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 16, 2006.
BioTime,
Inc.
(Exact
name of registrant as specified in its charter)
|
California
|
1-12830
|
94-3127919
|
|
(State
or other jurisdiction of
incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification
No.)
|
6121
Hollis Street
Emeryville,
California 94608
(Address
of principal executive offices)
(510)
350-2940
(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:
o
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant
to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
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-K 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
August
16, 2006 BioTime, Inc. issued a press release announcing its financial results
for the second quarter of the fiscal year. 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.
| Exhibit Number | Description |
| 99.1 | Press release dated August 16, 2006 |
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 16, 2006 | By: | /s/ Steven Seinberg |
|
Chief Financial Officer |
||
2
| Exhibit Number | Description |
| 99.1 | Press release dated August 16, 2006 |
3
6121
Hollis Street
Emeryville,
CA 94608
Tel:
510-350-2940
Fax:
510-350-2948
www.biotimeinc.com
For
Further Information:
Judith
Segall (510) 350-2940
FOR
IMMEDIATE RELEASE
August
16, 2006
BIOTIME
ANNOUNCES RESULTS FOR SECOND QUARTER 2006
| · |
Receives payment of $500,000 for China and Taiwan
licenses
|
| · |
94% Increase in Royalties on Hextend Sales to be Recognized in
Q3
|
EMERYVILLE,
CA, August 16, 2006 – BioTime,
Inc. (OTCBB: BTIM) today announced financial results for the second quarter
ended June 30, 2006. Revenues for the three months ended June 30, 2006 consist
primarily of royalties on sales made by Hospira during the period beginning
January 1, 2006 and ending March 31, 2006. Royalty revenues recognized for
that
three-month period were $99,957, a 33% decrease from the $148,727 of royalty
revenue during the same period last year.
Sales
of
Hextend during the first calendar quarter of 2006 may reflect purchasing
practices of certain wholesale distributors who increased their purchases of
inventory during the last quarter of 2005, with a corresponding reduction in
purchases during the first quarter of this year. Sales to the U.S. Armed forces
also declined during the first two months of the quarter. However, royalties
from the sale of Hextend to both hospitals and the U.S. Armed forces rebounded
in the second quarter of 2006.
We
received royalties of $250,017 from Hospira during August 2006, based on Hextend
sales during the three months ended June 30, 2006. Royalties increased 94%
from
royalty revenues of $128,829 received during the same period last year. This
revenue will be reflected in our financial statements for the third quarter
of
2006. The royalty payment received by BioTime is the largest since Hextend
sales
began and reflects strong growth in sales to both hospitals and the United
States Armed Forces.
Hextend
has become the standard plasma volume expander at a number of prominent teaching
hospitals and leading medical centers and is part of the Tactical Combat
Casualty Care protocol. We believe that as Hextend use proliferates within
the
leading U.S. hospitals, other smaller hospitals will follow their lead
contributing to sales growth.
License
revenue increased 80% to $43,238 for the second quarter of 2006, from $24,063
during the same period last year. License revenue reflects recognition of
revenue under our license agreement with CJ Corp. and our agreement with Summit
Pharmaceuticals International Corporation. We received $500,000 from Summit
in
May 2006 as the initial consideration for its China and Taiwan licenses;
however, we recognize license fee revenue on an amortized basis based upon
the
expected lives of the patents we license. Accordingly, most of the license
fee
received from Summit during the quarter is recorded on our balance sheet as
deferred revenue.
BioTime,
Inc.
Page 2
of
4
BioTime
reported a net loss of $(667,844), or $(0.03) per basic and diluted share,
for
the three months ended June 30, 2006, versus a net loss of $(442,734), or
$(0.02) per basic and diluted share, for the same period last year.
Cash
and
cash equivalents totaled $999,436 at June 30, 2006, compared with $1,833,774
at
December 31, 2005. Total shareholders' deficit was $(1,224,801) at June 30,
2006, compared with total shareholders' deficit of $(196,581) at December 31,
2005.
About
BioTime, Inc.
BioTime,
headquartered in Emeryville, 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. and Canada by Hospira, Inc. and in South Korea
by CJ
Corp. under exclusive licensing agreements. Information about BioTime can be
found on the web at www.biotimeinc.com.
Hextend®,
PentaLyte®,
and
HetaCool®
are
registered trademarks of BioTime, Inc.
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 additional
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.
-Financial
Tables Follow-
BioTime,
Inc.
Page 3
of
4
BIOTIME,
INC.
CONDENSED
BALANCE SHEETS
|
ASSETS
|
June
30,
2006
(unaudited)
|
|||
|
CURRENT
ASSETS
|
||||
|
Cash
and cash equivalents
|
$
|
999,436
|
||
|
Accounts
receivable
|
6,598
|
|||
|
Prepaid
expenses and other current assets
|
104,201
|
|||
|
Total
current assets
|
1,110,235
|
|||
|
EQUIPMENT,
net of accumulated depreciation of $579,977
|
1,132
|
|||
|
DEPOSITS
AND OTHER ASSETS
|
29,219
|
|||
|
TOTAL
ASSETS
|
$
|
1,140,586
|
||
|
LIABILITIES
AND SHAREHOLDERS' DEFICIT
|
||||
|
CURRENT
LIABILITIES:
|
||||
|
Accounts
payable and accrued liabilities
|
$
|
278,876
|
||
|
Current
portion of deferred revenue
|
182,131
|
|||
|
Total
Current Liabilities
|
461,007
|
|||
|
DEFERRED
LICENSE REVENUES - long term
|
1,337,837
|
|||
|
ROYALTY
OBLIGATION
|
558,428
|
|||
|
OTHER
LONG TERM LIABILITIES
|
8,115
|
|||
|
TOTAL
LIABILITIES
|
2,365,387
|
|||
|
COMMITMENTS
|
||||
|
SHAREHOLDERS'
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
22,574,374
|
40,368,909
|
|||
|
Contributed
capital
|
93,972
|
|||
|
Accumulated
deficit
|
(41,687,682
|
)
|
||
|
Total
shareholders' deficit
|
(1,224,801
|
)
|
||
|
TOTAL
LIABILITIES AND SHAREHOLDERS' DEFICIT
|
$
|
1,140,586
|
||
BioTime,
Inc.
Page
4 of
4
BIOTIME,
INC.
CONDENSED
STATEMENTS OF OPERATIONS
(Unaudited)
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
|
June
30, 2006
|
June
30, 2005
|
June
30, 2006
|
June
30, 2005
|
||||||||||
| REVENUE: | |||||||||||||
|
License
fees
|
$
|
43,238
|
$
|
24,063
|
$
|
79,040
|
$
|
49,825
|
|||||
|
Royalty
from product sales
|
99,957
|
148,727
|
305,897
|
314,048
|
|||||||||
|
Grant
income
|
—
|
76,484
|
—
|
76,484
|
|||||||||
|
Total
revenue
|
143,195
|
249,274
|
384,937
|
440,357
|
|||||||||
|
EXPENSES:
|
|||||||||||||
|
Research
and development
|
(381,996
|
)
|
(341,510
|
)
|
(649,807
|
)
|
(804,118
|
)
|
|||||
|
General
and administrative
|
(402,379
|
)
|
(334,938
|
)
|
(837,381
|
)
|
(788,939
|
)
|
|||||
|
Total
expenses
|
(784,375
|
)
|
(676,448
|
)
|
(1,487,188
|
)
|
(1,593,057
|
)
|
|||||
|
INTEREST
INCOME (EXPENSE) AND OTHER:
|
(26,664
|
)
|
(15,560
|
)
|
(43,780
|
)
|
(16,624
|
)
|
|||||
|
NET
LOSS
|
$
|
(667,844
|
)
|
$
|
(442,734
|
)
|
$
|
(1,146,031
|
)
|
$
|
(1,169,324
|
)
|
|
|
BASIC
AND DILUTED LOSS PER SHARE
|
$
|
(0.03
|
)
|
$
|
(0.02
|
)
|
$
|
(0.05
|
)
|
$
|
(0.07
|
)
|
|
|
COMMON
AND EQUIVALENT SHARES USED IN COMPUTING BASIC AND DILUTED PER SHARE
AMOUNTS
|
22,561,915
|
17,871,450
|
22,501,030
|
17,861,063
|
|||||||||