RANCHO CORDOVA, Calif.,
Nov. 12, 2020 /PRNewswire/
-- ThermoGenesis Holdings, Inc. (Nasdaq: THMO), a market
leader in automated cell processing tools and services in the cell
and gene therapy field, today announced financial and operating
results for the third quarter ended September 30, 2020 and provided a corporate
update.
Financial Results for the Quarter Ended September 30, 2020
Net Revenues. Consolidated net revenues for the
three months ended September 30, 2020
were $2.4 million compared to
$4.1 million for the three months
ended September 30, 2019, a decrease
of $1.7 million or 42%. The decrease
was driven by lower AXP® disposable and CAR-TXpress™
sales. The COVID-19 pandemic appears to be the main driver of
the decline as fewer cord blood units are being stored globally
during the pandemic. The Company expects sales to increase after
the pandemic is over.
Gross Profit. The Company's gross profit was
$1.5 million or 64% of net revenues
for the three months ended September 30,
2020, compared to $1.9 million
or 47% of net revenues for the quarter ended September 30, 2019, a decrease of $0.4 million. The decrease was driven by the
decline in AXP disposable and CAR-TXpress sales, partially offset
by a refund of approximately $0.8
million from ImmuneCyte for its mark-up on sales of the
testing kits which were previously reserved by the Company.
Sales and Marketing Expenses. Consolidated sales and
marketing expenses were $539,000 for
the three months ended September 30,
2020, as compared to $502,000
for the three months ended September 30,
2019, an increase of 7%. The increase was driven by accrued
expenses related to the Company's employee short-term incentive
program and for consulting expenses. These increases were partially
offset by lower stock compensation expense in the quarter ended
September 30, 2020.
Research and Development Expenses. Consolidated
research and development expenses were $750,000 for the three months ended September 30, 2020, compared to $584,000 for the three months ended September 30, 2019, an increase of $166,000 or 28%. The increase was driven by
development expenses for the Company's COVID-19 cartridge
reader.
General and Administrative Expenses. Consolidated
general and administrative expenses for the three months ended
September 30, 2020 were $1.3 million, compared to $1.1 million for the three months ended
September 30, 2019, an increase of
$0.2 million or 15%. The primary
driver of the increase was accrued expenses related to the
Company's employee short-term incentive program and severance
expense.
Interest Expense. Interest expense for the three
months ended September 30, 2020 was
$1.5 million, compared to
$1.2 million for the three months
ended September 30, 2019, an increase
of $0.3 million. The increase was
driven by additional interest expense and amortization of the debt
discount related to the Revolving Credit Agreement with Boyalife
Asset Holding II, Inc.
Net Loss. For the quarter ended September 30, 2020, the Company reported a
comprehensive loss attributable to common stockholders of
$2.5 million, or $(0.37) per share, based on 6,711,664 weighted
average basic and diluted common shares outstanding. This compares
to a comprehensive net loss of $2.3
million, or $(0.78) per share,
based on 2,913,198 weighted average basic and diluted common shares
outstanding for the quarter ended September
30, 2019.
Adjusted EBITDA. In addition to the results reported
under U.S. GAAP, the Company also uses a non-GAAP measure, adjusted
EBITDA, to evaluate operating performance and to facilitate the
comparison of its historical results and trends. The Company uses
the metric to determine operational cash flow. Adjusted EBITDA for
the three months ended September 30,
2020 was a loss of $672,000,
compared to income of $125,000 for
the three months ended September 30,
2019, a decrease of $797,000.
The adjusted EBITDA decrease was driven by a reduction in gross
profit as the result of lower sales, inventory reserves, accrued
expenses related to the Company's employee short-term incentive
program, increased research and development expenses and severance
expense. These decreases were partially offset by an $0.8 million refund received from ImmuneCyte for
its mark-up portion of the testing kits previously reserved by the
Company. A reconciliation of adjusted EBITDA to net loss is set
forth below.
Liquidity and Capital Resources. At September 30, 2020, the Company had cash and cash
equivalents totaling $4.4 million,
compared with $3.2 million at
December 31, 2019. Working capital
improved to $7.1 million at
September 30, 2020 as compared to
$3.2 million at December 31, 2019.
Conference Call and Webcast Information
ThermoGenesis
will host a conference call today at 1:30
p.m. PT/4:30 p.m. ET. To
participate in the conference call, please dial 1-844-889-4331
(domestic), 1-412-380-7406 (international) or 1-866-605-3852
(Canada). To access a live webcast
of the call, please visit:
https://thermogenesis.com/investors/news-and-events/events-webcasts.
A webcast replay will also be available on ThermoGenesis'
website for three months, please visit:
https://thermogenesis.com/investors/news-and-events/events-webcasts.
About ThermoGenesis Holdings, Inc.
ThermoGenesis
Holdings, Inc. develops, commercializes, and markets a range of
automated technologies for CAR-T and other cell-based therapies.
The Company currently markets a full suite of solutions for
automated clinical biobanking, point-of-care applications, and
automation for immuno-oncology, including its semi-automated,
functionally-closed CAR-TXpress™ platform, which streamlines
the manufacturing process for the emerging CAR-T immunotherapy
market. For more information about ThermoGenesis, please
visit: www.thermogenesis.com.
Forward-Looking Statements
This press release contains
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. The forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements
contained herein. When used in this press release, the words
"anticipate," "believe," "estimate," "expect" and similar
expressions as they relate to the Company or its management are
intended to identify such forward-looking statements. Actual
results, performance or achievements could differ materially from
the results expressed in or implied by these forward-looking
statements. Readers should be aware of important factors that, in
some cases, have affected, and in the future could affect, actual
results to differ materially from those expressed in any
forward-looking statements made by or on behalf of the
Company. These factors include without limitation, the
ability to obtain capital and other financing in the amounts and at
the times needed to launch new products, market acceptance of new
products, the nature and timing of regulatory approvals for both
new products and existing products for which the Company proposes
new claims, realization of forecasted revenues, expenses and
income, initiatives by competitors, price pressures, failure to
meet FDA regulated requirements governing the Company's products
and operations (including the potential for product recalls
associated with such regulations), risks associated with initiating
manufacturing for new products, failure to meet Foreign Corrupt
Practice Act regulations, legal proceedings, uncertainty associated
with the COVID-19 pandemic, and other risk factors listed from time
to time in our reports with the Securities and Exchange Commission
("SEC"), including, in particular, those set forth in ThermoGenesis
Holdings' Form 10-K for the year ended December 31, 2019.
Company Contact:
Wendy
Samford
916-858-5191
ir@thermogenesis.com
Investor Contact:
Paula Schwartz, Rx
Communications
917-322-2216
pschwartz@rxir.com
Financials
|
ThermoGenesis
Holdings, Inc. Condensed Consolidated Balance
Sheets (Unaudited)
|
|
|
|
|
|
|
|
September
30,
2020
|
|
December
31,
2019
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$4,436,000
|
|
$3,157,000
|
|
|
Restricted cash
|
|
--
|
|
1,000,000
|
|
|
Accounts
receivable, net
|
|
1,698,000
|
|
1,278,000
|
|
|
Inventories, net
|
|
5,876,000
|
|
3,824,000
|
|
|
Prepaid
expenses and other current assets
|
|
766,000
|
|
602,000
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
12,776,000
|
|
9,861,000
|
|
|
|
|
|
|
|
|
|
Equipment and
leasehold improvements, net
|
|
1,537,000
|
|
2,028,000
|
|
|
Right-of-use
operating lease assets, net
|
|
765,000
|
|
859,000
|
|
|
Goodwill
|
|
781,000
|
|
781,000
|
|
|
Intangible assets,
net
|
|
1,382,000
|
|
1,467,000
|
|
|
Other
assets
|
|
48,000
|
|
218,000
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$17,289,000
|
|
$15,214,000
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$1,661,000
|
|
$1,447,000
|
|
|
Other
current liabilities
|
|
4,059,000
|
|
5,238,000
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
5,720,000
|
|
6,685,000
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
8,267,000
|
|
7,613,000
|
|
|
|
|
|
|
|
|
|
ThermoGenesis
Holdings, Inc. stockholders' equity
|
|
3,132,000
|
|
386,000
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
170,000
|
|
530,000
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$17,289,000
|
|
$15,214,000
|
|
ThermoGenesis
Holdings, Inc. Condensed Consolidated Statements of
Operations (Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Net
revenues
|
$2,355,000
|
|
$4,058,000
|
|
$7,797,000
|
|
$11,325,000
|
Cost of
revenues
|
844,000
|
|
2,163,000
|
|
7,426,000
|
|
6,220,000
|
|
|
|
|
|
|
|
|
Gross profit
|
1,511,000
|
|
1,895,000
|
|
371,000
|
|
5,105,000
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
and marketing
|
539,000
|
|
502,000
|
|
1,424,000
|
|
1,227,000
|
Research
and development
|
750,000
|
|
584,000
|
|
1,937,000
|
|
1,758,000
|
General
and administrative
|
1,305,000
|
|
1,139,000
|
|
4,489,000
|
|
3,617,000
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
2,594,000
|
|
2,225,000
|
|
7,850,000
|
|
6,602,000
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(1,083,000)
|
|
(330,000)
|
|
(7,479,000)
|
|
(1,497,000)
|
|
|
|
|
|
|
|
|
Interest
expense
|
(1,531,000)
|
|
(1,188,000)
|
|
(6,377,000)
|
|
(3,531,000)
|
Loss on equity method
investments
|
--
|
|
--
|
|
(13,000)
|
|
--
|
Loss on
extinguishment of debt
|
--
|
|
(840,000)
|
|
--
|
|
(840,000)
|
Other income
(expenses)
|
5,000
|
|
(15,000)
|
|
7,000
|
|
(27,000)
|
|
|
|
|
|
|
|
|
Total other expenses
|
(1,526,000)
|
|
(2,043,000)
|
|
(6,383,000)
|
|
(4,398,000)
|
|
|
|
|
|
|
|
|
Net loss
|
(2,609,000)
|
|
(2,373,000)
|
|
(13,862,000)
|
|
(5,895,000)
|
|
|
|
|
|
|
|
|
Loss attributable to
noncontrolling interests
|
(146,000)
|
|
(91,000)
|
|
(360,000)
|
|
(445,000)
|
Net loss attributable
to common stockholders
|
$(2,463,000)
|
|
$(2,282,000)
|
|
$(13,502,000)
|
|
$(5,450,000)
|
|
|
|
|
|
|
|
|
ThermoGenesis
Holdings, Inc. Condensed Consolidated Statements of Cash
Flows (Unaudited)
|
|
|
Nine Months
Ended
September
30,
|
|
2020
|
|
2019
|
Cash flows from
operating activities:
|
|
|
|
Net cash used
in operating activities
|
$(11,859,000)
|
|
$(3,518,000)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(23,000)
|
|
(178,000)
|
Net cash
used in investing activities
|
(23,000)
|
|
(178,000)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from convertible
promissory note-related party
|
4,287,000
|
|
1,513,000
|
Payments on financing lease
obligations
|
(32,000)
|
|
(15,000)
|
Proceeds from issuance of
common stock, net of expenses
|
5,580,000
|
|
756,000
|
Proceeds from exercise of
options, warrants and pre-funded warrants
|
1,683,000
|
|
42,000
|
Proceeds from long-term
debt
|
--
|
|
1,800,000
|
Proceeds from note
payable
|
646,000
|
|
--
|
|
|
|
|
Net cash
provided by financing activities
|
12,164,000
|
|
4,096,000
|
|
|
|
|
Effects of exchange
rate changes on cash and cash equivalents
|
(3,000)
|
|
--
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
279,000
|
|
400,000
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
4,157,000
|
|
3,400,000
|
Cash, cash
equivalents and restricted cash at end of period
|
$4,436,000
|
|
$3,800,000
|
|
|
|
|
ThermoGenesis
Holdings, Inc. Reconciliation of Adjusted EBITDA to Net
Income (Loss) (Unaudited)
|
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net loss
|
|
$(2,609,000)
|
|
$(2,373,000)
|
|
$(13,862,000)
|
|
$(5,895,000)
|
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,531,000)
|
|
(1,188,000)
|
|
(6,377,000)
|
|
(3,531,000)
|
Fair
value change of derivative instruments and
other
|
|
5,000
|
|
(15,000)
|
|
7,000
|
|
(27,000)
|
Loss on
extinguishment of debt
|
|
--
|
|
(840,000)
|
|
--
|
|
(840,000)
|
Loss on equity method investments
|
|
--
|
|
--
|
|
(13,000)
|
|
--
|
Loss from
operations
|
|
$(1,083,000)
|
|
$(330,000)
|
|
$(7,479,000)
|
|
$(1,497,000)
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
177,000
|
|
202,000
|
|
569,000
|
|
604,000
|
Stock-based compensation expense
|
|
234,000
|
|
253,000
|
|
615,000
|
|
459,000
|
Adjusted
EBITDA
|
|
$(672,000)
|
|
$125,000
|
|
$(6,295,000)
|
|
$(434,000)
|
The Company defines adjusted EBITDA as income (or loss) from
operations less, depreciation, amortization, stock compensation and
impairment of intangible assets.
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SOURCE ThermoGenesis Holdings, Inc.