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spk00: Greetings, and welcome to the Harvard Apparatus Regenerative Technology Q3 2023 conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joe Damasio, Chief Financial Officer. Thank you, sir. You may begin.
spk02: Good morning, everyone. This is Joe Damasio, Chief Financial Officer. On the call with me today is Jerry He, our Chairman and Chief Executive Officer. Before I turn it over to Jerry, let me review the company's forward-looking statements. In our discussion today, we will make statements that constitute forward-looking statements, Our actual results and performance may differ materially from what we have previously projected due to risks and uncertainties, including those detailed in our annual report on Form 10-K for the year ended December 31, 2022, and our other public filings. Any forward-looking statements, including those related to our future results and activities, represent our estimates as of today and should not be relied upon as representing our estimates at any subsequent day. Additionally, any material, financial or statistical information presented in the call, which is not included in our press release, will be archived and available in the investor section of our website under events and presentations. Now I will turn it over to Jerry.
spk01: Thank you, Joe. Welcome everyone to this quarter conference call for Harvard Regents to discuss earnings and related matters. How the region has had a number of developments during the third quarter of 2023. First is the approval of an orphan disease application for our lead product, the self-span esophageal implant by the European Medicines Agency, or the EMA. It's the centralized regulatory agency for the review and approval for new medicine in the European Union. We are active in the second clinical trial site with the University of Michigan, and we are currently screening patients. The initiation of our first clinical study for cell spine esophageal implant, or CIE for short, marked an important milestone for how to regenerate. Our numerous preclinical studies have demonstrated our technology as an effective platform for tubular organ regeneration. We look forward to testing CEI in the clinics as we further our understanding of the potential benefits for patients and bringing the treatment to patients as soon as possible. In the third quarter of 2023, the company's subsidiary in Hong Kong, Harvard Apparatus Regenerative Technology Limited, or HRGN Limited, launches its longevity products business in Asia, generates 40,000 US stars in sales. The Longevity product business will include a broad range of products focused on Longevity dietary supplements, which complements our regional medicine business. These products are marketed to the general public and initially targeted at consumers in the Great China region through e-commerce or online sales. The Longevity product business is a great way to generate additional revenue and operating cash flow from China without disrupting our R&D and clinical trial efforts in the United States. Now I will turn the call over to Joe to review the financials for Q3. Joe, please.
spk02: Sure. I want to briefly cover the highlights of our third quarter financial results. For the three months ended September 30, 2023, the company reported a net loss of $1.6 million or 12 cents per share. compared to a net loss of $1.1 million, or $0.10 per share, for the three months ended September 30, 2022. The half a million year-over-year net loss increase was due to share-based compensation expense of $0.3 million from the vesting of time-based awards in the third quarter of 2023, and increased headcount-related costs of approximately $0.2 million. At September 30, 2023, we had cash, cash equivalent, and short-term investments on hand of approximately $1.5 million and had no debt. We used $5.8 million in cash for operations during the nine months ended September 30, 2023. As of September 30, 2023, we received aggregate proceeds of approximately $6 million from a private placement, which closed in April 2023. Based on our current operating plan and given consideration to this cash infusion, we expect that our current cash will be sufficient to fund our operating expenses and capital expenditure requirements through the first quarter of 2024. I will pass it back to Jerry.
spk01: Now we will open the floor for any questions.
spk00: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment, please, while we poll for questions. It appears that there are no questions at this time. I would now like to turn the floor back over to Jerry He for closing comments.
spk01: Thank you very much for joining our call today. We look forward to see you again next time, also making a Harvard Regenerative Technology product to the market as soon as possible. Thank you.
spk00: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
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