Cellular Biomedicine Group Reports First Quarter 2016 Financial Results and Provides Business Highlights
May 09 2016 - 4:01PM
– Reported Positive Clinical Data from
Phase IIb trial of ReJoin® haMPC therapy– Expanded
Stem Cell Platform with the Launch of New Allogeneic Clinical
Trial– Closed Strategic Investment of $43.13
million in the First Four Months of 2016
Cellular Biomedicine Group, Inc. (Nasdaq:CBMG) ("CBMG" or the
"Company"), a clinical-stage biomedicine firm engaged in the
development of effective stem cell therapies for degenerative
diseases and immunotherapies for cancer, reported financial results
for the first quarter ended March 31, 2016 and provided business
highlights.
“In the first quarter of 2016, we made several
key clinical and business advancements that we expect will promote
long-term growth and strengthen our presence in the cancer and
osteoarthritis markets,” commented Tony (Bizuo) Liu, CBMG’s Chief
Executive Officer. “We reported encouraging Phase IIb data
from our most advanced stem cell program for autologous
adipose-derived mesenchymal progenitor cell (haMPC)
ReJoin® therapy for Knee Osteoarthritis (KOA), and
launched a Phase I clinical trial for an off-the-shelf allogeneic
haMPC AlloJoinTM therapy for KOA. The closing of a $43.13
million strategic investment through April 2016 brings us
closer to reaching our objectives of launching multi-site clinical
trials in immuno-oncology cell therapies in China, to file
INDs and launch clinical trials for AlloJoinTM therapy
for KOA patients in the US and to further strengthen our
pipeline. We are determined to build on the momentum from the first
quarter and believe that we can accomplish meaningful progress on
our 2016 operating objectives.”
First Quarter 2016 Financial Performance
- Cash Position: Cash and cash equivalents
as of March 31, 2016 were $15.7 million compared to
$14.9 million as of December 31, 2015. We had an increase in cash
generated from financing activities due to a private placement
financing in February 2016 for gross proceeds of approximately $5
million.
- Net Cash Used in Operating Activities:
Net cash used in operating activities for the first quarter of 2016
was $3.58 million, compared to $2.41 million for the same
period in 2015.
- Revenue: Revenues in the first quarter
of 2016 were $488,491 compared to $603,390 for the same
period in 2015. The revenue in first quarter 2016 is solely
comprised of the hospital’s technology services related to cell
therapy treatments.
- G&A Expenses: General and
administrative expenses for the first quarter of 2016 were $2.8
million compared to $2.7 million for the same period in 2015.
- R&D Expenses: Research and
development expenses for the first quarter of 2016 were $2.40
million, compared to $1.46 million for the same period a year
ago. The increase was primarily attributable to the increase
of the Company’s immunotherapy research and development team and
expenses related to clinical trials.
- Net Loss: Net loss allocable to common
stock holders was $4.2 million, compared to $4.3 million for
the same period in 2015.
Business & Technology Highlights of
2016 To Date
- Announced encouraging 48-week clinical data from the Phase IIb
trial of the Company’s ReJoin® haMPC therapy for Knee
Osteoarthritis (KOA), revealing increase of patient’s knee
cartilage volume and relief of pain;
- Launched an investigator initiated Phase I clinical trial of an
off-the-shelf allogeneic adipose-derived mesenchymal progenitor
cell (haMPC) AlloJoinTM therapy for KOA patients in China;
- Advanced the Company’s cash position following the closing of
an agreement with Wuhan Dangdai Science & Technology Industries
Group Inc. to invest up to $43.13 million for 2.27 million shares
of the Company’s common stock, representing a 16.2% post-money
stake investment as of April 15, 2016.
About Cellular Biomedicine Group Cellular
Biomedicine Group, Inc. develops proprietary cell therapies for the
treatment of certain degenerative and cancerous diseases. Our
developmental stem cell and Immuno-Oncology projects are the result
of research and development by scientists and doctors
from China and the United States. Our GMP facilities
in China, consisting of nine independent cell production lines, are
designed, certified and managed according to U.S. standards.
To learn more about CBMG, please visit:
www.cellbiomedgroup.com
Forward-Looking Statements Statements in this
press release relating to plans, strategies, trends, specific
activities or investments, and other statements that are not
descriptions of historical facts may be forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking information is inherently subject to risks and
uncertainties, and actual results could differ materially from
those currently anticipated due to a number of factors, which
include risks inherent in doing business, trends affecting the
global economy, including the devaluation of the RMB by China in
August 2015 and other risks detailed from time to time in CBMG’s
reports filed with the Securities and Exchange Commission,
quarterly reports on form 10-Q, current reports on form 8-K and
annual reports on form 10-K. Forward-looking statements may be
identified by terms such as "may," "will," "expects," "plans,"
"intends," "estimates," "potential," or "continue," or similar
terms or the negative of these terms. Although CBMG believes the
expectations reflected in the forward-looking statements are
reasonable, they cannot guarantee that future results, levels of
activity, performance or achievements will be obtained. CBMG does
not have any obligation to update these forward-looking statements
other than as required by law.
|
CELLULAR BIOMEDICINE GROUP, INC. |
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
AND COMPREHENSIVE LOSS |
(UNAUDITED) |
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
Net sales and
revenue |
|
$ |
488,491 |
|
|
$ |
603,390 |
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
Cost of sales |
|
|
503,193 |
|
|
|
494,062 |
|
General and administrative |
|
|
2,775,925 |
|
|
|
2,680,237 |
|
Selling and marketing |
|
|
178,754 |
|
|
|
149,022 |
|
Research and development |
|
|
2,398,362 |
|
|
|
1,455,420 |
|
Impairment of investments |
|
|
- |
|
|
|
123,428 |
|
Total operating expenses |
|
|
5,856,234 |
|
|
|
4,902,169 |
|
Operating loss |
|
|
(5,367,743 |
) |
|
|
(4,298,779 |
) |
|
|
|
|
|
Other income
(expense): |
|
|
|
|
Interest income |
|
|
17,050 |
|
|
|
15,111 |
|
Other income (expense) |
|
|
16,320 |
|
|
|
(2,703 |
) |
Total other income |
|
|
33,370 |
|
|
|
12,408 |
|
Loss before taxes |
|
|
(5,334,373 |
) |
|
|
(4,286,371 |
) |
|
|
|
|
|
Income taxes credit
(provision) |
|
|
1,124,260 |
|
|
|
(800 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,210,113 |
) |
|
$ |
(4,287,171 |
) |
Other comprehensive
income (loss): |
|
|
|
|
Cumulative translation
adjustment |
|
|
16,073 |
|
|
|
19,609 |
|
Unrealized gain (loss) on
investments, net of tax of $4,514,060 and $nil, for the three
months ended March 31, 2016 and 2015, respectively |
|
|
16,416,517 |
|
|
|
(2,568,271 |
) |
Total other comprehensive income
(loss): |
|
|
16,432,590 |
|
|
|
(2,548,662 |
) |
|
|
|
|
|
Comprehensive gain
(loss) |
|
$ |
12,222,477 |
|
|
$ |
(6,835,833 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss per share
: |
|
|
|
|
Basic |
|
$ |
(0.35 |
) |
|
$ |
(0.39 |
) |
Diluted |
|
$ |
(0.35 |
) |
|
$ |
(0.39 |
) |
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
Basic |
|
|
11,884,066 |
|
|
|
11,039,208 |
|
Diluted |
|
|
11,884,066 |
|
|
|
11,039,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CELLULAR BIOMEDICINE GROUP, INC. |
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
Assets |
|
|
|
|
Cash and cash
equivalents |
$ |
15,667,528 |
|
|
$ |
14,884,597 |
|
Accounts
receivable |
|
582,714 |
|
|
|
630,332 |
|
Other
receivables |
|
316,993 |
|
|
|
271,344 |
|
Inventory |
|
486,348 |
|
|
|
390,886 |
|
Prepaid
expenses |
|
644,250 |
|
|
|
367,050 |
|
Taxes
recoverable |
|
- |
|
|
|
150,082 |
|
Total current
assets |
|
17,697,833 |
|
|
|
16,694,291 |
|
|
|
|
|
|
Investments |
|
26,309,984 |
|
|
|
5,379,407 |
|
Property,
plant and equipment, net |
|
2,743,466 |
|
|
|
2,768,900 |
|
Goodwill |
|
7,678,789 |
|
|
|
7,678,789 |
|
Intangibles,
net |
|
15,511,705 |
|
|
|
15,949,100 |
|
Long-term
prepaid expenses and other assets |
|
1,360,679 |
|
|
|
989,935 |
|
Total
assets |
$ |
71,302,456 |
|
|
$ |
49,460,422 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
Accounts
payable |
$ |
208,894 |
|
|
$ |
260,886 |
|
Accrued
expenses |
|
902,265 |
|
|
|
845,087 |
|
Taxes
payable |
|
32,450 |
|
|
|
- |
|
Other current
liabilities |
|
2,026,264 |
|
|
|
1,913,284 |
|
Total current
liabilities |
|
3,169,873 |
|
|
|
3,019,257 |
|
|
|
|
|
|
Deferred tax
liabilities |
|
3,385,545 |
|
|
|
- |
|
Other
non-current liabilities |
|
26,311 |
|
|
|
76,229 |
|
Total
liabilities |
|
6,581,729 |
|
|
|
3,095,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock, par
value $.001, 50,000,000 shares |
|
|
|
authorized; none issued
and outstanding as of |
|
|
|
March 31, 2016 and
December 31, 2015, respectively |
|
- |
|
|
|
- |
|
|
|
|
|
|
Common stock, par value
$.001, 300,000,000 shares authorized; |
|
|
|
12,001,188 and
11,711,645 issued and outstanding |
|
|
|
as of March 31, 2016
and December 31, 2015, respectively |
|
12,001 |
|
|
|
11,711 |
|
Additional
paid in capital |
|
109,940,675 |
|
|
|
103,807,651 |
|
Accumulated
deficit |
|
(61,548,424 |
) |
|
|
(57,338,311 |
) |
Accumulated other
comprehensive income (loss) |
|
16,316,475 |
|
|
|
(116,115 |
) |
Total
stockholders' equity |
|
64,720,727 |
|
|
|
46,364,936 |
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
71,302,456 |
|
|
$ |
49,460,422 |
|
|
|
|
|
|
|
|
|
|
CELLULAR BIOMEDICINE GROUP, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
Net loss |
|
$ |
(4,210,113 |
) |
|
$ |
(4,287,171 |
) |
Adjustments to
reconcile net loss to net cash |
|
|
|
|
used in operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
671,649 |
|
|
|
439,242 |
|
Stock based compensation
expense |
|
|
1,266,063 |
|
|
|
1,719,458 |
|
Other than temporary impairment on
investments |
|
|
- |
|
|
|
123,428 |
|
Realized losses from sale of
investments |
|
|
- |
|
|
|
5,178 |
|
Changes in operating
assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
50,764 |
|
|
|
(198,944 |
) |
Other receivables |
|
|
9,705 |
|
|
|
(38,463 |
) |
Inventory |
|
|
(96,083 |
) |
|
|
94,381 |
|
Prepaid expenses |
|
|
(274,829 |
) |
|
|
(81,602 |
) |
Taxes recoverable |
|
|
150,082 |
|
|
|
- |
|
Other current assets |
|
|
- |
|
|
|
110,346 |
|
Long-term prepaid expenses and
other assets |
|
|
(38,522 |
) |
|
|
(44,340 |
) |
Accounts payable |
|
|
(51,992 |
) |
|
|
(266,744 |
) |
Accrued expenses |
|
|
57,178 |
|
|
|
142,276 |
|
Advances payable to related
party |
|
|
- |
|
|
|
(30,216 |
) |
Other current liabilities |
|
|
29,415 |
|
|
|
346,585 |
|
Taxes payable |
|
|
32,450 |
|
|
|
(226,055 |
) |
Deferred tax liabilities |
|
|
(1,128,515 |
) |
|
|
- |
|
Other non-current liabilities |
|
|
(50,049 |
) |
|
|
(213,254 |
) |
Net cash used in operating
activities |
|
|
(3,582,797 |
) |
|
|
(2,405,895 |
) |
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
Proceed from sale of investments,
net of issuance cost paid |
|
|
- |
|
|
|
1,480 |
|
Purchases of intangibles |
|
|
- |
|
|
|
(569,828 |
) |
Purchases of assets |
|
|
(674,736 |
) |
|
|
(179,293 |
) |
Net cash used in investing
activities |
|
|
(674,736 |
) |
|
|
(747,641 |
) |
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
Net proceeds from the issuance of
common stock |
|
|
4,970,002 |
|
|
|
19,564,846 |
|
Proceeds from exercise of stock
options |
|
|
93,249 |
|
|
|
26,590 |
|
Repayment of advance from
affiliate |
|
|
- |
|
|
|
- |
|
Net cash provided by financing
activities |
|
|
5,063,251 |
|
|
|
19,591,436 |
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE
CHANGES ON CASH |
|
|
(22,786 |
) |
|
|
(63,817 |
) |
|
|
|
|
|
INCREASE IN CASH AND
CASH EQUIVALENTS |
|
|
782,932 |
|
|
|
16,374,083 |
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD |
|
|
14,884,597 |
|
|
|
14,770,584 |
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD |
|
$ |
15,667,529 |
|
|
$ |
31,144,667 |
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes |
|
$ |
(4,255 |
) |
|
$ |
(226,855 |
) |
|
Contacts:
Sarah Kelly
Director of Corporate Communications, CBMG
+1 650 566-5064
sarah.kelly@cellbiomedgroup.com
Vivian Chen
Managing Director Investor Relations, Grayling
+1 347 481-3711
vivian.chen@grayling.com
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