Orgenesis (ORGS) investor relations material

Executive summary

• Revenue for the nine months ended September 30, 2024 increased 101% year-over-year to $734K, driven by cell processing development and hospital services.

• Net loss for the nine months was $28.6M, a significant improvement from $58.3M in the prior year period.

• Octomera LLC was reconsolidated in January 2024, and Orgenesis' common stock was delisted from Nasdaq and began trading on OTCQX in October 2024.

• The company implemented a 1-for-10 reverse stock split in September 2024.

Financial highlights

• Gross loss for the nine months was $881K, compared to $5.7M in the prior year period.

• Operating loss for the nine months was $21.6M, down from $46.9M year-over-year.

• Selling, general and administrative expenses decreased 67% to $10.8M, mainly due to lower credit losses.

• Net cash used in operating activities was $15.0M; cash provided by financing activities was $14.6M.

• As of September 30, 2024, current assets were $2.5M and current liabilities were $36.0M, resulting in negative working capital of $33.5M.

Outlook and guidance

• Management expresses substantial doubt about the company’s ability to continue as a going concern without additional capital.

• Plans include raising additional funds, refinancing or amending existing loans, and exploring revenue growth and cost reduction.

• Delisting from Nasdaq is expected to make capital raising more difficult.