Biostage Reports Q3 2021 Financial Results

Rhea-AI Summary

Biostage (OTCQB: BSTG) reported its financial results for the third quarter of 2021, showing a net loss of $0.8 million ($0.08 per share), up from $0.7 million in Q3 2020. Despite the loss, the company experienced a $1.7 million year-over-year reduction in losses compared to the first nine months of 2020. Operating cash increased to $2 million, aided by a $2.6 million investment from private placements. Biostage aims to leverage its technology for esophageal implants, indicating optimism for future funding and development.

Positive

• Year-over-year net loss decreased by $1.7 million for nine months ended September 30, 2021.
• Cash on hand increased to $2 million, enhancing liquidity.
• $2.6 million raised from private placements during the nine-month period.

Negative

• Increased net loss of $0.1 million quarter-over-quarter due to a drop in grant income.

HOLLISTON, Mass., Nov. 15, 2021 /PRNewswire/ -- Biostage, Inc. (OTCQB: BSTG) ("Biostage" or the "Company"), a bioengineering company developing next-generation esophageal implants based its novel Cellframe™ and Cellspan™ technology, today announced its financial results for the three and nine months ended September 30, 2021.

The Company will not hold an earnings conference call at this time. The Company plans to hold a conference call at a future date to discuss its clinical and business plans.

Summary of Financial Results

For the three months ended September 30, 2021, the Company reported a net loss of $0.8 million, ($0.8 per share), compared to a net loss of $0.7 million, ($0.07 per share), for the three months ended September 30, 2020. The $0.1 million quarter-over-quarter increase in net loss was due primarily to $0.4 million decrease in grant income for qualified expenditures from our SBIR grant offset, in part, by a $0.3 million decrease in research and development costs.

For the nine months ended September 30, 2021, the Company reported a net loss of $2.1 million, ($0.22) per share, compared to a net loss of $3.8 million, ($0.45) per share, for the six months ended June 30, 2020. The $1.7 million year-over-year decrease in net loss was due primarily to $0.7 million of lower research and development costs, $0.8 million lower general and administrative expenses, a gain from forgiveness of Notes Payable of $0.4 million related to the Company's PPP loan offset, in part, by a $0.2 million decrease in grant income for qualified expenditures from our SBIR grant.

Balance Sheet and Cash

As of September 30, 2021, the Company had operating cash on-hand of $2.0 million, an increase of $1.5 million from the prior year. During the nine-month period ended September 30, 2021, the Company used net cash in operations of $1.6 million, which was offset, in total, by $2.6 million of proceeds from private placement transactions that resulted in the issuance of 1,300,000 shares of our common stock and warrants to existing investors.

We expect that our operating cash on-hand as of September 30, 2021 of $2.0 million will enable us to fund our operating expenses and capital expenditure requirements into the second quarter of 2022.

About Biostage, Inc.

Biostage is a bioengineering company that is developing next-generation esophageal implants. The Company's Cellspan technology combines a proprietary, biocompatible scaffold with a patient's own cells to create an esophageal implant that could potentially be used to treat pediatric esophageal atresia and other conditions that affect the esophagus. The Company's esophageal implant leverages the body's inherent capacity to heal itself as it is a "living tube" that facilitates regeneration of esophageal tissue and triggers a positive host response resulting in a tissue-engineered neo-conduit that restores continuity of the esophagus. These implants have the potential to dramatically improve the quality of life for children and adults. At Biostage, we believe the future of medicine has been inside us all along. 

For more information, please visit www.biostage.com and connect with the Company on Twitter and LinkedIn.

Forward-Looking Statements 

Some of the statements in this press release are "forward-looking" and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These "forward-looking" statements in this press release include, but are not limited to, statements relating to our financing activities; development expectations and regulatory approval of any of the Company's products, including those utilizing its Cellspan and Cellframe™ technology, by the U.S. Food and Drug Administration, the European Medicines Agency or otherwise, which expectations or approvals may not be achieved or obtained on a timely basis or at all; or success with respect to any collaborations, clinical trials and other development and commercialization efforts of the Company's products, which such success may not be achieved or obtained on a timely basis or at all. These statements involve risks and uncertainties that may cause results to differ materially from the statements set forth in this press release, including, among other things, the Company's inability to obtain needed funds in the immediate future; the Company's ability to obtain and maintain regulatory approval for its products; plus other factors described under the heading "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 or described in the Company's other public filings. The Company's results may also be affected by factors of which the Company is not currently aware. The forward-looking statements in this press release speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to such statements to reflect any change in its expectations with regard thereto or any changes in the events, conditions or circumstances on which any such statement is based.

Investor Relations Contact
Shunfu Hu
Vice President of Business Development
and Operations
774-233-7300
shu@biostage.com

Biostage, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
	September 30,			December 31,
	2021			2020
Assets	(Unaudited)
Cash	$	1,995		$	1,026
Restricted cash		50			50
Other assets		510			1,000
Total assets	$	2,555		$	2,076
Liabilities and stockholders' equity
Other liabilities	$	518		$	547
Notes payable		-			404
Total liabilities		518			951
Total stockholders' equity		2,037			1,125
	$	2,555		$	2,076

 

BIOSTAGE, INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Operating expenses
Research and development	$	250		$	548		$	1,023		$	1,727
General and administrative		572			510			1,712			2,488
Total operating expenses		822			1,058			2,735			4,215
Other income (expense)
Forgiveness of notes payable		-			-			408			-
Grant income		-			370			165			370
Change in fair value of warrant liability		(27)			28			(14)			6
Other income (expense), net		-			-			71			(2)
Total other income (expense), net		(27)			398			630			374
Net loss	$	(849)		$	(660)		$	(2,105)		$	(3,841)
Basic and diluted net loss per share	$	(0.08)		$	(0.07)		$	(0.22)		$	(0.45)
Weighted-average common shares, basic and diluted		10,014			8,855			9,615			8,594

 

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SOURCE Biostage, Inc.

FAQ

What are Biostage's Q3 2021 financial results?

Biostage reported a net loss of $0.8 million for Q3 2021.

How does Biostage's current cash position affect its operations?

As of September 30, 2021, Biostage had $2 million in cash on hand, expected to fund operations into Q2 2022.

What factors contributed to Biostage's decrease in net loss?

The decrease was mainly due to lower research and development costs and reduced general and administrative expenses.