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Biostage Reports First Quarter 2020 Financial Results
Holliston, MA – May 14, 2020 –Biostage, Inc. (OTCQB: BSTG) (“Biostage” or the “Company”), a clinical-stage biotechnology company developing bioengineered organ implants based on the Company’s novel Cellspan™ technology, today announced its financial results for the three months ended March 31, 2020.
The Company will not hold an earnings conference call at this time. The Company plans to hold a conference call at a future date to discuss its clinical and business plans based on the U.S. Food and Drug Administration (FDA) removing the clinical hold on its Cellspan Esophageal Implant (CEI) study.
On March 19, 2020, the FDA notified the Company that the clinical hold on its CEI product candidate has been removed and the Company may proceed with its First in Human (FIH) Clinical study. This FDA approval enables us to start clinical planning, including engaging with a clinical research organization and site readiness in advance of starting the clinical trial for our CEI product candidate. The COVID-19 pandemic has and will continue to affect the Company’s operations, including causing delays or difficulties in its ability to plan and commence clinical trials.
Summary of Financial Results
For the three months ended March 31, 2020, the Company reported a net loss of $2.0 million, ($0.24) per share, compared to a net loss of $1.9 million, ($0.32) per share, for the three months ended March 31, 2019. The $0.1 million year-over-year increase in net loss was due primarily to a $0.3 million increase in general and administrative expenses costs, a $0.1 million decrease in grant income for qualified expenditures from our Fast-Track Small Business Innovation Research grant, and a $0.1 million increase in expense due to the change in the fair value of our warrant liability. This was offset, in part, by a $0.4 million decrease in research and development costs.
Balance Sheet and Cash
At March 31, 2020, the Company had operating cash on-hand of $0.8 million and no debt. The Company used net cash in operations of $1.1 million during the three-month period ended March 31, 2020.
During the three months ended March 31, 2020, the Company received $1.0 million from financing activities, including approximately $0.6 million from the issuance of 151,027 shares of common stock and warrants to investors in private placement transactions, and approximately $0.4 million from the issuance of 214,000 shares of its common stock to a group of investors in connection with the exercise of previously issued warrants.
The following information was filed by Biostage, Inc. (BSTG) on Thursday, May 14, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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