×

Cellular Biomedicine Group Reports First Quarter 2016 Financial Results and Provides Business Highlights

– Reported Positive Clinical Data from Phase IIb trial of ReJoin® haMPC therapy
– Expanded Stem Cell Platform with the Launch of New Allogeneic Clinical Trial
– Closed Strategic Investment of $43.13 million in the First Four Months of 2016

SHANGHAI, China and CUPERTINO, Calif., May 09, 2016 (GLOBE NEWSWIRE) -- Cellular Biomedicine Group, Inc. (Nasdaq:CBMG) ("CBMG" or the "Company"), a clinical-stage biomedicine firm engaged in the development of effective stem cell therapies for degenerative diseases and immunotherapies for cancer, reported financial results for the first quarter ended March 31, 2016 and provided business highlights.

“In the first quarter of 2016, we made several key clinical and business advancements that we expect will promote long-term growth and strengthen our presence in the cancer and osteoarthritis markets,” commented Tony (Bizuo) Liu, CBMG’s Chief Executive Officer. “We reported encouraging Phase IIb data from our most advanced stem cell program for autologous adipose-derived mesenchymal progenitor cell (haMPC) ReJoin® therapy for Knee Osteoarthritis (KOA), and launched a Phase I clinical trial for an off-the-shelf allogeneic haMPC AlloJoinTM therapy for KOA. The closing of a $43.13 million strategic investment through April 2016 brings us closer to reaching our objectives of launching multi-site clinical trials in immuno-oncology cell therapies in China, to file INDs and launch clinical trials for AlloJoinTM therapy for KOA patients in the US and to further strengthen our pipeline. We are determined to build on the momentum from the first quarter and believe that we can accomplish meaningful progress on our 2016 operating objectives.”

First Quarter 2016 Financial Performance

  1. Cash Position: Cash and cash equivalents as of March 31, 2016 were $15.7 million compared to $14.9 million as of December 31, 2015. We had an increase in cash generated from financing activities due to a private placement financing in February 2016 for gross proceeds of approximately $5 million.
  2. Net Cash Used in Operating Activities: Net cash used in operating activities for the first quarter of 2016 was $3.58 million, compared to $2.41 million for the same period in 2015.
  3. Revenue: Revenues in the first quarter of 2016 were $488,491 compared to $603,390 for the same period in 2015. The revenue in first quarter 2016 is solely comprised of the hospital’s technology services related to cell therapy treatments.
  4. G&A Expenses: General and administrative expenses for the first quarter of 2016 were $2.8 million compared to $2.7 million for the same period in 2015.
  5. R&D Expenses: Research and development expenses for the first quarter of 2016 were $2.40 million, compared to $1.46 million for the same period a year ago. The increase was primarily attributable to the increase of the Company’s immunotherapy research and development team and expenses related to clinical trials.
  6. Net Loss: Net loss allocable to common stock holders was $4.2 million, compared to $4.3 million for the same period in 2015.

Business & Technology Highlights of 2016 To Date

  • Announced encouraging 48-week clinical data from the Phase IIb trial of the Company’s ReJoin® haMPC therapy for Knee Osteoarthritis (KOA), revealing increase of patient’s knee cartilage volume and relief of pain;
  • Launched an investigator initiated Phase I clinical trial of an off-the-shelf allogeneic adipose-derived mesenchymal progenitor cell (haMPC) AlloJoinTM therapy for KOA patients in China;
  • Advanced the Company’s cash position following the closing of an agreement with Wuhan Dangdai Science & Technology Industries Group Inc. to invest up to $43.13 million for 2.27 million shares of the Company’s common stock, representing a 16.2% post-money stake investment as of April 15, 2016.

About Cellular Biomedicine Group
Cellular Biomedicine Group, Inc. develops proprietary cell therapies for the treatment of certain degenerative and cancerous diseases. Our developmental stem cell and Immuno-Oncology projects are the result of research and development by scientists and doctors from China and the United States. Our GMP facilities in China, consisting of nine independent cell production lines, are designed, certified and managed according to U.S. standards. 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 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 risks inherent in doing business, trends affecting the global economy, including the devaluation of the RMB by China in August 2015 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.

CELLULAR BIOMEDICINE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
For the Three Months Ended
March 31,
2016 2015
Net sales and revenue $ 488,491 $ 603,390
Operating expenses:
Cost of sales 503,193 494,062
General and administrative 2,775,925 2,680,237
Selling and marketing 178,754 149,022
Research and development 2,398,362 1,455,420
Impairment of investments - 123,428
Total operating expenses 5,856,234 4,902,169
Operating loss (5,367,743) (4,298,779)
Other income (expense):
Interest income 17,050 15,111
Other income (expense) 16,320 (2,703)
Total other income 33,370 12,408
Loss before taxes (5,334,373) (4,286,371)
Income taxes credit (provision) 1,124,260 (800)
Net loss $ (4,210,113) $ (4,287,171)
Other comprehensive income (loss):
Cumulative translation adjustment 16,073 19,609
Unrealized gain (loss) on investments, net of tax of $4,514,060 and $nil, for the three months ended March 31, 2016 and 2015, respectively 16,416,517 (2,568,271)
Total other comprehensive income (loss): 16,432,590 (2,548,662)
Comprehensive gain (loss) $ 12,222,477 $ (6,835,833)
Net loss per share :
Basic $ (0.35) $ (0.39)
Diluted $ (0.35) $ (0.39)
Weighted average common shares outstanding:
Basic 11,884,066 11,039,208
Diluted 11,884,066 11,039,208



CELLULAR BIOMEDICINE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
2016 2015
Assets
Cash and cash equivalents$ 15,667,528 $ 14,884,597
Accounts receivable 582,714 630,332
Other receivables 316,993 271,344
Inventory 486,348 390,886
Prepaid expenses 644,250 367,050
Taxes recoverable - 150,082
Total current assets 17,697,833 16,694,291
Investments 26,309,984 5,379,407
Property, plant and equipment, net 2,743,466 2,768,900
Goodwill 7,678,789 7,678,789
Intangibles, net 15,511,705 15,949,100
Long-term prepaid expenses and other assets 1,360,679 989,935
Total assets$ 71,302,456 $ 49,460,422
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable$ 208,894 $ 260,886
Accrued expenses 902,265 845,087
Taxes payable 32,450 -
Other current liabilities 2,026,264 1,913,284
Total current liabilities 3,169,873 3,019,257
Deferred tax liabilities 3,385,545 -
Other non-current liabilities 26,311 76,229
Total liabilities 6,581,729 3,095,486
Stockholders' equity:
Preferred stock, par value $.001, 50,000,000 shares
authorized; none issued and outstanding as of
March 31, 2016 and December 31, 2015, respectively - -
Common stock, par value $.001, 300,000,000 shares authorized;
12,001,188 and 11,711,645 issued and outstanding
as of March 31, 2016 and December 31, 2015, respectively 12,001 11,711
Additional paid in capital 109,940,675 103,807,651
Accumulated deficit (61,548,424) (57,338,311)
Accumulated other comprehensive income (loss) 16,316,475 (116,115)
Total stockholders' equity 64,720,727 46,364,936
Total liabilities and stockholders' equity$ 71,302,456 $ 49,460,422


CELLULAR BIOMEDICINE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended
March 31,
2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (4,210,113) $ (4,287,171)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 671,649 439,242
Stock based compensation expense 1,266,063 1,719,458
Other than temporary impairment on investments - 123,428
Realized losses from sale of investments - 5,178
Changes in operating assets and liabilities:
Accounts receivable 50,764 (198,944)
Other receivables 9,705 (38,463)
Inventory (96,083) 94,381
Prepaid expenses (274,829) (81,602)
Taxes recoverable 150,082 -
Other current assets - 110,346
Long-term prepaid expenses and other assets (38,522) (44,340)
Accounts payable (51,992) (266,744)
Accrued expenses 57,178 142,276
Advances payable to related party - (30,216)
Other current liabilities 29,415 346,585
Taxes payable 32,450 (226,055)
Deferred tax liabilities (1,128,515) -
Other non-current liabilities (50,049) (213,254)
Net cash used in operating activities (3,582,797) (2,405,895)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceed from sale of investments, net of issuance cost paid - 1,480
Purchases of intangibles - (569,828)
Purchases of assets (674,736) (179,293)
Net cash used in investing activities (674,736) (747,641)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the issuance of common stock 4,970,002 19,564,846
Proceeds from exercise of stock options 93,249 26,590
Repayment of advance from affiliate - -
Net cash provided by financing activities 5,063,251 19,591,436
EFFECT OF EXCHANGE RATE CHANGES ON CASH (22,786) (63,817)
INCREASE IN CASH AND CASH EQUIVALENTS 782,932 16,374,083
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 14,884,597 14,770,584
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 15,667,529 $ 31,144,667
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes $ (4,255) $ (226,855)

Contacts: Sarah Kelly Director of Corporate Communications, CBMG +1 650 566-5064 sarah.kelly@cellbiomedgroup.com Vivian Chen Managing Director Investor Relations, Grayling +1 347 481-3711 vivian.chen@grayling.com

Source:Cellular Biomedicine Group Inc.

More From Press Releases