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Second Quarter and Recent Corporate Accomplishments
BioTime’s shareholders approved the proposals related to the planned
acquisition of stem cell related assets from
Geron Corporationby BioTime’s subsidiary Asterias Biotherapeutics, Inc.Although there are several additional conditions that are required by the Asset Contribution Agreement, BioTimebelieves that it can fulfill those requirements and expects to close the transaction by the end of the third quarter of 2013.
BioTimeraised $9.1 millionof equity capital in June 2013through the sale of common shares and warrants to certain investors.
BioTimeexpanded the size of its Board of Directors to nine and appointed Henry L. Nordhoffto the Board. Mr. Nordhoff retired as Chairman of the Board of Gen-Probe Incorporated, a clinical diagnostic and blood screening company, at the end of 2011, after serving as its Chairman since September 2002. Mr. Nordhoff brings to our Board a long record of experience and success in the pharmaceutical and biotech industries and provides our Board with valuable operational expertise and leadership skills during a period of significant growth.
BioTimeelected Franklin M. Bergerto the BioTime Board of Directors. Mr. Berger is an experienced director of publicly-traded biotechnology companies, and currently serves on the boards of Seattle Genetics, Inc.and other companies. He is also a consultant to biotechnology industry participants, including major biopharmaceutical firms, mid-capitalization biotechnology companies, specialist asset managers and venture capital companies, providing business development, strategic advisory, financing, partnering, and royalty acquisition advice.
BioTime’s Senior Vice President and Chief Operating Officer,
Robert W. Peabody, reassumed the additional role as Chief Financial Officer commencing May 10, 2013. Mr. Peabody, 59, has served as our Senior Vice-President and Chief Operating Officer since 2007 and also served on an interim basis as our Chief Financial Officer from September 2010until October 2011.
BioTimeentered into a worldwide license agreement with the University of California, Los Angeles(“UCLA”) for novel technology related to the treatment of stroke. The licensed technology developed at UCLAuses one of BioTime’s HyStem® hydrogels to deliver locally released growth factors to improve recovery from stroke. BioTimewill sponsor on-going pre-clinical work at UCLAto advance the understanding of this technology and develop data in support for the potential filing of an IND for human clinical trials.
BioTimesubmitted a protocol to European regulatory authorities for initiation of human clinical trials of Renevia™ as a medical device for the delivery of adipose stem cells for reconstructive surgery. The initiation of human clinical studies is expected this year subject to approval of the protocol.
BioTimesubsidiary LifeMap Sciences, Inc.entered into a value-added reseller agreement with Appistry, Inc., a company that provides big-data computing that supports life-science and medical analytics at hospitals and medical research centers and organizations. Appistry will market reports that include LifeMap Sciences’ GeneCards® and MalaCards genetic information to clinicians and researchers under a revenue share arrangement with LifeMap Sciences, based on sales of such reports.
BioTimesubsidiary Cell Cure Neurosciences Ltd.was awarded a grant of 5.34 million Shekels, approximately $1.5 million, for 2013 from Israel’s Office of the Chief Scientist(OCS) to help finance the development of OpRegen®, a cell-based therapeutic product being developed by Cell Cure Neurosciences for the treatment of age-related macular degeneration.
“We are continuing to make progress towards our goal to become the
leader in the field of regenerative medicine. We have the right team in
place to capitalize on the opportunities in the field, and we will be
one step closer to having the premier asset portfolio in regenerative
medicine when our subsidiary
Net loss attributable to
Total net revenue, including license fees (which also include online
database subscription and advertising revenues), royalties from sales of Hextend®,
research product sales, and grant income, on a consolidated basis, was
Total operating expenses for the second quarter of 2013 were
Total operating expenses for the first six months of 2013 were
The increase in operating expenses of
Net cash used in operating activities was
Net cash provided by financing activities was
Cash and cash equivalents, on a consolidated basis, totaled
During the six months ended
During the six months ended
OncoCyte Corporationis developing products and technologies to diagnose and treat cancer.
ES Cell International Pte Ltd., a Singaporeprivate limited company, develops hES products for research use.
OrthoCyte Corporationis developing therapies to treat orthopedic disorders, diseases and injuries.
ReCyte Therapeutics, Inc.is developing therapies to treat a variety of blood and lymphatic vascular disorders, as well as products for research using iPS and other cell reprogramming technology.
Cell Cure Neurosciences Ltd.(“Cell Cure Neurosciences”) is an Israel-based biotechnology company focused on developing stem cell-based therapies for retinal and neurological degenerative diseases. Its lead product is OpRegen® for the treatment of macular degeneration.
LifeMap Sciences, Inc.(“LifeMap Sciences”) markets, sells and distributes GeneCards®, the leading human gene database, the leading human gene database, as part of an integrated database suite that also includes the LifeMap Discovery™ database of embryonic development, stem cell research and regenerative medicine, and MalaCards, the human disease database. LifeMap Sciences also markets BioTimeresearch products and PanDaTox, an innovative, recently developed, searchable database that can aid in the discovery of new antibiotics and biotechnologically beneficial products.
Asterias Biotherapeutics, Inc.is a new subsidiary being used to acquire the stem cell assets of Geron Corporation, including patents and other intellectual property, biological materials, reagents and equipment for the development of new therapeutic products for regenerative medicine.
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|
June 30, 2013
|Cash and cash equivalents||$||14,306,296||$||4,349,967|
|Prepaid expenses and other current assets||3,760,667||2,774,196|
|Total current assets||18,131,708||7,179,479|
|Deferred license and consulting fees||600,583||669,326|
|Intangible assets, net||19,201,647||20,486,792|
|LIABILITIES AND EQUITY|
|Accounts payable and accrued liabilities||$||3,972,224||$||3,989,962|
|Deferred license revenue, current portion||462,773||400,870|
|Total current liabilities||4,434,997||4,390,832|
|Deferred license revenue, net of current portion||693,242||768,678|
|Deferred rent, net of current portion||47,134||57,214|
|Other long term liabilities||201,093||237,496|
|Total long-term liabilities||941,469||1,063,388|
|Commitments and contingencies|
|Preferred Shares, no par value, authorized 2,000,000 and 1,000,000 shares respectively, as of June 30, 2013 and December 31, 2012; none issued||-||-|
|Common shares, no par value, authorized 125,000,000 and 75,000,000 shares respectively, as of June 30, 2013 and December 31, 2012; 57,932,220 issued and 55,616,934 outstanding at June 30, 2013 and 51,183,318 issued and 49,383,209 outstanding as of December 31, 2012||148,002,896||119,821,243|
|Accumulated other comprehensive income/(loss)||117,724||(59,570||)|
|Treasury stock at cost: 2,315,286 and 1,800,109 shares at June 30, 2013 and at December 31, 2012, respectively.||(10,120,653||)||(8,375,397||)|
|Total shareholders' equity||20,915,836||9,584,536|
|TOTAL LIABILITIES AND EQUITY||
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS|
|Three Months Ended||Six Months Ended|
|June 30, 2013||June 30, 2012||June 30, 2013||June 30, 2012|
|Royalties from product sales||103,315||126,455||210,914||273,857|
|Sale of research products||57,281||59,253||124,005||127,037|
|Cost of Sales||(180,811||)||(83,918||)||(363,560||)||(105,497||)|
|Total net revenues||1,035,514||949,746||1,460,730||1,582,055|
|Research and development||(5,530,395||)||(4,615,436||)||(10,975,825||)||(8,773,302||)|
|General and administrative||(3,621,570||)||(2,413,641||)||(7,005,091||)||(4,802,337||)|
|Loss from operations||(8,116,451||)||(6,079,331||)||(16,520,186||)||(11,993,584||)|
|Interest income, net||579||3,355||1,522||11,636|
|Other income/(expense), net||(80,541||)||85,260||(109,520||)||(240,005||)|
|Gain/(Loss) on sale/write-off of equipment||800||(3,546||)||(710||)||(3,546||)|
|Total other income/(expenses), net||(79,162||)||85,069||(108,708||)||(231,915||)|
|Less: Net loss attributable to the noncontrolling interest||645,848||537,040||1,346,503||1,796,378|
|NET LOSS ATTRIBUTABLE TO BIOTIME, INC. (1)||$||(7,549,765||)||$||(5,457,222||)||$||(15,282,391||)||$||(10,429,121||)|
|Foreign currency translation gain/(loss)||28,857||(182,947||)||177,294||(58,859||)|
|TOTAL COMPREHENSIVE NET LOSS (2)||$||(7,520,908||)||$||(5,640,169||)||$||(15,105,097||)||$||(10,487,980||)|
|BASIC AND DILUTED LOSS PER COMMON SHARE (1)||$||(0.14||)||$||(0.11||)||$||(0.29||)||$||(0.21||)|
|WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC AND DILUTED||53,791,434||50,548,582||52,490,767||50,435,272|
|(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 gain of $28,857 and $177,294 for the three and six months ended June 30, 2013, respectively and translation loss of $182,947 and $58,859 for the same periods in the prior year, respectively arising 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.|