thmo20230930

thmo20230930_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2023.

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition from _____________ to _______________.

Commission File Number: 333-82900

ThermoGenesis Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware

(State of incorporation)

94-3018487

(I.R.S. Employer Identification No.)

2711 Citrus Road

Rancho Cordova, California 95742

(Address of principal executive offices) (Zip Code)

(916) 858-5100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common Stock, $.001 par value		THMO		Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Outstanding at November 9, 2023
Common stock, $.001 par value		3,136,504

ThermoGenesis Holdings, Inc.

INDEX

		Page Number
PART I	FINANCIAL INFORMATION

ITEM 1.	Financial Statements	1

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	22

ITEM 4.	Controls and Procedures	22

PART II	OTHER INFORMATION

ITEM 1.	Legal Proceedings	22
ITEM 1A.	Risk Factors	22
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
ITEM 3.	Defaults upon Senior Securities	23
ITEM 4.	Mine Safety Disclosure	23
ITEM 5.	Other Information	23
ITEM 6.	Exhibits	24

Signatures		25

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ThermoGenesis Holdings, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

	September 30, 2023			December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	4,018,000		$	4,177,000
Accounts receivable, net of allowance for credit losses of $2,000 ($149,000 at December 31, 2022)		368,000			1,865,000
Inventories		1,821,000			3,334,000
Prepaid expenses and other current assets		718,000			1,508,000
Total current assets		6,925,000			10,884,000

Inventories, non-current		772,000			1,003,000
Equipment and leasehold improvements, net		2,523,000			1,254,000
Right-of-use operating lease assets, net		190,000			372,000
Right-of-use operating lease assets – related party, net		3,213,000			3,550,000
Goodwill		781,000			781,000
Intangible assets, net		1,262,000			1,286,000
Other assets		255,000			256,000
Total assets	$	15,921,000		$	19,386,000

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	591,000		$	820,000
Accrued payroll and related expenses		451,000			399,000
Deferred revenue – short-term		818,000			782,000
Convertible promissory note – related party		4,817,000			5,777,000
Interest payable – related party		225,000			1,492,000
Convertible promissory note, net		456,000			962,000
Other current liabilities		1,532,000			1,277,000
Total current liabilities		8,890,000			11,509,000

Operating lease obligations – long-term		--			131,000
Operating lease obligations – related party – long-term		3,071,000			3,495,000
Deferred revenue – long-term		680,000			911,000
Other noncurrent liabilities		17,000			17,000
Total liabilities		12,658,000			16,063,000

Commitments and contingencies

Stockholders’ equity:
Preferred stock, $0.001 par value; 2,000,000 shares authorized, none outstanding					--
Common stock, $0.001 par value; 350,000,000 shares authorized; 3,136,504 issued and outstanding (1,037,138 at December 31, 2022)		3,000			1,000
Additional paid in capital		281,632,000			270,377,000
Accumulated deficit		(277,154,000	)		(266,193,000	)
Accumulated other comprehensive loss		114,000			111,000
Total ThermoGenesis Holdings, Inc. stockholders’ equity		4,595,000			4,296,000

Noncontrolling interests		(1,332,000	)		(973,000	)
Total equity		3,263,000			3,323,000
Total liabilities and equity	$	15,921,000		$	19,386,000

See accompanying notes to the condensed consolidated financial statements.

ThermoGenesis Holdings, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022

Net revenues	$	2,194,000		$	2,115,000		$	7,039,000		$	7,807,000
Cost of revenues		1,799,000			1,678,000			5,070,000			5,491,000

Gross profit		395,000			437,000			1,969,000			2,316,000

Expenses:
Selling, general and administrative		1,686,000			1,982,000			5,346,000			5,665,000
Research and development		266,000			470,000			955,000			1,317,000

Total operating expenses		1,952,000			2,452,000			6,301,000			6,982,000

Loss from operations		(1,557,000	)		(2,015,000	)		(4,332,000	)		(4,666,000	)

Other expenses:
Interest expense		(2,118,000	)		(1,391,000	)		(6,689,000	)		(3,572,000	)
Loss on retirement of debt		(87,000	)		--			(326,000	)		--
Other income/(expense)		22,000			3,000			27,000			(1,000	)

Total other expense		(2,183,000	)		(1,388,000	)		(6,988,000	)		(3,573,000	)

Net loss		(3,740,000	)		(3,403,000	)		(11,320,000	)		(8,239,000	)

Loss attributable to noncontrolling interests		(125,000	)		(163,000	)		(359,000	)		(402,000	)

Net loss attributable to common stockholders	$	(3,615,000	)	$	(3,240,000	)	$	(10,961,000	)	$	(7,837,000	)

COMPREHENSIVE LOSS
Net loss	$	(3,740,000	)	$	(3,403,000	)	$	(11,320,000	)	$	(8,239,000	)
Other comprehensive loss:
Foreign currency translation adjustments gain		9,000			22,000			3,000			67,000
Comprehensive loss		(3,731,000	)		(3,381,000	)		(11,317,000	)		(8,172,000	)
Comprehensive loss attributable to noncontrolling interests		(125,000	)		(163,000	)		(359,000	)		(402,000	)
Comprehensive loss attributable to common stockholders	$	(3,606,000	)	$	(3,218,000	)	$	(10,958,000	)	$	(7,770,000	)

Per share data:

Basic and diluted net loss per common share	$	(1.44	)	$	(4.66	)	$	(5.26	)	$	(18.49	)

Weighted average common shares outstanding – basic and diluted		2,503,631			694,795			2,083,095			423,897

See accompanying notes to the condensed consolidated financial statements.

ThermoGenesis Holdings, Inc.

Condensed Consolidated Statements of Equity

For the Three and Nine Months Ended September 30, 2023

(Unaudited)

	Shares		Common Stock		Paid in Capital in Excess of Par		Accumulated Deficit			AOCL*			Non- Controlling Interests			Total Equity
Balance at January 1, 2023		1,037,138	$	1,000	$	270,377,000	$	(266,193,000	)	$	111,000		$	(973,000	)	$	3,323,000

Stock-based compensation expense		--		--		10,000		--			--			--			10,000
Related party convertible note price reset		--		--		3,160,000		--			--			--			3,160,000
Convertible note price reset		--		--		43,000		--			--			--			43,000
Conversion of note payable to common stock		215,000		1,000		602,000		--			--			--			603,000
Sale of common stock and warrants, net		125,000		--		2,640,000		--			--			--			2,640,000
Exercise of warrants		158,731		--		421,000		--			--			--			421,000
Foreign currency translation gain		--		--		--		--			(6,000	)		--			(6,000	)
Net loss		--		--		--		(5,086,000	)		--			(96,000	)		(5,182,000	)
Balance at March 31, 2023		1,535,869	$	2,000	$	277,253,000	$	(271,279,000	)	$	105,000		$	(1,069,000	)	$	5,012,000

Stock-based compensation expense		--		--		13,000		--			--			--			13,000
Exercise of pre-funded warrants		946,429		--		--		--			--			--			--
Net loss		--		--		--		(2,260,000	)		--			(138,000	)		(2,398,000	)
Balance at June 30, 2023		2,482,298	$	2,000	$	277,266,000	$	(273,539,000	)	$	105,000		$	(1,207,000	)	$	2,627,000

Stock-based compensation expense		--		--		7,000		--			--			--			7,000
Related party convertible note converted to common stock		654,206		1,000		699,000		--			--			--			700,000
Related party convertible note price reset		--		--		3,660,000		--			--			--			3,660,000
Foreign currency translation gain		--		--		--		--			9,000			--			9,000
Net loss		--		--		--		(3,615,000	)		--			(125,000	)		(3,740,000	)
Balance at September 30, 2023		3,136,504	$	3,000	$	281,632,000	$	(277,154,000	)	$	114,000		$	(1,332,000	)	$	3,263,000

ThermoGenesis Holdings, Inc.

Condensed Consolidated Statements of Equity

For the Three and Nine Months Ended September 30, 2022

	Shares		Common Stock		Paid in Capital in Excess of Par			Accumulated Deficit			AOCL*		Non- Controlling Interests			Total Equity
Balance at January 1, 2022		279,629	$	--	$	268,459,000		$	(264,662,000	)	$	31,000	$	(431,000	)	$	3,397,000

Adoption of ASU 2020-06		--		--		(10,681,000	)		9,739,000			--		--			(942,000	)
Stock-based compensation expense		--		--		42,000			--			--		--			42,000
Issuance of common stock via at-the-market offering, net		20,407		--		594,000			--			--		--			594,000
Related party convertible note price reset						213,000											213,000
Foreign currency translation gain		--		--		--			--			14,000		--			14,000
Net loss		--		--		--			(1,910,000	)		--		(126,000	)		(2,036,000	)
Balance at March 31, 2022		300,036	$	--	$	258,627,000		$	(256,833,000	)	$	45,000	$	(557,000	)	$	1,282,000

Stock-based compensation expense		--		--

SEC Form 10-Q filed by ThermoGenesis Holdings Inc.