RANCHO CORDOVA, Calif.,
Aug. 12, 2021 /PRNewswire/
-- ThermoGenesis Holdings, Inc. (Nasdaq: THMO), a market
leader in automated cell processing tools and services in the cell
and gene therapy field, today reported financial and operating
results for the second quarter ended June
30, 2021 and provided a corporate strategic update.
"Cell and gene therapies are poised to continue to revolutionize
many areas of medicine, and ThermoGenesis has been a pioneer in the
development and commercialization of automated cell processing
technologies that provide more efficient, higher-quality and
cost-effective manufacturing solutions to move these therapies
through the clinic and ultimately, to patients in need," stated
Chris Xu, Ph.D., Chief Executive
Officer of ThermoGenesis. "Throughout our 35-year history, we have
leveraged the inherent flexibility of our proprietary technology
platform to meet the ever-changing needs of the industry. Given the
sheer volume of clinical trials currently underway in the CAR-T
cell therapy field, alone, and the high manufacturing costs
and serious capacity limitations of current cell-based contract
development and manufacturing (CDMO) services, there remains a
serious unmet need to bring these lifesaving therapies to
market."
Dr. Xu continued, "Most of the existing players in the CDMO
arena do not have proprietary manufacturing technologies which
contributes to the market bottlenecks. To capitalize on the
inefficiencies in the industry, we are committed to leveraging our
high efficiency, semi-automated CAR-TXpress™ platform, which has
been shown to reduce the manufacturing costs associated with CAR-T
and other cell and gene therapies by up to 70% and plan to
transition from a device-only company to a provider of CDMO
services for the global cell and gene therapy market. We look
forward to reporting more on this exciting transformation in the
coming months."
Financial Results for the Quarter Ended June 30, 2021
Net revenues. Net revenues for the quarter ended
June 30, 2021, were $2.2 million, approximately equal to the quarter
ended June 30, 2020. The
quarter ended June 30, 2021 had AXP
sales increase by $0.4 million or 64%
and BioArchive sales increase by $0.1
million or 20%, as compared to the same period in 2020. We
believe this is a positive sign, illustrating that cord blood
revenues may be starting to return to pre-pandemic levels. While
the Company does not have any specific industry data at this time
regarding the number of cord blood units stored globally, AXP
disposable sales increased by approximately 150 cases in the second
quarter of 2021 as compared to 2020. The increased demand for AXP
bagsets appears to imply that global cord blood units stored are
beginning to pick up. These increases were offset by CAR-TXpress
and other sales which decreased by a combined $0.6 million, in the quarter ended June 30, 2021.
Gross profit. Gross profit for the quarter ended
June 30, 2021, was $1.0 million, or 45% of net revenue,
compared to a loss of $2.6
million, or (117)% of net revenues, for the quarter ended
June 30, 2020, representing a
$3.6 million improvement. The
increase was driven by a one-time expense of approximately
$3.6 million incurred in the quarter
ended June 30, 2020, associated with
an inventory reserve expense for the remaining on-hand inventory of
COVID-19 testing kits at that time. Additionally, the Company had
an increase in gross profit from AXP disposables due to
approximately 150 more cases being sold in the quarter ended
June 30, 2021, as compared to the
same period in 2020. This was offset by a decrease in gross profit
from CAR-TXpress, which experienced a sales decline in the same
period.
Selling, general and administrative
expenses. Selling, general and administrative expenses
were $3.5 million for the quarter
ended June 30, 2021, as compared to
$2.0 million for the quarter ended
June 30, 2020, an increase of
$1.5 million or 77%. The increase was
driven primarily by stock compensation expense, which rose by
approximately $1.6 million primarily
due to the accelerated expense for the stock options that were
voluntarily surrendered by Company executives in the quarter ended
June 30, 2021.
Research and development expenses. Research and
development expenses were $0.6
million for the quarter ended June
30, 2021, compared to $0.6
million for the quarter ended June
30, 2020. The quarter ended June 30,
2021, had an increase of approximately $0.1 million in stock compensation expense offset
by a decrease of approximately $0.1
million related to lower salaries and benefits, as compared
to the same period in 2020.
Interest Expense. Interest expense for the quarter
ended June 30, 2021, was $1.5 million, as compared to $1.3 million for the quarter ended June 30, 2020, an increase of $0.2 million or 16%. 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. in the quarter ended June
30, 2021, as compared to the same period in 2020.
Net loss. For the quarter ended June 30, 2021, the Company reported a
comprehensive loss attributable to common stockholders of
$4.5 million, or ($0.38) per share, based on approximately 11.9
million weighted average basic and diluted common shares
outstanding. This compares to a comprehensive net loss of
$6.4 million, or ($1.02) per share, based on approximately 6.3
million weighted average basic and diluted common shares
outstanding for the quarter ended June 30,
2020.
Adjusted EBITDA. In addition to the results
reported under US GAAP, the Company also uses a non-GAAP measure,
Adjusted EBITDA, to evaluate operating performance and to
facilitate the comparison of our historical results and trends. The
Company uses the metric to determine operational cash flow.
Adjusted EBITDA loss for the quarter ended June 30, 2021, was $0.9
million, as compared to a loss of $4.7 million for the quarter ended June 30, 2020, an increase of $3.8 million or 81%. The adjusted EBITDA
improvement was primarily due to lower inventory reserves of
approximately $3.6 million in the
quarter ended June 30, 2021.
Liquidity and Capital Resources. At June 30, 2021, the Company had cash and cash
equivalents totaling $8.7 million,
compared with $7.2 million at
December 31, 2020. Working capital
was $4.2 million at June 30, 2021, as compared to $9.2 million at December
31, 2020.
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, 2020.
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
|
|
|
|
|
June 30,
2021
|
|
December
31,
2020
|
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$8,668,000
|
|
$7,161,000
|
|
|
Accounts
receivable, net
|
|
1,242,000
|
|
1,382,000
|
|
|
Inventories
|
|
5,813,000
|
|
5,877,000
|
|
|
Prepaid
expenses and other current assets
|
|
354,000
|
|
878,000
|
|
|
Total current assets
|
|
16,077,000
|
|
15,298,000
|
|
|
|
|
|
|
|
|
|
Inventories,
non-current
|
|
2,227,000
|
|
1,221,000
|
|
|
Equipment and
leasehold improvements, net
|
|
1,282,000
|
|
1,424,000
|
|
|
Right-of-use
operating lease assets, net
|
|
654,000
|
|
730,000
|
|
|
Goodwill
|
|
781,000
|
|
781,000
|
|
|
Other intangible
assets, net
|
|
1,334,000
|
|
1,358,000
|
|
|
Other
assets
|
|
48,000
|
|
48,000
|
|
|
Total assets
|
|
$22,403,000
|
|
$20,860,000
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$1,120,000
|
|
$1,366,000
|
|
|
Other
current liabilities
|
|
10,791,000
|
|
4,777,000
|
|
|
Total current liabilities
|
|
11,911,000
|
|
6,143,000
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
2,623,000
|
|
8,847,000
|
|
|
|
|
|
|
|
|
|
ThermoGenesis
Holdings, Inc. stockholders' equity
|
|
8,050,000
|
|
5,800,000
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
(181,000)
|
|
70,000
|
|
|
Total liabilities and equity
|
|
$22,403,000
|
|
$20,860,000
|
|
ThermoGenesis
Holdings, Inc.
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
revenues
|
$2,201,000
|
|
$2,242,000
|
|
$3,718,000
|
|
$5,442,000
|
Cost of
revenues
|
1,215,000
|
|
4,874,000
|
|
2,024,000
|
|
6,582,000
|
|
|
|
|
|
|
|
|
Gross profit (loss)
|
986,000
|
|
(2,632,000)
|
|
1,694,000
|
|
(1,140,000)
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
Selling,
general and administrative
|
3,502,000
|
|
1,978,000
|
|
5,494,000
|
|
4,070,000
|
Research
and development
|
622,000
|
|
578,000
|
|
1,001,000
|
|
1,187,000
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
4,124,000
|
|
2,556,000
|
|
6,495,000
|
|
5,257,000
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(3,138,000)
|
|
(5,188,000)
|
|
(4,801,000)
|
|
(6,397,000)
|
|
|
|
|
|
|
|
|
Other
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(1,524,000)
|
|
(1,314,000)
|
|
(3,043,000)
|
|
(4,845,000)
|
Other income
(expenses)
|
(10,000)
|
|
(8,000)
|
|
(11,000)
|
|
(11,000)
|
Gain on
extinguishment of debt
|
--
|
|
--
|
|
652,000
|
|
--
|
Total
other expense
|
(1,534,000)
|
|
(1,322,000)
|
|
(2,402,000)
|
|
(4,856,000)
|
|
|
|
|
|
|
|
|
Net loss
|
(4,672,000)
|
|
(6,510,000)
|
|
(7,203,000)
|
|
(11,253,000)
|
|
|
|
|
|
|
|
|
Loss attributable to
noncontrolling interests
|
(133,000)
|
|
(73,000)
|
|
(251,000)
|
|
(214,000)
|
Net loss attributable
to common stockholders
|
$(4,539,000)
|
|
$(6,437,000)
|
|
$(6,952,000)
|
|
$(11,039,000)
|
|
|
|
|
|
|
|
|
ThermoGenesis
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
Six Months
Ended
June 30,
|
|
2021
|
|
2020
|
Cash flows from
operating activities:
|
|
|
|
Net
cash used in operating activities
|
$(5,244,000)
|
|
$(8,953,000)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(80,000)
|
|
(23,000)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from convertible
promissory note-related party
|
--
|
|
4,287,000
|
Payments on finance lease
obligations
|
--
|
|
(22,000)
|
Proceeds from issuance of
common stock, net of expenses
|
6,832,000
|
|
5,214,000
|
Proceeds from the exercise
of options, warrants and pre-funded warrants
|
--
|
|
1,683,000
|
Proceeds from note
payable
|
--
|
|
646,000
|
|
|
|
|
Net
cash provided by financing activities
|
6,832,000
|
|
11,808,000
|
|
|
|
|
Effects of foreign
currency rate changes on cash and cash equivalents
|
(1,000)
|
|
(5,000)
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
1,507,000
|
|
2,827,000
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
7,161,000
|
|
4,157,000
|
Cash, cash
equivalents and restricted cash at end of period
|
$8,668,000
|
|
$6,984,000
|
|
|
|
|
ThermoGenesis
Holdings, Inc.
|
Reconciliation of
Adjusted EBITDA to Net Loss
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net loss
|
|
$(4,672,000)
|
|
$(6,510,000)
|
|
$(7,203,000)
|
|
$(11,253,000)
|
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,524,000)
|
|
(1,314,000)
|
|
(3,043,000)
|
|
(4,845,000)
|
Other
expense
|
|
(10,000)
|
|
(8,000)
|
|
(11,000)
|
|
(11,000)
|
Gain on
extinguishment of debt
|
|
--
|
|
--
|
|
652,000
|
|
--
|
Loss from
operations
|
|
$(3,138,000)
|
|
$(5,188,000)
|
|
$(4,801,000)
|
|
$(6,397,000)
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
154,000
|
|
193,000
|
|
320,000
|
|
392,000
|
Stock-based compensation expense
|
|
2,099,000
|
|
314,000
|
|
2,357,000
|
|
381,000
|
Adjusted
EBITDA
|
|
$(885,000)
|
|
$(4,681,000)
|
|
$(2,124,000)
|
|
$(5,624,000)
|
|
|
|
|
|
|
|
|
|
|
|
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.