- Completed Acquisition of Asterias
Biotherapeutics, Inc.
- Completed Distribution of AgeX
Therapeutics Shares to BioTime Shareholders
- Entered Into Exclusive Collaboration
with Orbit Biomedical Ltd.
BioTime, Inc. (NYSE American and TASE: BTX), a clinical-stage
biotechnology company focused on degenerative diseases, reported
financial and operating results for the fourth quarter and full
year ended December 31, 2018. BioTime management will host a
conference call and webcast today at 4:30 p.m. Eastern Time/1:30
p.m. Pacific Time to provide a business update.
“BioTime has been moving rapidly towards building a pioneering
cell therapy company through strategic transactions on the
corporate development, clinical, and operational fronts,” stated
Brian M. Culley, Chief Executive Officer of BioTime. “We have
broadened our pipeline through the acquisition of Asterias, adding
two innovative product candidates that we believe can substantially
impact diseases in need of innovative therapeutic approaches.
Moreover, we entered into an exclusive agreement with Orbit
Biomedical Ltd. which will allow us access to its recently
510(k)-approved device for the sub-retinal delivery of OpRegen® for
the treatment of dry-AMD. We also completed the distribution of
AgeX Therapeutics, Inc. shares to BioTime shareholders, following
the sale of half of our ownership in AgeX to Juvenescence Ltd. for
a total of $43.2 million. Importantly, we have continued to
streamline BioTime’s corporate structure and priorities with a
focus on creating value from our most compelling clinical
opportunities. Executing on our stated milestones at each stage of
corporate and clinical development and increasing our visibility
within the investment, medical, and patient communities are vital
activities which we believe will help drive the company’s
success.”
Recent Highlights
- Completed acquisition of Asterias
Therapeutics, Inc. BioTime acquired all of the remaining
outstanding common stock of Asterias not previously owned by
BioTime, and the operations of BioTime and Asterias were combined.
BioTime is now advancing three clinical stage product candidates
for the potential treatment of degenerative retinal diseases and
neurological conditions associated with demyelination, and to
potentially aid the body in detecting and combating cancer.
- Announced exclusive agreement with
Orbit Biomedical Ltd. (Orbit) under which BioTime and Orbit will
collaborate on the use of Orbit’s proprietary injection technology
to deliver OpRegen for the treatment of dry age-related macular
degeneration (dry-AMD) in BioTime’s ongoing Phase I/IIa clinical
study.
- Completed the distribution of
approximately 12.7 million shares of AgeX common stock owned by
BioTime on a pro rata basis to eligible BioTime shareholders.
BioTime retained an equity position in AgeX of 1.7 million shares,
or approximately 5% of AgeX’s common stock. As of March 13, 2019,
the value of BioTime’s AgeX share position was approximately $7.2
million.
- Presented encouraging data on BioTime’s
proprietary pluripotent stem cell technology as a platform to
address the retinal degeneration disease continuum presented at the
14th Annual Scientific Meeting of the Association For Ocular
Pharmacology and Therapeutics (AOPT 2019).
- BioTime affiliate OncoCyte Corporation
(NYSE American: OCX) recently reported positive results from an
R&D validation study of DetermaVu™, its non-invasive liquid
biopsy test intended to facilitate clinical decision making in lung
cancer diagnosis. Following a recently completed $40.25 million
public offering by OncoCyte, BioTime owns approximately 28% of
OncoCyte’s common stock, or 14.7 million shares. As of March 13,
2019, the value of BioTime’s OncoCyte share position was
approximately $55.9 million.
Plans for 2019
- Present updated results from the
ongoing Phase I/IIa clinical study of OpRegen for the treatment of
dry-AMD and the Vision Restoration Program at the 2019 Association
for Research in Vision and Ophthalmology Annual Meeting on May 2,
2019 and April 30, 2019, respectively.
- Pursuant to an exclusive collaboration
with Orbit Biomedical Ltd. for the use of Orbit’s proprietary
injection technology, initiate dosing of the first patient with the
Orbit device and a new thaw and inject formulation in the ongoing
Phase I/IIa clinical study of OpRegen for the treatment of dry-AMD,
anticipated in Q2 2019.
- Advance the OPC1 program and meet with
the FDA to discuss plans for next steps in the clinical development
of the program, anticipated in 2019.
- Strengthen and expand existing
partnerships with the California Institute for Regenerative
Medicine and Cancer Research UK, for the ongoing support of the
development of the OPC1 and VAC2 programs.
- Complete patient enrollment in the
ongoing Phase I/IIa clinical study of OpRegen for the treatment of
dry-AMD, anticipated by year end 2019.
- Evaluate the development of OPC1 as a
candidate for the potential treatment of multiple sclerosis (MS)
and ischemic stroke through ongoing research collaborations with
major universities.
- Announce decision on BioTime’s CE Mark
application for Renevia, an investigational medical device being
developed as an alternative for whole adipose tissue transfer
procedures, expected in the second half of 2019.
Balance Sheet Highlights
Cash, cash equivalents and marketable securities
totaled $30.7 million as of December 31, 2018.
BioTime’s investment in OncoCyte was valued at $20.3 million as
of December 31, 2018 and at $55.9 million as of March 13, 2019,
under the equity method of accounting.
BioTime’s promissory note from Juvenescence was valued at $22.1
million as of December 31, 2018. If Juvenescence completes an
initial public offering (IPO) resulting in gross proceeds of not
less than $50,000,000, the promissory note converts into
Juvenescence ordinary shares based on the per-share price to the
public in the IPO, subject to an upward adjustment in the number of
shares that would be issued to BioTime upon such conversion if the
20-day volume-weighted average trading price of one share of AgeX’s
common stock before the IPO is priced is above $3.00. If the
promissory note is converted, the Juvenescence ordinary shares will
be a marketable security that BioTime may use to supplement its
liquidity, as needed. If the promissory note is not converted, it
is payable in cash, plus accrued interest at 7% per year, at
maturity in August 2020.
Fourth Quarter Operating Results
Revenues: BioTime’s revenue is generated primarily from
research grants, licensing fees and royalties. Total revenues for
the three months ended December 31, 2018 were $0.8 million, a
decrease of $0.2 million, compared to $1.0 million for the same
period in 2017. The decrease was primarily related to a reduction
of $0.4 million attributable to the deconsolidation of AgeX
operations from BioTime’s financial results in August 2018, offset
by an increase of $0.2 million attributable to an increase in grant
revenues.
Operating Expenses: Operating expenses are comprised of
research and development (“R&D”) expenses and general and
administrative (“G&A) expenses. Total operating expenses for
the three months ended December 31, 2018 were $10.8 million,
as reported, and $8.1 million, as adjusted. AgeX was deconsolidated
from BioTime on August 30, 2018, and beginning on that date, AgeX’s
operating expenses are not included in BioTime’s operating
expenses.
The reconciliation between GAAP and non-GAAP operating expenses,
by entity, is provided in the financial tables included with this
earnings release.
R&D Expenses: Beginning on August 30, 2018, BioTime
ceased recognizing R&D expenses related to AgeX and its
programs due to the AgeX deconsolidation on that date.
R&D expenses for the three months ended December 31, 2018
were $3.8 million, a decrease of $0.9 million, compared to
$4.7 million for the same period in 2017. The decrease was
primarily related to a $0.8 million decrease from the AgeX
deconsolidation and the absence of AgeX research and development
expenses incurred after August 30, 2018.
G&A Expenses: Beginning on August 30, 2018, BioTime
ceased recognizing G&A expenses related to AgeX and its
subsidiaries due to the AgeX deconsolidation on that date.
G&A expenses for the three months ended December 31, 2018
were $7.0 million, an increase of $1.2 million, compared
to $5.8 million for the same period in 2017. The increase
was primarily attributable to increases of $1.0 million in legal
and related costs related to the Asterias merger announced in
November 2018 and completed on March 8, 2019, and $0.8 million in
noncash stock-based compensation expense due to additional equity
award grants and vesting of certain restricted stock units for
meeting performance milestones. These increases were partially
offset by a decrease of $0.8 million from the AgeX deconsolidation
and the absence of AgeX research and development expenses incurred
after August 30, 2018.
Other Income/(Expenses), Net: Other expenses, net for the three
months ended December 31, 2018 were $35.2 million, a decrease of
$32.1 million, compared to $67.3 million for the same period in
2017. The decrease was primarily related to changes in the value of
equity investments in OncoCyte, Asterias and AgeX for the
applicable periods.
Net loss attributable to BioTime: The net loss
attributable to BioTime for the three months ended December 31,
2018 was $45.0 million, or $0.35 per share (basic
and diluted), compared to a net loss attributable to BioTime
of $71.9 million, or $0.58 per share (basic and
diluted), for the same period in 2017.
Year-to-Date Operating Results
Revenues: Total revenues for the year ended December 31,
2018 were $5.0 million, an increase of $1.5 million, compared to
$3.5 million for 2017. The increase was primarily related to an
increase in grant revenues of $1.9 million, offset by a reduction
of $0.4 million in subscription and research related revenues
attributable to the deconsolidation of AgeX operations from
BioTime’s financial results in August 2018.
BioTime receives two types of grant revenues: one is for the
development of OpRegen and is received through BioTime’s Israeli
subsidiary, Cell Cure, from the Israeli Innovation Authority (IIA),
and the second is for BioTime’s vision restoration program and is a
Small Business Innovation Research grant from the National
Institutes of Health (NIH). Revenues from the IIA grant and the NIH
grant were $2.5 million and $1.1 million for the year ended
December 31, 2018, respectively, compared to revenues from the IIA
grant and the NIH grant of $1.5 million and $0.2 million,
respectively, for 2017.
Operating Expenses: Total operating expenses for the year ended
December 31, 2018 were $46.5 million, as reported, which is
comprised of $38.8 million for BioTime and $7.7 million for AgeX.
Total operating expenses for the year ended December 31, 2018
were $37.0 million, as adjusted, which is comprised of $31.0
million for BioTime and $6.0 million for AgeX.
R&D Expenses: R&D expenses for the year ended
December 31, 2018 were $21.8 million, a decrease of $2.2 million,
compared to $24.0 million for 2017. The decrease was mainly
attributable to:
- a decrease of $1.5 million in AgeX
related programs, including LifeMap Sciences, due to the AgeX
deconsolidation;
- a decrease of $0.8 million from the
absence of OncoCyte research and development expenses incurred in
2017 as a result of the OncoCyte deconsolidation in February
2017;
- a decrease of $0.5 million in LifeMap
Solutions expenses resulting from the cessation of its mobile
health software development application business in July 2017;
and
- a decrease of $0.3 million in BioTime
related program expenses, primarily related to completing the
Renevia clinical trial in early 2018.
The decreases were partially offset by an $0.8 million write-off
of certain acquired in-process R&D assets in March 2018 that
have no alternative future use by AgeX.
G&A Expenses: G&A expenses for the year ended
December 31, 2018 were $24.7 million, an increase of $4.8
million, compared to $19.9 million for 2017. The increase
was primarily attributable:
- an increase of $2.3 million related to
management transition and other compensation related costs,
including hiring costs for a new chief executive officer during
September 2018;
- an increase of $2.1 million for legal,
audit and compliance costs related to distributing 12.7 million
shares of AgeX common stock to BioTime shareholders in November
2018; and
- an increase of $1.5 million in noncash
stock-based compensation expense due to increases in equity award
grants.
These increases were partially offset by decreases of $1.4
million in combined G&A expenses related to the OncoCyte
deconsolidation in February 2017, and to LifeMap Solutions, which
ceased conducting its mobile health software application business
in July 2017, and $0.3 million in AgeX related costs, including
LifeMap Sciences, due to the AgeX deconsolidation.
Other Income/(Expenses), Net: Other income/(expenses), net for
the year ended December 31, 2018 were $5.3 million in expenses, as
compared to $15.6 million in income for 2017. The variance was
primarily driven by changes in market values of the Asterias
and OncoCyte shares held by BioTime and gains from the
AgeX deconsolidation in 2018 from the sale AgeX shares to
Juvenescence, and from the OncoCyte deconsolidation in 2017.
Net loss attributable to BioTime: The net loss
attributable to BioTime for the year ended December 31, 2018
was $46.0 million, or $0.36 per share (basic and
diluted), compared to a net loss attributable to BioTime
of $20.0 million, or $0.17 per share (basic and
diluted), for 2017.
Conference Call and Webcast
BioTime will host a conference call and webcast today, at 1:30pm
PT/4:30pm ET to discuss its fourth quarter and full year 2018
financial results and to provide a business update. Interested
parties may access the conference call by dialing (866) 888-8633
from the U.S. and Canada and (636) 812-6629 from elsewhere outside
the U.S. and should request the “BioTime Inc. Call”. A live webcast
of the conference call will be available online in the Investors
section of BioTime’s website. A replay of the webcast will be
available on BioTime’s website for 30 days and a telephone replay
will be available through March 21st, 2019, by dialing (855)
859-2056 from the U.S. and Canada and (404) 537-3406 from elsewhere
outside the U.S. and entering conference ID number 1091719.
About BioTime, Inc.
BioTime is a clinical-stage biotechnology company developing new
cellular therapies for degenerative retinal diseases, neurological
conditions associated with demyelination, and aiding the body in
detecting and combating cancer. BioTime’s programs are based on its
proprietary cell-based therapy platform and associated development
and manufacturing capabilities. With this platform BioTime develops
and manufactures specialized, terminally-differentiated human cells
from its pluripotent and progenitor cell starting materials. These
differentiated cells are developed either to replace or support
cells that are dysfunctional or absent due to degenerative disease
or traumatic injury, or administered as a means of helping the body
mount an effective immune response to cancer. BioTime common
stock is traded on the NYSE American and TASE under the symbol BTX.
For more information, please visit www.biotimeinc.com. To receive
ongoing BioTime corporate communications, please click on
the following link to join the Company’s email alert
list: http://news.biotime.com.
Forward-Looking Statements
BioTime cautions you that all statements, other than statements
of historical facts, contained in this press release, are
forward-looking statements. Forward-looking statements, in some
cases, can be identified by terms such as “believe,” “may,” “will,”
“estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,”
“could,” “plan,” “potential,” “predict,” “seek,” “should,” “would,”
“contemplate,” project,” “target,” “tend to,” or the negative
version of these words and similar expressions. Such statements
include, but are not limited to, statements relating to: the
ability of BioTime’s product candidates to substantially impact
diseases; BioTime’s plans to use Orbit’s proprietary injection
technology and device to initiate dosing of the first patient in
the ongoing Phase I/IIa clinical study of OpRegen for the treatment
of dry-AMD and the timing thereof; BioTime’s ability to advance its
product candidates and the timing thereof; BioTime’s ability to
strengthen and expand its partnerships for the ongoing support of
the development of the OPC1 and VAC2 programs; the completion of
patient enrollment in the ongoing Phase I/IIa clinical study of
OpRegen for the treatment of dry-AMD, and the timing thereof;
ongoing research collaborations with major universities to evaluate
the development of OPC1 as a candidate for the potential treatment
of MS and ischemic stroke; patient and community advocacy
engagement and initiatives, and the timing thereof; and the timing
of a decision on BioTime’s CE Mark application for Renevia.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause BioTime’s actual
results, performance or achievements to be materially different
from future results, performance or achievements expressed or
implied by the forward-looking statements in this press release,
including, without limitation, risk and uncertainties related to:
BioTime’s ability to raise additional capital when and as needed,
to advance its product candidates; BioTime’s ability to develop and
commercialize product candidates; the failure or delay in starting,
conducting and completing clinical trials or obtaining FDA or
foreign regulatory approval for BioTime’s product candidates in a
timely manner; the therapeutic potential of BioTime’s product
candidates, and the disease indications for which BioTime intends
to develop its product candidates; BioTime’s ability to conduct and
design successful clinical trials, to enroll a sufficient number of
patients, to meet established clinical endpoints, to avoid
undesirable side effects and other safety concerns, and to
demonstrate sufficient efficacy of its product candidates;
developments by BioTime competitors that make BioTime’s product
candidates less competitive or obsolete; BioTime’s ability to
manufacture its product candidates for clinical development and, if
approved, for commercialization, and the timing and costs of such
manufacture; the performance of third parties in connection with
the development and manufacture of BioTime’s product candidates,
including third parties conducting clinical trials as well as
third-party suppliers and manufacturers; the potential of BioTime’s
cell therapy platform, and BioTime’s plans to apply its platform to
research, develop and commercialize our product candidates;
BioTime’s ability, and the ability of its licensors, to obtain,
maintain, defend and enforce intellectual property rights
protecting BioTime’s product candidates, and BioTime’s ability to
develop and commercialize its product candidates without infringing
the proprietary rights of third parties; BioTime’s ability to
recruit and retain key personnel; and BioTime’s ability to
successfully integrate the operations of Asterias into BioTime.
BioTime’s forward-looking statements are based upon its current
expectations and involve assumptions that may never materialize or
may prove to be incorrect. All forward-looking statements are
expressly qualified in their entirety by these cautionary
statements. For a detailed description of BioTime’s risks and
uncertainties, you are encouraged to review its documents filed
with the SEC including its recent filings on Form 8-K, Form 10-K
and Form 10-Q. You are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on
which they were made. BioTime undertakes no obligation to update
such statements to reflect events that occur or circumstances that
exist after the date on which they were made, except as required by
law.
Tables to follow
BIOTIME, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
December 31, December 31,
2018 2017 ASSETS CURRENT ASSETS Cash and cash
equivalents $ 23,587 $ 36,838 Marketable equity securities 7,154
1,337 Trade accounts and grants receivable, net 767 780 Landlord
receivable 840 - Receivables from affiliates, net 2,112 2,266
Prepaid expenses and other current assets 1,898 1,402
Total current assets 36,358 42,623 NONCURRENT
ASSETS Property and equipment, net 5,835 5,533 Deposits and other
long term assets 505 1,018 Promissory note from Juvenescence 22,104
- Equity method investment in OncoCyte, at fair value 20,250 68,235
Equity method investment in Asterias, at fair value 13,483 48,932
Intangible assets, net 3,125 6,900 TOTAL ASSETS $
101,660 $ 173,241
LIABILITIES AND SHAREHOLDERS’
EQUITY CURRENT LIABILITIES Accounts payable and accrued
liabilities $ 6,463 $ 5,718 Capital lease and lease liability,
current portion 237 212 Promissory notes, current portion 70 152
Deferred license and subscription revenues - 488 Deferred grant
revenue 42 309 Total current liabilities 6,812
6,879 LONG-TERM LIABILITIES Deferred rent
liabilities, net of current portion 244 105 Lease liability, net of
current portion 1,854 1,019 Capital lease, net of current portion
104 132 Promissory notes, net of current portion - 18 Liability
classified warrants and other long-term liabilities 400
825 TOTAL LIABILITIES 9,414 8,978
Commitments and contingencies SHAREHOLDERS’ EQUITY Preferred
shares, no par value, authorized 2,000 shares; none issued and
outstanding as of December 31, 2018 and 2017, respectively - -
Common shares, no par value, 250,000 shares authorized; 127,136 and
126,866 shares issued and outstanding as of December 31, 2018 and
2017, respectively 354,270 378,487 Accumulated other comprehensive
income 1,426 451 Accumulated deficit (261,856)
(216,297) BioTime, Inc. shareholders’ equity 93,840 162,641
Noncontrolling interest (deficit) (1,594) 1,622 Total
shareholders’ equity 92,246 164,263 TOTAL LIABILITIES
AND SHAREHOLDERS’ EQUITY $ 101,660 $ 173,241
BIOTIME, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE
DATA) (UNAUDITED)
Three Months Ended Year Ended
December 31, December 31, 2018 2017
2018 2017 REVENUES: Grant revenue $ 587 $ 430
$ 3,572 $ 1,666 Royalties from product sales and license fees 80
112 392 389 Subscription and advertisement revenues - 455 691 1,395
Sale of research products and services 91 2
333 8 Total revenues 758 999 4,988 3,458 Cost of
sales (52) (54) (302) (168)
Gross profit 706 945
4,686 3,290
OPERATING EXPENSES: Research and
development (3,780) (4,697) (20,955) (24,024) Acquired in-process
research and development -
-
(800) - General and administrative (7,033) (5,811)
(24,726) (19,922) Total operating expenses
(10,813) (10,508) (46,481) (43,946) Gain on
sale of assets - - - 1,754 Loss from
operations (10,107) (9,563) (41,795)
(38,902)
OTHER INCOME/(EXPENSES): Interest income
(expense), net 433 37 711 (692) Gain on sale of equity method
investment in Ascendance - - 3,215
-
Gain on sale of AgeX shares and deconsolidation of AgeX - - 78,511
- Gain on deconsolidation of OncoCyte - - - 71,697 Loss on equity
method investment in OncoCyte at fair value (16,435) (42,555)
(47,985) (2,935) Loss on equity method investment in Asterias at
fair value (14,789) (25,010) (35,449) (51,107) Loss on equity
method investment in AgeX at fair value (4,181) - (4,181) -
Unrealized gain on marketable equity securities 523 - 1,158 - Loss
on extinguishment of related party convertible debt - - - (2,799)
Other income/(expense), net (774) 247 (1,315)
1,449 Total other income (expenses), net (35,223)
(67,281) (5,335) 15,613
LOSS BEFORE INCOME
TAXES (45,330) (76,844) (47,130) (23,289) Income tax
benefit 346 4,772 346 -
NET
LOSS (44,984) (72,072) (46,784) (23,289) Net loss
attributable to noncontrolling interest 32 138
794 3,313
NET LOSS ATTRIBUTABLE TO BIOTIME,
INC. $ (44,952) $ (71,934) $ (45,990) $ (19,976) NET
LOSS PER COMMON SHARE: BASIC AND DILUTED $ (0.35) $ (0.58) $ (0.36)
$ (0.17) WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING: BASIC AND DILUTED 126,990 124,822
126,903 114,476
BIOTIME, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (IN THOUSANDS)
Year Ended December 31, 2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES: Net loss attributable
to BioTime, Inc. $ (45,990) $ (19,976) Net loss allocable to
noncontrolling interest (794) (3,313) Adjustments to reconcile net
loss attributable to BioTime, Inc. to net cash used in operating
activities: Gain on sale of AgeX shares and deconsolidation of AgeX
(78,511) - Gain on deconsolidation of OncoCyte - (71,697) Gain on
sale of equity method investment in Ascendance (3,215) - Acquired
in-process research and development 800 - Unrealized loss on equity
method investment in OncoCyte at fair value 47,985 2,935 Unrealized
loss on equity method investment in Asterias at fair value 35,449
51,107 Unrealized loss on equity method investment in AgeX at fair
value 4,181 - Unrealized gain on marketable equity securities
(1,158) - Income tax benefit (346) - Depreciation expense,
including amortization of leasehold improvements 1,081 947
Amortization of intangible assets 2,192 2,349 Stock-based
compensation 5,402 3,932 Liability classified warrants (384) 797
Amortization of discount on related party convertible debt - 640
Foreign currency remeasurement and other (gain) loss 1,788 (1,761)
Gain on sale of assets - (1,754) Loss on extinguishment of related
party debt - 2,799 Changes in operating assets and liabilities:
Accounts and grants receivable, net 46 (172) Due from affiliates
559 1,157 Prepaid expenses and other current assets (437) 145 Other
long-term assets and liabilities (487) (22) Accounts payable and
accrued liabilities 1,100 1,299 Deferred revenues and grant income
(287) 243 Deferred grant expense - (227) Deferred rent liabilities
144 55 Net cash used in operating activities
(30,882) (30,517)
CASH FLOWS FROM INVESTING
ACTIVITIES: Deconsolidation of cash and cash equivalents of
AgeX (9,704) - Deconsolidation of cash and cash equivalents of
OncoCyte - (8,898) Proceeds from the sale of AgeX common stock to
Juvenescence 21,600 - Proceeds from the sale of equity method
investment in Ascendance 3,215 - Purchase of in-process research
and development by AgeX (1,872) - Purchase of property and
equipment (556) (1,326) Payments on construction in progress (859)
- Purchase of foreign available-for-sale securities - (189)
Proceeds from sale of assets - 200 Security deposit paid and other
(8) (12) Cash used provided by (used in) investing
activities 11,816 (10,225)
CASH FLOWS FROM
FINANCING ACTIVITIES: Proceeds from issuance of common shares -
48,875 Fees paid on sale of common shares - (3,798) Proceeds from
exercise of stock options - 25 Common shares received and retired
for employee taxes paid (203) (45) Proceeds from exercise of
subsidiary stock options and warrants - 4 Proceeds from sale of
subsidiary common shares and warrants 6,000 9,968 Proceeds from
sale of common shares at-the-market, net of fees - 835 Purchase and
retirement of common shares from a related party - (843) Repayment
of lease liability and capital lease obligation (248) (204)
Reimbursement from landlord on construction in progress 364 198
Proceeds from issuance of related party convertible debt - 425
Repayment of promissory notes (101) (49) Payment to repurchase
subsidiary shares (38) - Net cash provided by
financing activities 5,774 55,391 Effect of exchange
rate changes on cash, cash equivalents and restricted cash 6
101
NET INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH (13,286) 14,750
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH: At beginning of year
37,685 22,935 At end of year $ 24,399 $ 37,685
Non-GAAP Financial Measures
This press release includes operating expenses prepared in
accordance with accounting principles generally accepted in the
United States (GAAP) and, includes operating expenses, by entity,
prepared in accordance with GAAP. This press release also includes
certain historical non-GAAP operating expenses and non-GAAP
operating expenses, by entity. In particular, BioTime has provided
both (a) non-GAAP total operating expenses, adjusted to exclude
noncash stock-based and other compensation, depreciation and
amortization expense, and acquired in-process research and
development expense incurred by AgeX Therapeutics, a nonrecurring
item, and (b) non-GAAP operating expenses, by entity, to exclude
those same charges by the respective entities for consistency.
Non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable financial measures
prepared in accordance with GAAP. However, BioTime believes the
presentation of non-GAAP total operating expenses and non-GAAP
operating expenses, by entity, when viewed in conjunction with our
GAAP total operating expenses, and GAAP operating expenses by
entity, respectively, is helpful in understanding BioTime’s ongoing
operating expenses and its programs within various entities,
including BioTime’s programs in clinical development.
Furthermore, management uses these non-GAAP financial measures
in the aggregate and on an entity basis to establish budgets and
operational goals, to manage BioTime’s business and to evaluate its
performance and its programs in clinical development.
BIOTIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURE
ADJUSTED OPERATING EXPENSES
Amounts In Thousands For the Three Months
Ended December 31, For the Year Ended
2018 December 31, 2018 (unaudited)
(unaudited) GAAP Operating Expenses - as
reported(1) $ 10,813 $
46,481 Stock-based and other noncash compensation expense(2)
(2,003) (5,395) Depreciation and amortization expense(2) (734)
(3,273) Acquired AgeX in-process research and development
expense(3) - (800) Non-GAAP Operating
Expenses, as adjusted $ 8,076 $ 37,013
GAAP
Operating Expenses - by entity(1) BioTime and
subsidiaries other than AgeX Therapeutics, Inc.(4) $ 10,813 $
38,754 AgeX Therapeutics Inc. and subsidiaries(5) -
7,727
GAAP Operating Expenses - by entity
$ 10,813 $ 46,481
Non-GAAP Operating Expenses - as adjusted, by entity BioTime
and subsidiaries other than AgeX Therapeutics, Inc.(4) $ 8,076 $
31,020 AgeX Therapeutics Inc. and subsidiaries(5) -
5,993 Non-GAAP Operating Expenses - as adjusted, by
entity $ 8,076 $ 37,013 (1) Beginning
on August 30, 2018, BioTime deconsolidated AgeX’s results and
therefore BioTime’s results will not include AgeX’s results for
periods after August 30, 2018. (2) Noncash charges. (3) AgeX
acquired certain in-process research and development in March 2018,
considered to be a nonrecurring item. See note (1). (4) BioTime,
Inc. includes Cell Cure Neurosciences Ltd., ES Cell International
Pte. Ltd. and OrthoCyte Corporation. For the three and twelve
months ended December 31, 2018, the GAAP and non-GAAP operating
expenses do not include grant revenues of $0.6 million and $3.6
million, respectively, as grants are revenues for BioTime. (5) AgeX
Therapeutics, Inc. includes LifeMap Sciences Inc., LifeMap Sciences
Ltd., and ReCyte Therapeutics, Inc. The information shown above is
through August 29, 2018, the date before the deconsolidation of
AgeX. See Note (1).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190314005823/en/
BioTime Inc. IRIoana C. Honeir@biotimeinc.com(510)
871-4188
Solebury Trout IRGitanjali Jain
Ogawa(Gogawa@troutgroup.com)(646) 378-2949
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