SUNRISE, FL / ACCESSWIRE / November 7, 2017 / U.S. Stem Cell, Inc. (USRM), international leader in the development of proprietary, physician-based stem cell therapies and novel regenerative medicine, today announced financial results for the three months ended Sept. 30, 2017.
Revenue increased significantly for the quarter, up 106 percent or $730k from the same quarter last year to $1.5m. Likewise, for the nine months ended Sept. 30, 2017, revenue also increased 92 percent from $2.1 to $4.04m for the same period last year.
Net increase in gross profits also increased to $1m, a 158 percent increase from the same quarter last year. Net increase in gross profit also increased 102 percent or $1.4m for the same period in 2016, to $2.8m for 2017.
Cash from operations also increased for the nine months ended, up more than 1004% from negative $113k in 2016 to more than $1m in 2017. Cash from operations was also up for the three months ended 2017, an increase of more than 368% in 2017, totaling $240k, compared to $52k for the same three months in 2016.
"Our operations are continuing to yield successful results for six straight quarters now, including last quarter which was record-breaking, and we are still just getting started," said Mike Tomas, Chief Executive Officer of U.S. Stem Cell, Inc. "The increase in operational success - which includes certifying 700 physicians and 287 clinics in the use of our proprietary stem cell technology - is being bolstered by more than 30 states that are passing laws to allow regenerative, cutting-edge procedures like ours. It's an exciting time to be in the marketplace, and we are looking forward to our continued growth."
On Sept. 1, 2017, the State of Texas joined more than 30 other states by passing HR 810 - a "right to try" law allowing Texans to choose medical procedures like stem cell treatments for certain severe chronic diseases and terminal illnesses that have historically been considered more "experimental." This legislation paves the way for patients living on borrowed time, that are severely debilitated, or in extreme pain due to an ailment. As more states join the ranks in approving right-to-try laws, USRM will continue to leverage these legislated opportunities.
"Seeing expansion of our proprietary, stem cell therapy process - which empowers a patient to utilize their own, naturally occurring stem cells to treat chronic pain and other systemic conditions - is such a remarkable experience," said Dr. Kristin Comella, Chief Science Officer for U.S. Stem Cell, Inc. "Our ability to teach, train and partner with physicians and clinics, as well as develop our own standalone facilities, gives us a unique opportunity to grow the business in so many ways."
USRM also strengthened its balance sheet this quarter by converting outstanding debt into equity, an indication of debt holders' increased confidence in the Company's ability to enhance shareholder value through operations. In order to facilitate the debt conversion, on Aug. 31 USRM filed an 8-K with the U.S. Securities and Exchange Commission (SEC), executing a debt restructuring agreement with Hunton & Williams LLP. As a result of the conversion, USRM facilitated a debt reduced of $393k. The deal freezes interest payments the Company has on two outstanding notes from 2009. A copy of the SEC Form 8-K filing is available here.
Operating expenses rose 47 percent, due to a combination of factors including a 103 percent increase in depreciation and one-time costs association with operations including stock-based compensation as a result of the debt reduction and performance bonuses. Loss from operations decreased $336k from $1.3m in the nine months ended Sept. 30, 2017, compared to $957k for the nine months ended Sept. 30, 2017. Likewise, long-term debt made a slight increase, mostly due to terms of the sale-leaseback.
About U.S. Stem Cell, Inc.
U.S. Stem Cell, Inc. is an emerging enterprise in the regenerative medicine / cellular therapy industry. We are focused on the discovery, development, and commercialization of cell-based therapies that prevent or treat disease by repairing and replacing damaged or aged tissue, cells and organs and restoring their normal function. We believe that regenerative medicine / cellular therapeutics will play a large role in positively changing the natural history of diseases, ultimately, we contend, lessening patient burdens, as well as reducing the associated economic impact disease imposes upon modern society.
Our business, which includes three operating divisions (U.S. Stem Cell Training, Vetbiologics, and U.S. Stem Cell Clinic) includes the development of proprietary cell therapy products, as well as revenue generating physician and patient-based regenerative medicine / cell therapy training services, cell collection and cell storage services, the sale of cell collection and treatment kits for humans and animals, and the operation of a cell therapy clinic. Management maintains that revenues and their associated cash in-flows generated from our businesses will, over time, provide funds to support our clinical development activities as they do today for our general business operations. We believe the combination of our own therapeutics pipeline combined with our revenue generating capabilities provides the Company with a unique opportunity for growth and a pathway to profitability.
Except for historical matters contained herein, statements made in this press release are forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "to," "plan," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue," or the negative other variations thereof or comparable terminology are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
The Company is subject to the risks and uncertainties described in its filings with the Securities and Exchange Commission, including the section entitled "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2016, and its Quarterly Reports on Form 10-Q.
U.S. Stem Cell, Inc.
13794 NW 4th Street, Suite 212
Sunrise, Fl 33325
SOURCE: U.S. Stem Cell, Inc.