BioTime Announces Fourth Quarter and Fiscal Year-End Results.BERKELEY Berkeley (bûr`klē), city (1990 pop. 102,724), Alameda co., W Calif., on the E shore of San Francisco Bay just N of Oakland; inc. 1878. Originally (1820) part of a Spanish rancho, the site was purchased by Americans in 1853. , Calif. -- BioTime, Inc. (Amex:BTX (Balanced Technology EXtended) A motherboard design from Intel introduced in 2004 that supersedes the ATX. Unlike the ATX, the placement of all chip sockets in the BTX is defined in order to provide sufficient air flow over the processor and display adapter. ): --57% Increase in Royalty Revenue Recorded on Hextend Sales for the Year --Total 2004 Revenues Increase 24% --48% Increase in Royalty Revenue Recorded on Hextend Sales for the Quarter --Sales of Hextend Begin in South Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. BioTime, Inc. (Amex: BTX) today announced financial results for the fourth quarter and fiscal year ended December December: see month. 31, 2004. BioTime also announced that sales of Hextend(R) have commenced in South Korea. Hextend is BioTime's proprietary physiologically phys·i·o·log·i·cal also phys·i·o·log·ic adj. 1. Of or relating to physiology. 2. Being in accord with or characteristic of the normal functioning of a living organism. 3. balanced blood plasma blood plasma n. The yellow or gray-yellow, protein-containing fluid portion of blood in which the blood cells and platelets are normally suspended. volume expander, designed especially to treat low blood volume during major surgery where patients experience significant blood loss. Hextend is being manufactured and marketed in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of by Hospira Hospira, Inc. is a pharmaceutical and drug delivery company. It has approximately 16,000 employees and 19 manufacturing facilities worldwide and is headquartered north of Chicago in Lake Forest, Illinois. , Inc. and in South Korea by CJ Corp. under exclusive licenses from BioTime. Overall revenues increased 24 percent to $688,377 for the year ended December 31, 2004, from $556,422 for the year ended December 31, 2003. BioTime's royalties from Hextend sales in the United States and Canada increased 57 percent to $589,517 for the year ended December 31, 2004, from $375,337 received in 2003. During 2003, BioTime also received $138,897 of additional royalties from Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified pharmaceuticals and health care company. It has over 65,000 employees and operates in 130 countries. The corporate headquarters are in Abbott Park, Illinois, a neighborhood of North Chicago, Illinois. , Hospira's former parent, to preserve certain rights under their license. License revenue increased 87 percent to $78,700 for the year ended December 31, 2004, from $42,187 in 2003. In 2004, 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 multiple periods. In December 2004, we entered into an agreement with Summit Pharmaceuticals International to develop Hextend and PentaLyte(R) for the Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and market. As part of this agreement, we received $300,000 from Summit as partial reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of BioTime's development costs. Our deferred revenue balance at December 31, 2004 was $901,563. Deferred revenues include license fees and similar payments received under our agreements with CJ Corp. and Summit that will be recognized as income over future periods. BioTime reported a net loss of $(3,085,324), or $(0.18) per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the year ended December 31, 2004, compared to a net loss of $(1,742,074), or $(0.12) per basic and diluted share, for the year ended December 31, 2003. Our results for 2003 included $1,000,000 of other income generated from key man life insurance policy proceeds collected after the death of former Chairman and Chief Executive Officer, Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Segall. BioTime's royalties from Hextend sales by Hospira, Inc. increased 48 percent to $147,148 for the quarter ended December 31, 2004, from $99,674 in 2003. In addition to those royalties, fourth quarter 2003 revenues included $138,897 of additional royalties paid by Abbott Laboratories to preserve certain rights under their license. Consequently, overall revenue for the fourth quarter ended December 31, 2004 decreased 24 percent to $191,959 from $252,633 for the fourth quarter 2003. BioTime incurred a net loss of $(548,054), or $(0.03) per basic and diluted share, for the three months ended December 31, 2004, compared to a net loss of $(598,093), or $(0.04) per basic and diluted share, for the three months ended December 31, 2003. In January 2005, BioTime received $165,321 in royalties on Hextend sales by Hospira that occurred during the fourth quarter of 2004, representing an increase of 43% from $115,887 received during the same period of 2003. This revenue will be reflected in our financial statements for the first quarter of 2005. We recognize royalty revenues in the quarter in which we receive sales reports rather than in the quarter in which the sales that generated the royalties occurred. Cash and cash equivalents totaled approximately $1.4 million at December 31, 2004, compared with $717,184 at December 31, 2003. Total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $344,770 at December 31, 2004, compared with total shareholders' deficit of approximately $2.4 million at December 31, 2003. In 2004, BioTime retired its debt of $3,350,000 and currently has no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . CJ Corp. commenced sales of Hextend in South Korea during the first quarter of 2005. CJ Corp. also has the right to manufacture and market PentaLyte in South Korea, and will seek any regulatory approvals required to manufacture and market that product, including conducting any clinical trials that may be required by the Korea Food and Drug Administration. PentaLyte is BioTime's proprietary pentastarch-based synthetic plasma expander similar in formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating. American Law Institute Formulation to Hextend, designed especially for use when faster elimination of the starch starch, white, odorless, tasteless, carbohydrate powder. It plays a vital role in the biochemistry of both plants and animals and has important commercial uses. component is medically desired. BioTime is beginning a Phase II clinical testing of PentaLyte in the United States. The sale of Hextend by CJ Corp. in South Korea marks BioTime's initial entry into the overseas markets. CJ obtained regulatory approval to market Hextend in South Korea in June 2004. In addition to a license fee of $800,000 paid for the marketing rights to Hextend and PentaLyte, CJ Corp. will pay BioTime a royalty on sales of the licensed products. The initial royalty rate for sales of Hextend will be $1.30 per 500 mL unit sold based upon the current price approved by Korea's National Health Insurance. The royalty rate may increase to as much as $2.60 per 500 mL unit under the licensing agreement if Korean National Health Insurance approves price increases in the future. "With unquestionable efficiency CJ has commenced sales of Hextend, BioTime's first overseas product. As one of the leading pharmaceutical companies in Korea and with a strong global network, CJ Corp. is a very powerful partner for BioTime," commented Judith Segall, BioTime Vice President of Operations, Office of the President. "As we expand our commercialization efforts of Hextend in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Asia, we expect continued growth in revenues. We have also made further progress in the development of our HetaCool(R) and PentaLyte products. PentaLyte is currently in Phase II clinical trials Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II and in April 2004 we were awarded a research grant by the National Heart, Lung, and Blood Institute National Heart, Lung, and Blood Institute, n.pr established in 1948, this division of the National Institutes of Health is responsible for research and education on cardiovascular, pulmonary, systemic diseases, and sleep disorders. division of the National Institutes of Health for use in the development of HetaCool. We are excited about our achievements in 2004, and look forward to continued success in 2005." About BioTime, Inc. BioTime, headquartered in Berkeley, California Berkeley is a city on the east shore of San Francisco Bay in Northern California, in the United States. Its neighbors to the south are the cities of Oakland and Emeryville. To the north is the city of Albany and the unincorporated community of Kensington. develops blood plasma volume expanders, blood replacement solutions for hypothermic hy·po·ther·mi·a n. Abnormally low body temperature. [hypo- + Greek therm (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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission.
BIOTIME, INC.
CONDENSED BALANCE SHEETS
December 31, December 31,
2004 2003
------------ ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,370,762 $717,184
Prepaid expenses and other current assets 122,225 289,865
------------ ------------
Total current assets 1,492,987 1,007,049
EQUIPMENT, net of accumulated depreciation
of $568,557 and $532,663 12,552 48,446
DEPOSITS AND OTHER ASSETS 16,050 16,050
------------ ------------
TOTAL ASSETS $1,521,589 $1,071,545
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
(DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued liabilities $275,256 $408,891
Current portion of debentures, net of
discount of $664,608 in 2003 -- 2,685,392
Total current liabilities 275,256 3,094,283
------------ ------------
DEFERRED LICENSE REVENUE 901,563 407,813
COMMITMENTS
------------ ------------
SHAREHOLDERS' EQUITY (DEFICIT):
Common Shares, no par value, authorized
40,000,000 shares; issued and outstanding
shares; 17,811,450 and 13,654,949 38,718,197 32,857,552
Contributed Capital 93,972 93,972
Accumulated deficit (38,467,399) (35,382,075)
------------ ------------
Total shareholders' equity (deficit) 344,770 (2,430,551)
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
(DEFICIT) $1,521,589 $1,071,545
============ ============
BIOTIME, INC.
CONDENSED STATEMENTS OF OPERATIONS
Year Ended
December 31,
--------------------------------------
2004 2003 2002
------------ ------------ ------------
REVENUE:
License fees $78,700 $42,187 $--
Royalty from product sales 589,517 514,235 352,641
Grant income 20,160 -- --
Reimbursed regulatory fees -- -- 34,379
------------ ------------ ------------
Total revenue 688,377 556,422 387,020
------------ ------------ ------------
EXPENSES:
Research and development (1,123,261) (903,018) (1,103,490)
General and administrative (1,484,372) (1,260,712) (1,318,159)
------------ ------------ ------------
Total expenses (2,607,633) (2,163,730) (2,421,649)
------------ ------------ ------------
INTEREST EXPENSE AND OTHER
INCOME:
Interest expense (1,148,888) (1,090,612) (830,952)
Other income 32,338 1,038,366 20,649
------------ ------------ ------------
Total interest expense and
other income (1,116,550) (52,246) (810,303)
------------ ------------ ------------
Foreign Taxes (49,518) (82,520) --
------------ ------------ ------------
NET LOSS $(3,085,324) $(1,742,074) $(2,844,932)
============ ============ ============
BASIC AND DILUTED LOSS PER
SHARE(1) $(0.18) $(0.12) $(0.22)
============ ============ ============
COMMON AND EQUIVALENT SHARES
USED IN COMPUTING PER SHARE
AMOUNTS:
BASIC AND DILUTED(1) 17,453,509 14,256,841 12,979,694
(1) The weighted average shares used in computing computing - computer basic and diluted loss per share have been adjusted to give retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a effect to shares issued in the rights offer completed on January 21, 2004. |
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