BIOTIME ANNOUNCES RESULTS FOR FIRST QUARTER 2005
- 43% Increase in Royalty Revenue Recognized on Hextend Sales
- 74% Increase in Recognized License Revenue
- 46% Increase in Total Revenue
BioTime, Inc. (Amex: BTX) today announced financial results for the first quarter ended March 31, 2005.
BioTime's total quarterly revenue increased 46% to $191,083 for the first quarter of 2005, from $130,700 for the same period last year.
Royalty revenues from Hextend® product sales in the United States and Canada by Hospira increased 43% to $165,321 for the first quarter of 2005, from $115,887 during the same period last year. 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 March 31, 2005 included royalties on sales made by Hospira during the three months ended December 31, 2004.
License revenue increased 74% to $25,762 for the first quarter of 2005, from $14,813 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 $586,000, net of foreign taxes and finders' fees, which is being recognized over future periods through March 2011.
BioTime received $148,727 in royalties from Hospira based on Hextend sales during the three months ended March 31, 2005. This revenue will be recognized in the Company's financial statements for the second quarter ending June 30, 2005. Royalty revenues decreased 18% from the $181,275 in royalties received during the same period last year due to a decline in sales to the United States Armed Forces during the period. The Armed Forces purchase Hextend through intermittent, large volume orders, which makes it difficult to predict sales to them in subsequent quarters. During the first quarter of 2004, U.S. Armed Forces purchased a large quantity of Hextend. Hextend continues to be the preferred resuscitation fluid of the U.S. Special Operations Command, and U.S. military personnel are being deployed around the world with Hextend.
BioTime reported a net loss of $(726,590), or $(0.04) per basic and diluted share, for the three months ended March 31, 2005, compared to a net loss of $(1,642,942), or $(0.10) per basic and diluted share, for the three months ended March 31, 2004. Net loss in the first quarter of 2004 included interest expense of $1,106,392 attributable to the fair value of additional consideration given to debenture holders in connection with the exchange of debentures for BioTime stock and warrants.
Cash and cash equivalents totaled $711,766 at March 31, 2005, compared with $1,370,762 at December 31, 2004. Our cash position at March 31, 2005 does not include an additional $450,000 that we received during April 2005 under our agreement for the development of Hextend and PentaLyte in an overseas market, and the $148,727 we received as a royalty payment from Hospira for sales of Hextend during the first quarter of this year. Total shareholders' deficit was $(321,420) at March 31, 2005, compared with total shareholders' equity of $344,770 at December 31, 2004.
About BioTime, Inc.
BioTime, headquartered in Berkeley, 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®, PentaLyte®, and HetaCool® 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
March 31,
2005 December 31,
(unaudited) 2004
------------ ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $711,766 $1,370,762
Prepaid expenses and other current assets 111,507 122,225
------------ ------------
Total current assets 823,273 1,492,987
EQUIPMENT, net of accumulated depreciation
of $571,532 and $568,557, respectively 9,577 12,552
DEPOSITS AND OTHER ASSETS -- 16,050
------------ ------------
TOTAL ASSETS $832,850 $1,521,589
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LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued liabilities $267,893 $275,256
DEFERRED LICENSE REVENUE 577,500 601,563
ROYALTY OBLIGATION 308,877 300,000
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; 17,851,450 and 17,811,450,
respectively 38,778,597 38,718,197
Contributed Capital 93,972 93,972
Accumulated deficit (39,193,989) (38,467,399)
------------ ------------
Total shareholders' equity (deficit) (321,420) 344,770
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
(DEFICIT) $832,850 $1,521,589
============ ============
BIOTIME, INC.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended
-------------------------------
March 31, 2005 March 31, 2004
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REVENUE:
License fees $25,762 $14,813
Royalty from product sales 165,321 115,887
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Total revenue 191,083 130,700
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EXPENSES:
Research and development (462,608) (227,806)
General and administrative (454,001) (408,392)
--------------- ---------------
Total expenses (916,609) (636,198)
--------------- ---------------
INTEREST EXPENSE AND OTHER INCOME: (1,064) (1,137,444)
--------------- ---------------
NET LOSS $(726,590) $(1,642,942)
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BASIC AND DILUTED LOSS PER SHARE $(0.04) $(0.10)
=============== ===============
COMMON AND EQUIVALENT SHARES USED IN
COMPUTING BASIC AND DILUTED 17,851,450 16,337,128
Contact:
BioTime, Inc.
Judith Segall
510-845-9535