Exhibit 99.1
 
Cellular Biomedicine Group Reports Full-Year 2017 Financial Results and Recent Operational Progress
 
Expanded GMP manufacturing capacity to become one of the largest in-house CAR-T manufacturers amongst leading global biopharmaceutical companies
 
Signed partnerships with GE Healthcare Life Sciences China & Thermo Fisher Scientific China to improve cell manufacturing processes
 
Received approximately $45.1 million in funding from institutional and strategic investors in Q4, 2017 and Q1 2018 combined
 
SHANGHAI, China and CUPERTINO, Calif., March 06, 2018 (GLOBE NEWSWIRE) --  Cellular Biomedicine Group Inc. (NASDAQ:
CBMG) ("CBMG" or the "Company"), a clinical-stage biopharmaceutical firm engaged in the development of immunotherapies for cancer and stem cell therapies for degenerative diseases, today announced business highlights and financial results for the fiscal year ended December 31, 2017.
 
"2017 was a pivotal year for CBMG and for the cell therapy environment. The U.S. Food and Drug Administration (FDA) had approved the first two chimeric antigen receptor T cell (CAR-T) therapies that use a patient's own T cells to fight cancer. The issuance in December 2017 of China's CFDA Guiding Principles for the Research and Evaluation of Cell Therapy Products provides a clear path for CBMG to advance our pipeline from clinical development to commercialization.  We have initiated our CAR-T clinical trials and have been recruiting patients. We opened our new state-of-the-art GMP manufacturing facility in Shanghai's Pharma Valley and signed strategic partnerships with GE Healthcare Life Sciences China and Thermo Fisher Scientific China to focus on improving manufacturing processes for cell therapies," said Tony (Bizuo) Liu, CEO of the Company. "These recent advancements, complete with existing in-house integrated Chemistry Manufacturing Controls ("CMC"), further our global leadership in cell therapy manufacturing and advance our goal to carry out transformative cancer treatment for patients. We have $48.9 million on hand at end of February 2018 to support our on-going clinical trials into 2019."
 
Tony Liu added, "We have also further strengthened our advisory team with the appointments of Dr. Michael A. Caligiuri, 2017-2018 President of American Association for Cancer Research ("AACR"), and President of City of Hope National Medical Center, as Chair of the company's External Advisory Board and Dr. Robert S. Langer, Professor of The Koch Institute for Integrative Cancer Research at MIT, as a member of the Company's Scientific Advisory Board."   
 
2017 & Early 2018 Clinical and Facility Highlights
 
Immuno-Oncology Platform 
 
Commenced CALL-1 ("CAR-T against Acute Lymphoblastic Leukemia") Phase I clinical trial in China with CBMG's optimized proprietary C-CAR011 construct of CD19 CAR-T therapy for the treatment of adult patients with Acute Lymphoblastic Leukemia ("ALL");
 
Expanded the Phase I clinical trial in China of the Company's ongoing CARD-1 ("CAR-T Against DLBCL") study in patients with Diffuse Large B-cell Lymphoma ("DLBCL");
 
Sought to expand our efforts to develop therapies targeting solid tumors by acquiring a three-year option to license T-cell Receptor ("TCR") technology in Hepatocellular Carcinoma ("HCC").
 
Stem Cell Platform 
 
Completed 48-week follow-up of all patients in Phase I clinical trial of an "Off-the-Shelf" Allogeneic adipose-derived haMPC AlloJoinTM therapy for the treatment of Knee Osteoarthritis (KOA) patients in China;
 
Awarded $2.29 million by the California Institute for Regenerative Medicine (CIRM), to support pre-clinical studies of AlloJoinTM, CBMG's "Off-the-Shelf" Allogeneic stem cell treatment for KOA in the United States.
 
GMP Expansion and Capabilities 
 
Expanded the Company's cell therapy manufacturing capabilities with the opening of a new 100,000-square-foot, state-of-the-art GMP manufacturing facility located in Shanghai Zhangjiang High-Tech Park (Shanghai's "Pharma Valley");
 
Completed the expansion of a 30,000 square foot multipurpose facility in Wuxi, China, which will be dedicated to advanced stem cell culturing, centralized plasmid and viral vector production, cell banking and development of reagents;
 
Established strategic partnership with GE Healthcare Life Sciences China to co-develop certain high-quality industrial control processes in CAR-T and stem cell manufacturing.  A joint laboratory, named "CBMG-GE Joint Laboratory of Cell Therapy" using GE Healthcare's FlexFactoryTM platform will be established within CBMG's Shanghai GMP manufacturing facility and will be dedicated to the joint research and development of a functionally integrated and automated immunotherapy cell preparation system;
 
 
1
 
 
Established a strategic partnership with Thermo Fisher Scientific China Ltd. to build a "CBMG-Thermo Fisher Scientific Joint Innovation & Application Center" which will focus on the research and development of an automated cell therapy manufacturing system.
 
Recent Business Highlights
 
Advanced the Company's cash position with two private placement transactions for total aggregate gross proceeds of approximately $45 Million;
 
Sailing Capital, an institutional-quality, returns-focused private equity firm initiated by Shanghai International Group - the financial holding group of the Shanghai Municipal Government - became a significant investor in the Company. 
 
Full Year 2017 Financial Results  
 
Cash Position: The Company had working capital of $20.9 million as of December 31, 2017 compared to $38.3 million as of December 31, 2016. Cash position decreased to $21.6 million at December 31, 2017 compared to $39.3 million at December 31, 2016. We had an increase in cash used in operating and investing activities, partially offset by cash inflow generated from financing activities due to a private placement financing in 2017 for aggregate net proceeds of approximately $14.5 million.
 
Net Cash Used in Operating Activities: Full-year 2017 net cash used in operating activities was $18.6 million compared to $15.9 million in 2016. The 2017 change in operating assets and liabilities was primarily due to an increase in accounts receivable, other receivables and long-term prepaid expenses as well as the decrease in accrued expenses and non-current liabilities, netting of by the increase in other current liabilities.
 
Revenue: Full-year 2017 revenue was $0.3 million compared to $0.6 million in 2016. The majority of the revenue was derived from cell therapy technology service for the year ended December 31, 2017. The decrease in revenue is the result of prioritizing cancer therapeutic technologies, and focusing our clinical efforts on developing CAR-T technologies, Vaccine, Tcm and TCR clonality technologies.
 
G&A Expenses: Full-year 2017 general and administrative expenses were $12.8 million compared to $11.7 million in 2016. There was an increase in rental expenses of $2.2 million, which mainly resulted from the new leased plant located in the "Pharma Valley" of Shanghai from January 1, 2017. 
 
R&D Expenses: Full-year 2017 research and development expenses were $14.6 million compared to $11.5 million in 2016. The increase was primarily attributed to an increase in rental expenses of $1,514,000, which was mainly attributed to the launching of R&D activities at our Beijing facility in the 2nd quarter of 2016 and the lease of a GMP facility in the United States to commence the KOA preclinical and clinical studies in 2017.
 
Net Loss: Full-year 2017 net loss allocable to common stock holders was $25.5 million compared to $28.2 million in 2016.
 
About Cellular Biomedicine Group
 
Cellular Biomedicine Group, Inc. (NASDAQ:CBMG) develops proprietary cell therapies for the treatment of cancer and degenerative diseases. We conduct immuno-oncology and stem cell clinical trials in China using products from our integrated GMP laboratory. Our GMP facilities in China, consisting of twelve independent cell production lines, are designed and managed according to both China and U.S. GMP standards.  Our Shanghai facility includes a "Joint Laboratory of Cell Therapy" with GE Healthcare and a "Joint Cell Therapy Technology Innovation and Application Center" with Thermo Fisher Scientific, which partnerships focus on improving manufacturing processes for cell therapies. CBMG currently has ongoing CAR-T Phase I clinical trials in China; CARD-1 for Diffuse Large B-cell Lymphoma (DLBCL) and Non-Hodgkin Lymphoma (NHL) and CALL-1 for adult Acute Lymphoblastic Leukemia (ALL), utilizing CBMG's proprietary and optimized CD19 construct, as well as an ongoing Phase I trial in China for AlloJoin™ (CBMG's "Off-the-Shelf" Allogeneic Human Adipose-derived Mesenchymal Stem Cell) for the treatment of Knee Osteoarthritis (KOA). In 2017, CBMG was awarded $2.29 million from the California Institute for Regenerative Medicine (CIRM) to support pre-clinical studies of AlloJoin™ for KOA in the United States. To learn more about CBMG, please visit www.cellbiomedgroup.com.   
 
Forward-Looking Statements
 
Statements in this press release relating to plans, strategies, trends, specific activities or investments, and other statements that are not descriptions of historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include those regarding our ability to implement our plans, strategies and objectives for future operations, including our plan to configure part of our Shanghai facility with GE Healthcare's FlexFactory platform, our ability to execute on proposed new products, services or development thereof, results of our clinical research and development, regulatory infrastructure governing cell therapy and cellular biopharmaceuticals, our ability to enter into agreements with any necessary manufacturing, marketing and/or distribution partners for purposes of commercialization, our ability to seek intellectual property rights for our product candidates, competition in the industry in which we operate, overall market conditions, any statements or assumptions underlying any of the foregoing and other risks detailed from time to time in CBMG's reports filed with the Securities and Exchange Commission, quarterly reports on form 10-Q, current reports on form 8-K and annual reports on form 10-K. Forward-looking statements may be identified by terms such as "may," "will," "expects," "plans," "intends," "estimates," "potential," or "continue," or similar terms or the negative of these terms. Although CBMG believes the expectations reflected in the forward-looking statements are reasonable, they cannot guarantee that future results, levels of activity, performance or achievements will be obtained. CBMG does not have any obligation to update these forward-looking statements other than as required by law. 
 
 
 
 
2
 
 
CELLULAR BIOMEDICINE GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
 
 
 
For the Year EndedDecember 31,
 
 
 
2017
 
 
2016
 
 
2015
 
 
 
 
 
 
 
 
 
 
 
Net sales and revenue
 $336,817 
 $627,930 
 $2,505,423 
 
    
    
    
Operating expenses:
    
    
    
Cost of sales
  162,218 
  860,417 
  1,880,331 
General and administrative
  12,780,483 
  11,670,506 
  13,068,255 
Selling and marketing
  360,766 
  425,040 
  709,151 
Research and development
  14,609,917 
  11,475,587 
  7,573,228 
Impairment of investments
  - 
  4,611,714 
  123,428 
         Total operating expenses
  27,913,384 
  29,043,264 
  23,354,393 
Operating loss
  (27,576,567)
  (28,415,334)
  (20,848,970)
 
    
    
    
Other income:
    
    
    
Interest income
  133,621 
  78,943 
  42,220 
Other income
  1,955,086 
  132,108 
  630,428 
        Total other income
  2,088,707 
  211,051 
  672,648 
Loss before taxes
  (25,487,860)
  (28,204,283)
  (20,176,322)
 
    
    
    
Income taxes (expenses) credit
  (2,450)
  (4,093)
  728,601 
 
    
    
    
 
    
    
    
Net loss
 $(25,490,310)
 $(28,208,376)
 $(19,447,721)
Other comprehensive income (loss):
    
    
    
Cumulative translation adjustment
  967,189 
  (743,271)
  (307,950)
   Unrealized gain (loss) on investments, net of tax
  (240,000)
  5,300,633 
  (1,376,540)
   Reclassification adjustments, net of tax, in connection with other-than-temporary impairment of investments
  - 
  (5,557,939)
  - 
Total other comprehensive income (loss):
  727,189 
  (1,000,577)
  (1,684,490)
 
    
    
    
Comprehensive loss
 $(24,763,121)
 $(29,208,953)
 $(21,132,211)
 
    
    
    
Net loss per share
    
    
    
  Basic
 $(1.78)
 $(2.09)
 $(1.70)
  Diluted
 $(1.78)
 $(2.09)
 $(1.70)
 
    
    
    
Weighted average common shares outstanding:
    
    
    
  Basic
  14,345,604 
  13,507,408 
  11,472,306 
  Diluted
  14,345,604 
  13,507,408 
  11,472,306 
 
    
    
    
 
 
3
 
 
CELLULAR BIOMEDICINE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
 
 
 
December 31,
 
 
December 31,
 
 
 
2017
 
 
2016
 
 Assets
 
 
 
 
 
 
Cash and cash equivalents
 $21,568,422 
 $39,252,432 
Accounts receivable, less allowance for doubtful amounts of $10,789
    
    
 and $10,163 as of December 31, 2017 and December 31, 2016, respectively
  202,887 
  39,974 
Other receivables
  902,940 
  412,727 
Prepaid expenses
  1,852,695 
  986,951 
Total current assets
  24,526,944 
  40,692,084 
 
    
    
Investments
  269,424 
  509,424 
Property, plant and equipment, net
  12,973,342 
  4,117,739 
Goodwill
  7,678,789 
  7,678,789 
Intangibles, net
  12,419,692 
  14,092,581 
Long-term prepaid expenses and other assets
  3,294,105 
  1,537,850 
Total assets
 $61,162,296 
 $68,628,467 
 
    
    
Liabilities and Stockholders' Equity
    
    
 
    
    
Liabilities:
    
    
Accounts payable
 $225,287 
 $216,154 
Accrued expenses
  1,097,327 
  1,168,787 
Taxes payable
  28,875 
  28,875 
Other current liabilities
  2,324,632 
  950,220 
Total current liabilities
  3,676,121 
  2,364,036 
 
    
    
Other non-current liabilities
  183,649 
  370,477 
Total liabilities
  3,859,770 
  2,734,513 
 
    
    
 
    
    
    Preferred stock, par value $.001, 50,000,000 shares
    
    
    authorized; none issued and outstanding as of
    
    
   December 31, 2017 and 2016, respectively
  - 
  - 
 
    
    
    Common stock, par value $.001, 300,000,000 shares authorized;
    
    
 
 15,615,558 and 14,281,378 issued; and 15,188,764 and 14,281,378 outstanding,
 
    
    as of December 31, 2017 and 2016, respectively
  15,616 
  14,281 
   Treasury stock at cost; 426,794 and nil shares of common stock
  (3,977,929)
  - 
    as of December 31, 2017 and December 31, 2016, respectively
    
    
Additional paid in capital
  172,691,339 
  152,543,052 
    Accumulated deficit
  (111,036,997)
  (85,546,687)
    Accumulated other comprehensive loss
  (389,503)
  (1,116,692)
Total stockholders' equity
  57,302,526 
  65,893,954 
 
    
    
Total liabilities and stockholders' equity
 $61,162,296 
 $68,628,467 
 
 
4
 
 
CELLULAR BIOMEDICINE GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
 
For the Year Ended
 
 
 
December 31,
 
 
 
2017
 
 
2016
 
 
2015
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
  Net loss
 $(25,490,310)
 $(28,208,376)
 $(19,447,721)
  Adjustments to reconcile net loss to net cash
    
    
    
     used in operating activities:
    
    
    
Depreciation and amortization
  2,985,963 
  2,635,001 
  2,094,644 
Loss on disposal of assets
  317 
  2,156 
  1,444 
Stock based compensation expense
  5,345,211 
  5,452,417 
  7,592,438 
Other than temporary impairment on investments
  - 
  4,611,714 
  123,428 
Realized losses from sale of investments
  - 
  - 
  5,178 
(Reversal) of inventory provision
  - 
  (115,391)
  123,848 
Allowance for doubtful account
  - 
  10,163 
  - 
Decrease in fair value of accrued expenses for the acquisition of intangible assets
  - 
  - 
  (345,882)
  Changes in operating assets and liabilities:
    
    
    
Accounts receivable
  (160,628)
  537,155 
  (497,937)
Other receivables
  (467,985)
  (156,672)
  (143,711)
Inventory
  - 
  514,734 
  (142,486)
Prepaid expenses
  (812,675)
  (669,598)
  181,679 
Taxes recoverable
  - 
  150,082 
  (150,082)
Other current assets
  - 
  - 
  110,347 
Long-term prepaid expenses and other assets
  (1,005,029)
  (643,673)
  (384,432)
Accounts payable
  (814)
  (28,205)
  (166,032)
Accrued expenses
  (118,968)
  356,420 
  396,557 
Advance payable to related party
  - 
  - 
  (30,216)
Other current liabilities
  1,339,866 
  (640,573)
  113,919 
Taxes payable
  - 
  28,875 
  (814,288)
Other non-current liabilities
  (208,340)
  296,036 
  (371,793)
          Net cash used in operating activities
  (18,593,392)
  (15,867,735)
  (11,751,098)
 
    
    
    
CASH FLOWS FROM INVESTING ACTIVITIES:
    
    
    
   Acquisition of business, net of cash acquired
  - 
  - 
  (1,568,627)
   Proceed from sale of investments, net of issuance cost paid
  - 
  - 
  1,480 
Purchases of intangible assets
  (23,734)
  (56,519)
  (4,260,420)
Purchases of property, plant and equipment
  (10,169,134)
  (2,676,888)
  (1,874,538)
          Net cash used in investing activities
  (10,192,868)
  (2,733,407)
  (7,702,105)
 
    
    
    
CASH FLOWS FROM FINANCING ACTIVITIES:
    
    
    
Net proceeds from the issuance of common stock
  14,496,040 
  42,399,874 
  18,964,849 
Proceeds from exercise of stock options
  308,371 
  885,680 
  682,303 
Repurchase of treasury stock
  (3,977,929)
  - 
  - 
          Net cash provided by financing activities
  10,826,482 
  43,285,554 
  19,647,152 
 
    
    
    
EFFECT OF EXCHANGE RATE CHANGES ON CASH
  275,768 
  (316,577)
  (79,936)
 
    
    
    
INCREASE IN CASH AND CASH EQUIVALENTS
  (17,684,010)
  24,367,835 
  114,013 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
  39,252,432 
  14,884,597 
  14,770,584 
CASH AND CASH EQUIVALENTS, END OF PERIOD
 $21,568,422 
 $39,252,432 
 $14,884,597 
 
    
    
    
SUPPLEMENTAL CASH FLOW INFORMATION
    
    
    
Cash paid for income taxes
 $2,450 
 $6,705 
 $108,075 
 
    
    
    
Non-cash investing activities
    
    
    
   Acquisition of intangible assets through issuance of the Company's stock
 $- 
 $- 
 $1,481,462 
 
Contacts:
Sarah Kelly 
Director of Corporate Communications, CBMG
+1 650 566-5064
sarah.kelly@cellbiomedgroup.com
 
 
5

The following information was filed by Cellular Biomedicine Group, Inc. (CBMG) on Tuesday, March 6, 2018 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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