-Project Continued Growth from Sales of AmnioWrap2®-
-Financial Results Conference Call and Webcast on Monday, April 1, 2024 at
“The increase in revenue reduced our operating deficit and we ended the year nearing financial breakeven. With national distribution and acceptance by the medical community driving demand, we entered the new year with good momentum and project another year of strong growth in 2024.”
Fourth Quarter and Full Year 2023 Financial Highlights
- Net revenue grew 1,355% year-over-year to
$11.5 million in the fourth quarter. - Gross profit was
$10.9 million , or 95% of revenue, in the fourth quarter. - Adjusted EBITDA income was
$1.67 million in the fourth quarter of 2023 compared to Adjusted EBITDA loss of($0.78) million in the fourth quarter of 2022. - For 2023, Net revenue increased 143% year-over-year to
$16.7 million . Gross profit was$15.4 million , or 92% of revenue. - Adjusted EBITDA loss was
$(0.30) million in 2023 compared to Adjusted EBITDA income of$0.94 million in 2022.
2023 Operational Highlights
- Acquired Auxocell Laboratories Assets, a leading solid tissue processing equipment manufacturer.
- Completed a nationwide launch of AmnioWrap2 with distribution partner
Venture Medical LLC . - Initiated a clinical trial for a study evaluating Vendaje in diabetic foot ulcers (“DFU”).
- Executed an agreement with NovaBay for the commercialization of the Avenova Allograft™ optic allograft.
- BioStem’s full product portfolio was listed with the
U.S Department of Defense and Veterans’ Administration. - Successfully obtained Q-Code and CMS reimbursement for Vendaje AC® and AmnioWrap2.
- Appointed two industry leaders to the Company’s board of directors.
Fourth Quarter and Full Year
The following table represents net revenue, gross margin, operating expenses, and other expenses for the fourth quarter and full-year
Three months ended | Years ended | ||||||||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||
Net revenue | $ | 11,541,147 | $ | 793,086 | $ | 10,748,061 | 1355 | % | $ | 16,685,405 | $ | 6,875,202 | $ | 9,810,203 | 143 | % | |||||||||||||
Gross profit | $ | 10,911,726 | $ | 667,545 | $ | 10,244,181 | 1535 | % | $ | 15,423,655 | $ | 5,992,924 | $ | 9,430,732 | 157 | % | |||||||||||||
Gross profit % | 95 | % | 84 | % | 10 | % | 92 | % | 87 | % | 5 | % | |||||||||||||||||
Operating expenses | $ | 11,280,493 | $ | 4,332,313 | $ | 6,948,180 | 160 | % | $ | 24,131,596 | $ | 10,674,996 | $ | 13,456,600 | 126 | % | |||||||||||||
Other expense, net | $ | 244,998 | $ | 105,960 | $ | 139,037 | -131 | % | $ | (704,013 | ) | $ | (2,550,248 | ) | $ | 1,846,235 | 72 | % | |||||||||||
Adjusted EBITDA /Net Revenue ("Adjusted EBITDA Margin") | 14 | % | -99 | % | -2 | % | -17 | % | |||||||||||||||||||||
Financial Results for Three Months ended
Net revenue for the three months ended
Gross profit for the three-months ended
Operating expenses for the three-months ended
Financial Results for Twelve Months ended
Net revenue for the twelve-months ended
Gross profit for the twelve-months ended
Operating expenses for the twelve-months ended
Net loss for the twelve-months ended
Conference Call Details
Date: Monday, April 1, 2024
Time: 4:30 pm EDT
Webcast Link: https://events.q4inc.com/attendee/994834479
Participant Toll-Free Dial-In Number: 1 (800) 715-9871
Participant Toll Dial-In Number: 1 (646) 307-1963
To submit questions, participants must have Internet connectivity as questions will only be addressed via the webcast. The conference call line will be in listen-only mode.
About
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.
Contacts:
Phone: 954-380-8342
Website: http://www.biostemtechnologies.com
Email: info@biostemtech.com
Twitter: @BSEM_Tech
Facebook:
Investor Relations:
T: 646-863-6893
jramson@pcgadvisory.com
-Tables Follow-
As of (UNAUDITED) | |||||||
2023 | 2022 | ||||||
Current Assets | |||||||
Cash | $ | 239,406 | $ | 772,136 | |||
Accounts receivable, net | 11,371,730 | 37,206 | |||||
Inventory, net | 658,678 | 395,228 | |||||
Prepaid expenses and other assets | 329,239 | 281,931 | |||||
Total current assets | 12,599,053 | 1,486,501 | |||||
Long-Term Assets | |||||||
Property and equipment, net | 1,154,856 | 1,249,784 | |||||
Construction-in-Process | 202,700 | 103,110 | |||||
Right-of-use asset, net | 11,443 | 19,832 | |||||
Intangible assets, net | 347,604 | 362,571 | |||||
244,635 | 244,635 | ||||||
Total assets | $ | 14,560,291 | $ | 3,466,433 | |||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 1,031,010 | $ | 570,115 | |||
Bona fide services fee payable | 7,787,211 | - | |||||
Accrued interest | 1,697,787 | 1,478,421 | |||||
Short-term finance lease | 8,988 | 9,238 | |||||
Notes payable | 4,445,782 | 3,018,679 | |||||
Related party convertible notes payable | - | 300,000 | |||||
Other convertible notes payable | - | 723,350 | |||||
Other current liabilities | 289,409 | 228,303 | |||||
Total current liabilities | 15,260,187 | 6,328,106 | |||||
Long-Term Liabilities | |||||||
Finance lease, less current portion | 3,294 | 11,305 | |||||
Notes payable, less current portion | 265,635 | 1,026,462 | |||||
Other long-term liabilities, less current portion | 14,850 | 50,512 | |||||
Total long term liabilities | 283,779 | 1,088,279 | |||||
Total liabilities | 15,543,966 | 7,416,385 | |||||
Commitments and contingencies (Note 13) | |||||||
Stockholders' Deficit | |||||||
Series A-1 convertible preferred stock, | 0.3 | 0.0 | |||||
Series B-1 convertible preferred stock, | 0.0 | 0.0 | |||||
Common stock, | 16,215 | 12,162 | |||||
Additional paid-in capital | 44,047,372 | 33,095,921 | |||||
(43,346 | ) | (43,346 | ) | ||||
Accumulated deficit | (45,003,916 | ) | (37,141,133 | ) | |||
Noncontrolling interest | - | 126,444 | |||||
Total stockholders' deficit | (983,675 | ) | (3,949,952 | ) | |||
Total liabilities and stockholders' deficit | $ | 14,560,291 | $ | 3,466,433 | |||
BIOSTEM TECHNOLOGIRES INC. CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ending (UNAUDITED) | |||||||
Years ended | |||||||
2023 | 2022 | ||||||
Revenue, net | $ | 16,685,405 | $ | 6,875,202 | |||
Cost of goods sold | 1,261,750 | 881,754 | |||||
Gross profit | 15,423,655 | 5,993,448 | |||||
Operating Expenses: | |||||||
Sales and marketing expenses | 11,959,655 | 954,059 | |||||
General and administrative expenses | 10,066,410 | 9,252,744 | |||||
Research and development expenses | 327,344 | 224,775 | |||||
Depreciation and amortization expense | 229,014 | 243,418 | |||||
Total operating expenses | 22,582,423 | 10,674,996 | |||||
Loss from operations | (7,158,768 | ) | (4,681,548 | ) | |||
Other Income (Expense): | |||||||
Loss on extinguishment of debt | - | (2,083,197 | ) | ||||
Interest expense | (700,326 | ) | (468,153 | ) | |||
Total other income (expense), net | (3,689 | ) | 1,102 | ||||
Total other expense, net | (704,015 | ) | (2,550,248 | ) | |||
Loss from operations before income taxes | (7,862,783 | ) | (7,231,796 | ) | |||
Income taxes | - | - | |||||
Net loss | (7,862,783 | ) | (7,231,796 | ) | |||
Less: Net loss attributable to noncontrolling interest | - | (38,847 | ) | ||||
Net loss attributable to | $ | (7,862,783 | ) | $ | (7,192,949 | ) | |
Basic and diluted loss per share attributable to noncontrolling interest | $ | - | $ | - | |||
Basic and diluted net income (loss) per share attributable to common stockholders of | $ | (0.57 | ) | $ | (0.63 | ) | |
Basic and diluted weighted average common shares outstanding | 13,707,077 | 11,404,995 | |||||
NON-GAAP FINANCIALS MEASURES
Our management uses financial measures that are not in accordance with generally accepted accounting principles in
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:
2023 | 2022 | $ Change | % Change | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||
Net loss | $ | (149,014 | ) | $ | (3,770,729 | ) | $ | 3,621,715 | 96 | % | $ | (7,862,783 | ) | $ | (7,231,796 | ) | $ | (630,987 | ) | -9 | % | ||||||||
Interest expense | 237,069 | 109,949 | 127,120 | -116 | % | 700,324 | 468,153 | 232,171 | -50 | % | |||||||||||||||||||
Depreciation and amortization | 54,606 | 57,822 | (3,216 | ) | 6 | % | 229,014 | 243,418 | (14,403 | ) | 6 | % | |||||||||||||||||
EBITDA | $ | 142,661 | $ | (3,602,957 | ) | $ | 3,745,618 | 104 | % | $ | (6,933,445 | ) | $ | (6,520,225 | ) | $ | (413,220 | ) | -6 | % | |||||||||
Share-based compensation | 1,526,807 | 2,821,321 | (1,294,514 | ) | 6,661,793 | 5,376,894 | 1,284,900 | -24 | % | ||||||||||||||||||||
Gain on bargain purchase-Auxocell | - | - | - | - | - | - | NM | ||||||||||||||||||||||
Adjusted EBITDA | $ | 1,669,468 | $ | (781,636 | ) | $ | 2,451,104 | 314 | % | $ | (271,652 | ) | $ | (1,143,332 | ) | $ | 871,680 | 76 | % | ||||||||||
Adjusted EBITDA /Net Revenue ("Adjusted EBITDA Margin") | 14 | % | -99 | % | -2 | % | -17 | % |
Source:
2024 GlobeNewswire, Inc., source