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Celularity Inc. (CELU+5.00%) has submitted its 10-Q filing for the quarterly period ended June 30, 2024.
The filing reports net revenues of $12.1 million for the quarter, a significant increase from $2.9 million in the same quarter the previous year. This increase was primarily driven by higher product sales, especially Biovance 3L.
Cost of revenues for the quarter was $2.1 million, representing 18% of sales, compared to 27% in the same quarter of the previous year. The decrease in cost ratio is attributed to the higher gross profit margin of Biovance 3L.
Research and development expenses decreased to $3.8 million from $8.6 million, reflecting lower personnel costs and clinical trial expenses following a reduction in force and the discontinuation of certain clinical trials.
Selling, general, and administrative expenses increased to $15.9 million from $12.8 million, primarily due to higher selling expenses.
There were no changes in the fair value of contingent consideration liability for the quarter, compared to a credit of $85.4 million in the prior year.
Net loss for the quarter was $6.5 million, down from $47.9 million in the previous year. The decrease in net loss is attributed to increased revenues and reduced research and development expenses.
Cash used in operating activities was $7.9 million for the six months ended June 30, 2024, compared to $26.0 million in the same period the previous year.
The company had cash and cash equivalents of $0.5 million as of June 30, 2024. Celularity is actively seeking additional capital to fund its operations.
Celularity entered into several financial agreements during the period, including a securities purchase agreement with Dragasac Limited and a second amended and restated loan agreement with Resorts World Inc Pte Ltd.
The company is addressing material weaknesses in its internal controls over financial reporting and is implementing a remediation plan.
Celularity is involved in various legal proceedings, including a settlement agreement with Palantir Technologies Inc. (PLTR+4.25%) and a complaint against Evolution Biologyx, LLC for unpaid invoices.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Celularity Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.