BioStem Technologies Reports Record First Quarter Revenue of $41.9 Million


- Company Achieves Record-Breaking First Quarter Results for 2024, Marking the Launch of BioStem 2.0 -- Company Reports First Quarter EBITDA of $4.9 Million -- Project Continued Growth from Sales of AmnioWrap2® -- Financial Results Conference Call and Webcast on Tuesday May 14, 2024 at 4:30 pm EDT -

POMPANO BEACH, Fla., May 14, 2024 (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 first quarter ended March 31, 2024.

Jason Matuszewski, CEO of BioStem, commented, “BioStem had an outstanding first quarter. Revenue reached $41.9 million, nearly 71 times higher than revenue of roughly $0.6 million for last year’s comparable quarter. This growth was driven by the continued successful commercial acceptance into the private office setting of AmnioWrap2, our innovative placental-derived allograft product designed to address a broad spectrum of wound applications. Gross margin reached 95% of revenue compared to 82% in the first quarter of 2023, reflecting the increase in sales and the ongoing benefit from our distribution agreement with Venture Medical. On a US GAAP basis, we are also pleased to report being net income positive for the first time in the history of the Company as well as converting from a net shareholders’ deficit position into a net positive equity position.

“An exciting recent development is the USPTO's prioritized examination of our patent for BioREtain® processing technology, essential for BioStem’s product differentiation and advanced wound care support. We've also advanced our clinical capabilities by engaging McCoy Clinical Consulting to lead our Diabetic Foot Ulcer (DFU) and Venous Leg Ulcer (VLU) trials, to accelerate trial processes and demonstrate the real-world benefits of our BioREtain products. Additionally, completing our strategic two-year audit strengthens our financial transparency and governance. These advancements in operations, governance, clinical trials, and sales strategies have launched BioStem 2.0, marking a new phase in our evolution as a global MedTech leader, focused on driving revenue growth and expanding our operational scale."

Recent Highlights:

  • Engaged McCoy Clinical Consulting to spearhead pivotal clinical trials for Diabetic Foot Ulcer (DFU) and Venous Leg Ulcer (VLU) treatments, enhancing the company’s clinical capabilities.
  • Advanced intellectual property portfolio with the prioritized examination of a critical patent by the USPTO.

First Quarter 2024 Financial Highlights

  • Net revenue grew to $41.9 million in the first quarter of 2024 compared to $0.6 million in the first quarter of 2023.
  • Gross profit was $39.7 million, or 95% of revenue, in the first quarter of 2024.
  • Adjusted EBITDA income was $7.9 million in the first quarter of 2024 compared to an Adjusted EBITDA loss of ($1.0) million in the first quarter of 2023.
  • First quarter in the history of the Company with positive GAAP income.

First Quarter 2024 Operational Highlights

  • Completed two years of audited financial statements in continued preparation for moving the Company to a national exchange.
  • Completed construction and provisioned equipment for expansion of processing capacity.
  • Expanded the Quality, Operational, Sales and Marketing teams to support increased capacity and drive growth.

First Quarter–Financial Results:

The following table represents net revenue, gross margin, operating expenses, and other expenses for the first quarter March 31, 2024, and March 31, 2023, respectively:

 Three months ended March 31,     
  2024   2023  $ Change % Change
Net revenue$41,904,213  $576,103  $41,328,110  7174% 
Gross profit$39,679,509  $474,954  $39,204,556  8254% 
Gross profit % 95%   82%    12% 
Operating expenses$(35,071,396)  $(3,938,106)  $(31,133,289)  791% 
Other expense, net$(165,513)  $(116,935)  $(48,578)  -42% 

Financial Results for Three Months Ended March 31, 2023

Net revenue for the three months ended March 31, 2024, was $41.9 million compared to $0.6 million for the three months ended March 31, 2023, an increase of $41.3 million, or 7,174%. The increase in net revenue was driven primarily by the continued market demand of AmnioWrap2 which launched in the 4th quarter of 2023.

Gross profit for the three-months ended March 31, 2024, was $39.7 million, or 95% of revenue, compared to $0.5 million, or 82% of net revenue, for the three months ended March 31, 2023, an increase of $39.2 million. The increase in gross profit resulted primarily from the acceleration of sales volume of the Company’s higher margin AmnioWrap2 products and no sales of higher cost flowable products in the first quarter of 2024.

Operating expenses for the three-months ended March 31, 2024, were $35.1 million, compared to $3.9 million for the three-months ended March 31, 2023, an increase of $31.1 million. The increase in operating expenses is primarily due to additional headcount, service fees owed to BioStem’s distributor for AmnioWrap2, and increases in share-based compensation.

Conference Call Details Date: Tuesday, May 14, 2024 Time: 4:30 pm EDT WebcastLink: Participant Toll-Free Dial-In Number: 1 (888) 596-4144 Participant Toll Dial-In Number: 1 (646) 968-2525

To submit questions, participants must have Internet connectivity as questions will only be addressed via the webcast. The conference call line will be in listen-only mode.

About BioStem Technologies, Inc.

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, please visit:

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: Email: Twitter: @BSEM_Tech Facebook: BioStem Technologies

Investor Relations: Jeff Ramson New York, NY 10001 T: 646-863-6893   

-Tables Follow-

BioStem Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
 March 31, 2024 December 31, 2023
Current Assets   
Cash$643,241  $239,406 
Accounts receivable, net 41,622,643   11,371,730 
Inventory, net 882,763   658,678 
Prepaid expenses and other assets 585,489   329,239 
Total current assets 43,734,136   12,599,053 
Long-Term Assets   
Property and equipment, net 1,133,865   1,154,856 
Construction-in-process 215,081   202,700 
Right-of-use asset, net 9,636   11,443 
Intangible assets, net 316,737   347,604 
Goodwill 244,635   244,635 
Other assets 20,000   - 
Total assets$45,674,089  $14,560,291 
Current Liabilities   
Accounts payable and accrued expenses$2,818,370  $1,391,711 
Bona fide services fee payable (Note 4) 29,839,849   7,787,211 
Accrued interest 1,762,824   1,697,787 
Short-term finance lease 8,988   8,988 
Notes payable 4,125,902   4,445,782 
Other current liabilities 251,060   289,409 
Total current liabilities 38,806,994   15,620,888 
Long-Term Liabilities   
Finance lease, less current portion 1,397   3,294 
Notes payable, less current portion 216,263   265,635 
Other long-term liabilities, less current portion 7,425   14,850 
Total long-term liabilities 225,085   283,779 
Total liabilities 39,032,078   15,904,667 
Commitments and contingencies (Note 10)   
Stockholders' Equity (Deficit)   
Series A-1 convertible preferred stock, $0.001 par value authorized, 300 shares; issued and outstanding, 300 shares as of March 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 March 31, 2024 and December 31, 2023. -   - 
Common stock, $0.001 par value authorized, 975,000,000 shares issued and outstanding 16,343,762 and 16,214,390 shares as of March 31, 2024 and December 31, 2023. 16,354   16,215 
Additional paid-in capital 47,851,046   44,306,872 
Treasury stock, 18,000 shares at cost (43,346)  (43,346)
Accumulated deficit (41,182,043)  (45,624,643)
Total stockholders' equity (deficit) 6,642,011   (1,344,376)
Total liabilities and stockholders' equity (deficit)$45,674,089  $14,560,291 

BioStem Technologies, Inc. and Subsidiaries
Consolidated Statements of Operations
 Three-months ended,
 March 31, 2024 March 31, 2023
Revenue, net$41,904,213  $576,103 
Cost of goods sold 2,224,704   101,149 
Gross profit 39,679,509   474,954 
Operating Expenses:   
Sales and marketing expenses 30,547,721   133,257 
General and administrative expenses 4,399,262   3,746,505 
Research and development expenses 70,748   - 
Depreciation and amortization expense 53,665   58,345 
Total operating expenses 35,071,396   3,938,106 
Income/(loss) from operations 4,608,114   (3,463,153)
Other Income (Expense):   
Interest expense 163,942   120,426 
Other income (expense) (1,571)  3,491 
Other income (expense), net 165,513   116,935 
Total Income (loss) from operations before income taxes 4,442,601   (3,580,088)
Income taxes -   - 
Net Income (loss)$4,442,075  $(3,580,088)
Basic net income (loss) per share attributable to common stockholders$0.27  $(0.28)
Diluted net income (loss) per share attributable to common stockholders$0.20  $(0.28)
Basic weighted average common shares outstanding 16,316,178   12,564,950 
Diluted weighted average common shares outstanding 22,383,275   12,564,950 

NON-GAAP FINANCIALS MEASURESOur 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,     
   2024   2023  $ Change % Change
Net income (loss) $4,442,075  $(3,580,088) $8,022,162  224%
Interest expense  163,942   120,426   43,517  -36%
Depreciation and amortization  53,665   58,345   (4,680) -8%
EBITDA $4,659,682  $(3,401,317) $8,060,999  237%
Share-based compensation  3,279,098   2,428,546   850,552   
Adjusted EBITDA $7,938,780  $(972,771) $8,911,551  916%
Adjusted EBITDA / Revenue  1378%  -35%  1413%  

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Source: Biostem Technologies

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