ThermoGenesis Holdings Announces Financial Results for the First Quarter Ended March 31, 2022 and Provides Corporate Update
ThermoGenesis Holdings, Inc. (THMO) reported a 76% increase in net revenues to $2.7 million for Q1 2022, attributed to higher AXP® disposable sales. Gross profit rose to $0.9 million but as a percentage of revenue, it decreased to 35%. Operating expenses declined by 15%, while R&D expenses increased by 20%. The net loss improved to $1.9 million, or $0.16 per share, compared to $2.4 million, or $0.21 per share a year prior. New agreements with Boyalife Genomics and Z3 Investment will support the launch of a CDMO division, TG Biosynthesis, enhancing the company’s manufacturing capabilities.
- Net revenues grew 76% to $2.7 million, driven by AXP® disposable sales.
- Net loss improved to $1.9 million from $2.4 million year-over-year.
- New agreements could strengthen the company's cell therapy manufacturing.
- Selling, general, and administrative expenses decreased by 15%.
- Gross profit as a percentage of revenue decreased to 35% from 47%.
- Research and development expenses increased by 20%.
- BioArchive sales declined, affecting overall revenue.
Conference Call to be Held Today at 1:30 p.m. PT/4:30 p.m. ET
RANCHO CORDOVA, Calif., May 19, 2022 /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 first quarter ended March 31, 2022 and provided a corporate strategic update.
First Quarter 2022 Highlights
- On March 24, 2022, entered into a License and Technology Access Agreement with Boyalife Genomics Tianjin Ltd. (Boyalife Genomics), a China-based contract development and manufacturing organization (CDMO) and an affiliate of ThermoGenesis' Chairman and Chief Executive Officer, Chris Xu, Ph.D., providing a U.S. license to certain existing and future know-how and other intellectual property relating to cell manufacturing and related processes. ThermoGenesis plans to develop and operate the CDMO cell therapy manufacturing business through a newly formed division named TG Biosynthesis.
- Additionally, on March 24, 2022, signed a Lease Agreement with Z3 Investment LLC, another affiliate of Dr. Xu, for approximately 35,475 square feet of laboratory and office space in Sacramento, California. The space is currently planned to be built-out to create a state-of-the-art, current good manufacturing practice (cGMP) compliant facility with 12 cGMP clean room suites.
"With six CAR-T therapies now approved by the U.S. Food and Drug Administration (FDA), an estimated 350+ U.S. companies working in the cell therapy arena, and more than 1,000 pipeline assets in clinical development, worldwide, the need for cGMP manufacturing of these extremely complex, personalized and potentially life-saving therapies is as important as ever," stated Dr. Xu. "Our recently signed agreements with Boyalife Genomics and Z3 Investment position us to address this demand with additional intellectual property and the the ability to rapidly scale up a large cGMP facility in order to leverage our proprietary automated and semi-automated cell processing technologies, including the CAR-TXpress™ platform, to begin offering world-class CDMO services."
Dr. Xu continued, "The CAR-TXpress™ platform is capable of meaningfully reducing processing time, improving cell recovery, and potentially cutting the manufacturing costs associated with CAR-T and other cell and gene therapies by up to
Financial Results for the Quarter Ended March 31, 2022
Net revenues. Net revenues for the first quarter ended March 31, 2022, were
Gross profit. Gross profit for the quarter ended March 31, 2022, was
Selling, general and administrative expenses. Selling, general and administrative expenses were
Research and development expenses. Research and development expenses were
Interest Expense. Interest expense for the first quarter ended March 31, 2022 was
Net loss. For the quarter ended March 31, 2022, the Company reported a comprehensive loss attributable to common stockholders of
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. To access the replay, 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, 2021.
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 | ||||||
March 31, 2022 | December 31, 2021 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | ||||||
Accounts receivable, net | 2,175,000 | 733,000 | ||||
Inventories | 5,893,000 | 5,373,000 | ||||
Prepaid expenses and other current assets | 1,474,000 | 1,578,000 | ||||
Total current assets | 13,194,000 | 14,964,000 | ||||
Inventories, non-current | 1,197,000 | 1,709,000 | ||||
Equipment and leasehold improvements, net | 1,224,000 | 1,261,000 | ||||
Right-of-use operating lease assets, net | 525,000 | 571,000 | ||||
Goodwill | 781,000 | 781,000 | ||||
Intangible assets, net | 1,310,000 | 1,318,000 | ||||
Other assets | 48,000 | 48,000 | ||||
Total assets | ||||||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | ||||||
Other current liabilities | 13,611,000 | 5,068,000 | ||||
Total current liabilities | 15,477,000 | 6,348,000 | ||||
Long-term liabilities | 1,520,000 | 10,907,000 | ||||
ThermoGenesis Holdings, Inc. stockholders' equity | 1,839,000 | 3,828,000 | ||||
Noncontrolling interests | (557,000) | (431,000) | ||||
Total liabilities and equity | ||||||
ThermoGenesis Holdings, Inc. | ||||
Condensed Consolidated Statements of Operations | ||||
(Unaudited) | ||||
Three Months Ended | ||||
2022 | 2021 | |||
Net revenues | ||||
Cost of revenues | 1,723,000 | 809,000 | ||
Gross profit | 940,000 | 708,000 | ||
Expenses: | ||||
Selling, general and administrative | 1,693,000 | 1,992,000 | ||
Research and development | 456,000 | 379,000 | ||
Total operating expenses | 2,149,000 | 2,371,000 | ||
Loss from operations | (1,209,000) | (1,663,000) | ||
Interest expense | (823,000) | (1,519,000) | ||
Other income (expenses) | (4,000) | (1,000) | ||
Gain on extinguishment of debt | -- | 652,000 | ||
Net loss | (2,036,000) | (2,531,000) | ||
Loss attributable to noncontrolling interests | (126,000) | (118,000) | ||
Net loss attributable to common stockholders | ||||
ThermoGenesis Holdings, Inc. | |||
Condensed Consolidated Statements of Cash Flows | |||
(Unaudited) | |||
Three Months Ended March 31, | |||
2022 | 2021 | ||
Cash flows from operating activities: | |||
Net cash used in operating activities | |||
Cash flows from investing activities: | |||
Capital expenditures | (65,000) | (27,000) | |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock, net of expenses | 594,000 | 6,832,000 | |
Effects of foreign currency rate changes on cash and cash equivalents | 2,000 | -- | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (3,628,000) | 2,853,000 | |
Cash and cash equivalents at beginning of period | 7,280,000 | 7,161,000 | |
Cash and cash equivalents at end of period | |||
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SOURCE ThermoGenesis Holdings, Inc.
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