Scimitar Equity Blog

 Biotime (BTIM) reported (3/10/10) a FY09 net loss $5.14 M or $0.18 per diluted share compared to a $3.8 M or $0.16 per diluted share in FY08 .

• The increase in net loss for FY09 is largely attributable to increased R&D costs as BTIM expanded its stem cell research program and interest on borrowings under its Revolving Line of Credit Agreement (RLOCA), which has since been paid off.

In Q4/09, revenue was $749,341 as BioTime recognized $280,041 in royalty revenue from the sale of Hextend. Net income was $1.4 M. The increase in royalties is attributable to an increase in sales to hospitals by Hospira. During Q1/10, BTIM received royalties of $293,373 on sales of Hextend by Hospira and CJ that occurred during

BTIM’s total revenue for FY09 was $1.9 M as compared to $1.5 M for FY08.  In FY09, BTIM received $1.1 M in royalties from Hextend as compared with royalties of $1.2 M for FY08. The decrease is primarily due to a decrease in sales of Hextend to the US Armed Forces which was offset somewhat by an increase in sales to hospitals. Purchases by the Armed Forces generally take the form of intermittent, large volume orders, and cannot be predicted with certainty.

During FY09, BTIM received $16.5 M in net cash from financing activities:

• $8 M of equity capital raised through the sale of 4,400,000 common shares and 4,400,000 stock purchase warrants to 2 private investors,
• $4 M raised by our subsidiary, OncoCyte Corporation, through the sale of 6 M shares of its common stock to 2 investors and,
• $2 M of net loan proceeds under a RLOCA  (indebtedness was paid off in FY09, primarily through a lenders’ exchange of  credit promissory notes for BTIM’s common shares and warrants).

BTIM has 12,264,345 common share purchase warrants outstanding;  which are exercisable at a price of $2.00 per share and all expire Q4/10.

• In order to provide warrant holders with an incentive to exercise their warrants prior to the 10/31/10 warrant expiration date, BTIM (previously) announced a plan to offer the warrant holders the opportunity to exercise up to 3 M warrants (in the aggregate) at a price of $1.70 per share, representing a discount of $0.30 per share from the regular warrant exercise price of $2.00 per share,
• A post-effective amendment to a registration statement relating to the warrants and the discount offer has been filed with the Securities and Exchange Commission but has not yet become effective. BTIM plans to use the proceeds from the exercise of those warrants to fund operations and a planned additional investment of $2.25 M in OncoCyte.

Cash and cash equivalents totaled $12.2 M as of 12/31/09.