BioStem Technologies Reports Preliminary Second Quarter 2025 Financial Results
POMPANO BEACH, Fla., Aug. 14, 2025 (GLOBE NEWSWIRE) -- (“BioStem” or the “Company”) (OTC: BSEM), a leading MedTech company focused on the development, manufacturing, and commercialization of placental-derived products for advanced wound care, today reported preliminary financial results for the second quarter ended June 30, 2025.
Recent Business Highlights:
- Appointed Brandon Poe as Chief Financial Officer, a seasoned financial executive with experience across the healthcare sector
- Completed enrollment in a clinical trial evaluating BioREtain® Amnion Chorion for the treatment of diabetic foot ulcers, with a data readout expected in the fourth quarter 2025
- Initiated expansion of the commercial organization including the hiring of direct representatives to access new sites of care
- Expanded the intellectual property portfolio with allowance for three new U.S. patent applications, bringing the Company’s total to 58 issued patents and 68 pending patents
Preliminary Financial Highlights:
- Generated net revenue of $49.3 million for the second quarter 2025
- Achieved the sixth consecutive quarter of positive adjusted EBITDA with $2.5 million reported for the second quarter 2025
- Increased the cash balance to $30.8 million as of the end of the second quarter 2025, an increase of $4.1 million from $26.7 million as of March 31, 2025
“I am pleased to announce we achieved the sixth consecutive quarter of positive adjusted EBITDA in the second quarter of 2025.” said Jason Matuszewski, Chairman and CEO of BioStem. On the revenue front, we faced headwinds as a result of increased competition from new higher average selling price brands that were introduced into the market and broader reimbursement uncertainty. As new regulatory policies reform the reimbursement framework for skin substitutes, we see an opportunity for the industry to work with stakeholders to develop a solution that appropriately recognizes innovation, efficacy, and value across the healthcare system. Amid this dynamic market environment, I want to make clear that our view on the strong clinical value of our products powered by BioREtain, and the substantial market opportunity ahead of us remains unchanged.”
Mr. Matuszewski added, “I’m also pleased with the addition of Brandon Poe as our new Chief Financial Officer. Brandon is a seasoned healthcare CFO with over 25 years of experience in capital markets and financial operations across private and publicly traded healthcare companies. Brandon has served on BioStem’s Board of Directors since 2022 and is already familiar with the Company’s strategy and objectives. As we are entering this new chapter at BioStem, we believe that Brandon’s significant experience leading finance teams in the healthcare industry will be critical to defining, prioritizing and achieving our strategic objectives.”
Form 10 and Nasdaq Uplisting Update:
BioStem is currently working through the audit of its historical annual financial statements and pursing uplisting to Nasdaq. The Company now has clarity on the accounting treatment for the distribution agreement with Venture Medical, and is continuing its efforts to file an amended Form 10 in order to resolve all open comments.
Mr. Matuszewski added, “Uplisting to Nasdaq remains a top priority for BioStem, and with our new CFO onboard, we are evaluating the audit process and refining our strategy to move the uplisting forward. This includes a comprehensive review of BioStem’s operations and associated financials, which is ongoing. We are also assessing the optimal timing for the uplisting and will provide an update once it is confirmed. Following the finalization of the Form 10, the pathway to uplisting is straightforward. We appreciate the patience and support of our shareholders and look forward to the benefits of listing on a national exchange.”
Financial Results for the Three Months Ended June 30, 2025:
Net revenue was $49.3 million, a 34% decrease compared to Q2 2024. The decrease was primarily driven by lower volumes in our wound care portfolio as a result of increased competition from new higher average selling price brands and broader reimbursement uncertainty.
Gross profit was $48.6 million, or 98.6% of net revenue, compared to $70.7 million or 95.0% of net revenue in Q2 2024. The improvement reflects product mix benefits due to increased contribution from Vendaje AC, which does not incur licensing fees.
Operating expenses totaled $48.5 million, down from $61.9 million in Q2 2024, primarily driven by lower revenue and a resulting decrease in sales and marketing costs associated with the Venture Medical distribution agreement.
Adjusted EBITDA for the second quarter was $2.5 million, compared to $10.1 million in Q2 2024. The decline reflects lower gross profit, which was partly offset by lower operating expenses, primarily due to a reduction in sales and marketing costs from the Bona Fide Service Fees tied to sales volume. There were also increased research and development expenses related to three active clinical trials and increased general and administrative costs were driven by expanded headcount as the Company continues to scale.
GAAP net loss was $0.6million or ($0.03) per share, compared to net income of $6.3 million or $0.39 per share in Q2 2024.
As of June 30, 2025, cash and cash equivalents totaled $30.8 million, an increase of $4.1 million from $26.7 million as of March 31, 2025.
Conference Call & Webcast Information:
- Conference ID: 9695874
- North America Toll-Free: (800) 715-9871
- International Toll: +1 (646) 307-1963
- Webcast Link:
The live and archived webcast will be available on the BioStem Technologies website under the Investor Relations section, .
About BioStem Technologies, Inc. (OTC: BSEM): BioStem Technologies is a leading innovator focused on harnessing the natural properties of perinatal tissue in the development, manufacture, and commercialization of allografts for regenerative therapies. The Company is focused on manufacturing products that change lives, leveraging its proprietary BioREtain® processing method. BioREtain® has been developed by applying the latest research in regenerative medicine, focused on maintaining growth factors and preserving tissue structure. BioStem Technologies’ quality management system and standard operating procedures have been reviewed and accredited by the American Association of Tissue Banks (“AATB”). These systems and procedures are established per current Good Tissue Practices (“cGTP”) and current Good Manufacturing Processes (“cGMP”). Our portfolio of quality brands includes AmnioWrap2™, VENDAJE®, VENDAJE AC®, and VENDAJE OPTIC®. Each BioStem Technologies placental allograft is processed at the Company’s FDA registered and AATB accredited site in Pompano Beach, Florida. For more information visit .
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Preliminary Results:
BioStem’s financial results for the second quarter 2024 and 2025 included in this press release are preliminary, unaudited and subject to finalization of BioStem’s audited financial statements for the year ended December 31, 2024 and resolution of all SEC comments on the Form 10 registration statement that BioStem filed with the SEC in connection with its planned uplist to Nasdaq. These financial results should not be viewed as a substitute for final reviewed results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preliminary financial results represent management estimates that constitute forward-looking statements subject to risks and uncertainties. As a result, the preliminary financial results and other information provided herein may materially differ from the actual results that will be reflected in the consolidated audited financial statements for the year ended December 31, 2024 and unaudited financial statements for the second quarter ended June 30, 2025 and 2024 when they are completed and publicly disclosed. BioStem undertakes no obligation to update or supplement the information provided herein until it reports its final audited financial results for the year ended December 31, 2024 and the second quarter ended June 30, 2025 and 2024.
Forward-Looking Statements:
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally 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,” “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical fact. Forward-looking statements in this release include, among other things, statements regarding: the preliminary financial results for the second quarter 2025; the anticipated timing of current and planned clinical trials; the expectation that such trials will demonstrate the clinical efficacy or superiority of the Company’s products; the Company’s expectations regarding its ability to uplist to Nasdaq; the Company’s ability to resolve the SEC’s comments to the Company’s Form 10 registration statement; the Company’s strategic initiatives; future financial projections; continued financial trends; uncertainties surrounding proposed rule-making or legislation affecting the pricing or coverage of products; and the market penetration of the Company’s core products.
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: the impact of any changes to the reimbursement levels or coverage for the Company’s products; significant and continuing competition, which could adversely affect the Company’s business, results of operations and financial condition; rapid technological change, which could cause the Company’s products to become outdated or obsolete, harming the Company’s ability to effectively compete; the risk that the Company is unable to successfully market its products to the end users of such products; the Company’s ability to obtain financing to expand its business; the Company has incurred significant losses since inception and may incur losses in the future; changes in applicable laws or regulations; the Company’s ability to maintain production of its products in sufficient quantities to meet demand; and the effects of global and regional economic, political, social and health crises. There may be additional risks about which the Company is presently unaware or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company undertakes no duty to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact BioStem Technologies, Inc.:
Website:
E-Mail:
Twitter:
Facebook:
Phone: 954-380-8342
Investor Relations:
Adam Holdsworth, BioStem Director of Investor Relations
E-Mail: Phone: 917-497-9287
Or
Gilmartin Group:
Philip Trip Taylor, Principal
E-Mail:
Phone: 415-937-5406
| BioStem Technologies, Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 30,843,880 | $ | 22,832,706 | ||||
| Accounts receivable, net | 67,663,476 | 104,980,085 | ||||||
| Inventory | 2,460,398 | 1,824,001 | ||||||
| Short-term loan receivable | 1,250,000 | 1,250,000 | ||||||
| Prepaid income taxes | 1,524,069 | - | ||||||
| Prepaid expenses and other current assets | 1,183,959 | 2,874,317 | ||||||
| Total current assets | 104,925,782 | 133,761,109 | ||||||
| Long-Term Assets | ||||||||
| Property and equipment, net | 1,658,478 | 1,504,578 | ||||||
| Construction-in-process | 480,705 | 190,422 | ||||||
| Right-of-use assets, net | 431,875 | 271,214 | ||||||
| Intangible assets, net | 162,403 | 224,137 | ||||||
| Goodwill | 244,635 | 244,635 | ||||||
| Deferred tax assets | 4,707,082 | 4,179,632 | ||||||
| Total assets | $ | 112,610,960 | $ | 140,375,727 | ||||
| Current Liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 4,458,431 | $ | 5,289,787 | ||||
| License fees payable (Note 4) | 442,650 | 2,359,575 | ||||||
| Bona fide services fee payable (Note 4) | 52,621,865 | 81,873,058 | ||||||
| Income tax payable | - | 2,908,730 | ||||||
| Accrued interest | 2,096,386 | 1,962,983 | ||||||
| Operating lease liabilities | 222,374 | 106,722 | ||||||
| Notes payable, net of discount | 3,000,000 | 3,957,744 | ||||||
| Other current liabilities | 1,314,473 | 711,361 | ||||||
| Total current liabilities | 64,156,179 | 99,169,960 | ||||||
| Long-Term Liabilities | ||||||||
| Operating lease liabilities, less current portion | 216,308 | 180,235 | ||||||
| Notes payable, less current portion | 150,000 | 150,000 | ||||||
| Total long-term liabilities | 366,308 | 330,235 | ||||||
| Total liabilities | 64,522,487 | 99,500,195 | ||||||
| Commitments and contingencies (Note 11) | ||||||||
| Stockholders' Equity | ||||||||
| Series A-1 convertible preferred stock, $0.001 par value authorized, 300 shares; issued and outstanding, 300 shares as of December 31, 2024 and December 31, 2023. | - | - | ||||||
| Series B-1 convertible preferred stock, $0.001 par value authorized, 500,000 shares; issued and outstanding 5 shares as of June 30, 2025 and December 31, 2024, respectively. | - | - | ||||||
| Common stock, $0.001 par value authorized, 975,000,000 shares issued and outstanding 16,743,513 and 16,711,012 shares as of June 30, 2025 and December 31, 2024, respectively. | 16,745 | 16,662 | ||||||
| Additional paid-in capital | 57,936,134 | 54,642,012 | ||||||
| Treasury stock, 18,000 shares at cost | (43,346 | ) | (43,346 | ) | ||||
| Accumulated deficit | (9,821,060 | ) | (13,739,796 | ) | ||||
| Total stockholders' equity | 48,088,473 | 40,875,532 | ||||||
| Total liabilities and stockholders' equity | $ | 112,610,960 | $ | 140,375,727 | ||||
| BioStem Technologies, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Operations | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenue, net | $ | 49,296,495 | $ | 74,491,996 | ||||
| Cost of goods sold | 685,177 | 3,747,896 | ||||||
| Gross profit | 48,611,318 | 70,744,100 | ||||||
| Sales and marketing expenses | 39,608,471 | 58,997,880 | ||||||
| General and administrative expenses | 6,871,997 | 2,787,822 | ||||||
| Research and development expenses | 1,957,352 | 85,154 | ||||||
| Depreciation and amortization expense | 60,738 | 54,113 | ||||||
| Total operating expenses | 48,498,558 | 61,924,969 | ||||||
| Income from operations | 112,760 | 8,819,131 | ||||||
| Other income (expense): | ||||||||
| Interest income (expense), net | 64,785 | (219,051 | ) | |||||
| Other expense | 409 | (115 | ) | |||||
| Other income (expense), net | 65,194 | (219,166 | ) | |||||
| Total income from operations before income taxes | 177,954 | 8,599,965 | ||||||
| Income tax expense | (742,314 | ) | (2,313,937 | ) | ||||
| Net income (loss) | $ | (564,360 | ) | $ | 6,286,028 | |||
| Basic net income (loss) per share attributable to common stockholders | $ | (0.03 | ) | $ | 0.39 | |||
| Diluted net income (loss) per share attributable to common stockholders | $ | (0.03 | ) | $ | 0.30 | |||
| Basic weighted average common shares outstanding | 16,708,776 | 16,296,689 | ||||||
| Diluted weighted average common shares outstanding | 16,708,776 | 20,919,096 | ||||||
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, which we calculate as net income less interest, taxes, depreciation and amortization and share-based compensation expense, 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, | |||||||
| June 30, 2025 | June 30, 2024 | ||||||
| Net (loss) / income | $ | (564,360 | ) | $ | 6,286,028 | ||
| Interest (income) / expense | (64,785 | ) | 219,051 | ||||
| Depreciation and amortization | 60,738 | 54,113 | |||||
| Income Taxes | 742,314 | 2,313,937 | |||||
| EBITDA | 173,907 | 8,873,129 | |||||
| Share-based compensation | 2,335,631 | 1,180,254 | |||||
| Adjusted EBITDA | $ | 2,509,538 | $ | 10,053,383 | |||
