Cell Source, Inc.

What they do

Cell Source is developing a proprietary immune system management technology, termed Veto Cell technology, licensed from Yeda Research & Development Company Limited, the commercial arm of the Weizmann Institute of Science in Israel. The technology aims to induce sustained tolerance (chimerism) of transplanted cells, allowing haploidentical stem cell transplants under mild immune suppression while avoiding graft-versus-host disease and viral infections. The company's current research and development efforts are focused at the University of Texas MD Anderson Cancer Center in Houston, Texas. It also plans to combine the technology with CAR T cell therapy as a VETO CAR-T treatment for blood cancers.

Revenue drivers

• Veto Cell technology (HSCT) — Pre-revenue; the company generates no product revenue. This is the core technology in a US clinical trial for allogeneic hematopoietic stem cell transplantation, intended to enable haploidentical transplants under mild conditioning.
• VETO CAR-T combination — Pre-revenue; a planned future treatment combining Veto Cells with CAR T cell therapy to treat blood cancer patients in relapse and remission, aiming to provide an end-to-end solution.
• Broader applications (solid tumors and organ transplantation) — Pre-revenue; the company states the technology may open doors to treating solid tumors with genetically modified cells and organ transplantation, but these are exploratory and not currently generating revenue.

Recent performance

Annual net losses have been persistent: $4.6M in 2020, $5.5M in 2021, $5.2M in 2022, $5.3M in 2023, and $4.5M in 2024. Diluted EPS improved slightly over time, from -$0.19 in 2020 to -$0.14 in 2024. Operating cash flow has been negative each year, ranging from -$2.3M to -$3.4M. As of March 31, 2025, total assets were $292,446, total liabilities were $20.4M, and shareholder equity was -$20.1M, with only $1,240 in cash and equivalents.

Strategy

The company has shifted its research and development focus to MD Anderson Cancer Center in Houston, Texas. It is developing its Veto Cell technology, currently in a US clinical trial, for allogeneic HSCT. It plans to combine this with CAR T cell therapy as a VETO CAR-T treatment to treat blood cancer patients in relapse and remission. The stated goal is to provide an end-to-end solution for blood cancer treatment that is safer and more effective than current donor-derived HSCT or autologous CAR-T therapies.

Risks

• Going concern and liquidity — As of March 31, 2025, the company had only $1,240 in cash, total liabilities of $20.4M, and negative shareholder equity of $20.1M, raising substantial doubt about its ability to continue as a going concern.
• Clinical and regulatory risk — The Veto Cell technology is still in a US clinical trial, and there is no guarantee that it will succeed or receive regulatory approval.
• Dependence on licensed technology — The core technology is licensed from Yeda, and the company's rights are subject to the terms of that license, including potential termination or disputes.
• No product revenue — Cell Source has no approved products and has never generated revenue, relying on financing to fund operations.

Outlook

Management has not provided specific financial guidance. The company continues to focus on advancing its Veto Cell technology at MD Anderson and plans to develop VETO CAR-T treatments. However, with minimal cash and negative equity, future operations depend on obtaining additional financing. No timelines for clinical milestones or product approval are provided.