclosed substantial doubt about the ability to continue as a going concern without further financing .
  • Elevated transaction costs and debt-related expenses pressured P&L: Q4 operating expenses $3.6M; FY23 interest expense (net) $(4.900)M related primarily to Juvenescence loans and debt cost amortization .
  • Minimal operating revenue (FY23 $0.142M; Q4 implied ~$0.056M) highlights dependence on external funding and the strategic pivot to the Serina merger for future prospects .

Financial Results

Income statement summary (USD Millions)

EPS (USD)

Margins (derived from reported figures)

Balance sheet and liquidity (period-end; USD Millions)

Notes:

• Q4 revenue, gross profit, loss from operations, other income/expense, and net loss are derived by subtracting 9M 2023 from FY 2023 reported totals; Q4 operating expenses also disclosed as $3.6M in the press release .
• The unusual jump in gross margin for Q4 reflects minimal cost of sales and small revenue base; interpret with caution .

Guidance Changes

The company did not issue quantitative guidance in Q4 2023 materials .

Earnings Call Themes & Trends

No Q4 2023 earnings call transcript was found; analysis below reflects disclosures in Q2–Q4 8-Ks.

Management Commentary

• “General and administrative expenses for the year ended December 31, 2023 increased by $3.3 million to $9.3 million... attributable to increases of $2.5 million in professional fees for legal services, professional fees for tax and accounting services, and consulting expenses incurred in connection with due diligence and other expenses related to the planned merger with Serina Therapeutics, Inc.”
• “Cash, cash equivalents, and restricted cash totaled $0.3 million as of December 31, 2023.”
• “These factors raise substantial doubt regarding the ability of AgeX to continue as a going concern.”
• “On November 8, 2023, AgeX’s secured, convertible line of credit from Juvenescence Limited was increased by $4,400,000... On February 9, 2024, the repayment date... was extended... to May 9, 2024.”
• “During July 2023, AgeX... issued shares of Series A Preferred Stock and Series B Preferred Stock to Juvenescence in exchange for the extinguishment of a total of $36 million of indebtedness... The Series A Preferred Stock and Series B Preferred Stock automatically converted into shares of AgeX common stock on February 1, 2024.”

Q&A Highlights

• No earnings call transcript for Q4 2023 was available; therefore, there were no Q&A disclosures or clarifications to report .

Estimates Context

• We attempted to retrieve S&P Global (Capital IQ) consensus for Q4 2023 (revenue and EPS), but estimates were unavailable for AGE at the time due to missing mapping; as a result, there is no “beat/miss” assessment versus Wall Street consensus for this quarter. If consensus becomes available, we would anchor estimate comparisons on S&P Global and update accordingly.

Key Takeaways for Investors

• Liquidity and going concern dominate near-term risk/reward: cash was ~$0.345M at year-end and management again flagged substantial doubt without additional financing—stock is highly sensitive to financing and merger milestones .
• Capital structure improved substantially: $36M debt-for-preferred exchange (July 2023) and preferred-to-common conversion (Feb 2024) plus the $4.4M line increase collectively de-risked balance sheet optics and provide incremental runway into the merger .
• P&L remains driven by non-operating and transaction items: Q4 opex rose to $3.6M on merger costs; FY23 interest expense was $(4.900)M, partly offset by Serina note interest income—near-term earnings will remain volatile until post-merger integration and funding pathways are established .
• Minimal revenues underscore pipeline/transaction story: FY23 revenue $0.142M and Q4 implied ~$0.056M confirm limited current commercial activity; thesis hinges on Serina assets and funding .
• Catalysts: merger close/listing mechanics, additional financing, and early clinical/regulatory milestones from Serina programs—each could materially affect narrative and valuation. Transaction execution and capital access are the primary drivers near term .
• No guidance and no call reinforce a binary setup around corporate actions; consider position sizing accordingly until visibility improves .

Appendix: Prior Quarters Reference

• Q3 2023: Revenue $0.067M; opex $2.390M; other expense $(3.033)M; net loss attributable $(5.401)M; EPS $(0.14) .
• Q2 2023: Revenue $0.009M; opex $1.890M; other expense $(0.793)M; net loss attributable $(2.669)M; EPS $(0.07) .
• FY 2023 vs FY 2022: Revenues $0.142M vs $0.034M; net loss attributable $(14.803)M vs $(10.462)M; interest expense (net) $(4.900)M vs $(3.335)M .

Notes:

• No separate Q4 EPS was disclosed in the Q4 press release; quarterly Q4 margins and certain line items are derived from FY minus 9M figures as indicated above .
• No additional Q4 2023 press releases and no earnings call transcript were found in the document set for this period .