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BioTime Reports Third Quarter Results and Recent Corporate Accomplishments
November 09, 2017
  • Over $40M in recent funding
  • Renevia advancing toward anticipated regulatory approval in Europe
  • OpRegen advancing in clinical trials
  • AgeX distribution expected to be completed by early second quarter 2018

 

ALAMEDA, Calif.--(BUSINESS WIRE)--Nov. 9, 2017-- BioTime, Inc. (NYSE American: BTX), a late stage clinical biotechnology company developing and commercializing products addressing degenerative diseases, today reported financial results for the third quarter ended September 30, 2017.

“BioTime achieved several significant milestones during the third quarter, both in its clinical programs and in the execution of its corporate strategy,” said Adi Mohanty, Co-Chief Executive Officer. “With the additional positive long-term data from our EU Renevia trial, and the expansion of the OpRegen trial into the U.S., physicians and patients that may benefit from these products are one step closer to approved therapies.”

“BioTime successfully secured over $40 million in funding including a public equity offering, which will enable the advancement of our clinical programs into the middle of 2019,” continued Mr. Mohanty.

Corporate Highlights

  • AgeX completed a $10 million financing, which is expected to fund its operations well into 2019.
  • BioTime Board of Directors approved a distribution of some or all of the shares of AgeX Therapeutics, Inc. owned by BioTime to BioTime’s shareholders. The Board also authorized management to work with investment banks and other financial institutions to finalize and implement the strategy for taking AgeX public, which may include a tax-free distribution.
  • BioTime successfully completed a public equity offering raising net proceeds of approximately $26.7 million. The raise was completed on attractive terms and included both new and existing investors.
  • BioTime was awarded two grants, one from the Israel Innovation Authority and one from the National Institutes of Health, totaling approximately $3.6 million.

 

Clinical Progress

Renevia®

  • BioTime announced positive secondary and additional positive long-term data from the Renevia® pivotal trial. Treated patients retained an average 70% of the transplanted volume at 12 months and 64% at 18 months. The results thus far are encouraging and the long-term performance exceeded management expectations. All Renevia® transplants were shown to be well tolerated and there were no device-related serious adverse events noted during this trial.
  • BioTime announced that an investigator-led clinical trial successfully treated its first patient in a study of Premvia™, in combination with stromal vascular fraction cells, for the treatment of volume loss in the face, as was done in the Renevia® pivotal trial. This clinical trial is studying Premvia™ in a cosmetic application. Premvia™ has 510(k) clearance in the U.S. for wound management. BioTime expects to file for CE Mark in Europe under the name Renevia® for the treatment of facial lipoatrophy in HIV patients early next year.

OpRegen® (dry-AMD)

  • Awarded a $2 million grant from the Israel Innovation Authority (IIA) for further development of OpRegen® for Dry age-related macular degeneration. To date the IIA has provided grants totaling approximately $12 million.
  • Successful defense of two key patents providing protection to OpRegen®. The patents were upheld during an opposition proceeding in March. In September, we announced the successful conclusion of the appeals. The two European patents (EP2554661 and EP2147094), cover the proprietary directed differentiation methods to produce pluripotent stem cell-derived cell replacement therapies being developed to treat retinal degenerative diseases, such as age-related macular degeneration.

Vision Restoration Program

  • Awarded a grant of up to $1.6 million from the Small Business Innovation Research program of the National Institutes of Health. The grant provides funding to further develop BioTime’s innovative, next generation vision restoration program for more advanced retinal diseases and injuries, which severely impact the quality of life for millions of people with no treatment option. This initiative aims at improving vision in people affected by blindness, whether caused by retinal injuries, age-related macular degeneration, retinitis pigmentosa or other causes.

 

AST-OPC1 (oligodendrocyte progenitor cells)

  • Asterias Biotherapeutics announced new 12-month data from the first efficacy cohort in the company’s ongoing Phase 1/2a SCiStar study designated to evaluate safety and efficacy of AST-OPC1 in spinal cord injury. The 12-month data showed 67% of Cohort 2 subjects have recovered 2 or more motor levels on at least one side through 12 months, which is more than double the rates of recovery seen in both matched historical controls and published data in a similar population. Also, the FDA granted the company’s request for AST-OPC1 to be designated a Regenerative Medicine Advanced Therapy under the 21st Century Cures Act.

AST-VAC2 (patient specific cancer vaccine)

  • Asterias Biotherapeutics announced that the Medicines and Healthcare Products Regulatory Agency and the NHS Research Ethics Committee have provided the necessary approvals to initiate the first-in-human clinical trial of AST-VAC2 in the United Kingdom. The trial, which is being sponsored and managed by Cancer Research UK, will examine the safety, tolerability, immunogenicity and activity of AST-VAC2 in non-small cell lung cancer patients and is expected to be initiated later this year.

Liquid Biopsy (lung cancer confirmatory blood test)

  • OncoCyte received Clinical Laboratory Improvements Amendments (CLIA) certification of registration from the Centers for Medicare and Medicaid Services. In addition, OncoCyte’s laboratory has passed inspection by the California Department of Public Health and is now fully licensed and operational. Clinical validation study initiated.
  • OncoCyte announced positive results from the Analytical Validation Study of its liquid biopsy lung cancer diagnostic test, DetermaVU™.

Simplification and Unlocking Value

New Subsidiary AgeX Therapeutics, Inc.

  • BioTime Board of Directors approved a distribution of some or all of the shares of AgeX Therapeutics, Inc. owned by BioTime to BioTime’s shareholders. The Board also authorized management to work with investment banks and other financial institutions to finalize and implement the strategy for taking AgeX public, which may include a tax-free distribution.

 

Third Quarter Financial Results

Cash Position and Marketable Securities: Cash, cash equivalents and available for sale securities totaled $18.2 million as of September 30, 2017, compared to $15.8 million as of June 30, 2017. On October 17, 2017, we completed a public offering of our common stock in which we issued 11,057,693 shares of our common stock for aggregate net cash proceeds of $26.7 million, after deducting commissions, discounts and estimated offering expenses.

Value of Holdings in Public Affiliates: At September 30, 2017, BioTime held common stock in publicly-traded affiliates valued at $184.7 million. This amount was the market value of BioTime’s 21.7 million shares in Asterias Biotherapeutics (NYSE American: AST) and 14.7 million shares in OncoCyte (NYSE American: OCX).

Revenues: BioTime’s revenue is generated primarily from research grants, licensing fees and royalties, and subscription and advertising from the marketing of online database products. Total revenue was $1.7 million for the third quarter of 2017, compared to $1.5 million in the third quarter of 2016.

Operating Expenses: Operating expenses for the third quarter of 2017 were $11.1 million. On an adjusted basis, operating expenses were $8.6 million, of which $6.5 million was mainly attributable to our clinical programs, while $2.1 million in expenses were related to AgeX.

Our operating expenses for the nine months ended September 30, 2017 were $33.4 million. Adjusted operating expenses were $26.8 million for this period, including $18.3 million spent on our clinical and early stage programs.

The reconciliation between GAAP and non-GAAP operating expenses by entity, is provided in the financial tables included with this earnings release.

R&D Expenses: Research and development expenses were $6.6 million for the third quarter of 2017, compared to $6.4 million for the comparable period in 2016, a decrease of $0.2 million.

G&A Expenses: General and administrative expenses were $4.6 million for the third quarter of 2017 compared to $4.6 million for the comparable period in 2016.

Net Income or loss attributable to BioTime: Net income attributable to BioTime was $14.3 million, or $0.12 per basic and diluted common share for the three months ended September 30, 2017, compared to net income of $31.2 million, or $0.30 per basic and diluted common share for the three months ended September 30, 2016. For the nine months ended September 30, 2017, net income attributable to BioTime was $52.0 million, or $0.47 per diluted common share, compared to $38.6 million, or $0.39 per share for the nine months ended September 30, 2016. Results in each period were primarily driven by noncash deconsolidation gains and noncash gains and losses in the changes in share prices of our public affiliate investments in Asterias and OncoCyte common stock.

Conference Call and Webcast Details

BioTime is hosting a conference call and webcast today, Thursday, November 9, at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss the results and recent corporate developments. The conference call dial-in number in the U.S./Canada is 1-877-407-0784. For international participants outside the U.S./Canada, the dial-in number is 1-201-689-8560. For all callers, please refer to the “BioTime, Inc. Conference Call.” The live webcast can be accessed on the “Events & Presentations” page of the “Investors & Media” section on the company’s website at http://investor.biotimeinc.com/phoenix.zhtml?c=83805&p=irol-calendar.

A replay of the conference call will be available for seven business days beginning about two hours after the conclusion of the live call, by calling toll-free from U.S./Canada: 1-844-512-2921; international callers dial 1-412-317-6671. Use the Conference ID 13671848. Additionally, the archived webcast will be available on the “Events & Presentations” page of the “Investors & Media” section on the company’s website at http://investor.biotimeinc.com/phoenix.zhtml?c=83805&p=irol-calendar.

About Renevia®

Renevia® is an investigational medical device that is being developed as an alternative for whole adipose tissue transfer (fat grafting) procedures. Renevia’s® hydrogel polymer network provides the requisite amino acid sequences for adipose stromal vascular cell attachment and may support proliferation, localization and adipogenic differentiation. Renevia® is part of the Hystem® hydrogel family of proprietary injectable matrices, which are designed to facilitate the survival and growth of transplanted cells.

About OpRegen®

OpRegen®, which is being studied for the treatment of the dry form of AMD, consists of a suspension of Retinal Pigment Epithelial (RPE) cells that are delivered subretinally during a simple intraocular injection. RPE cells are essential components of the back lining of the retina, and function to help nourish the retina including photoreceptors. A proprietary process that drives the differentiation of human pluripotent stem cells is used to generate high purity OpRegen® RPE cells. OpRegen® RPE cells are also “xeno-free," meaning that no animal products are used at any point in the derivation and production process. The avoidance of the use of animal products eliminates some potential safety concerns. Preclinical studies in rats have shown that following a single subretinal injection of OpRegen®, the cells can rapidly organize into its natural monolayer structure in the subretinal space and survive throughout the lifetime of the animal. OpRegen® is designed to be an “off-the-shelf” allogeneic (non-patient specific) product. Unlike treatments that require multiple, frequent injections into the eye, it is expected that OpRegen® would be administered in a single procedure. OpRegen® was granted Fast Track designation from the FDA, which allows more frequent interactions with the agency, and eligibility for accelerated approval and priority review. OpRegen® is a registered trademark of Cell Cure Neurosciences Ltd., a majority-owned subsidiary of BioTime, Inc.

About Premvia™

Approved Uses

Premvia™ is indicated for the management of wounds including: partial-thickness, full-thickness, tunneling wounds, pressure ulcers, venous ulcers, diabetic ulcers, chronic vascular ulcers, donor skin graft sites, post-Moh’s surgery, post-laser surgery, podiatric wounds, wound dehiscence, abrasions, lacerations, second degree burns, skin tears, and draining wounds.

Contraindications

  • Premvia is contraindicated for patients with severe allergies, indicated by a history of anaphylaxis or presence of multiple severe allergies.
  • Premvia is specifically contraindicated for patients with known allergies to products containing either hyaluronan or collagen derivatives.
  • Premvia is not indicated for use in third degree burns.

Important Safety Information

  • Complications that may arise from wound management products may include: infection, chronic inflammation, allergic reaction, excessive redness, pain, or swelling. If any of these complications are present, product should be removed from the wound area.
  • Federal law restricts this device to sale by or on the order of a physician or practitioner.
  • Only the vial contents are sterile – outside of vials are not sterile.
  • Do not add additional components or additives to Premvia™.

About BioTime

BioTime is a late stage clinical biotechnology company focused on developing and commercializing products addressing degenerative diseases. The Company’s current clinical programs are targeting three primary sectors, aesthetics, ophthalmology and cell and drug delivery. Its clinical programs are based on two platform technologies: pluripotent cells, which can become any type of cell in the human body, and cell/drug delivery. Renevia®, a cell delivery product, met its primary endpoint in an EU pivotal clinical trial for the treatment of facial lipoatrophy in HIV patients earlier this year. Submission for approval of Renevia® in the EU is expected to be early 2018, with possible approval and commercial launch in 2018. There were no device related serious adverse events reported. OpRegen®, a retinal pigment epithelium transplant therapy, is in a Phase I/IIa multicenter trial for the treatment of dry age-related macular degeneration, the leading cause of blindness in developing countries. There were no related serious adverse events reported. BioTime also has significant equity holdings in two publicly traded companies, Asterias Biotherapeutics, Inc. (NYSE American: AST) and OncoCyte Corporation (NYSE American: OCX), and a private company, AgeX Therapeutics, Inc.

BioTime common stock is traded on the NYSE American and TASE under the symbol BTX. For more information, please visit www.biotime.com or connect with the company on TwitterLinkedInFacebookYouTube, and Google+.

To receive ongoing BioTime corporate communications, please click on the following link to join the Company’s email alert list: http://news.biotime.com.

Forward-Looking Statements

Certain statements contained in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements pertaining to product technology, clinical development, regulatory approval timelines, the success of potential cosmetic applications and potential opportunities for BioTime, Inc. and its subsidiaries, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact including, but not limited to statements that contain words such as “will,” “believes,” “plans,” “anticipates,” “expects,” “estimates” should also be considered forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the business of BioTime, Inc. and its subsidiaries, particularly those mentioned in the cautionary statements found in more detail in the “Risk Factors” section of its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC (copies of which may be obtained at www.sec.gov). Subsequent events and developments may cause these forward-looking statements to change. BioTime specifically disclaims any obligation or intention to update or revise these forward-looking statements as a result of changed events or circumstances that occur after the date of this release, except as required by applicable law.

 

BIOTIME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

         
    September 30,    
2017 December 31,
(Unaudited) 2016
ASSETS        
CURRENT ASSETS        
Cash and cash equivalents   $ 16,662     $ 22,088  
Available for sale securities     1,511       627  
Grants and other accounts receivable     1,420       646  
Receivable from affiliates, net     2,278       511  
Prepaid expenses and other current assets     1,354       1,777  
Total current assets     23,225       25,649  
             
Property, plant and equipment, net     5,423       5,529  

Deposits and other long-term assets

    1,005       1,149  
Equity method investment in OncoCyte, at fair value     110,790       -  
Equity method investment in Asterias, at fair value     73,942       100,039  
Intangible assets, net     7,482       10,206  
TOTAL ASSETS   $ 221,867     $ 142,572  
             
LIABILITIES AND SHAREHOLDERS’ EQUITY            
CURRENT LIABILITIES            
Accounts payable and accrued liabilities   $ 5,360     $ 7,144  
Capital lease liability, current portion     -       202  
Promissory notes, current portion     126       99  
Related party convertible debt, net of discount     13       833  
Deferred revenues, current portion     513       572  
Total current liabilities     6,012       8,850  
             

LONG-TERM LIABILITIES

           
Deferred revenues, net of current portion     77       308  
Deferred rent liabilities, net of current portion     91       50  
Lease liability     1,257       1,386  
Capital lease liability, net of current and other liabilities     -       310  
Related party convertible debt, net of discount     -       1,032  
Promissory notes, net of current portion     44       120  
Deferred tax liability     4,845       -  

Other long-term liabilities

    554       8  
TOTAL LIABILITIES     12,880       12,064  
             
Commitments and contingencies            
             
SHAREHOLDERS’ EQUITY            
Preferred shares, no par value, authorized 2,000 shares; none issued and outstanding as of September 30, 2017 and December 31, 2016     -       -  
Common shares, no par value, 150,000 shares authorized; 115,804 shares issued and outstanding as of September 30, 2017, and 103,396 shares issued and 102,776 shares outstanding as of December 31, 2016     342,508       317,878  
Accumulated other comprehensive income (loss)     141       (738 )
Accumulated deficit     (144,363 )     (196,321 )
Treasury stock at cost: no shares as of September 30, 2017; 620 shares as of December 31, 2016     -       (2,891 )
BioTime, Inc. shareholders’ equity     198,286       117,928  

Noncontrolling interest

    10,701       12,580  
Total shareholders’ equity     208,987       130,508  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 221,867     $ 142,572  
                 

 

BIOTIME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

             
   

Three Months Ended
September 30,

   

Nine Months Ended
September 30,

 
    2017     2016     2017     2016  
REVENUES:                        
Grant income   $ 1,225     $ 1,109     $ 1,236     $ 3,346  
Royalties from product sales and license fees     86       177       277       463  
Subscription and advertisement revenues     376       69       940       700  
Sale of research products     1       144       6       331  
Total revenues     1,688       1,499       2,459       4,840  
                                 
Cost of sales     (52 )     (58 )     (114 )     (378 )
                                 
Gross Profit     1,636       1,441       2,345       4,462  
                                 
OPERATING EXPENSES:                                
Research and development     (6,562 )     (6,422 )     (19,327 )     (29,093 )
General and administrative     (4,587 )     (4,574 )     (14,111 )     (23,083 )
Total operating expenses     (11,149 )     (10,996 )     (33,438 )     (52,176 )
Gain on sale of assets     -       -       1,754       -  
Loss from operations     (9,513 )     (9,555 )     (29,339 )     (47,714 )
OTHER INCOME/(EXPENSES):                                
Interest expense, net     (10 )     (167 )     (729 )     (513 )
Gain on equity method investment in OncoCyte at fair value     34,485       -       39,620       -  
Gain (loss) on equity method investment in Asterias at fair value     (3,262 )     40,015       (26,097 )     26,532  
Gain on deconsolidation of OncoCyte     -       -       71,697       -  
Gain on deconsolidation of Asterias     -       -       -       49,048  
Loss on extinguishment of related party convertible debt     (2,799 )     -       (2,799 )     -  
BioTime's share of losses in equity method investment in Ascendance Biotechnology, Inc.     -       (855 )     -       (1,189 )
Other income (expenses), net     (143 )     (173 )     1,202       197  
Total other income, net     28,271       38,820       82,894       74,075  
INCOME BEFORE INCOME TAXES     18,758       29,265       53,555       26,361  
                                 
Deferred income tax expense     (4,772 )     -       (4,772 )     -  
                                 
NET INCOME     13,986       29,265       48,783       26,361  
                                 
Net loss attributable to noncontrolling interests     335       1,934       3,175       12,286  
                                 
NET INCOME ATTRIBUTABLE TO BIOTIME, INC.   $ 14,321     $ 31,199     $ 51,958     $ 38,647  
                                 
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO BIOTIME, INC.:                                
BASIC   $ 0.12     $ 0.30     $ 0.47     $ 0.40  
DILUTED   $ 0.12     $ 0.30     $ 0.47     $ 0.39  
                                 
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:                                
BASIC     115,288       102,711       110,989       95,484  
DILUTED     115,298       103,613       111,124       99,073  
                                 

 

BIOTIME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(UNAUDITED)

     
    Nine Months Ended
September 30,
    2017     2016
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income attributable to BioTime, Inc.   $ 51,958       $ 38,647  
Net loss allocable to noncontrolling interests     (3,175 )       (12,286 )
Adjustments to reconcile net income attributable to BioTime, Inc. to net cash used in operating activities:              
Gain on deconsolidation of Asterias     -         (49,048 )
Gain on deconsolidation of OncoCyte     (71,697 )       -  
Unrealized (gain) loss on equity method investment in Asterias at fair value     26,097         (26,532 )
Unrealized gain on equity method investment in OncoCyte at fair value     (39,620 )       -  
Deferred income tax expense     4,772         -  
Depreciation expense, including amortization of leasehold improvements     670         996  
Amortization of intangible assets     1,766         2,935  

Amortization of deferred license fees

   

(166

)

     

1,191

 
Stock-based compensation     2,903         6,303  
Subsidiary shareholder expense for subsidiary warrants     531         3,125  
Amortization of discount on related party convertible debt     640         264  
BioTime's share of losses in equity method investment in Ascendance     -         1,189  
Foreign currency remeasurement (gain) or loss and other     (1,511 )       802  
Gain on sale of assets     (1,754 )       -  
Loss on extinguishment of related party convertible debt     2,799         -  

 

   

 

 

     

 

 
Changes in operating assets and liabilities:              
Accounts and grants receivable, net     (905 )       (955 )

Deferred revenue and other liabilities

    (279 )      

509

 

Receivables from affiliates, net of payables     760         -  
Prepaid expenses and other current assets     93         (1,013 )
Accounts payable and accrued liabilities     1,276        

399

 
                   
Net cash used in operating activities     (24,842 )       (33,474 )
               
CASH FLOWS FROM INVESTING ACTIVITIES:              
Deconsolidation of cash and cash equivalents of OncoCyte     (8,898 )       -  
Deconsolidation of cash and cash equivalents of Asterias     -         (8,376 )
Purchase of equipment and other assets     (930 )       (1,860 )
Payments on construction in progress     -         (278 )
Proceeds from sale of assets and other     186         34  
Cash used in investing activities     (9,642 )       (10,480 )
               
CASH FLOWS FROM FINANCING ACTIVITIES:              
Proceeds from issuance of common shares     20,125         20,125  
Fees paid on sale of common shares     (1,623 )       (1,515 )
Proceeds from sale of common shares of subsidiary     9,968         -  
Proceeds from exercises of stock options     29         2,015  
Reimbursement from landlord on construction in progress     198         451  
Shares retired to pay for employees’ taxes     (38 )       -  
Repayment of capital lease obligation     (31 )       (104 )
Proceeds from sale of common shares and warrants of subsidiary     -         10,721  
Fees paid on sale of common shares and warrants of subsidiary     -         (904 )
Proceeds from issuance of related party convertible debt     384         1,150  
Net cash provided by financing activities     29,012         31,939  
               
Effect of exchange rate changes on cash and cash equivalents     46         237  
               
NET DECREASE IN CASH AND CASH EQUIVALENTS     (5,426 )       (11,778 )
CASH AND CASH EQUIVALENTS:              
At beginning of the period     22,088         42,229  
At end of the period   $ 16,662       $ 30,451  
                   

 

Non-GAAP Financial Measures

This earnings release includes operating expenses prepared in accordance with accounting principles generally accepted in the United States (GAAP) and includes operating expenses, by entity, prepared in accordance with GAAP. This earnings release also includes certain historical non-GAAP operating expenses and non-GAAP operating expenses, by entity. In particular, BioTime has provided both (a) non-GAAP total operating expenses, adjusted to exclude noncash stock-based and other compensation and depreciation and amortization expense, and (b) non-GAAP operating expenses, by entity, to exclude those same noncash charges by the respective entities for consistency. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP. However, BioTime believes the presentation of non-GAAP total operating expenses and non-GAAP operating expenses, by entity, when viewed in conjunction with our GAAP total operating expenses, and GAAP operating expenses by entity, respectively, is helpful in understanding BioTime’s ongoing operating expenses and its programs within various entities, including BioTime’s programs in clinical development.

Furthermore, management uses these non-GAAP financial measures in the aggregate and on an entity basis to establish budgets and operational goals, to manage BioTime’s business and to evaluate its performance and its programs in clinical development.

 

BIOTIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE

ADJUSTED OPERATING EXPENSES

     

 

  Amounts In Thousands
   

For the Three Months
Ended September 30,
2017 (unaudited)

 

For the Nine Months
Ended September 30,
2017 (unaudited)

GAAP Operating Expenses - as reported   $ 11,149     $ 33,438  
Stock-based and other noncash compensation expense (1)     (1,711 )     (4,179 )
Depreciation and amortization expense (1)     (831 )     (2,436 )
Non-GAAP Operating Expenses, as adjusted   $ 8,607     $ 26,823  
         
GAAP Operating Expenses - by entity        
BioTime and subsidiaries other than AgeX Therapeutics, Inc.   $ 8,875     $ 24,022  
AgeX Therapeutics Inc. and subsidiaries     2,264       6,693  
LifeMap Solutions, Inc.     10       1,335  
OncoCyte results for the period from January 1 through February 16, 2017     -       1,388  
GAAP Operating Expenses - by entity   $ 11,149     $ 33,438  
         
Non-GAAP Operating Expenses - as adjusted, by entity        
BioTime and subsidiaries other than AgeX Therapeutics, Inc. (2)   $ 6,459     $ 18,275  
AgeX Therapeutics Inc. and subsidiaries (3)     2,138       6,237  
LifeMap Solutions (4)     10       1,126  
OncoCyte results for the period from January 1 through February 16, 2017 (5)     -       1,185  
Non-GAAP Operating Expenses - as adjusted, by entity   $ 8,607     $ 26,823  
(1)   Noncash charges
(2)   BioTime, Inc. includes Cell Cure Neurosciences Ltd., ES Cell International Pte. Ltd. and OrthoCyte Corporation. The GAAP and non-GAAP operating expenses do not include $1.4 million in grants receivable as of September 30, 2017 as grants are revenues for the Company.
(3)   AgeX Therapeutics, Inc. includes LifeMap Sciences Inc., LifeMap Sciences Ltd., and ReCyte Therapeutics, Inc. and certain R&D departments related to AgeX projects that were transferred from BioTime to AgeX effective July 1, 2017
(4)   Entities whose operating expenses will not recur in the future
(5)   OncoCyte’s results for the period from January 1 through February 16, 2017, the date immediately before the OncoCyte Deconsolidation included in BioTime’s consolidated results, which are not going to recur

 

Source: BioTime, Inc.

Investor Contact:
BioTime, Inc.
David Nakasone, 510-871-4188
dnakasone@biotimeinc.com
or
Media Contact:
JQA Partners, Inc.
Jules Abraham, 917-885-7378
jabraham@jqapartners.com