Company: LCTX
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0000950170-25-036309
Chunk: 143

Company: Lineage Cell Therapeutics, Inc.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 1B
Chunk 143
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 credits generated.  The carryforward amounts for these credits have been reported net of these reserves.  Accordingly, no accrued interest and penalties related to unrecognized tax benefits have been recorded as of December 31, 2024 and 2023.  For further information, see Note 12 (Income Taxes) in the accompanying notes to the consolidated financial statements included in this report.

Warrants 

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC Topic 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s common shares, whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance. Liability and equity-classified warrants are valued using a Black-Scholes option pricing model at issuance, and for liability-classified warrants, at each reporting period end date while the warrants are outstanding. Changes in fair value of liability-classified warrants are recorded in the consolidated statements of operations. 

Results of Operations

Comparison of Years Ended December 31, 2024 and 2023

Revenues

The following table shows our revenues for the years ended December 31, 2024 and 2023 (amounts in thousands except percentages).

    Year Ended December 31,

    DollarIncrease

    PercentIncrease

    2024

    2023

    (Decrease)

    (Decrease)

    Collaboration revenues
     
    $
    8,149

    $
    7,588

    $
    561

    7%

    Royalties, license and other revenues

    1,350

    1,357

    (7
    )
     
    (1)%

    Total revenues
     
    $
    9,499

    $
    8,945

    $
    554

    6%

For the twelve months ended December 31, 2024, the