Q4 2023 Gamida Cell Ltd Earnings Call

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Gamida Cell's conference call for a business update and fourth quarter and full year 2023 financial results. My name is Daryl, and I'll be your operator for today. Please be advised that this call is being recorded at Gamida Cell's request. And now I would like to introduce you to our Conference Host, Mike Kuczkowski of Gamida Cell Corporate Communications. Mike, please go ahead.

Ladies and gentlemen, thank you for standing by and welcome to <unk> Conference call for a business update and fourth quarter and full year 2023 financial results.

Name is Darryl and I'll be your operator for today's call.

Speaker Change: Be advised that this call is being recorded at Gametothallus requests and now I would like to introduce you to our.

Speaker Change: Conference host, Mike CATT Gostkowski of Gamete of sell corporate Communications. Please go ahead.

Mike Kuczkowski: Thank you, Daryl, and good morning, everyone. Welcome to today's call, during which we will provide an update on the company and review our financial results for the fourth quarter and full year 2023. Earlier this morning, we issued two press releases, one announcing the commencement of a restructuring process supported by Highbridge Capital Management and the other summarizing our financial results and providing a business update. Both press releases are available on our website, www.gamidacell.com. Please note, we will not be hosting a question and answer session on today's call.

Mike Kuczkowski: Thank you Daryl and good morning, everyone welcome to today's call during which we will provide an update on the company and review our financial results for the fourth quarter and full year 2023.

Mike Kuczkowski: Earlier. This morning, we issued two press releases, one announcing the commencement of a restructuring process supported by Highbridge capital management and the other summarizing our financial results and providing a business update.

Mike Kuczkowski: Both press releases are available at our website Www Dot give me to sell dot com.

Mike Kuczkowski: Please note, we will not be hosting a question and answer session on today's call.

Mike Kuczkowski: Here with me on our call today are Abby Jenkins, Gamida Cell's President and Chief Executive Officer, and Terry Coelho, our Chief Financial Officer. Before we begin, I want to remind everyone that during this call, we may make forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Any statement describing Gamida Cell's goals, expectations, financial, or other projections, intentions, or beliefs is a forward-looking statement and should be considered an at-risk statement. Such statements, including those with respect to the curative, therapeutic, and commercial potential of OmniSurge, OmiduvaCell ONLV, Gamida Cell's Cell Therapy Candidate, GDA-201, the continued commercialization of and patient access to OmniSurge, the financial runway of Gamida Cell, Gamida Cell's ability to complete a transaction supported by HyBRID pursuant to the Restructuring Support Agreement, Ga These risks, uncertainties, and assumptions include those relating to clinical, scientific, regulatory, and technical developments and those inherent in the process of developing and commercializing product candidates that are safe and effective for use as human therapeutics, and as to the pursuit of the transactions contemplated under the RSA, the risk that no transaction may result.

Mike Kuczkowski: Here with me on our call today are Abbey Jenkins, Gametothallus, President and Chief Executive Officer, and Terry <unk>, Our Chief Financial Officer.

Mike Kuczkowski: Before we begin I want to remind everyone that during this call. We may make forward looking statements as that term is defined in the private Securities Litigation Reform Act of 1995 any statement, describing give me the sales goals expectations financial or other projections intentions or beliefs is a forward looking statement and should be considered an at risk statement such.

Mike Kuczkowski: <unk>, including those with respect to the curative therapeutic and commercial potential of Ami Serge I'm going to do this L. O N L D can.

Mike Kuczkowski: You meet a cell cell therapy candidate GDA 201, the continued commercialization of in patient access to army Serge the financial runway of good me to sell give me the cells ability to complete a transaction supported by hybrids pursuant to the restructuring support agreement to sell the ability to secure the Israeli court approval of the transaction give me to sell the X.

Mike Kuczkowski: Spectation regarding the delisting from NASDAQ and the timing of the completion of the restructuring proceedings in the state of complete yourselves workforce are subject to a number of risks uncertainties and assumptions. These risks uncertainties and assumptions include those relating to clinical scientific regulatory and technical developments and those inherent in the process of developing and commercializing.

Mike Kuczkowski: Product candidates that are safe and effective for use as human therapeutics and as to the pursuit of the transactions contemplated under the RSA the risk that no transaction May result.

Mike Kuczkowski: In light of these risks and uncertainties and other risks and uncertainties that are described in the risk factors section and other sections of Gamida Cell's annual report on Form 10-K, to be filed with the Securities and Exchange Commission on March 27, 2024, and other filings that Gamida Cell makes with the SEC from time to time, which are available at www.sec.gov, the events and circumstances discussed in such forward-looking statements may not occur, and Gamida Although Gamida Cell's forward-looking statements reflect the good-faith judgment of its management, these statements are based only on facts and factors currently known by Gamida Cell. As a result, you are cautioned not to rely on these forward-looking statements.

Mike Kuczkowski: In light of these risks and uncertainties and other risks and uncertainties that are described in the risk factors section and other sections of giving yourselves annual report on Form 10-K to be filed with the Securities and Exchange Commission on March 27th 2024, and other filings that can be to sell makes with the SEC from time to time, which are available at www dot.

Mike Kuczkowski: S E C dot Gov, the events and circumstances discussed in such forward looking statements may not occur and convenience those actual results could differ materially and adversely from those anticipated or implied thereby.

Mike Kuczkowski: Although gamete of sales forward looking statements reflect the good faith judgment of its management. These statements are based only on facts and factors currently known by commit yourself. As a result, you are cautioned not to rely on these forward looking statements.

Abigail L. Jenkins: Now I will turn the call over to Gamida Cell's President and CEO, Abby Jenkins. Thank you, Mike, and everyone who is joining us today. In this past year, Gamida Cell has achieved important milestones, most notably our longstanding goal of bringing OmniSurge through the FDA approval process as the only stem cell therapy approved on the basis of a global randomized phase 3 clinical trial. As you will hear on today's call, patients continue to receive OmniSurge as we onboard more transplant centers. We are gratified that OmniSurge is available as a potentially life-saving option for patients with hematologic malignancies in need of a stem cell transplant.

Mike Kuczkowski: Now I will turn the call over to <unk>, President and CEO Abbey Jenkins.

Abigail L. Jenkins: Thank you, Mike and everyone joining us today.

Abigail L. Jenkins: In this past year to me to sell has achieved important milestone most notably our longstanding goal of bringing omni search through the FDA approval process.

Abigail L. Jenkins: Only stem cell therapy approved on the basis of a global randomized phase III clinical trial.

Abigail L. Jenkins: As you will hear on today's call patients continue to receive on the search as we onboard more transplant centers.

Abigail L. Jenkins: We are gratified that army surge is available as a potentially lifesaving option for patients with hematologic malignancies in need understand and cell transplant.

Abigail L. Jenkins: For these patients, OmniSurge may represent their last or best hope for a cure, and we are proud to be able to continue to serve our patients. However, we have also had to overcome many challenges in this process, including achieving long-term financial stability for the company. Today, I'm providing a corporate update and outlining the progress we have made to stabilize Gamida Cell's financial foundation. As you know, in Q2 2023, we initiated a strategic restructuring and engaged in an extensive process to pursue strategic alternatives to support the commercialization of OmniSurge. Our initial Strategic Alternatives Review process included outreach to numerous potential strategic partners, including large and mid-sized pharmaceutical companies, and we engaged in substantial discussions with many of those parties. However, despite this effort, we did not identify a partnership that would adequately address our strategic needs by the end of the year.

Abigail L. Jenkins: For these patients I'm a surge may represent the last best hope break here and we are proud to be able to continue to serve our patients.

Abigail L. Jenkins: We have also had to overcome many challenges in this process, including achieving our long term financial stability for the company.

Speaker Change: Good day, and providing a corporate update and outlining the progress we have made to stabilize Gametothallus financial Foundation.

Speaker Change: As you know in Q2 2023, we initiated a strategic restructuring and engaged in an extensive process to pursue strategic alternatives to support the commercialization of omni search.

Speaker Change: Our initial strategic alternatives review process included outreach to numerous potential strategic partners, including large and midsize pharmaceutical companies and we engaged in substantial discussions with many of those parties.

Speaker Change: Despite this effort we did not identify a partnership that would adequately address our strategic needs by the end of the year.

Abigail L. Jenkins: In January, we redoubled our efforts and announced that we were focused on reaching a transaction that would provide the long-term financial runway necessary for Gamida Cell to commercialize AmiSurge, specifically pursuing a merger, acquisition, or asset sale. Through that process, we engaged with a number of parties, some as re-engagement partners and others new. However, these efforts did not yield any actionable alternatives.

Speaker Change: In January we redoubled, our efforts and announced that we were focused on reaching a transaction that would provide the long term financial runway necessary forgive me just fell to commercialize Ami search specifically for stealing a merger acquisition or asset sale.

Speaker Change: Through that process, we engaged with a number of parties.

Speaker Change: As Reengagement and others, New however, these efforts did not yield any actionable alternatives.

Abigail L. Jenkins: Earlier today, we announced that we have entered into a restructuring support agreement with Highbridge Capital Management, our principal lender. Under the terms of the agreement, and upon completion of our restructuring process, Highbridge will convert $75 million of its existing unsecured convertible senior note into all of the equity in the company. The company will receive $30 million of new capital from Highbridge on the effective date of the restructuring. Highbridge is also expected to invest significant additional capital following the company's emergence.

Speaker Change: Earlier today, we announced that we've entered into a restructuring support agreement with Highbridge capital management, our principal lender.

Speaker Change: Under the terms of the agreement and upon completion of our restructuring process Highbridge looking for $75 million of its existing unsecured convertible senior notes into all of the equity in the company.

Speaker Change: The company will receive $30 million of new capital from high bridge on the effective date of the restructuring.

Speaker Change: Hybrid is also expected to invest significant additional capital following the company's emerging.

Abigail L. Jenkins: Gamida Cell will become a private company, wholly owned by Highbridge, and the company's outstanding ordinary shares will be canceled. Current ordinary shareholders of Gamida Cell are expected to receive a contingent value right with a potential aggregate maximum value of $27.5 million, subject to the achievement of certain revenue and regulatory milestones within specified timeframes. This restructuring transaction will enable Gamida Cell to remain a going concern and will support our ongoing efforts to make OmniSurge available to more transplant centers and their patients. Gamida Cell's Board of Directors has determined that this transaction is the best path forward at this time to maintain patient access to Omnicert. As a next step, Gamida Cell will begin a voluntary Israeli restructuring proceeding.

Speaker Change: Anita salad will become a private company wholly owned by Highbridge and the Companys outstanding ordinary shares will be canceled.

Speaker Change: Current ordinary shareholders have give me yourself are expected to receive a contingent value right with a potential aggregate maximum value of $27 $5 million subject to the achievement of certain revenue and regulatory milestone within specified time frame.

Speaker Change: This restructuring transaction will enable give me to sell to remain a going concern and will support our ongoing efforts to make any surge available to Laura transplant centers and their patient.

Speaker Change: Can you just felt was board of directors has determined that this transaction is the best path forward at this time to maintain patient access to omni search.

Speaker Change: As a next step for me to sell we'll begin a voluntary Israeli restructuring proceedings.

Abigail L. Jenkins: We expect the transaction will close in the second quarter of 2024, following approval by the Israeli court. Once it closes, Gamida Cell will become a privately held company, fully owned by Highbridge, and will be delisted from the NASDAQ. In parallel, we will be implementing a headcount reduction of approximately 25% of our team to right-size operations to align with the current business conditions and our focus on omni-surge commercialization. Also, Gamida Cell is finalizing the winding down of its Jerusalem office and consolidating all Israeli operations into our state-of-the-art manufacturing facility in Kirigat. Two key executives will be moving on from the company. Chief Commercial and Operating Officer, Michele Korfin, will depart the company on April 1st. And General Counsel and Chief Compliance Officer, Josh Patterson, will depart the company on April 26th.

Speaker Change: We expect the transaction will close in the second quarter of 'twenty 'twenty four following approval by the Israeli court.

Speaker Change: Once it closes give me to sell will become a privately held company fully owned by hybrid will be delisted from the NASDAQ.

Speaker Change: In parallel we will be implementing a head count reduction of approximately 25% of our team to rightsize operations to align with the current business conditions and our focus on omni search commercialization.

Speaker Change: Also gametothallus finalizing the wind down of its Jerusalem office and consolidating all Israeli operations into our state of the art manufacturing facility in care of Guy.

Speaker Change: Two key executives will be moving on from the company Chief commercial and operating officer Michel Coffin will depart the company on April 1st.

Speaker Change: <unk> General Counsel and Chief compliance Officer, Josh Patterson will depart the company on April 26.

Speaker Change: I would like to thank Michele and Josh for their years of dedication and service to give me to sell and their commitment to our patients.

Abigail L. Jenkins: I would like to thank Michele and Josh for their years of dedication and service to Gamida Cell and their commitment to our patients. Their leadership and guidance have been instrumental in achieving the approval and commercialization of OmniSurge, and we wish them well in their next endeavors. In a similar way, I want to thank everyone on the team with whom we've had to make the difficult decision to part ways.

Speaker Change: Their leadership and guidance have been instrumental in achieving the approval and commercialization of Hanmi search and we wish them well in their next endeavors.

Speaker Change: In a similar way I want to thank everyone on the team with whom we've had to make the difficult decision to part ways.

Abigail L. Jenkins: These are extremely talented individuals who have been the driving force behind our ability to deliver our NAM-modified cell therapy to patients. Even during challenging times in the biotech market, especially this past year, I have witnessed this team's resilience. Faced with a delay in our PDUFA date for OmniSurge, the team rallied to deliver what was needed to secure approval in April. When it was eventually approved two weeks early, the team rallied again to ensure OmniSurge was immediately available to transplant centers and patients.

Speaker Change: These are extremely talented individuals who have been the driving force behind our ability to deliver our man modified cell therapy to patients.

Speaker Change: Even during challenging times in the biotech market, especially over this past year I have witnessed this team's resilience.

Speaker Change: Faced with a delay of our Paducah date for Ami Serge the team rallied to deliver what was needed to secure approval in April.

Speaker Change: When it was eventually approved two weeks early the team rallied again to ensure army surge was immediately available to transplant centers and patient.

Abigail L. Jenkins: In the face of the Israel-Hamas war, this team again showed courage and commitment to maintaining our operations without interruption. Time and time again, this team has put patients first, and I could not be prouder of what we have accomplished. For those moving on, I have no doubt they will continue to bring positive change for patients in their future endeavors, and we will do whatever we can to support their transition to new positions in the industry. Any company would be lucky to have these talented individuals as part of their team.

Speaker Change: In the face of the Israel Hamas War. This team again showed courage and commitment maintaining our operations without interruption.

Speaker Change: Time and time again. This team has put patients first and I could not be prouder of what we have accomplished.

Speaker Change: For those moving on I have no doubt they will continue to bring positive change for patients in their future endeavors.

Speaker Change: We will do whatever we can to support their transitions to new positions in the industry.

Speaker Change: Any company would be lucky to have these talented individuals as part of their team.

Abigail L. Jenkins: Shifting gears for a few minutes into commercial and medical updates, I would like to walk through where we ended the year against our 2023 goal. We onboarded a total of 17 transplant centers, exceeding the top end of the goal of 10 to 15 for the year. AmiSurge has confirmed coverage with U.S. payers covering more than 90% of commercial lives, exceeding our full-year goal of 70%. This includes confirmed coverage with all of the top 20 U.S. commercial payers. Ami Surge also has confirmed Medicare coverage and reimbursement. We reported revenue from the delivery of six units of OmniSurge in 2023, including four units in the fourth quarter, meeting our goal of delivering a total of four to six units of OmniSurge for the year.

Speaker Change: Shifting gears for a few minutes into commercial and medical updates I would like to walk through where we entered the year against our 2023 goal.

Speaker Change: We on boarded a total of 17 transplant centers exceeding the top end of the goal of 10 to 15 for the year.

Speaker Change: Research has confirmed coverage with U S payers covering more than 90% of commercial lives exceeding our full year goal of 70%.

Speaker Change: This includes covered confirms coverage with all of the top 20 U S. Commercial payers on research also has confirmed Medicare coverage and reimbursement.

Speaker Change: We reported revenue from the delivery of six units of Ami surge in 2023, including four units in the fourth quarter meeting our goal of delivering a total of four to six units of omni search for the year.

Abigail L. Jenkins: As of today, three units of OmniSurge have been delivered this year, and we have a total of 24 transplant centers onboarded where patients can access OmniSurge. In addition, today we announce the results from 13 patients in our Phase 1 Dose Escalation Clinical Trial of GDA-201. There were no dose-limiting toxicities and no GDA-201-related grade 3 or 4 adverse events. Efficacy evaluation showed three patients with complete response, two with partial response, and two with stable disease.

Speaker Change: As of today three units of Army surge has been delivered this year and we have a total of 24 transplant centers onboard it where patients can access on the search.

Speaker Change: In addition, today, we announced the results from 13 patients in our phase one dose escalation clinical trial of GDA 201.

There were no dose limiting toxicities and no GDA 201 related grade three or four adverse events.

Speaker Change: Efficacy evaluation showed three patients with complete response.

Speaker Change: Two with partial response and two was stable disease.

Abigail L. Jenkins: You can see the details of these results in our press release. These data offer positive signals about the potential anti-tumor activity of GDA-201. Gamida Cell does not plan to conduct further development of GEA-201 at this time. Going forward, our executive team, including myself, Terry Coelho, who has agreed to continue as chief financial officer through June 2024. Ronit Simantov, our Chief Medical and Scientific Officer, and Penny Bushell, our Chief Human Resources Officer, will continue to manage the business focused on supporting the continued uptake of OmniSurge with transplant centers and patients. I will now turn the call over to Terry to provide a financial update and additional details about our restructuring process. Harry, it's over to you.

Speaker Change: You can see the details of these results in our press release.

Speaker Change: These data offer positive signals about the potential anti tumor activity for G D a to Hawaii.

Speaker Change: Give me to sell does not plan to conduct further development of G. H O. One at this time.

Speaker Change: Going forward, our executive team, including myself, Gary <unk>, who has agreed to continue as Chief financial Officer through June 2024.

Speaker Change: Roni, sending tau, our chief medical and scientific officer, and Penny Bushel, our chief Human Resources Officer will continue to manage the business focused on supporting the continued uptake of omni search with transplant centers and patient.

Speaker Change: I will now turn the call over to Terry to provide a financial update and additional details about our restructuring process.

Terry: Over to you.

Unknown Attendee: Thank you, Abby, and good morning, everyone. I will begin by sharing more information about the restructuring process supported by Highbridge Capital Management that we announced earlier today. Through this process, Highbridge will convert all $75 million of its existing unsecured convertible senior notes into equity, which will represent 100% of the outstanding equity in the newly reorganized company. This transaction will reduce Gamida Cell's outstanding debt by $75 million and annual interest expense by $4.4 million. The company will receive a secured debt facility of $50 million, of which approximately $5 million will be the remaining principal amount due on Gamida Cell's existing secured convertible senior notes. Now, turning to results.

Terry: Thank you Abby and good morning, everyone I will begin by sharing more information about the restructuring process supported by Highbridge capital management that we announced earlier today.

Terry: Through this process Hibernia will convert all $75 million of its existing unsecured convertible senior notes into equity, which will represent 100% of the outstanding equity in the newly reorganized company.

Terry: This transaction will reduce the need to sell to outstanding debt by $75 million in annual interest expense by $4 $4 million.

Terry: The company will receive a secured debt facility of $50 million of which approximately $5 million will be the remaining principal of mountain dew on demeter cells existing secured convertible senior note.

Now turning to result, when he twenty-three represented our first year as a revenue generating company.

Unknown Attendee: 2023 represented our first year as a revenue-generating company. As Abby mentioned, we reported revenue from the delivery of six units of Omnisurgeon 2023, including four units in the fourth quarter, meeting our goal for the year. As we shift from a clinical-stage company to a commercial-stage company, certain reclassifications of spend were incorporated into our financial reporting beginning in the third quarter of 2023. I will point out the key changes as we walk through the financial results.

Terry: As Andy mentioned, we reported revenue from the delivery of six units of a surge in 2023, including four units in the fourth quarter meeting our goal for the year.

Terry: As we shift from a clinical stage company to a commercial stage company certain reclassifications of spend were incorporated into our financial reporting beginning in the third quarter of 2023.

Terry: I will point out the key changes as we walk through the financial results.

Unknown Attendee: In the fourth quarter and to December 31st, 2023, we are reporting net revenue of $1.1 million, resulting from the delivery of four units of Omisurge. Full year 2023 net revenue was $1.8 million, resulting from the delivery of six units of Omisurge. Full year 2023 cost of sales, including costs of direct manufacturing and quality in addition to royalty expenses and batch failure costs where applicable, was $1.5 million for full year 2023, resulting in an 18.5% gross margin for the year. Over time, we expect the cost of sales, and therefore the gross margin, to improve measurably as production volumes scale to capacity.

Terry: In the fourth quarter ended December 31, 2023, we are reporting net revenue of $1 $1 million, resulting from the delivery of the four units above a search full year 2023, net revenue was $1 $8 million, resulting from the delivery of six units above a search.

Terry: Full year 2023 cost of sales, including cost of direct manufacturing and quality. In addition to royalty expenses and batch failure costs, where applicable with $1.5 million for full year 2023, resulting in 18.5% gross margin for the year.

Terry: Overtime, we expect the cost of sales and therefore, the gross margin improved nationally as production volumes scale and capacity.

Unknown Attendee: Beginning July 1, 2023, reporting of operating expenses has been modified to reflect the company's transition to the commercial stage, with all operating expenses being reported as either research and development expenses, excess capacity, or selling general and administrative or SG&A expenses. For 2022 and the first two quarters of 2023, previously reported commercial and general and administrative costs were combined into SG&A expenses. Additionally, certain expenses previously reported in Research and Development are now being reported in SG&A beginning in the third quarter of 2023, with no reclassification of prior periods. Research and development expenses were $24.3 million for the 12 months ended December 31, 2023 compared to $42.7 million in 2022. The decrease of $18.4 million was due primarily to the aforementioned reporting transition, along with reduced OmiduvaCell clinical spend relating to the winding down of the Phase 3 clinical trial and reduced NK Platform clinical and research and development spend. Excess capacity costs were $4.1 million in 2023, reflecting costs associated with labor, manufacturing overheads, and manufacturing depreciation above our standard cost of goods, which are based on staff's

Terry: Beginning July one 2023 reporting of operating expenses has been modified to reflect the company's transition to commercial stage with all operating expenses being reported as either research and development expenses excess capacity or selling general and administrative or SG&A expenses.

Terry: For 2022 and the first two quarters of 2023 previously reported commercial and <unk>.

Terry: General and administrative costs were combined into SG&A expenses. Additionally, certain expenses previously reported in research and development are now being reported in SG&A beginning in the third quarter of 2023 with no reclassification of prior periods.

Terry: Research and development expenses were $24 $3 million for the 12 months ended December 31, 2023, compared to $42 $7 million in 2022.

Terry: The decrease of $18 $4 million was due primarily to the aforementioned reporting transition along with reduced only do yourself clinical spend relating to the winding down of the phase III clinical trial.

Terry: And reduced NK platform critical and research and development spend.

Terry: Excess capacity costs were $4 $1 million in 2023, reflecting costs associated with labor manufacturing overhead and manufacturing depreciate depreciation above our standard cost of goods, which are based on staff's capacity levels.

Unknown Attendee: SG&A expenses were $44.6 million in 2023, an increase of $12.3 million compared to 2022. The aforementioned financial reporting transition, which resulted in the inclusion of medical affairs expenses and certain indirect supply chain and quality assurance expenses in SG&A reporting, contributed approximately $6.9 million to the increase in 2023 as compared to 2022. Selling and marketing expenses increased by $4.3 million compared to the prior year due to commercial launch activities.

Terry: SG&A expenses were $44 $6 million in 2023, an increase of $12 $3 million compared to 2022.

Terry: The aforementioned financial reporting transition, which resulted in inclusion of medical affairs expenses in certain indirect supply chain and quality assurance expenses in SG&A reporting contributed approximately $6 $9 million to the increase in 2023 as compared to 2022.

Terry: Selling and marketing expenses increased by $4 $3 million compared to the prior year due to commercial launch activities.

Unknown Attendee: General administrative expenses increased by approximately $1.1 million in 2023 as compared to 2022. Financial income or expenses net was $10 million of income in 2023 compared to $4.4 million of expense in 2022. The $14.4 million change in financial income was primarily due to $17.5 million of non-cash income related to the valuation of warrants liabilities, partially offset by $1.9 million of higher interest expenses.

Terry: General and administrative expenses increased by approximately $1 $1 million in 2023 as compared to 2022.

Terry: Financial income or expenses net were $10 million of income in 2023 compared to $4 $4 million of expense in 2022.

Terry: $14 4 million dollar change in financial income was primarily due to $17 $5 million of noncash income related to the valuation of warrants liability.

Terry: Partially offset by $1 $9 million of higher interest expenses.

Unknown Attendee: $600,000 of non-cash loss related to the valuation of the company's secured convertible senior notes issued in December 2022, and half a million dollars of lower interest income. Our net loss was $63 million in 2023 compared to a net loss of $79.4 million in 2022, with the lower net loss being driven primarily by the increase in financial income of $14.4 million, together with approximately $2 million of lower operating expenses. In the fourth quarter of 2023, our net loss was $8.8 million compared to a net loss of $22.8 million in the fourth quarter of 2022, primarily driven by an increase in financial income of $10 million together with approximately $4 million of lower operating expenses. As of December 31st, 2023, Gamida Cell had totaled cash and cash equivalents of $46.6 million compared to $64.7 million as of December 31st, 2022.

Terry: $600000 of noncash loss related to the valuation of the company secured convertible senior notes issued in December 'twenty, 'twenty, two and half a million dollars of lower interest income.

Terry: Our net loss was $63 million in 2023 compared to a net loss of $79 $4 million in 2022 with the note lower net loss being driven primarily by the increase in financial income of $14 $4 million together with approximately $2 million of lower operating expense.

Terry: Yes.

Terry: In the fourth quarter of 2023, our net loss was $8 $8 million compared to a net loss of $22 $8 million in the fourth quarter of 2022.

Terry: Primarily driven by the increase in financial income of $10 million together with approximately $4 million of lower operating expenses.

Terry: As of December 31, 2023 to meet itself had total cash and cash equivalents of $46 $6 million compared to $64 $7 million as of December 31, 2022.

Unknown Attendee: The decrease of $18.1 million is due primarily to $61.8 million in net cash proceeds from financing activities, which was comprised of $21.1 million in net proceeds from the issuance of ordinary shares and warrants from the company's underwritten public offering in April 2023 and $43.1 million in net proceeds from the issuance of ordinary shares at the market or ATM facility, offset by $2.2 million in principal payments of the company's 2022 convertible senior note and $79.1 million As of March 15, 2024, our preliminary estimated unrestricted cash and cash equivalents balance was $28.5 million. Although it is difficult to predict future liquidity requirements, we believe that our current total existing funds will not be sufficient to support our ongoing operating activities, including the restructuring process, through the end of the second quarter of 2024.

Terry: The decrease of $18 $1 million is due primarily to $61.8 million and net cash proceeds from financing activities, which was comprised of $21 1 million in net proceeds from the issuance of ordinary shares and warrants from the company's underwritten public offering in April 2023, and $43 one.

Terry: Millions dollars in net proceeds from the issuance of ordinary shares via the aftermarket or ATM facility.

Terry: Offset by $2 $2 million in principal payments of the company's 2022 convertible senior notes and $79 $1 million of net cash used in operating activities.

Terry: As of March 15th 2024, our preliminary estimated unrestricted cash and cash equivalents balance was $28 $5 million.

Terry: Although it is difficult to predict future liquidity requirements. We believe that our current total existing funds will not be sufficient to support our ongoing operating activities, including the restructuring process through the end of the second quarter of 2024.

Terry: Yeah.

Unknown Attendee: Finally, with regard to our debt position, as of December 31, 2023, the company had reduced its principal balance on the 2022 Secured Convertible Note by $18.4 million from $25 million as of December 31, 2022. $6.6 million at the end of the fourth quarter of 2023. The company also holds a 2021 convertible senior note with an aggregate principal amount of $75 million. With that, I will turn the call back over to Abby for some concluding remarks. Abby?

Terry: Finally, with regard to our debt position as of December 31, 2023, the company had reduced its principal balance on the 2022 secured convertible note by $18 $4 million and $25 million as of December 31, 2022.

Terry: $6 $6 million at the end of the fourth quarter of 2020 three.

Terry: The company also holds a 2021 convertible senior notes with an aggregate principal amount of $75 million.

Terry: With that I will turn the call back over to Abbe for some concluding remarks abbey.

Abigail L. Jenkins: Thank you, Terry. Today, we discuss several important business updates, most notably the decision to enter into a restructuring support agreement with Highbridge Capital. The transaction allows Gamida Cell to continue as a going concern and to focus on commercializing OmniSurge as we develop and deepen our relationships with transplant center partners to increase access to OmniSurge. Going forward, we will be a leaner, more focused organization and with a more stable financial foundation

Abbe: Thank you Terry.

Abbe: Today, we discuss several important business updates most notably the decisive decision to enter into a restructuring support agreement with Highbridge capital.

Abbe: Transaction allows give me to sell to continue as a going concern and to focus on commercializing army surge as we develop and deepen our relationships with transplant center partners to increase access to Ami search.

Abbe: Going forward, we will be a leaner more focused organization and with a more stable financial foundation.

Abigail L. Jenkins: Gamida Cell will be positioned to continue delivering this potentially life-saving cell therapy for patients with hematologic malignancies, including those from diverse backgrounds. I want to once again thank our employees and express our gratitude to our transplant center partners and vendors for their support through this time of uncertainty as we continue to advance the commercialization of OmniSurge. We continue to believe in the future of Gamida Cell and are grateful that OmniSurge is available for the patients that need it the most.

Abbe: Give me to sell will be positioned to continue delivering this potentially lifesaving cell therapy for patients with hematologic malignancies, including those from diverse backgrounds.

Abbe: I want to once again, thank our employees and express our gratitude to our transplant center partners and vendors for their support through this time of uncertainty as we continue to advance the commercialization of omni search.

Abbe: We continue to believe in the future and give me to sell and are grateful that Ami search is available for the patients that need it the most.

Operator: Thank you everyone for joining us on the call today. Operator, back to you. Thank you. That does conclude today's teleconference. We appreciate your participation. You may disconnect at this time. Enjoy the rest of your day.

Speaker Change: Thank you everyone for joining us on the call today, operator back to you.

Okay.

Speaker Change: Thank you that does conclude today's teleconference. We appreciate your participation you may disconnect at this time and enjoy the rest of your day.

Speaker Change: [music].

Speaker Change: Hum.

Speaker Change: Yeah.

Speaker Change: [music].