Press Releases

Biostage Reports Third Quarter 2019 Financial Results

HOLLISTON, Mass., Nov. 12, 2019 /PRNewswire/ -- Biostage, Inc. (OTCQB: BSTG), a bioengineering company developing next-generation esophageal implants, today announced its financial results for the three and nine months ended September 30, 2019.

BSTG Logo (PRNewsfoto/Biostage, Inc.)

View full release with investor resources, link to webcast, downloadable financial tables, images and more.

Key Takeaways

  • Submitted Investigational New Drug (IND) application in October for lead product candidate Cellspan Esophageal Implant for treatment of esophageal conditions.
  • Received approximately $1.2 million from the exercise of warrants, extending the Company's finances and demonstrating investor confidence in the Company's technology.
  • Biostage, subject to FDA approval, will begin clinical trials.

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, including those utilizing its Cellspan and Cellframe technology, 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, 2018 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

Peter Chakoutis
Vice President of Finance
774-233-7300
pchakoutis@biostage.com

 

 

BIOSTAGE, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and share data)




September 30,

2019



December 31,

2018


ASSETS



(Unaudited) 






Current assets:









Cash


$

1,098



$

1,305


Restricted cash



50




50


Grant receivable



136




176


Prepaid expenses and other current assets



248




623


Total current assets



1,532




2,154


Property, plant and equipment, net



432




479


Right-of-use assets



95




-


Total non-current assets



527




479


Total assets


$

2,059



$

2,633











LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities:









Accounts payable


$

270



$

160


Accrued and other current liabilities



473




404


Warrant liability



103




98


Current portion of operating lease liability



72




-


Total current liabilities



918




662


Operating lease liability, net of current portion



23




-


Total liabilities


$

941



$

662











Stockholders' equity:









Undesignated preferred stock, $0.01 par value; 984,000 shares authorized and
  none issued and outstanding at September 30, 2019 and December 31, 2018


$

-



$

-


Common stock, $0.01 par value; 120,000,000 shares authorized at September
  30, 2019 and December 31, 2018; 7,643,325 and 5,669,645 shares issued and
  outstanding as of September 30, 2019 and December 31, 2018, respectively



76




57


Additional paid-in capital



63,538




57,677


Accumulated deficit



(62,496)




(55,763)


Total stockholders' equity



1,118




1,971


Total liabilities and stockholders' equity


$

2,059



$

2,633


 

 

BIOSTAGE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)




Three Months ended

September 30,



Nine Months ended

September 30,




2019



2018



2019



2018















Revenues


$

-



$

-



$

-



$

-



















Operating expenses:

















Research and development



1,597




1,288




4,007




2,768


Selling, general and administrative



902




940




3,194




2,973


Total operating expenses



2,499




2,228




7,201




5,741



















Operating loss



(2,499)




(2,228)




(7,201)




(5,741)



















Other income (expense):

















Grant income



136




90




473




225


Change in fair value of warrant liability



(14)




49




(5)




(171)


Other expense



-




-




-




(7)


 Total other income (expense), net



122




139




468




47



















Net loss


$

(2,377)



$

(2,089)



$

(6,733)



$

(5,694)



















Basic and diluted net loss per share


$

(0.33)



$

(0.37)



$

(1.02)



$

(1.40)


Weighted average common shares, basic and diluted



7,224




5,666




6,611




4,056


 

 

BIOSTAGE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)




Nine Months Ended

September 30,




2019



2018


CASH FLOWS FROM OPERATING ACTIVITIES









Net loss


$

(6,733)



$

(5,694)


Adjustments to reconcile net loss to net cash used in operating activities:









Share-based compensation expense



1,353




461


Depreciation



165




194


Amortization of right-of-use assets



71




-


Change in fair value of warrant liability



5




171


Loss on disposal of property, plant and equipment



-




8


Changes in operating assets and liabilities:









Grant receivable



40




(90)


Prepaid expenses and other current assets



375




53


Accounts payable



110




(721)


Accrued and other current liabilities



69




164


Lease liabilities



(71)




-


Net cash used in operating activities



(4,616)




(5,454)











CASH FLOWS FROM INVESTING ACTIVITIES









Purchases of property and equipment



(118)




(127)


Cash received from sale of property, plant and equipment



-




64


Net cash used in investing activities



(118)




(63)











CASH FLOWS FROM FINANCING ACTIVITIES









Repayment of related party advance



-




(300)


Proceeds from issuance of common stock and warrants, net of offering costs



1,277




5,322


Proceeds from exercise of warrants



3,250




-


Net cash provided by financing activities



4,527




5,022


Net decrease in cash and restricted cash



(207)




(495)


Cash and restricted cash at beginning of period



1,355




4,038


Cash and restricted cash at end of period


$

1,148



$

3,543


 

SOURCE Biostage, Inc.