Message #4 From:
NewsBot Date: November 15, 2005 02:00:00 AM
BTIM News BioTime Announces Results for Third Quarter 2005
EMERYVILLE, Calif.--(BUSINESS WIRE)--Nov. 15, 2005--BioTime, Inc. (OTCBB:BTIM):
-- 41% Increase in Total Revenue
-- Receives Payment of $247,000 under Joint Overseas Development Agreement
BioTime, Inc. (OTCBB:BTIM) today announced financial results for the third quarter ended September 30, 2005.
BioTime's total quarterly revenue increased 41% to $240,432 for the third quarter of 2005, from $170,381 for the same period last year. BioTime's third quarter revenues for 2005 include $87,541 in funds as part of a $299,990 grant from the National Heart, Lung, and Blood Institute division of the National Institutes of Health ("NIH") for use in the development of HetaCool(R). The NIH grant was renewed in April 2005 following the submission of a satisfactory progress report on the project. BioTime did not recognize any grant revenue in the same period last year.
Royalty revenues from Hextend(R) product sales in the United States and Canada by Hospira decreased 11% to $128,829 for the third quarter of 2005, from $145,208 during the same period last year due to a decline in sales to the U.S. Armed Forces, partially offset by an increase in hospital sales. The Company recognizes royalty revenues in the quarter in which the sales report is received, rather than the quarter in which the sales took place. Therefore, revenues for the three months ended September 30, 2005 included royalties on sales made by Hospira during the three months ended June 30, 2005.
During July 2005, Hospira appointed a new marketing manager of infusion therapy with more than a decade of experience in hospital product sales. In November 2005, BioTime will receive royalties of $242,124 from Hospira, based on Hextend sales during the three month period beginning July 1, 2005 and ending September 30, 2005. This revenue will be reflected in our financial statements for the fourth quarter of 2005. A portion of the royalty amount, $73,489, represents a payment from Hospira to preserve certain rights under their license. The balance of the royalty payment, $168,635, was based upon sales of Hextend and represents a 15% increase from royalty revenues of $147,148 received during the same period last year. The increase is primarily due to a large increase in hospital sales which was more than sufficient to offset reduced sales to the U.S. Armed Forces.
License revenue was $24,062 for the third quarter of 2005, versus $25,173 during the same period last year. License revenue reflects recognition of revenue under our license agreement with CJ Corp. Under this agreement we have received to date $588,000, net of foreign taxes and finders' fees, which is being recognized over multiple periods.
BioTime reported a net loss of $(415,058), or $(0.02) per basic and diluted share, for the three months ended September 30, 2005, compared to a net loss of $(452,060), or $(0.03) per basic and diluted share, for the same period last year.
Cash and cash equivalents totaled $175,564 at September 30, 2005, compared with $1,370,762 at December 31, 2004. Our cash position at September 30, 2005 does not include an additional $392,000 that we received in October 2005 under an overseas co-development agreement for the development of Hextend and PentaLyte. Of that amount, $150,000 represents a scheduled payment under the co-development agreement, while the remaining approximately $247,000 represents our 40% share of a non-refundable payment from a prospective licensee. We also expect to receive $242,124 in royalty payments from Hospira in November 2005.
Total shareholders' deficit was $(1,113,872) at September 30, 2005, compared with total shareholders' equity of $344,770 at December 31, 2004. In October 2005, BioTime commenced a new subscription rights offering. A group of investors has guaranteed to purchase a minimum number of units with gross cash proceeds of $1,787,145. The offering will expire on November 30, 2005.
About BioTime, Inc.
BioTime, headquartered in Emeryville, California, develops blood plasma volume expanders, blood replacement solutions for hypothermic (low temperature) surgery, organ preservation solutions and technology for use in surgery, emergency trauma treatment and other applications. BioTime's lead product Hextend is manufactured and distributed in the U.S. and Canada by Hospira, Inc. and in South Korea by CJ Corp. under exclusive licensing agreements. Information about BioTime can be found on the web at www.biotimeinc.com.
Hextend(R), PentaLyte(R), and HetaCool(R) are registered trademarks of BioTime, Inc.
Forward Looking Statements
The matters discussed in this press release include forward-looking statements which are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated. Such risks and uncertainties include but are not limited to the results of clinical trials of BioTime products; the ability of BioTime and its licensees to obtain additional FDA and foreign regulatory approval to market BioTime products; competition from products manufactured and sold or being developed by other companies; and the price of and demand for BioTime products. Other risk factors are discussed in BioTime's Annual Report on Form 10-K filed with the Securities and Exchange Commission.
BIOTIME, INC.
CONDENSED BALANCE SHEETS
September 30,
2005 December 31,
(unaudited) 2004
---------------- ----------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 175,564 $ 1,370,762
Accounts receivable 255,953 21,052
Prepaid expenses and other current
assets 109,202 101,173
--------------- ----------------
Total current assets 540,719 1,492,987
EQUIPMENT, net of accumulated
depreciation of $573,837 and
$568,557, respectively 7,272 12,552
DEPOSITS AND OTHER ASSETS 20,976 16,050
--------------- ----------------
TOTAL ASSETS $ 568,967 $ 1,521,589
=============== ================
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $ 235,210 $ 275,256
DEFERRED LICENSE REVENUE 529,375 601,563
ROYALTY OBLIGATION 915,660 300,000
OTHER LONG TERM LIABILITIES 2,594 --
COMMITMENTS
SHAREHOLDERS' EQUITY (DEFICIT):
Preferred shares, no par value,
undesignated as to Series,
authorized 1,000,000 shares; none
outstanding -- --
Common Shares, no par value,
authorized 40,000,000 shares;
issued and outstanding shares;
17,871,450 and 17,811,450,
respectively 38,843,936 38,718,197
Contributed Capital 93,972 93,972
Accumulated deficit (40,051,780) (38,467,399)
--------------- ----------------
Total shareholders' equity
(deficit) (1,113,872) 344,770
--------------- ----------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT) $ 568,967 $ 1,521,589
=============== ================
BIOTIME, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September September September September
30, 30, 30, 30,
2005 2004 2005 2004
----------- ----------- ----------- -----------
REVENUE:
License fees $ 24,062 $ 25,173 $ 73,887 $ 54,049
Royalty from
product sales 128,829 145,208 442,877 442,369
Grant income 87,541 -- 164,026 --
----------- ----------- ----------- -----------
Total revenue 240,432 170,381 680,790 496,418
----------- ----------- ----------- -----------
EXPENSES:
Research and
development (401,144) (305,626) (1,205,271) (810,379)
General and
administrative (242,988) (280,712) (1,031,918) (1,055,438)
----------- ----------- ----------- -----------
Total expenses (644,132) (586,338) (2,237,189) (1,865,817)
----------- ----------- ----------- -----------
INTEREST EXPENSE
AND OTHER INCOME: (11,358) 13,415 (27,982) (1,118,353)
----------- ----------- ----------- -----------
Loss before income
taxes (415,058) (402,542) (1,584,381) (2,487,752)
Foreign Taxes -- (49,518) -- (49,518)
----------- ----------- ----------- -----------
NET LOSS $(415,058) $(452,060) $(1,584,381) $(2,537,270)
=========== ========== ============= ===========
BASIC AND DILUTED
LOSS PER SHARE $ (0.02) $ (0.03) $ (0.09) $ (0.15)
=========== ========== ============= ===========
COMMON AND
EQUIVALENT SHARES
USED IN COMPUTING
BASIC AND DILUTED 17,871,450 17,811,450 17,864,564 17,318,360
