BioStem Technologies Reports March 31, 2022 Record Quarterly Financial Results

Oakland Park, Florida, UNITED STATES


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 4,354%, from the fourth quarter of 2021 through the first quarter of 2022. We are executing our growth strategy outlined in 2022 and driving strong performance in commercializing our initial products. In addition, we are increasing our national commercial salesforce and developing and implementing training programs for our commercial team to deliver a more compelling message to our clinical partners about the value of our products.

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 $2.749 million for quarter ended March 31,2022, up 212%, compared to net revenue of $0.882 million for the quarter ended March 31, 2021.
Net loss of ($0.879) million for the quarter ended March 31, 2022, compared to a net loss of ($0.130) million for the quarter ended March 31, 2021, an increase of $0.749 million and 578% over the quarter ended March 31, 2021.
Adjusted EBITDA of 1.479 million, or 54% of net revenue, for the quarter ended March 31, 2022, compared to Adjusted EBITDA of $0.225 million, or 25% of net revenue, for the quarter ended March 31, 2021, an increase of $1.254 million. See the GAAP to Adjusted EBITDA reconciliation below.

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 $2.749 million, compared to $0.882 million for the quarter ended March 31, 2021, an increase of $1.866 million, or 212%. The increase in net revenue was driven primarily by the expansion of our distribution network resulting in increased sales of our Vendaje product.

Gross profit for the quarter ended March 31, 2022, was $2.345 million, or 85% of revenue, compared to $0.603 million, or 68% of net revenue, for the quarter ended March 31, 2021, an increase of $1.742 million, or 289%. 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 quarter ended March 31, 2022, were $3.122 million, compared to $0.747 million for the quarter ended March 31, 2021, an increase of $2.375 million. Increase in operating expenses is primarily driven by additional headcount, additional marketing expense, and increases in share-based compensation.

Total other (expense) income, net, for the quarter ended March 31, 2022, were ($0.102) million, compared to $0.0013 million for the quarter ended March 31, 2021, an increase in expense of $0.115 million or 895%.

Net loss for the quarter ended of 2021 was ($0.879) million, or ($0.09) per share, compared to of ($0.150) million, or ($0.01) per share, for the quarter ended March 31, 2021, a decrease ($0.847) million, or ($0.08) per share.

Adjusted EBITDA of $1.479 million, or 54% of revenue, for the quarter ended March 31, 2022, compared to Adjusted EBITDA of $0.225 million, or 25% of revenue, for the quarter ended March 31, 2021, an increase of $1.254 million.

Statement of Cashflows and Balance Sheet Highlights:

Cashflows provided by operations was $0.555 million for the quarter ended March 31, 2022, compared to cashflows used in operations of ($1.145) million for the quarter ended March 31, 2021.

The Company maintained cash on hand as of March 31, 2022, $0.809 million compared to $0.238 million as of March 31, 2021.

The Company continues to strengthen its balance sheet. The Company converted $3.318 million of liabilities to common stock during the quarter ended March 31, 2022.

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 $133,337 and $0, respectively  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, $0.001 par value; authorized, 300 shares; issued and outstanding, 300 shares as of September 30, 2021 and December 31, 2020, respectively  -   - 
Series B convertible preferred stock, $0.001 par value; authorized, 500,000 shares; issued and outstanding, 5 shares as of September 30, 2021 and December 31, 2020, respectively  -   - 
Common stock, $0.001 par value; authorized, 975,000,000 shares; issued and outstanding, 9,681,232 and 9,203,928 shares as of December 30, 2021 and December 31, 2020, respectively  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