BioStem Technologies Reports March 31, 2022 Record Quarterly Financial Results
BioStem Technologies Inc. (OTC: BSEM) reported a 212% increase in net revenue for Q1 2022, totaling $2.749 million, compared to $0.882 million in Q1 2021. Despite this, the net loss rose to $0.879 million from $0.130 million year-over-year, marking a 578% increase in losses.
Adjusted EBITDA improved to $1.479 million (54% of revenue) from $0.225 million (25% of revenue) in the prior year. Gross profit was $2.345 million, or 85% of revenue, reflecting strong demand for the Vendaje® product. The company aims to expand its product offerings and salesforce in 2022.
- Net revenue surged by 212% to $2.749 million.
- Adjusted EBITDA increased to $1.479 million, representing 54% of net revenue.
- Gross profit rose to $2.345 million, with a gross margin of 85%.
- Strong sales growth attributed to Vendaje® product demand.
- Net loss increased to $0.879 million, up 578% year-over-year.
- Operating expenses jumped 318% to $3.122 million due to increased headcount and marketing costs.
- Other expenses led to a net loss of $0.102 million, compared to a gain in 2021.
POMPANO BEACH, FLORIDA., May 16, 2022 (GLOBE 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 March 31, 2022.
CEO, Jason Matuszewski commented:
"As I shared in our Fourth Quarter press release, we have put our company on a tremendous growth trajectory for 2022 and beyond. Our Advanced Wound Care product Vendaje® continues to be in high demand and, over the last two quarters, has delivered impressive growth of 4,
Our Operations, Research, and Development teams have been hard at work developing our proprietary processing technology called BioRetain®. We look forward to engaging with several market development focus groups, industry thought-leaders, and key stakeholders while advancing research initiatives supporting our commercial strategy and expanding our BioRetain® technology's scientific foundation.
In addition, we look to expand our product offering in the second half of the year with VENDAJE AC® and VENDAJE Optic® to enhance our existing product portfolio. As a result, BioStem is becoming a recognized leader in our three key pillars of excellence, Advanced Wound Care, Surgical, and Plastic & Dermatology. I am incredibly proud of the entire BioStem team's collective ability to innovate, execute, and achieve the next phase of growth for BioStem and deliver solid results for our shareholders."
Quarter Ending March 31, 2022 - Financial Results Summary:
Net revenue of
Net loss of (
Adjusted EBITDA of 1.479 million, or
Quarter ending March 31, 2022 - Results:
The following table represents net revenue, gross margin, operating expenses and other income (loss) for the three-months ended March 31, 2022, and March 31, 2021, respectively:
| Three months ended March 31, | ||||||||||||||||
| 2022 | 2021 | $ Change | % Change | |||||||||||||
| Revenue | $ | 2,748,622 | $ | 882,373 | $ | 1,866,249 | 212 | % | ||||||||
| Gross Profit | $ | 2,345,188 | $ | 603,063 | $ | 1,742,125 | 289 | % | ||||||||
| Gross Profit % | 85 | % | 68 | % | 17 | % | ||||||||||
| Operating Expenses | $ | 3,122,016 | $ | 747,301 | $ | 2,374,715 | 318 | % | ||||||||
| Other Income (Loss) | $ | (101,760 | ) | $ | 12,801 | $ | (114,561 | ) | -895 | % | ||||||
Statement of Operations Highlights:
Revenue for the quarter ended March 31, 2022, was
Gross profit for the quarter ended March 31, 2022, was
Operating expenses for the quarter ended March 31, 2022, were
Total other (expense) income, net, for the quarter ended March 31, 2022, were (
Net loss for the quarter ended of 2021 was (
Adjusted EBITDA of
Statement of Cashflows and Balance Sheet Highlights:
Cashflows provided by operations was
The Company maintained cash on hand as of March 31, 2022,
The Company continues to strengthen its balance sheet. The Company converted
BIOSTEM TECHNOLOGIRES INC. CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| March 31, 2022 | December 31, 2021 | |||||||
| UNAUDITED | UNAUDITED | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 809,238 | $ | 340,333 | ||||
| Accounts receivable, net of allowance for doubtful accounts of | 798,556 | 300,137 | ||||||
| Inventory, net | 589,285 | 325,381 | ||||||
| Prepaid expenses and other assets | 53,141 | 38,572 | ||||||
| Other receivables | - | - | ||||||
| Other current assets | (89 | ) | (489 | ) | ||||
| Total current assets | 2,250,131 | 1,003,934 | ||||||
| Property, plant, and equipment, net | 1,260,748 | 1,245,363 | ||||||
| Right-of-use asset, net | 22,187 | 32,868 | ||||||
| Intangible assets | 195,726 | 210,048 | ||||||
| Goodwill | 244,635 | 244,635 | ||||||
| Total assets | $ | 3,973,427 | $ | 2,736,848 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 574,429 | $ | 647,254 | ||||
| Accrued interest | 1,070,783 | 993,126 | ||||||
| Salaries payable | - | 1,167,418 | ||||||
| Convertible debt | 981,211 | - | ||||||
| Notes payable, current | - | - | ||||||
| Short-term finance lease liability | 16,349 | 26,878 | ||||||
| Other current liabilities | 235,128 | 311,239 | ||||||
| Total current liabilities | 2,877,900 | 3,145,915 | ||||||
| Related party notes payable | - | 507,861 | ||||||
| Notes payable, noncurrent | 3,890,230 | 4,478,656 | ||||||
| Long-term finance lease liability | 5,323 | 6,543 | ||||||
| Total liabilities | 6,773,453 | 8,138,975 | ||||||
| Shareholders' deficit: | ||||||||
| Series A convertible preferred stock, | - | - | ||||||
| Series B convertible preferred stock, | - | - | ||||||
| Common stock, | 9,822 | 9,681 | ||||||
| Additional paid-in capital | 27,250,229 | 24,092,779 | ||||||
| Common stock to be issued | 1,739 | 1,192 | ||||||
| Deferred compensation | - | (322,527 | ) | |||||
| Treasury stock | (43,339 | ) | (43,339 | ) | ||||
| Translation adjustment | (48 | ) | (100 | ) | ||||
| Accumulated deficit | (30,301,777 | ) | (29,246,813 | ) | ||||
| Total stockholders' equity attributable to BioStem Technologies, Inc. stockholders' | (3,083,374 | ) | (5,509,127 | ) | ||||
| Noncontrolling interest in consolidated subsidiaries | 283,347 | 107,000 | ||||||
| Total stockholders' deficit | (2,800,027 | ) | (5,402,127 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 3,973,426 | $ | 2,736,848 | ||||
| BioStem Technologies, Inc. and Subsidiaries | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| UNAUDITED | ||||||||
| Three-months ended, | Three-months ended, | |||||||
| March 31, 2022 | March 31, 2021 | |||||||
| Sales | $ | 2,748,622 | $ | 882,373 | ||||
| Cost of sales | 403,434 | 279,310 | ||||||
| Gross profit | 2,345,188 | 603,063 | ||||||
| Operating Expenses | ||||||||
| Compensation expense | 2,769,186 | 480,234 | ||||||
| Professional fees | 105,493 | 97,341 | ||||||
| Other general and administrative expenses | 179,771 | 87,344 | ||||||
| Depreciation expense | 67,566 | 82,382 | ||||||
| Total operating expenses | 3,122,016 | 747,301 | ||||||
| Other Operating Income | ||||||||
| Gain on sale of Wellness | - | 1,890 | ||||||
| Gain on sale of Equipment | (27 | ) | - | |||||
| Total other operating income | (27 | ) | 1,890 | |||||
| Loss from operations | 776,855 | 142,348 | ||||||
| Other income (expense) | ||||||||
| Interest income | 1,375 | - | ||||||
| Legal settlement | 20,000 | - | ||||||
| Interest expense | (124,327 | ) | (129,651 | ) | ||||
| Gain on forgiveness of PPP loan | - | 142,452 | ||||||
| Non-Operating Expense | 1,192 | - | ||||||
| Total other income (expense) | (101,760 | ) | 12,801 | |||||
| Net loss from operations before income taxes | (878,615 | ) | (129,547 | ) | ||||
| Income tax expense (benefit) | - | - | ||||||
| Net income / (loss) | (878,615 | ) | (129,547 | ) | ||||
| Less: Net income / (loss) attributable to noncontrolling interest | 117,956 | (19,970 | ) | |||||
| Net (loss) attributable to BioStem Technologies, Inc. | $ | (996,571 | ) | $ | (149,517 | ) | ||
| Income / (loss) per share before noncontrolling interest | $ | (0.09 | ) | $ | (0.01 | ) | ||
| Income (loss) per share attributable to noncontrolling interest | $ | 0.01 | $ | (0.00 | ) | |||
| Basic and diluted net loss per share attributable to common stockholders of BioStem Technologies, Inc. | $ | (0.11 | ) | $ | (0.02 | ) | ||
| Basic and diluted weighted average common shares outstanding | 9,317,767 | 9,190,770 | ||||||
NON-GAAP FINANCIALS 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:
| Three months ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Net income | $ | (878,615 | ) | $ | (129,547 | ) | ||
| Interest expense | 124,327 | 129,651 | ||||||
| Depreciation and amortization | 67,566 | 82,382 | ||||||
| EBITDA | $ | (686,722 | ) | $ | 82,486 | |||
| Share-based compensation | 2,165,674 | - | ||||||
| Gain on extinguishment of PPP loan | - | 142,452 | ||||||
| Adjusted EBITDA | $ | 1,478,952 | $ | 224,938 | ||||
About BioStem Technologies, Inc. (OTC PINK: BSEM): BioStem Technologies, Inc. is a global life sciences corporation, providing innovative technologies with a concentration in Regenerative Medicine. The company's mission is to discover, develop and produce the most effective Regenerative Medicine products in the world. BioStem Technologies offers a comprehensive portfolio of high-quality brands that include RHEO™, VENDAJE™, VENDAJE™ AC, and VENDAJE™ OPTIC. The company is comprised of a diverse group of scientists, physicians, and entrepreneurs who collaborate to create innovative products. These technologies improve the Quality of Life for our patients and, as a result, drive shareholder value.
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:
info@biostemtech.com
(954) 380-8342
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