BioStem Technologies Reports Record Breaking Second Quarter Sales
Company on Pace to Exceed 2020 Revenues in 2021
Pompano Beach, Fl., Aug. 25, 2021 (GLOBE NEWSWIRE) -- BioStem Technologies, Inc. (OTC PINK: BSEM) ("BioStem" or the "Company"), a leading life sciences company specializing in perinatal tissue allografts for use in regenerative therapies, today reported financial results for three and six months ended June 30, 2021.
Second Quarter 2021 Financial Results Summary:
- Sales of $970,511 for the three months ended June 30, 2021, up 298% compared to sales of $238,827 for the three months ended June 30, 2020.
- Gross profit of $455,723 for the three months ended June 30, 2021, up 1,348% compared to gross profit of $31,470 for the three months ended June 30, 2020.
- Net loss for the three months ended June 30, 2021 decreased 47% year-over-year to $373,651.
- Adjusted EBITDA loss of $80,791, or 4% of net revenue, for the second quarter of 2021, compared to Adjusted EBITDA loss of $437,679, or 43% of net revenue, for the second quarter of 2020, a decrease of $356,888.
“BioStem’s momentum continued into the second quarter of 2021, with second quarter growth of 306% year-over-year, and 89% year-to-date growth despite the impact of the COVID-19 resurgence on procedure volumes brought by the Delta variant,” said Jason Matuszewski, CEO of BioStem. “As we enter into the second half of the year, we look to add to our growing sales team, increase our manufacturing capacity, and develop more key strategic relationships to continue to deliver strong operating and financial results.”
Second Quarter 2021 Results:
The following table shows sales, cost of sales and gross profit for the three months ended June 30, 2021, and June 30, 2020, respectively:
| Three Months Ended June | Change | |||||||||||||||
| 2021 | 2020 | $ | % | |||||||||||||
| Sales | $ | 970,511 | $ | 238,827 | $ | 731,684 | 306.37 | % | ||||||||
| Cost of Sales | $ | 514,788 | $ | 207,357 | ||||||||||||
| Gross Profit | $ | 455,723 | $ | 31,470 | $ | 424,253 | 1348.12 | % | ||||||||
Sales for the second quarter of 2021 were $970,511, compared to $238,827 for the second quarter of 2020, an increase of $731,684, or 306%. The increase in sales was primarily attributable to the expanded sales force, increased sales to existing and new customers, and increased adoption of our amniotic product portfolio, including our Vendaje™, Vendaje AC™, RHEO™, and OROPRO™ products.
Gross profit for the second quarter of 2021 was $455,723, or 47% of sales, compared to $31,470, or 13% of sales, for the second quarter of 2020, an increase of $382,307, or 1348%.
Net loss for the second quarter of 2021 was $373,651, compared to $292,782 for the second quarter of 2020, an increase of $80,869, or 27.62%.
First Half of 2021 Results:
The following table shows sales, cost of sales and gross profit for the six months ended June 30, 2021, and June 30, 2020, respectively:
| Six Months Ended June | Change | |||||||||||||||
| 2021 | 2020 | $ | % | |||||||||||||
| Sales | $ | 1,923,019 | $ | 1,016,193 | $ | 906,826 | 89.24 | % | ||||||||
| Cost of Sales | $ | 731,202 | $ | 630,935 | ||||||||||||
| Gross Profit | $ | 1,191,817 | $ | 385,258 | $ | 806,559 | 209.36 | % | ||||||||
Sales for the first half of 2021 were $1,923,019, compared to $1,016,193 for the first half of 2020, an increase of $906,826, or 89%. The increase in sales was primarily attributable to the expanded sales force, increased sales to existing and new customers, and increased adoption of our amniotic product portfolio, including our Vendaje™, Vendaje AC™, RHEO™, and OROPRO™ products.
Gross profit for the first half of 2021 was $1,191,817, or 62% of sales, compared to $385,258, or 38% of sales, for the first half of 2020, an increase of $806,559, or 209%.
Net loss for the six months ended June 30, 2021 was $666,443, compared to $1,089,917 for the six months ended June 30, 2020, representing a 39% decrease.
Non-GAAP Financial 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 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 loss to non-GAAP Adjusted EBITDA for each of the periods presented:
| Three Months Ended June | Six Months Ended June | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||
| GAAP Net Loss | $ | (373,651 | ) | $ | (699,750 | ) | $ | (666,433 | ) | $ | (1,089,917 | ) | ||
| Interest Expense | $ | 173,123 | $ | 132,522 | $ | 273,971 | $ | 266,299 | ||||||
| Interest Income | - | $ | (2,738 | ) | - | $ | 2,741 | |||||||
| Depreciation | $ | 42,341 | $ | 114,622 | $ | 99,651 | $ | 114,622 | ||||||
| Amortization | - | $ | 8,665 | - | $ | 8,665 | ||||||||
| PPP Loan Forgiveness | - | $ | (142,452 | ) | ||||||||||
| Stock Based Compensation | $ | 77,396 | $ | 9,000 | $ | 191,075 | $ | 9,000 | ||||||
| Stock Issued for Services | - | - | ||||||||||||
| Adjusted EBITDA | $ | (80,396 | ) | $ | (437,679 | ) | $ | (244,188 | ) | $ | (688,590 | ) | ||
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. BioStem'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. BioStem 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. 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 BioStem'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 BioStem with OTC Markets.
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