0001493152-26-022926
SEC filingOperating loss narrowed to -$998.6K, while net loss widened to -$1.5M, driven by higher interest expense on increased debt. Diluted EPS remained at -$0.04.
Operating income for the first quarter of fiscal 2025 was -$998.6K, compared to -$1.1M in the prior year period, representing a 12.3% improvement. This reduction in operating loss was primarily due to lower general and administrative expenses, partially offset by increased research and development costs associated with the execution of new amendments with MD Anderson.
Net income for the quarter was -$1.5M, compared to -$1.3M in the prior year period, a 16.2% decline. The increase in net loss was primarily attributable to higher interest expense resulting from an increase in notes payable issued in 2025 compared to the prior year. Diluted earnings per share remained unchanged at -$0.04.
Net cash used in operating activities was -$600.4K for the three months ended March 31, 2025, compared to -$173.9K in the prior year period. The increase in cash used was driven by the higher net loss and changes in working capital.
The company's primary sources of operating funds since inception have been equity and debt financings. Management's plans include continued efforts to raise additional capital through debt and equity financings. While there can be no assurance that the company will be successful, it is in active negotiations to raise additional capital.
Cell Source expects to continue incurring net operating losses as it funds research and development and clinical trials. The Phase 1/2 clinical trial at MD Anderson is progressing, with additional cohorts of patients expected to be treated using the current treatment protocol. The company's ability to continue as a going concern is dependent on its ability to secure additional financing. Investors should monitor the company's capital-raising efforts and clinical milestones.