Orgenesis Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company generated revenues of $347,000 for the three months ended September 30, 2024, a substantial increase from $110,000 in the same period of 2023, reflecting a 215% rise attributed to completed work in cell processing development and hospital services. For the nine months ended September 30, 2024, total revenues reached $734,000, up from $365,000 in the prior year, marking a 101% increase.

Despite the revenue growth, Orgenesis experienced an operating loss of $8,394,000 for the third quarter of 2024, compared to a loss of $2,235,000 in the same quarter of 2023. The net loss for the three months ended September 30, 2024, was $9,266,000, worsening from $3,725,000 in the previous year. However, the net loss for the nine-month period improved to $28,637,000 from $58,295,000 in 2023, indicating a reduction in losses year-over-year.

The company’s total assets increased significantly to $29,687,000 as of September 30, 2024, up from $14,552,000 at the end of 2023. This growth was primarily driven by a rise in non-current assets, particularly property, plant, and equipment, which surged to $14,901,000 from $1,475,000. Conversely, current liabilities rose sharply to $36,049,000 from $16,407,000, contributing to a total liabilities increase to $53,615,000 from $35,535,000.

Orgenesis undertook strategic initiatives, including the acquisition of Octomera LLC on January 29, 2024, which was reconsolidated into its financials. The company also implemented a 1-for-10 reverse stock split on September 20, 2024, to adjust its share structure. Additionally, Orgenesis entered into several asset purchase agreements, including those with Broaden Bioscience and Technology Corp. and Theracell Advanced Biotechnology, aimed at enhancing its product offerings in CAR-T and oncology.

The company faces challenges, including a substantial accumulated deficit of $204,411,000 as of September 30, 2024, and ongoing concerns regarding its ability to continue as a going concern. Orgenesis plans to raise additional capital to fund operations and repay outstanding loans, amidst a backdrop of negative operating cash flows totaling $14,978,000 for the nine months ended September 30, 2024. The company also received a notice from Nasdaq regarding non-compliance with the Bid Price Rule, leading to its delisting effective October 21, 2024, with trading to continue on OTCQX.