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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): August 13, 2004.
BioTime, Inc.
(Exact name of registrant as specified in its charter)
California 1-12830 94-3127919
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
935 Pardee Street
Berkeley, California 94710
(Address of principal executive offices)
(510) 845-9535
(Registrant's telephone number, including area code)
Item 7. Financial Statements and Exhibits
(c) Exhibits.
Exhibit
Numbers Description
- ------- -----------
99.1 Press Release dated August 13, 2004.
Item 12. Results of Operations and Financial Condition
On August 13, 2004, BioTime, Inc. issued a press release announcing its
financial results for the second quarter of 2004. A copy of the press release is
attached as Exhibit 99.1, which, in its entirely, is incorporated herein by
reference.
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.
BIOTIME, INC.
Date: August 13, 2004 By /s/ Judith Segall
-------------------------------
Vice President - Operations
Member, Office of the President
2
Exhibit
Numbers Description
- ------- -----------
99.1 Press Release dated August 13, 2004
3
Exhibit 99.1
BioTime Announces Increased Revenues for Second Quarter 2004
* Total Revenues More Than Double During Second Quarter
* 118% Increase in Royalty Revenue Recorded on Hextend Sales for Second
Quarter
* Regulatory Approval of Hextend in South Korea Received in July
BERKELEY, Calif., Aug. 13 /PRNewswire-FirstCall/ -- BioTime, Inc.
(Amex: BTX) today announced financial results for the second quarter ended
June 30, 2004.
Royalty revenues from Hextend(R) product sales by Hospira, Inc. increased
118% to $181,274 for the second quarter of 2004, from $83,234 during the same
period last year. BioTime's total quarterly revenue more than doubled to
$195,337 for the second quarter of 2004, from $97,297 for the same period last
year.
The Company recognizes royalty revenues in the quarter in which the sales
report is received, rather than the quarter in which the sales took place.
Therefore, revenues for the three months ended June 30, 2004 included
royalties on sales made by Hospira during the three months ended
March 31, 2004.
BioTime received $145,208 in royalties from Hospira based on Hextend sales
during the three months ended June 30, 2004. This represents an increase of
52% over royalties of $95,807 received during the same period last year. This
revenue will be reflected in the Company's financial statements for the third
quarter ending September 30, 2004.
"The unit sales of Hextend in the second quarter were higher than the
first quarter and the highest in the Company's history. Sales to the U.S.
Armed Forces continued to contribute a significant portion of the increase,"
said Judith Segall, BioTime Vice President of Operations, Office of the
President. "The balance of the improvement is due to increased hospital
sales. Hextend has become the standard plasma volume expander at a number of
prominent teaching hospitals and leading medical centers around the country.
We believe that as Hextend use proliferates within the leading U.S. hospitals,
other smaller hospitals will follow their lead and accelerate sales growth."
During July, BioTime announced that its South Korean licensing partner
CJ Corp. has received regulatory approval from the Korea Food and Drug
Administration (KFDA) for Hextend. In addition, BioTime announced that it had
received the second of two license fee installments from CJ Corp. This second
installment totaling $300,000 was paid to BioTime in connection with
CJ Corp.'s filing for regulatory approval to manufacture and market Hextend in
South Korea. CJ Corp. is in the process of seeking Korean National Health
Insurance pricing, which is necessary in order to begin marketing Hextend.
This process is expected to be complete early next year.
Research and development expenses for the second quarter of 2004 totaled
$276,947, compared to $211,604 for the second quarter of 2003. The increase
was primarily attributable to an increase in outside research costs and an
increase in fees paid to scientific consultants. General and administrative
expenses for the second quarter of 2004 totaled $366,334, compared to $378,567
for the same period last year. The decrease in general and administrative
expenses is chiefly attributable to a decrease in accounting expenses and a
decrease in travel and entertainment costs. These decreases were partially
offset by increases in legal and investor/public relations expenditures.
For the three months ended June 30, 2004, BioTime generated a total of
$5,676 of net interest and other income with no offsetting interest expense,
compared to net interest and other income of $4,841 during the same period
last year, then offset by an interest expense of $264,319. The difference is
due to the fact that during February 2004, the Company eliminated its
$3,350,000 of debenture indebtedness by using a portion of the proceeds of its
recently completed Rights Offer to repay $1,850,000 of debentures in cash, and
by issuing a total of 1,071,428 common shares and 535,712 common share
purchase warrants in exchange for $1,500,000 of debentures.
BioTime reported a net loss of $(442,268), or $(0.02) per basic and
diluted share, for the three months ended June 30, 2004, compared to a net
loss of $(754,872), or $(0.06) per basic and diluted share, for the three
months ended June 30, 2003.
Cash and cash equivalents totaled $1,751,128 at June 30, 2004, compared
with $717,184 at December 31, 2003. Total shareholders' equity was $1,332,906
at June 30, 2004, compared with total shareholders' deficit of $(2,430,551) at
December 31, 2003. As of June 30, 2004, the Company had no long-term debt.
Segall concluded, "Our financial results are evidence of the significant
progress the Company made during the second quarter. And while I am proud of
our accomplishments so far this year, I'm even more excited about the
opportunities that lay ahead including the entrance of Hextend into South
Korea, the increasing market penetration of Hextend in the U.S. and the
commencement of Phase II clinical trials of PentaLyte(R) expected in the third
quarter this year. These catalysts give us good operating momentum as we
enter the second half of the year."
About BioTime, Inc.
BioTime, headquartered in Berkeley, 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 FDA
approved lead product Hextend(R) is manufactured and marketed in the U.S. and
Canada by Abbott Laboratories' global hospital products spin-off Hospira, Inc.
under an exclusive licensing agreement. Information about BioTime can be
found on the web at www.biotimeinc.com.
Forward-Looking Statements
The matters discussed in this press release include forward-looking
statements which are subject to various risks, uncertainties and other factors
that could cause actual results to differ materially from the results
anticipated. Such risks and uncertainties include but are not limited to the
results of clinical trials of BioTime products; the ability of BioTime and its
licensees to obtain FDA and foreign regulatory approval to market BioTime
products; competition from products manufactured and sold or being developed
by other companies; and the price of and demand for BioTime products. Other
risk factors are discussed in BioTime's Annual Report on Form 10-K filed with
the Securities and Exchange Commission.
BIOTIME, INC.
(A Development Stage Company)
CONDENSED BALANCE SHEETS
June 30, December 31,
2004 2003
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,751,128 $717,184
Accounts receivable $301,173 --
Prepaid expenses and other current
assets 65,437 289,865
Total current assets 2,117,738 1,007,049
EQUIPMENT, net of accumulated
depreciation of $554,492 and
$532,663, respectively 26,617 48,446
DEPOSITS AND OTHER ASSETS 16,050 16,050
TOTAL ASSETS $2,160,405 $1,071,545
LIABILITIES AND SHAREHOLDERS' EQUITY
(DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $147,811 $408,891
Current portion of debentures, net of
discount of $664,608 at December 31 -- 2,685,392
Total current liabilities 147,811 3,094,283
DEFERRED LICENSE REVENUE 679,688 407,813
COMMITMENTS -- --
SHAREHOLDERS' EQUITY (DEFICIT):
Preferred Shares, no par value,
undesignated as to Series,
authorized 1,000,000
shares; none outstanding -- --
Common Shares, no par value,
authorized 40,000,000 shares; issued
and outstanding
shares; 17,811,450 and 13,654,949,
respectively 38,706,219 32,857,552
Contributed Capital 93,972 93,972
Deficit accumulated during
development stage (37,467,285) (35,382,075)
Total shareholders' equity (deficit) 1,332,906 (2,430,551)
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT) $2,160,405 $1,071,545
BIOTIME, INC.
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
2004 2003 2004 2003
REVENUE:
License fees $14,063 $14,063 $28,876 $14,063
Royalty from product
sales 181,274 83,234 297,161 179,856
Reimbursed regulatory
fees -- -- -- --
Total revenue 195,337 97,297 326,037 193,919
EXPENSES:
Research and
development (276,947) (211,604) (504,753) (436,140)
General and
administrative (366,334) (378,567) (774,726) (716,335)
Total expenses (643,281) (590,171) (1,279,479) (1,152,475)
INTEREST INCOME
(EXPENSE) AND OTHER: 5,676 (259,478) (1,131,768) (464,925)
Loss before
income taxes (442,268) (752,352) (2,085,210) (1,423,481)
Foreign Taxes -- (2,520) -- (82,520)
NET LOSS $(442,268) $(754,872) $(2,085,210) $(1,506,001)
BASIC AND DILUTED
LOSS PER SHARE $(0.02) $(0.06) $(0.12) $(0.11)
COMMON AND
EQUIVALENT SHARES
USED IN COMPUTING
PER SHARE AMOUNTS:
BASIC AND
DILUTED 17,801,082 13,598,038 17,069,105 13,580,838
BIOTIME, INC.
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Period from Inception
(November 30, 1990) to
June 30, 2004
REVENUE:
License fees $2,571,063
Royalty from product sales 1,368,446
Reimbursed regulatory fees 34,379
Total revenue 3,973,888
EXPENSES:
Research and development (24,141,779)
General and administrative (16,781,324)
Total expenses (40,923,103)
INTEREST INCOME (EXPENSE) AND OTHER: (410,719)
Loss before income taxes (37,359,934)
Foreign Taxes (82,520)
NET LOSS $(37,442,454)
SOURCE BioTime, Inc.
-0- 08/13/2004
/CONTACT: Judith Segall, Vice President of Operations, The Office of the
President of BioTime, Inc., +1-510-845-9535; or Investor/Analyst Information,
Lasse Glassen of Financial Relations Board, +1-310-407-6517,
lglassen@financialrelationsboard.com, for BioTime, Inc./
/Web site: http://www.biotimeinc.com /
(BTX)
CO: BioTime, Inc.
ST: California
IN: HEA MTC BIO
SU: ERN