BioStem Technologies
Reports Second Quarter 2022
Operating and Financial Results
POMPANO BEACH, FL -- August 23,
2022 -- InvestorsHub
NewsWire -- BioStem Technologies Inc. (OTC: BSEM), a
leading regenerative medicine company focused on the development,
manufacture, and commercialization of placental derived biologics,
today reported financial results for the quarter ended June 30,
2022.
Jason Matuszewski, Chief Executive
Officer of BioStem Technologies Inc. said, "We made strong
operational and financial progress in the second quarter of 2022.
We continue along our rapid growth trajectory with gross revenue of
$2.2 million and an 82% gross margin for the quarter. This is a
result of our highly experienced commercial team that we continue
to build out to match the pace of our growth and expanding product
portfolio around our BioRetain Process."
Business Updates:
-
Continued transition from an indirect
salesforce to a direct salesforce along with the implementation of
sales training programs for more compelling product
messaging
-
BioRetain®: BioStem's Operations, Research, and
Development teams continue to develop the proprietary processing
technology called BioRetain®, which will help preserve the biologic
qualities of the Company's products. The company will soon be
engaging with several market development focus groups, industry
thought leaders and key stakeholders.
-
VENDAJE®, VENDAJE AC® and VENDAJE Optic®: BioStem Will be expanding its product offering
in the second half of the year with VENDAJE AC® and VENDAJE Optic®. This will allow the company to become a
recognized leader in Advanced Wound Care, Surgical, and Plastic
& Dermatology.
Three-months Ending June 30, 2022, - Financial Results
Summary
-
Net
revenue of $2.158 million for the quarter ended June 30, 2022, up
133%, compared to net revenue of $0.926 million for the quarter
ended June 30, 2021.
-
Gross
profit for the quarter ended June 30, 2022, was $1.773 million, or
82% of revenue, compared to $0.484 million, or 52% of net revenue,
for the quarter ended June 30, 2021, an increase of $1.289 million,
or 266%.
-
Net
income of $0.203 million for the quarter ended June 30, 2022,
compared to a net loss of ($0.372) million for the quarter ended
June 30, 2021, an improvement of $0.575 million and 155% over the
quarter ended June 30, 2021.
-
Adjusted EBITDA of $0.591 million, or 27% of
net revenue, for the quarter ended June 30, 2022, compared to
Adjusted EBITDA loss of ($0.166) million, or (18%) of net revenue,
for the quarter ended June 30, 2021, an improvement of $0.757
million or 455%. See the GAAP to Adjusted EBITDA reconciliation
below.
Six-Months Ending June 30, 2022, - Financial Results
Summary:
-
Net
revenue of $4.936 million year-to-date June 30, 2022, up 173%,
compared to net revenue of $1.809 million for the six-months ended
June 30, 2021.
-
Gross
profit for the six-months ended June 30, 2022, was $4.191 million,
or 85% of revenue, compared to $1.088 million, or 60% of net
revenue, for the six months ended June 30, 2021, an increase of
$3.104 million, or 285%.
-
Net
loss of ($0.654) million year-to-date June 30, 2022, compared to a
net loss of ($0.433) million for the six-months ended June 30,
2021, an increase in net loss of $0.221 million and 51% over the
six-months June 30, 2021.
-
Adjusted EBITDA of $2.141 million, or 43% of
net revenue, for the six-months ended June 30, 2022, compared to
Adjusted EBITDA of $0.127 million, or 7% of net revenue, for the
six-months ended June 30, 2021, an improvement of $2.014 million or
1,588%.
See the GAAP to Adjusted EBITDA
reconciliation below.
Quarter and Year-to
Date ending June 30, 2022 -
Results:
The following table represents net
revenue, gross margin, operating expenses, and other income (loss)
for the three and six-months ended June 30, 2022, and June 30,
2021, respectively:
Statement of
Operations Highlights-Year to Date June 30, 2022:
Net revenue for the six-months ended
June 30, 2022, was
$4.936 million, compared to $1.809 million for the quarter ended
June 30, 2021, an increase of $3.128 million, or 173%. The increase in
sales was driven primarily by the expansion of our distribution
network, resulting in increased sales of our Vendaje product. Since
CMS granted a Q-Code in September 2021, we've seen additional
market acceptance and additional sales volume.
Gross profit for the six-months ended
June 30, 2022, was $4.191 million, or 85% of net revenue, compared to $1.088
million, or 60% of net revenue, for the quarter ended June 30, 2021, an increase of $3.104
million, or 285%. The increase in gross profit resulted primarily
from increased sales volume due to the strength in our Vendaje
products as well as a shift in product mix to our higher gross
margin products.
Operating expenses for the six-months
ended June 30, 2022, were $4.612 million, compared to $1.399
million for the six-months ended June 30, 2021, an increase of
$3.213 million or 230%. Increase in operating expenses is primarily
driven by additional headcount, additional marketing expense,
investments in a direct sales force, and increases in share-based
compensation related to the conversion of debt and accrued salaries
at a discount to the fair value of equity on the date of
conversion.
Total other (expense) income, net, for the
six-months ended June
30, 2022, were ($0.233)
million, compared to ($0.122) million for the six-months
ended June 30, 2021, an
increase in expense of $0.111 million or 92%. The six months
ended June 30, 2021, contains the benefit of the one-time PPP loan
forgiveness of $0.142 million.
Net loss for the six-months ended June
30, 2022, was ($0.654)
million, or ($0.06) per
share, compared to of ($0.433)
million, or ($0.05) per share, for the
six-months ended June 30, 2021, an increase to net loss of ($0.221)
million, or ($0.01) per share.
Statement of
Cashflows and Balance Sheet Highlights:
Cashflows provided by operations was
$0.664 million for the six-months ended June 30, 2022, compared to
cashflows provided by operations of $0.118 million for the
six-months ended June 30, 2021. The increase in cash provided
by operations is due to management's continued discipline over
operating expenses as well as to an increase in product
sales.
The Company maintained cash on hand as
of June 30, 2022, $1.372 million compared to $0.270 million as of
June 30, 2021.
The Company continues to strengthen
its balance sheet. The Company converted $3.318 million of
liabilities to common stock during the six-months ended June 31,
2022.
BIOSTEM TECHNOLOGIES INC. CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
BIOSTEM TECHNOLOGIES INC. CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
NON-GAAP FINANCIAL MEASURES
Our management uses financial measures
that are not in accordance with generally accepted accounting
principles in the United States, or GAAP, in addition to financial
measures in accordance with GAAP to evaluate our operating results.
These non-GAAP financial measures should be considered supplemental
to, and not a substitute for, our reported financial results
prepared in accordance with GAAP. Our management uses Adjusted
EBITDA to evaluate our operating performance and trends and make
planning decisions. Our management believes Adjusted EBITDA helps
identify underlying trends in our business that could otherwise be
masked by the effect of the items that we exclude. Accordingly, we
believe that Adjusted EBITDA provides useful information to
investors and others in understanding and evaluating our operating
results, enhancing the overall understanding of our past
performance and future prospects, and allowing for greater
transparency with respect to key financial metrics used by our
management in its financial and operational
decision-making.
The following is a reconciliation of
GAAP net income (loss) to non-GAAP EBITDA and non-GAAP Adjusted
EBITDA for each of the periods presented:
About BioStem Technologies,
Inc. (OTC
PINK: BSEM): BioStem Technologies is a leading innovator
focused on harnessing the natural properties of perinatal tissue in
the development, manufacture, and commercialization of allografts
for regenerative therapies. The Company is focused on manufacturing
products that change lives, leveraging its proprietary BioRetain®
processing method. BioRetain® has been developed by applying the
latest research in regenerative medicine, focused on maintaining
growth factors and preserving tissue structure. BioStem
Technologies' quality management system and standard operating
procedures have been reviewed and accredited by the American
Association of Tissue Banks ("AATB"). These systems and procedures
are established per current Good Tissue Practices ("cGTP") and
current Good Manufacturing Processes ("cGMP"). Our portfolio of
quality brands includes VENDAJETM, VENDAJETM AC, and VENDAJETM OPTIC. Each BioStem Technologies
placental allograft is processed at the Company's FDA registered
and AATB accredited site in Pompano Beach,
Florida.
Forward-Looking
Statements: Except for statements of historical fact,
this release also contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements relate to expectations or
forecasts of future events. Forward-looking statements may be
identified using words such as "forecast," "intend," "seek,"
"target," "anticipate," "believe," "expect," "estimate," "plan,"
"outlook," and "project" and other similar expressions that predict
or indicate future events or trends or that are not statements of
historical matters. Forward-looking statements with respect to the
operations of the Company, strategies, prospects and other aspects
of the business of the Company are based on current expectations
that are subject to known and unknown risks and uncertainties,
which could cause actual results or outcomes to differ materially
from expectations expressed or implied by such forward-looking
statements. These factors include, but are not limited to: (1) the
impact of any changes to the reimbursement levels for the Company's
products; (2) the Company faces significant and continuing
competition, which could adversely affect its business, results of
operations and financial condition; (3) rapid technological change
could cause the Company's products to become obsolete and if the
Company does not enhance its product offerings through its research
and development efforts, it may be unable to effectively compete;
(4) to be commercially successful, the Company must convince
physicians that its products are safe and effective alternatives to
existing treatments and that its products should be used in their
procedures; (5) the Company's ability to raise funds to expand its
business; (6) the Company has incurred significant losses since
inception and may incur losses in the future; (7) changes in
applicable laws or regulations; (8) the possibility that the
Company may be adversely affected by other economic, business,
and/or competitive factors;
(9) the Company's ability to maintain production of its
products in sufficient quantities to meet demand; and (10) the COVID-19 pandemic and
its impact, if any, on the Company's fiscal condition and results
of operations; You are cautioned not to place undue reliance upon
any forward-looking statements, which speak only as of the date
made. Although it may voluntarily do so from time to time, the
Company undertakes no commitment to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
securities laws.
BioStem
Technologies, Inc.
Phone:
954-380-8342
Website: http://www.biostemtechnologies.com
Email: info@biostemtech.com
Twitter:
@BSEM_Tech
Facebook:
BioStem Technologies
Investor Relations:
Russo
Partners, LLC
Maxim
Jacobs, CFA
12 West
27th Street, 4th Floor
New York,
NY 10001
T:
646-942-5591
Maxim.Jacobs@russopartnersllc.com