Biostage Reports Q1 2021 Financial Results

Rhea-AI Summary

Biostage (OTCQB: BSTG) has released its financial results for Q1 2021, reporting a net loss of $0.9 million or $0.09 per share, a significant improvement from a $2.0 million loss or $0.24 per share in Q1 2020. This $1.1 million reduction in net loss primarily resulted from decreased research and development costs, lower administrative expenses, and increased grant income. As of March 31, 2021, Biostage had $0.5 million in cash and estimated additional cash from investors to sustain operations into Q3 2021.

Positive

• Net loss decreased by $1.1 million year-over-year.
• R&D costs reduced by $0.2 million compared to the previous year.
• General and administrative expenses fell by $0.7 million.
• Increase in grant income by $0.1 million from SBIR grant.

Negative

• Operating cash on-hand is only $0.5 million, indicating limited liquidity.

HOLLISTON, Mass., May 24, 2021 /PRNewswire/ -- Biostage, Inc. (OTCQB: BSTG) ("Biostage" or the "Company"), a bioengineering company developing next-generation esophageal implants based its novel Cellframe™ and Cellspan™ technology, today announced its financial results for the three months ended March 31, 2021.

Summary of Financial Results

For the three months ended March 31, 2021, the Company reported a net loss of $0.9 million, ($0.09 per share), compared to a net loss of $2.0 million, ($0.24 per share), for the three months ended March 31, 2020. The $1.1 million quarter-over-quarter decrease in net loss was due primarily to a $0.2 million decrease in research and development costs, a $0.7 million decrease in general and administrative expenses, a $0.1 million decrease in expense due to the change in the fair value of our warrant liability and an increase of $0.1 million grant income for qualified expenditures from our SBIR grant.

Balance Sheet and Cash

As of March 31, 2021, the Company had operating cash on-hand of $0.5 million. The Company used net cash in operations of $0.6 million during the quarter ended March 31, 2021.

We expect that our operating cash on-hand as of March 31, 2021 of $0.5 million along with cash proceeds of approximately $0.3 million received in May of 2021 from existing investors, will enable us to fund our operating expenses and capital expenditure requirements into the third quarter of 2021.

About Biostage, Inc.

Biostage is a bioengineering company that is developing next-generation esophageal implants. The Company's Cellspan technology combines a proprietary, biocompatible scaffold with a patient's own cells to create an esophageal implant that could potentially be used to treat pediatric esophageal atresia and other conditions that affect the esophagus. The Company's esophageal implant leverages the body's inherent capacity to heal itself as it is a "living tube" that facilitates regeneration of esophageal tissue and triggers a positive host response resulting in a tissue-engineered neo-conduit that restores continuity of the esophagus. These implants have the potential to dramatically improve the quality of life for children and adults. At Biostage, we believe the future of medicine has been inside us all along. 

For more information, please visit www.biostage.com and connect with the Company on Twitter and LinkedIn.

Forward-Looking Statements 

Some of the statements in this press release are "forward-looking" and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These "forward-looking" statements in this press release include, but are not limited to, statements relating to our financing activities; development expectations and regulatory approval of any of the Company's products, including those utilizing its Cellspan and Cellframe™ technology, by the U.S. Food and Drug Administration, the European Medicines Agency or otherwise, which expectations or approvals may not be achieved or obtained on a timely basis or at all; or success with respect to any collaborations, clinical trials and other development and commercialization efforts of the Company's products, which such success may not be achieved or obtained on a timely basis or at all. These statements involve risks and uncertainties that may cause results to differ materially from the statements set forth in this press release, including, among other things, the Company's inability to obtain needed funds in the immediate future; the Company's ability to obtain and maintain regulatory approval for its products; plus other factors described under the heading "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 or described in the Company's other public filings. The Company's results may also be affected by factors of which the Company is not currently aware. The forward-looking statements in this press release speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to such statements to reflect any change in its expectations with regard thereto or any changes in the events, conditions or circumstances on which any such statement is based.

Investor Relations Contact

Shunfu Hu

Vice President of Business Development
and Operations

774-233-7300

shu@biostage.com

 

Biostage, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
		March 31,			December 31,
		2021			2020
Assets
Cash		$	466		$	1,026
Restricted cash			50			50
Other assets			740			1,000
Total assets		$	1,256		$	2,076
Liabilities and stockholders' equity
Other liabilities		$	471		$	547
Notes payable			404			404
Total liabilities			875			951
Total stockholders' equity			381			1125
		$	1,256		$	2,076

 

BIOSTAGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
		Three Months Ended
		March 31,
		2021			2020
Revenues		$	-		$	-
Operating expenses:
Research and development			473			643
Selling, general and administrative			522			1,253
Total operating expenses			995			1,896
Operating loss			(995)			(1,896)
Other income (expense):
Grant income			118			-
Change in fair value of warrant liability			3			(100)
Total other income (expense), net			121			(100)
Net loss		$	(874)		$	(1,996)
Basic and diluted net loss per share		$	(0.09)		$	(0.24)
Weighted-average common shares, basic and diluted			9,388			8,287

 

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SOURCE Biostage, Inc.

FAQ

What were Biostage's earnings for Q1 2021?

Biostage reported a net loss of $0.9 million, or $0.09 per share, for Q1 2021.

How does Biostage's Q1 2021 performance compare to Q1 2020?

Biostage's net loss improved from $2.0 million in Q1 2020 to $0.9 million in Q1 2021.

What is Biostage's cash position as of March 31, 2021?

As of March 31, 2021, Biostage had $0.5 million in cash on hand.

What future funding does Biostage anticipate?

Biostage expects approximately $0.3 million in cash proceeds from investors received in May 2021.