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Medistem Inc.
2008-08-13 20:42:00
PHOENIX, AZ–(EMWPresswire – August 13, 2008) – Medistem Inc. (
financial results for the quarter ended June 30, 2008.
The Company reported a net loss of ($264,000), or ($0.05) per share, for
the quarter ended June 30, 2008 as compared to a net loss of ($1,109,000)
or ($0.22) per share for the quarter ended June 30, 2007. The Company also
reported net operating cash flows of $14,000 for the quarter ended June 30,
2008, as compared to net operating cash flows of ($205,000) for the quarter
June 30, 2007.
Comparative balance sheets and income statements are enclosed in this
release.
“This quarter, we have made significant progress toward our goal of filing
an initial IND application by year-end for our proprietary stem cell type,
the endometrial regenerative cell (ERC),” commented Thomas Ichim, CEO.
“Collaborations at Indiana University, The Scripps Research Institute, the
University of Western Ontario and other leading institutions have led to a
whole host of supportive preclinical data demonstrating cell stability and
angiogenic properties that is critical to the commercialization of
ERC-based therapies. Additionally, we continue to publish our findings in
peer-reviewed journals and expand our collaborations as we believe strongly
in the importance of basic scientific research needed for the advancement
of the stem cell industry as a whole.”
About Medistem Inc.
Medistem Inc. is a biotechnology company founded to develop and
commercialize technologies related to adult stem cell extraction,
manipulation, and use for treating inflammatory and degenerative diseases.
The company’s lead product, the endometrial regenerative cell (ERC), is a
“universal donor” stem cell derived from the menstrual blood that possesses
the ability to differentiate into nine tissue types, produce large
quantities of growth factors, and a large proliferative capacity. A peer
reviewed publication describing this novel cell type may be found at
http://www.translational-medicine.com/content/5/1/57. The company is
currently focusing on use of endometrial regenerative cells for treatment
of critical limb ischemia, an advanced form of peripheral artery disease
that causes approximately 160,000 amputations per year.
Cautionary Statement
This press release does not constitute an offer to sell or a solicitation
of an offer to buy any of our securities. This press release may contain
certain forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements are inherently
subject to risks and uncertainties, some of which cannot be predicted or
quantified. Future events and actual results could differ materially from
those set forth in, contemplated by, or underlying the forward-looking
information.
Factors which may cause actual results to differ from our forward-looking
statements are discussed in our Form 10-K for the year ended December 31,
2007 as filed with the Securities and Exchange Commission.
Medistem Inc.
Balance Sheets
(unaudited)
June 30, December 31,
2008 2007
------------ ------------
Assets
Cash and equivalents $ 156,284 $ 179,451
Restricted cash - 31,000
Royalties receivable 326,742 225,597
Prepaid expenses and other current assets 39,339 52,421
------------ ------------
Total current assets 522,365 488,469
Property and equipment, net 18,504 24,307
Intangible assets 3,566 3,566
Other amounts due from licensee 711,501 695,127
------------ ------------
Total assets $ 1,255,936 $ 1,211,469
============ ============
Liabilities and Stockholders' Equity
Accounts payable $ 45,817 $ 16,523
Accrued expenses 23,696 19,652
Due to affiliate - 21,100
Withholding taxes payable 93,511 33,840
Other liabilities 85,324 78,032
------------ ------------
Total current liabilities 248,348 169,147
------------ ------------
Total liabilities 248,348 169,147
------------ ------------
Stockholders' equity:
Series A convertible preferred stock, $0.0001
par value, no stated interest rate or dividend
preference, liquidation preference of $0.35
per share or $1,800,000 aggregate, 200,000,000
shares authorized, 4,571,429 shares issued
and outstanding, convertible into 182,859
shares of common stock 457 457
Common stock, $0.0001 par value, 300,000,000
shares authorized, 5,341,112 shares issued
and outstanding 534 534
Paid-in capital 11,070,818 10,273,077
Accumulated deficit (10,064,220) (9,231,745)
------------ ------------
Total stockholders' equity 1,007,588 1,042,322
------------ ------------
Total liabilities and stockholders'
equity $ 1,255,936 $ 1,211,469
============ ============
Medistem Inc.
Statements of Operations
(unaudited)
Three Months Ended June 30, Six Months Ended June 30,
-------------------------- --------------------------
2008 2007(1) 2008 2007(1)
------------ ------------ ------------ ------------
Revenues $ 160,200 $ 470,828 $ 531,145 $ 948,158
Cost of services 4,373 377,836 208,508 743,614
------------ ------------ ------------ ------------
Gross profit 155,827 92,992 322,637 204,544
------------ ------------ ------------ ------------
Operating expenses:
Research and
development 84,848 418,547 133,783 523,645
Professional fees 35,271 84,151 107,658 174,336
General and
administrative 295,576 702,230 906,783 1,162,551
------------ ------------ ------------ ------------
Total operating
expenses 415,694 1,204,928 1,148,225 1,860,532
------------ ------------ ------------ ------------
Operating loss (259,867) (1,111,936) (825,588) (1,655,988)
Other income
(expense):
Interest expense - - (245) (231)
Interest income 559 5,655 1,396 14,806
Other income
(expense) (4,474) (3,117) (8,039) (7,182)
------------ ------------ ------------ ------------
Total other income
(expense) (3,915) 2,538 (6,887) 7,393
------------ ------------ ------------ ------------
Loss before income
tax benefit (263,782) (1,109,398) (832,475) (1,648,595)
Income tax benefit - - - -
------------ ------------ ------------ ------------
Net loss $ (263,782) $ (1,109,398) $ (832,475) $ (1,648,595)
============ ============ ============ ============
Net loss per share:
Basic $ (0.05) $ (0.22) $ (0.16) $ (0.32)
============ ============ ============ ============
Diluted $ (0.05) $ (0.22) $ (0.16) $ (0.32)
============ ============ ============ ============
Weighted average
common shares
outstanding (2)
Basic 5,341,112 5,107,228 5,305,486 5,107,228
============ ============ ============ ============
Diluted 5,341,112 5,107,228 5,305,486 5,107,228
============ ============ ============ ============
(1) Includes consolidation of licensee, ICM, which was subsequently
deconsolidated at December 31, 2007
(2) Retroactively adjusted for the 1-for-25 reverse stock split effective
August 11, 2008
Medistem Inc.
Statements of Cash Flows
(unaudited)
Six Months Ended June 30,
------------ ------------
2008 2007(1)
------------ ------------
Cash flows from operating activities:
Net loss $ (832,475) $ (1,648,595)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 5,056 73,801
Bad debt expense - 3,500
Non-cash R&D expenditures - 320,000
Loss on disposal of assets 747 6,520
Stock-based compensation 797,741 713,593
Changes in assets and liabilities:
Restricted cash 31,000 (111,000)
Royalties receivable (101,145) -
Other current assets 13,082 3,585
Accounts payable 29,294 2,706
Accrued expenses 4,044 311,356
Due to affiliates (21,100) 28,300
Withholding tax payable 59,671 -
Other liabilities 7,292 6,099
Deferred revenue - 23,650
------------ ------------
Net cash used in operating
activities (6,793) (266,485)
------------ ------------
Cash flows from investing activities:
Advances to licensee (16,374) -
Proceeds from sale of fixed assets - 10,000
Purchases of equipment - (177,255)
------------ ------------
Net cash used in investing
activities (16,374) (167,255)
------------ ------------
Cash flows from financing activities - -
------------ ------------
Change in cash and equivalents (23,167) (433,740)
Cash and equivalents, beginning of period 179,451 986,009
------------ ------------
Cash and equivalents, end of period $ 156,284 $ 552,269
============ ============
(1) Includes consolidation of licensee, ICM, which was subsequently
deconsolidated at December 31, 2007
| For further information on Medistem Inc., please visit www.medisteminc.com or contact: Thomas Ichim, PhD |
|
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