BioStem Technologies, Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2020
Pompano Beach, Fl., April 05, 2021 (GLOBE NEWSWIRE) -- BioStem Technologies, Inc. (OTC PINK: BSEM) ("BioStem" or the "Company"), a leading pre-clinical-stage biotechnology company focused on harnessing elements of perinatal tissue for use in regenerative therapies, today reported financial results for the three and twelve months ended December 31, 2020.
Fourth Quarter 2020 Financial Results Summary:
- Sales of $1,037,823 for the three months ended December 31, 2020, up 147% compared to Sales of $420,389 thousand for the three months ended December 31, 2019.
Fiscal Year 2020 Financial Results Summary:
- Sales of $2.5 million for the twelve months ended December 31, 2020, compared to sales of $2.6 million for the twelve months ended December 31, 2019.
- Net loss of $2.4 million for the twelve months ended December 31, 2020, compared to net loss of $6.3 million for twelve months ended December 31, 2019.
- On October 27, 2020, the Company announced the launch of AEON™, the 6th and newest addition to the Company’s perinatal tissue allograft platform.
- On December 24, 2020, the Company announced that it has filed its previous quarterly and annual reports for 2018, 2019, and 2020 to become current with OTC Markets.
- On March 15, 2021, the Company announced it engaged D. Brooks and Associates CPA's, P.A. as the Company’s PCAOB registered certified public accounting firm for the 2020 and 2019 fiscal years.
- On March 25, 2021, the Company announced that it has received the TRIP (TRG Rapid Inquiry Program) response from the FDA’s Tissue Reference Group (TRG) for the Company’s amniotic membrane allograft, VENDAJE™.
“We delivered impressive fourth quarter growth of 147% year-over-year even though facing significant impact on our revenues earlier in the year due to COVID-19, particularly with respect to new customer acquisition, federal and commercial elective surgery cancelations, and restrictions on visitation to clinical sites,” said Jason Matuszewski, CEO of BioStem Technologies. “As the world has begun to adapt to the pandemic, however, our revenues have consistently improved, with sequential quarter-over-quarter gains in both Q3 and Q4. We are optimistic that this trend will continue as we enter 2021, and that our continued growth rates will be associated with broad vaccine distribution in the coming months.”
Total sales for the fourth quarter of 2020 were $1,037,823, compared to $420,839 for the fourth quarter of 2019, an increase of $616,984, or 147%. The increase was driven by an increase in both flowable and membrane allograft sales. The increase in total sales was primarily attributable to the expanded sales force, increased sales to existing and new customers, and increased adoption of our new amniotic product portfolio, including our AEON™ and OROPRO™ products.
Gross profit for the year ended December 31, 2020 was $1,251,862, or 49.6% of total sales, compared to $1,310,801, or 49.8% of total sales, for the year ended December 31, 2019. In 2021, we look to move away from standard costing to actual costing of our products to calculate gross profit. This transition will show a significant increase in gross profit.
Operating expenses for the year ended December 31, 2020 were $3,094,126, compared to $6,991,654 for the same period in 2019, a decrease of $3,897,528, or 44.2%. The decrease in operating expenses was primarily due to eliminating stock-based compensation. Other Selling and General Operating expenses where added primarily in our direct sales force, increased sales commissions due to increased sales, and increased other selling expenses, including credit card processing fees and royalties. These increases were partially offset by decreased expenses related to travel and marketing programs amid travel restrictions in place due to the COVID-19 pandemic.
About BioStem Technologies, Inc. (OTC PINK: BSEM): BioStem Technologies, Inc. is a pre-clinical-stage biotechnology company focused on harnessing elements of perinatal tissue and the body’s innate biology to repair or reverse damage caused by a broad range of degenerative diseases. Our proprietary approach, called Local MicroEnvironment Activation, or LMA, uses combinations of small molecules, cytokines, and growth factors to activate the microenvironment within the body to create communication for repair in the tissue. BioStem Technologies offers a comprehensive portfolio of high-quality brands that include RHEO™, OROPRO™, AEON™, 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, the matters discussed in this press release are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "expects," believe" or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and additional risks factors as discussed in reports filed by the company with OTC Markets.