POMPANO BEACH, FLORIDA., Mar. 31, 2022 – BioStem Technologies Inc. (OTC: BSEM), a leading regenerative medicine company focused on the development, manufacture, and commercialization of product solutions for the Advanced Wound Care market today reported financial results for the year ended December 31, 2021.
2021 Financial Results Summary:
- Net revenue of $4.341 million for year ended December 31,2021, up 80%, compared to net revenue of $2.415 million for the year ended December 31, 2020.
- Net loss of ($1.408) million for the year ended December 31, 2021, compared to a net loss of ($2.518) million for the year ended December 31, 2020, a decrease of $1.110 million or a reduction of 44%
- Adjusted EBITDA loss of ($0.221) million, or .05% of net revenue, for the year ended December 31, 2021, compared to Adjusted EBITDA loss of ($0.921) million, or 38% of net revenue, for the year ended December 31, 2020, a decrease of $0.700) million. See the GAAP to Adjusted EBITDA reconciliation below.
CEO, Jason Matuszewski, “I am proud of our team’s dedication and execution that delivered very strong fourth-quarter financial results to close out 2021. It was a year of many accomplishments that sets the stage for BioStem’s continued growth in 2022. Furthermore, I am excited to lead the team forward as we work to realize the long-term commercial potential of our product portfolio.
Looking back at 2021, we achieved net revenue growth of 80% year-over-year. Our largest driver for growth was the commercialization and reimbursement by CMS of Vendaje for wound care, and we anticipate this growth to continue by double digits in 2022. In anticipation of the upcoming launch of Vendaje AC, which we expect in the third quarter following reimbursement approval, we are building the commercial team, introducing medical education programs and moving forward with market development initiatives. BioStem has two product lines entering the wound-care market this year. With this, we are confident in our ability to execute our long-term strategic plan that will help us to increase profitability.
Lastly, we are continuing with the development of other new products to add to our portfolio. Our focus at BioStem is clear as we create new products that change lives by substantially improving medical outcomes while honoring the gift of birth tissue donation.
YTD December 31, 2021, Results:
The following table represents net revenue, gross margin, operating expenses and operating loss for the twelve months ended December 30, 2021 and December 30, 2020, respectively:
Net revenue for the year ended 2021 was $4.341 million, compared to $2.415 million for the year ended 2020, an increase of $1.9 million, or an increase of 80%. 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 year ended of 2021 was $2.824 million, or 65% of net revenue, compared to $1.278 million, or 52% of net revenue, for the year ended of 2020, an increase of $1.546 million, or 121%. 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 year ended of 2021 were $4.257 million, compared to $2.912 million for the year ended of 2020, an increase of $1.345 million. Increase in operating expenses is primarily driven by additional headcount as well as additional marketing spend
Operating loss for the year ended of 2021 was ($1.149) million, compared to ($1.366) million for the year ended of 2020, a decrease of $0.218 million, or 16%.
Total other income (expense), net, for the year ended of 2021 were .024 million, compared to ($.882) million for the year ended of 2020, a decrease of $0.906 million, or 1.02%.
Net loss for the year ended of 2021 was ($1.408) million, or ($0.15) per share, compared to of ($2.492) million, or ($0.28) per share, for the year ended of 2020, an improvement of $1.110 million, or $0.13 per share.
Adjusted EBITDA loss of ($0.221) million, or .05% of net revenue, for the year ended of 2021, compared to Adjusted EBITDA loss of ($0.924) million, or 38% of net revenue, for the year ended of 2020, a decrease of $0.700) million.
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:
This release 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.
About BioStem Technologies Inc.
BioStem Technologies Inc. (OTC:BSEM) 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.. For more information, visit www.biostemtechnologies.com
