Medistem Laboratories Reports First Quarter 2007 Financial Results
SCOTTSDALE, AZ -- (MARKET WIRE) -- 05/03/07 -- Medistem Laboratories (OTCBB: MDSM) (FRANKFURT: S2U) today reported financial results for the quarter ended March 31, 2007.
The Company reported a net loss of $539,000 or $0.00 per share for the quarter ended March 31, 2007 (which includes non-cash stock based compensation charges of $381,000). Revenues were $477,000 for the first quarter of 2007, up from $214,000 in the fourth quarter of 2006 and $105,000 in the third quarter of 2006. Revenues were derived from patient treatments in its licensee clinics in Costa Rica and Mexico.
By comparison, the Company reported a net loss of $772,000 or $0.01 per share for the quarter ended December 31, 2006 (which includes non-cash stock based compensation charges of $581,000).
Comparative balance sheets and income statements are enclosed in this release.
Key events in the first quarter of 2007 were as follows:
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Revenues more than doubled for the second consecutive quarter
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Net cash outflows from operations was reduced to $62,000
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Medistem initiated preclinical research with Indiana University and Lawson Health Research Institute for its first two pipeline drugs, Angiostem(TM) and Tolerostem(TM), aimed at the U.S. markets
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Medistem executes agreement with second licensee in Mexico
Steve Rivers, Chief Financial Officer concluded, "Our continued growth in revenues is strengthening our financial position. We believe revenues from licensee operations will continue to grow and assuming this takes place will position us to accelerate research and development efforts along with other business endeavors as we seek to become a global leader in the commercialization of adult stem cell products."
About Medistem Laboratories, Inc.
Medistem Laboratories is a biotechnology company that discovers, develops, and commercializes adult stem cell products that address serious medical conditions. While drug discovery and development is its primary focus, Medistem has compiled a body of proprietary technologies it outlicenses to commercial entities in markets where stem cell administration is permissible. Due to its licensee relationships and collaborative efforts with respected institutions, Medistem believes it is well positioned to be a leading developer of adult stem cell products.
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Cautionary Statement
This document does not constitute an offer to sell or a solicitation of an offer to buy any of our securities. This document contains 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. These forward-looking statements may include projections of matters that affect revenue, the ability to develop or license certain technologies; operating expenses or net earnings; projections of capital expenditures; projections of growth; hiring plans; plans for future operations; financing needs or plans; plans relating to the company's products and services; and assumptions relating to the foregoing.
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.
Some of the important factors that could cause the company's actual results to differ materially from those projected in forward-looking statements made by the company include, but are not limited to, the following: technology development limitations, intense competition, risk of business interruption, management of rapid growth, need for additional financing, regulatory approvals and requirements, dependence on key personnel and research, management and other administrative costs.
These factors are discussed in greater detail in the company's quarterly and annual periodic reports, all as filed with the Securities and Exchange Commission.
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Medistem Laboratories, Inc.
Consolidated Statements of Operations
(unaudited)
Three Months Ended
------------------------
March 31, Dec 31,
2007 2006
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Revenues $ 477,330 $ 214,408
Operating expenses:
Laboratory and clinical expenses 206,932 120,283
Research and development 61,176 12,388
Professional fees 91,342 48,565
General and administrative 281,195 178,602
Stock based compensation 380,737 581,623
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Total operating expenses 1,021,382 941,461
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Operating loss (544,052) (727,053)
Other income (expense):
Interest expense (231) (346)
Interest income 6,298 12,674
Other income (expense) (1,212) (57,329)
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Total other income (expense) 4,855 (45,001)
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Loss before income tax provision (539,197) (772,054)
Income tax provision - -
----------- -----------
Net loss $ (539,197) $ (772,054)
=========== ===========
Net loss per share:
Basic $ (0.00) $ (0.01)
=========== ===========
Diluted $ (0.00) $ (0.01)
=========== ===========
Weighted average common shares outstanding
Basic 127,680,693 127,680,693
=========== ===========
Diluted 127,680,693 127,680,693
=========== ===========
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Medistem Laboratories, Inc.
Consolidated Balance Sheets
March 31, Dec 31,
2007 2006
(unaudited)
----------- -----------
Assets
Cash and equivalents $ 820,781 $ 986,009
Restricted cash 28,000 -
Short-term investments 20,000 20,000
Prepaid expenses and other current assets 15,800 23,940
----------- -----------
Total current assets 884,581 1,029,949
Property and equipment, net 565,998 656,564
Intangible assets 3,566 3,566
Other assets 86,900 86,900
----------- -----------
Total assets $ 1,541,045 $ 1,776,979
=========== ===========
Liabilities, Minority Interest and Stockholders'
Equity
Accounts payable $ 26,455 $ 162,014
Accrued expenses 48,151 12,847
Due to affiliate 20,800 -
Accrued registration rights penalties 68,246 65,265
Deferred revenue 14,000 15,000
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Total current liabilities 177,652 255,126
----------- -----------
Total liabilities 177,652 255,126
----------- -----------
Minority interest - -
----------- -----------
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 in 2006,
200,000,000 shares authorized, 5,142,858
and no shares issued and outstanding 514 514
Common stock, $0.0001 par value, 300,000,000
shares authorized, 131,405,693 and 130,680,693
shares issued and outstanding 13,140 13,068
Paid-in capital 8,610,936 8,230,271
Accumulated deficit (7,261,197) (6,722,000)
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Total stockholders' equity 1,363,393 1,521,853
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Total liabilities, minority interest and
stockholders' equity $ 1,541,045 $ 1,776,979
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Contact:
Medistem Laboratories, Inc.
Chris McGuinn
602-318-3535
www.medisteminc.com
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