Cell Source Reports $1.48 Million Net Loss and Increased Working Capital Deficiency in Q1 2025

Cell Source, Inc. reported a net loss of approximately $1.48 million for the three months ended March 31, 2025, compared to a net loss of about $1.28 million for the same period in 2024. The company did not generate any revenue during this period, maintaining a working capital deficiency of approximately $20.14 million, which increased from $18.54 million at the end of the previous fiscal year. The accumulated deficit as of March 31, 2025, stood at approximately $47.66 million, reflecting ongoing financial challenges.

Operating expenses for the first quarter of 2025 totaled approximately $998,587, a decrease from $1.14 million in the prior year. This decline was primarily driven by a reduction in general and administrative expenses, which fell by 38% to $483,404, attributed to lower consulting and stock-based compensation costs. Conversely, research and development expenses increased by 45% to $515,183, largely due to new amendments with the University of Texas MD Anderson Cancer Center, where the company conducts significant research activities.

In terms of financing, Cell Source engaged in several capital-raising activities during the quarter, including the issuance of Series B Convertible Preferred Stock and common stock, which collectively generated approximately $527,000 in net cash. The company also reported an increase in interest expenses, which rose by 92% to $427,237, reflecting a higher balance of interest-bearing notes. The amortization of debt discount surged significantly, indicating a growing reliance on debt financing to support operations.

Operationally, the company has not reported any significant changes in customer counts or user statistics, as it continues to focus on its research and development efforts rather than commercial sales. The company’s strategic direction remains centered on its patented Veto Cell technology, aimed at improving outcomes in stem cell transplants and cancer treatments. Despite the lack of revenue, Cell Source is actively negotiating additional capital to sustain its operations, with management expressing concerns about the company's ability to continue as a going concern without further financing.

Looking ahead, Cell Source plans to submit a clinical protocol for its Veto Cell technology in 2026, which could potentially enhance its market position in the biotechnology sector. However, the company acknowledges the risks associated with its financial condition and the need for ongoing capital to support its development activities. The management's outlook remains cautious, emphasizing the importance of securing additional funding to avoid curtailing operations or facing liquidation.