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Net loss attributable to
Total revenue, on a consolidated basis, was approximately
Total operating expenses for the third quarter of 2012 were
Total operating expenses for the first nine months of 2012 were
The increase in research and development expenses for the three and nine month periods ending
Net cash used in operating activities was
Cash and cash equivalents, on a consolidated basis, totaled
Third Quarter and Recent Corporate Accomplishments
Potential of Expanded Operations and New Subsidiaries
- Announced the formation of a new wholly owned subsidiary,
BioTime Acquisition Corporation, or BAC, to pursue opportunities and acquire assets and businesses in the fields of stem cells and regenerative medicine.
Entered Into Strategic Financings
Subsidiary LifeMap Sciences, Inc.announced that it entered into a share exchange with an investor where the investor agreed to contribute to LifeMap, in the aggregate, BioTimecommon shares having an aggregate value of not less than $2 millionand not more than $3 million. LifeMap may sell, from time to time, some or all of the BioTimeshares it receives and will use proceeds from the sale of the shares to expand the development and marketing of its database products, its research products, and its therapeutic discovery activities. Subsidiary Cell Cure Neurosciences Ltd.announced a share purchase agreement through which BioTimeagreed to purchase 87,456 Cell Cure ordinary shares in exchange for 906,735 BioTimecommon shares, with an approximate investment of $3.5 million. As a result of the share purchase, once the transaction is completed, BioTimewill own approximately 62.6% of the outstanding ordinary shares of Cell Cure.
Advanced Near-Term Product Development
- LifeMap Sciences announced progress on key development initiatives. In October, LifeMap launched its database product MalaCards, a new database of human diseases that is based on their leading GeneCards® platform. MalaCards (www.malacards.org) contains computerized “cards” classifying information relating to a wide array of human diseases. This novel research tool will aid researchers in studying the roles of genes and cells in disease processes. LifeMap expects to launch or upgrade its other database products: GeneCards®, PanDaTox, and LifeMap Discovery™ by year end and will soon launch the marketing and sales of BioTime’s proprietary research product lines, including PureStem™ human progenitor and human embryonic stem cell lines via the company’s LifeMap BioReagents™ portal.
- LifeMap Sciences expanded on its therapeutic discovery collaboration with
BioTime, which utilizes the LifeMap Discovery™ platform and leverages the LifeMap scientific team (including ten PhD and four MS biologists and bioinformatics specialists) to research and identify those progenitor cell lines that are most likely to be useful in developing cell-based regenerative medicine therapies for a wide range of diseases. Once identified, selected cell lines will be marketed by LifeMap for research purposes via the LifeMap BioReagents™ portal and may be advanced into therapeutic development by BioTimeand/or LifeMap.
- Announced an amended license from the
University of Utahto expand the field of use for which BioTimeis licensed to produce and market products covered by the core patents underlying HyStem® technology. BioTimenow is licensed worldwide for all uses, with the exception of veterinary medicine and animal health. The field of use includes, but is not limited to, all human pharmaceutical and medical device applications, all tissue engineering and regenerative medicine uses, and all research applications. Previously, BioTime’s license in the United Stateswas not exclusive and the fields of use of the technology permitted by the license were not as broad.
New Research Grant
Subsidiary Cell Cure Neurosciences Ltd.was awarded a grant for 2012 in the amount of approximately $1.33 millionfrom Israel’s Office of the Chief Scientistto help finance the development of OpRegen®, Cell Cure’s cell-based therapeutic product in development for the treatment of dry age-related macular degeneration, a severe form of acute vision loss and the leading cause of blindness in an aging population.
- Announced the signing of an exclusive sublicense agreement and a supply agreement with
Jade Therapeutics, LLC, a developer of an ophthalmological therapeutic sustained-release drug delivery platform. BioTimewill provide Jade with clinical-grade HyStem® hydrogels and certain patented technology for use by Jade in the development of new pharmaceutical products for ophthalmologic use. Jade plans to utilize the hydrogels to facilitate the time-released topical delivery of recombinant human growth hormone to help heal lesions on the surface of the eye.
Expanded Management and Board of Directors
BioTime Acquisition Corp.(BAC) announced that Thomas Okarma, PhD, MD, will serve as the BAC’s Chief Executive Officer and as a member of the board of directors. Dr. Okarma is the former President and Chief Executive Officer of Geron Corporationand served on that company’s board of directors.
- BioTime’s subsidiary
OrthoCyte Corporationannounced the appointment of Francois Binette, PhD, as their Vice President of Research and Business Development. Dr. Binette’s primary focus will be to develop and partner near- and long-term product opportunities in regenerative medicine with an emphasis on orthopedic diseases and injuries.
- LifeMap Sciences announced the appointment of
Louis E. Silvermanto their board of directors. Mr. Silverman is an experienced health care executive with board level and operating experience in health care IT, pharmaceuticals, home health care, worker’s compensation managed care and revenue cycle management.
- BioTime’s subsidiary
OncoCyte Corporationannounced the publication of a scientific report on the gene COL10A1 and its potential as a marker for numerous types of human cancers. The paper, published in the peer-reviewed journal Future Oncology, describes the microarray-based approach used to identify COL10A1 as a pan-cancer biomarker with significantly elevated expression in diverse malignant tumor types including cancers of the breast, stomach, colon, lung, bladder, pancreas, and ovaries. In addition, the protein was shown to be specifically localized within tumor vasculature. Combined, these findings will be an important basis for the development and application of new diagnostic and therapeutic strategies, including the measurement of Collagen Type X in the blood as a screen for the presence of cancer, the use of antibodies that recognize and bind to the protein to visualize and locate tumors in the body, and the targeted delivery of tumor-destroying agents.
- Presented at the following scientific and investor meetings:
Stem Cells USA & Regenerative Medicine Congress2012, and the 2012 Agora Financial Investment Symposium.
Statements pertaining to future financial and/or operating results, future growth in research, technology, clinical development, and potential opportunities for
To receive ongoing
CONDENSED CONSOLIDATED BALANCE SHEETS
|September 30, 2012
|Cash and cash equivalents||$||7,830,347||$||22,211,897|
|Prepaid expenses and other current assets||1,861,407||2,692,303|
|Total current assets||9,748,722||24,955,374|
|Deferred license and consulting fees||712,981||843,944|
|Intangible assets, net||21,089,661||18,619,516|
|LIABILITIES AND EQUITY|
|Accounts payable and accrued liabilities||$||2,162,390||$||2,681,111|
|Deferred grant income||55,710||261,777|
|Deferred license revenue, current portion||354,703||203,767|
|Total current liabilities||2,572,803||3,146,655|
|Commitments and contingencies|
|Deferred license revenue, net of current portion||790,146||899,551|
|Deferred rent, net of current portion||60,462||66,688|
|Other long term liabilities||235,330||258,620|
|Total long-term liabilities||1,085,938||1,224,859|
|Commitments and contingencies|
|Preferred Shares, no par value, authorized 1,000,000 shares; none issued||-||-|
Common Shares, no par value, authorized 75,000,000 shares; issued and outstanding shares; 50,868,932 issued and 49,162,758 outstanding as of September 30, 2012 and 50,321,962 issued and 49,035,788 outstanding at December 31, 2011, respectively
|Accumulated other comprehensive income||(197,384||)||(122,749||)|
|Treasury stock at cost: 1,706,174 shares at September 30, 2012 and 1,286,174 shares at December 31, 2011||(8,001,762||)||(6,000,000||)|
|Total shareholders' equity||16,939,959||28,646,001|
|TOTAL LIABILITIES AND EQUITY||$||32,870,336||$||45,829,695|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|Three Months Ended||Nine Months Ended|
|September 30, 2012||September 30, 2011||September 30, 2012||September 30, 2011|
|Royalties from product sales||133,946||176,027||407,803||569,257|
|Sale of research products||90,342||184,217||217,380||
|Cost of Sales||(169,734||)||(18,516||)||(273,916||)||
|Total net revenues||833,817||1,143,054||2,418,874||2,723,631|
|Research and development||(4,545,470||)||(3,488,121||)||(13,323,410||)||(9,756,443||)|
|General and administrative||(2,234,905||)||(1,887,298||)||(7,037,807||)||(6,193,383||)|
|Loss from operations||(5,946,558||)||(4,232,365||)||(17,942,343||)||(13,226,195||)|
|Interest income, net||5,624||2,911||17,321||19,705|
|Loss on sale of fixed assets||(1,451||)||(6,246||)||(4,997||)||(6,246||)|
Other income/(expense), net
|Total other income/(expenses), net||22,939||(4,254||)||(211,575||)||237,403|
|Less: Net loss attributable to the noncontrolling interest||965,605||498,993||2,763,169||1,833,943|
|NET LOSS ATTRIBUTABLE TO BIOTIME, INC. (1)||$||(4,958,014||)||$||(3,737,626||)||$||(15,390,749||)||$||(11,154,849||)|
|Foreign currency translation gain/(loss)||(15,777||)||696,661||(74,635||)||(901,881||)|
|TOTAL COMPREHENSIVE LOSS (2)||$||(4,973,791||)||$||(3,040,965||)||$||(15,465,384||)||$||(12,056,730||)|
|BASIC AND DILUTED LOSS PER COMMON SHARE (1)||$||(0.10||)||$||(0.08||)||$||(0.31||)||$||(0.23||)|
|WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC AND DILUTED||49,291,177||48,896,973||49,196,804||48,681,879|
|(1) Basic and diluted loss per common share is calculated using "Net loss attributable to BioTime, Inc."|
(2) Comprehensive net loss includes foreign currency translation loss of $15,777 and $74,635 for the three and nine months ended September 30, 2012, respectively and transaction gain of $696,661 and loss of $901,881 for the same periods in the prior year, respectively arise entirely from the translation of foreign subsidiary financial information for consolidation purposes and therefore not used in the calculation of basic and diluted loss per common share.