SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (date of earliest event reported): May 19, 2008.
BioTime,
Inc.
(Exact
name of registrant as specified in its charter)
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California
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1-12830
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94-3127919
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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1301
Harbor Bay Parkway, Suite 100
Alameda,
California 94502
(Address
of principal executive offices)
(510)
521-3390
(Registrant's
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ] Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
[ ] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Statements made in this Report that
are not historical facts may constitute forward-looking statements that are
subject to risks and uncertainties that could cause actual results to differ
materially from those discussed. Such risks and uncertainties include
but are not limited to those discussed in this report and in BioTime's Annual
Report on Form 10-KSB filed with the Securities and Exchange Commission. Words
such as “expects,” “may,” “will,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” “estimates,” and similar expressions identify forward-looking
statements.
Section
2 - Financial Information
Item
2.02 - Results of Operations and Financial Condition
On May
19, 2008 BioTime, Inc. issued a press release announcing its financial results
for the three months ended March 31, 2008. A copy of the press
release is attached as Exhibit 99.1, which, in its entirety, is incorporated
herein by reference.
Section
9 - Financial Statements and Exhibits
Item
9.01 - Financial Statements and Exhibits
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Exhibit
Number
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Description
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|
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99.1
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Press
Release dated May 19, 2008
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2
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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BIOTIME,
INC.
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|
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Date: May
19, 2008
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By
/s/ Judith
Segall
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Vice
President & Secretary
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| Member, Office of the President |
3
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Exhibit
Number
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Description
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|
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99.1
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Press
Release dated May 19, 2008
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4
Exhibit 99.1
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BioTime,
Inc.
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6121
Hollis Street
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Emeryville,
CA 94608
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Tel:
510-350-2940
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Fax:
510-350-2948
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www.biotimeinc.com
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BIOTIME
INC. ANNOUNCES FIRST QUARTER 2008 FINANCIAL RESULTS
--
Reports Growth in First Quarter Royalty Revenue --
--
Expects Continued Growth in Royalty Revenue for Second Quarter --
ALAMEDA, CA, May 19, 2008 – On
May 15, 2008 BioTime, Inc. (OTCBB: BTIM) reported financial results for the
first quarter ended March 31, 2008.
For the
three months ended March 31, 2008, BioTime's total quarterly revenue, including
both royalty income and revenue recognition of deferred license fees, increased
55% to $381,018 versus $245,698 for the same period last year.
BioTime
reported a net loss of $476,048, or $0.02 per basic and diluted share, for the
three months ended March 31, 2008, compared to a net loss of $553,862, or $0.02
per basic and diluted share, for the three months ended March 31,
2007.
BioTime
recognized $308,900 in royalty revenue versus $199,264 during the three months
ended March 31, 2007, an increase of 55%. The growth in royalties is
attributable to the increase in sales of Hextend to both hospitals and the
United States Armed Forces. Hextend is an artificial colloidal
solution classified as a plasma volume expander for supporting oncotic pressure
as well as providing electrolytes to patients suffering from blood loss in
surgery or from trauma. BioTime recognizes royalty revenues in the quarter in
which sales reports are received versus the quarter in which the sales take
place. Therefore, royalty revenue for the three months ended March
31, 2008 includes royalties on sales of Hextend during the three months ended
December 31, 2007.
Additionally,
in April 2008, BioTime received royalties in the amount of $341,153 from
Hospira, Inc., an increase of 108% from the same period one year ago. This
amount is based on the sales of Hextend made by Hospira, Inc. during the first
quarter of 2008, and will be reflected in BioTime’s consolidated financial
statements for the second quarter of 2008. The growth is also
attributable to increased sales both to hospitals and the United States Armed
Forces. Hospira is the exclusive distributor of Hextend in the United
States. CJ CheilJedang Corp. is the exclusive distributor of Hextend in South
Korea.
Michael
D. West, Ph.D, BioTime’s Chief Executive Officer, noted, “Our primary
pharmaceutical product, Hextend®,
continues to gain traction among hospitals in the United States and abroad.
Further, knowing that Hextend is assisting medical efforts to save lives,
including the lives of the members of our Armed Forces, is a great source of
pride for our company.” Dr. West continued, “BioTime has recently entered the
field of regenerative medicine through our wholly owned subsidiary Embryome
Sciences, Inc., which plans to develop new medical research products using
embryonic stem cell technology. We believe that stem cell technology
will have broad application in medicine and will likely be one of the leading
technology platforms of the coming decades.”
BioTime,
Inc.
Page 2
of 4
License
revenue increased 42.5% to $66,183 during the first quarter of 2008 versus
$46,434 in the same period last year. Most of this increase consists of license
fees received during prior accounting periods from CJ CheilJedang Corp. and
Summit Pharmaceuticals International Corporation, and are reflected as deferred
revenue on BioTime’s balance sheet. BioTime amortizes those license
fees and recognizes them as current revenues over the expected life of the
patents related to the applicable licenses.
Cash and
cash equivalents totaled $307,471 as of March 31, 2008, compared with $277,280
as of March 31, 2007. Total shareholder deficit was $3,349,599 as of
March 31, 2008, compared with total shareholders' deficit of $2,372,548 at March
31, 2007, a 41% increase. As of March 31, 2008, the Company had lines
of credit for $2,578,600, from which $1,265,519 had been drawn at that date. The
Company drew an additional $575,000 on one of our lines of credit during April
2008.
It is
BioTime’s intention to raise the additional capital needed to finance the
further development of its products because its current lines of credit and
royalty revenues are not sufficient to fund anticipated operating expenses
beyond November 15, 2008.
About
BioTime, Inc.
BioTime,
headquartered in Alameda, California, develops blood plasma volume expanders,
blood replacement solutions for hypothermic (low temperature) surgery, organ
preservation solutions, and technology for use in surgery, emergency trauma
treatment and other applications. BioTime’s lead product Hextend is manufactured
and distributed in the U.S. by Hospira, Inc. and in South Korea by CJ
CheilJedang Corp. under exclusive licensing agreements. BioTime has recently
entered the field of regenerative medicine through its wholly owned subsidiary
Embryome Sciences, Inc., through which it plans to develop new medical and
research products using embryonic stem cell technology. Additional information
about BioTime can be found on the web at www.biotimeinc.com.
Hextend®,
PentaLyte®,
HetaCool®,
EmbryomicsTM,
ESpyTM, and
EScalateTM are
trademarks of BioTime, Inc.
Forward
Looking Statements
Statements
pertaining to future financial and/or operating results, future growth in
research, technology, clinical development and potential opportunities for the
company and its subsidiary, along with other statements about the future
expectations, beliefs, goals, plans, or prospects expressed by management
constitute forward-looking statements. Any statements that are not historical
fact (including, but not limited to statements that contain words such as
“will,” “believes,” “plans,” “anticipates,” “expects,” “estimates,”) should also
be considered to be forward-looking statements. Forward-looking statements
involve risks and uncertainties, including, without limitation, risks inherent
in the development and/or commercialization of potential products, uncertainty
in the results of clinical trials or regulatory approvals, need and ability to
obtain future capital, and maintenance of intellectual property rights. Actual
results may differ materially from the results anticipated in these
forward-looking statements and as such should be evaluated together with the
many uncertainties that affect the company's business, particularly those
mentioned in the cautionary statements found in BioTime's Securities and
Exchange Commission filings. BioTime disclaims any intent or
obligation to update these forward-looking statements.
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Contact:
BioTime,
Inc.
Judith
Segall, 510-521-3390
jsegall@biotimemail.com
-Financial
Tables Follow-
BioTime,
Inc.
Page
3 of 4
BIOTIME,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
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ASSETS
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March
31,
2008
(unaudited)
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December
31, 2007
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||||||
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CURRENT
ASSETS:
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||||||||
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Cash
and cash equivalents
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$ | 307,471 | $ | 9,501 | ||||
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Accounts
receivable
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10,054 | 3,502 | ||||||
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Prepaid
expenses and other current assets
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210,588 | 128,643 | ||||||
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Total
current assets
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528,113 | 141,646 | ||||||
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Equipment,
net of accumulated depreciation of $586,995 and $585,765,
respectively
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12,639 | 12,480 | ||||||
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Deposits
and other assets
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20,976 | 20,976 | ||||||
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TOTAL
ASSETS
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$ | 561,728 | $ | 175,102 | ||||
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LIABILITIES
AND SHAREHOLDERS' DEFICIT
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||||||||
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CURRENT
LIABILITIES:
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||||||||
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Accounts
payable and accrued liabilities
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$ | 590,001 | $ | 480,374 | ||||
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Lines
of credit payable
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1,307,328 | 716,537 | ||||||
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Deferred
license revenue, current portion
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286,555 | 261,091 | ||||||
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Total
current liabilities
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2,183,884 | 1,458,002 | ||||||
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LONG-TERM
LIABILITIES:
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||||||||
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Stock
appreciation rights compensation liability
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32,877 | 13,151 | ||||||
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Deferred
license revenue, net of current portion
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1,685,903 | 1,740,702 | ||||||
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Deferred
rent, net of current portion
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8,663 | 9,636 | ||||||
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Total
long-term liabilities
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1,727,443 | 1,763,489 | ||||||
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COMMITMENTS
AND CONTINGENCIES
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||||||||
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SHAREHOLDERS'
DEFICIT:
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||||||||
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Common
shares, no par value, authorized 50,000,000 shares; issued and outstanding
23,544,374 and 23,034,374 shares at March 31, 2008 and December 31, 2007,
respectively
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40,876,976 | 40,704,136 | ||||||
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Contributed
capital
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93,972 | 93,972 | ||||||
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Accumulated
deficit
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(44,320,547 | ) | (43,844,497 | ) | ||||
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Total
shareholders' deficit
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(3,349,599 | ) | (3,046,389 | ) | ||||
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TOTAL
LIABILITIES AND SHAREHOLDERS' DEFICIT
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$ | 561,728 | $ | 175,102 | ||||
BioTime,
Inc.
Page
4 of 4
BIOTIME,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three
Months Ended
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||||||||
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March
31, 2008
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March
31, 2007
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|||||||
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REVENUES:
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||||||||
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License
fees
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$ | 66,183 | $ | 46,434 | ||||
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Royalties
from product sales
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308,900 | 199,264 | ||||||
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Other
revenue - Hextend
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5,935 | - | ||||||
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Total
revenues
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381,018 | 245,698 | ||||||
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EXPENSES:
|
||||||||
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Research
and development
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(347,151 | ) | (343,550 | ) | ||||
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General
and administrative
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(435,939 | ) | (417,780 | ) | ||||
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Total
expenses
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(783,090 | ) | (761,330 | ) | ||||
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Loss
from operations
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(402,072 | ) | (515,632 | ) | ||||
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Interest
expenses and other income
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(73,976 | ) | (38,230 | ) | ||||
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NET
LOSS
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$ | (476,048 | ) | $ | (553,862 | ) | ||
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LOSS
PER COMMON SHARE – BASIC AND DILUTED
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$ | (0.02 | ) | $ | (0.02 | ) | ||
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WEIGHTED
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC AND
DILUTED
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23,042,945 | 22,722,707 | ||||||