Company: LCTX
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0000950170-25-036309
Chunk: 187

Company: Lineage Cell Therapeutics, Inc.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 1B
Chunk 187
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 quoted on the NASDAQ or TASE (Level 1). These securities are measured at fair value and reported as current assets on the accompanying consolidated balance sheets based on the closing trading price of the security as of the date being presented.  Lineage has not owned any shares of OCX since June 30, 2024.  (3)In determining fair value of the liability classified warrants, Lineage utilizes a Black-Scholes option pricing model that maximizes the use of observable inputs and minimizes the use of unobservable inputs to the extent possible. A significant increase or decrease in these Level 3 inputs could result in a significantly higher or lower fair value measurement.The following table sets forth a summary of changes to Level 3 fair value measurements for the year ended December 31, 2024 (in thousands): 

        Common ShareWarrant Liabilities

        Balance - December 31, 2023
         
        $
        —

        Issued

        8,289

        Change in fair value of warrant liability recognized in the    consolidated statement of operations

        (2,128
        )

        Balance - December 31, 2024
         
        $
        6,161

      Level 3 inputs - Significant assumptions used in valuing the warrant liabilities for the year ended December 31, 2024, were as follows: 

        December 31, 2024

        Expected stock price volatility
         
        69.70% - 71.18%

        Risk-free interest rate
         
        4.27% - 4.30%

        Expected dividend yield

        —

        Expected term (in years)
         
        3.39 – 3.50

       The expected stock price volatility assumption is determined using historical volatility of the Company’s common stock. The risk-free interest rate assumption is based on the U.S. Treasury yield curve whose term is consistent with the expected term of the stock options. The expected dividend yield is 0% as the Company has not paid and does not anticipate paying dividends on its common stock. The expected term represents the period from the warrant issuance to the earlier of (a) May 21, 2028, and (b) the 90th day following the date of the public disclosure of the intent to advance OpRegen (also known as RG6501) into a multi-center phase 2 or 3 clinical trial which includes a control or