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): April
19, 2007.
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:
[ ] 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-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
April
19, 2007 BioTime, Inc. issued a press release announcing its financial results
for the year ended December 31, 2006. 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 April 19, 2007
|
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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|
|
Date: April
19, 2007
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By
/s/
Steven A. Seinberg
|
|
Chief
Financial Officer
|
|
2
|
Exhibit
Number
|
Description
|
|
|
99.1
|
Press
release dated April 19, 2007
|
3
Exhibit
99.1
BioTime,
Inc.
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
April
19,
2007
BIOTIME
ANNOUNCES 2006 YEAR-END RESULTS
|
·
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49%
Increase in Royalty Revenue
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|
·
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52%
Increase in License Revenue
|
|
·
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29%
Increase in Total Revenues
|
EMERYVILLE,
CA, April 19, 2007 - BioTime,
Inc. (OTCBB: BTIM) today announced financial results for the fiscal year
ended
December 31, 2006.
BioTime’s
royalties from Hextend®
sales by
Hospira, Inc. increased 49% to $933,478 for the year ended December 31, 2006,
from $626,135 in 2005, as the number of 500mL units of Hextend sold increased
by
40%. Although hospital sales increased, the largest contributing factor to
the
increase in royalties from 2005 was an increase in units of Hextend purchased
by
the U.S. Armed Forces, most of which occurred in the second half of 2006.
Hextend has been purchased by the U.S. Armed Forces through intermittent
large
volume orders. 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.
License
revenue increased 52 percent to $172,371 for the year ended December 31,
2006,
from $113,039 for 2005. License revenue reflects revenue recognition of license
fees received under our license agreements with CJ Corp. and Summit
Pharmaceuticals International Corporation.
Total
revenue for the year ended December 31, 2006 increased 29 percent to $1,162,015
from $903,200 for the year ended December 31, 2005.
For
the
year ended December 31, 2006, BioTime reported a net loss of $(1,864, 621),
or
$(0.08) per basic and diluted share, compared to a net loss of $(2,074,251),
or
$(0.12) per basic and diluted share, for the year ended December 31, 2005.
Losses for 2005 reflect high levels of spending on our phase II clinical
trials
for PentaLyte®.
Phase
II clinical trials for PentaLyte®
were
completed in 2006. BioTime's
research and development and general and administrative expenses for 2006
reflect increased expenses of $113,980 resulting from the adoption of Statement
of Financial Accounting Standards ("SFAS") No. 123 (revised 2004), "Share-Based
Payment" ("SFAS 123(R)") which requires the measurement and recognition of
compensation expense for all stock-based payment awards made to directors,
employees, and consultants, including employee and consultant stock options,
based on estimated fair values. The estimated fair value of stock options
was
not taken into account during prior years.
BioTime,
Inc.
April
19, 2007
Page
2 of
5
Total
shareholders’ deficit was $1,865,221 at December 31, 2006, compared with total
shareholders’ deficit of $196,581 at December 31, 2005.
In
January 2007, BioTime received
$199,264 in royalties on Hextend sales by Hospira that occurred during the
period October 1 through December 31, 2006. This revenue will be reflected
in
BioTime’s financial statements for the first quarter of 2007. Royalties earned
during that period were substantially unchanged from $202,037 earned during
the
same period of 2005.
Cash
and
cash equivalents totaled $561,017 at December 31, 2006, compared with $1,833,744
at December 31, 2005. During 2006 we received $1,553,380 of cash in our
operations. Our sources of that cash were Hextend royalty revenues, NIH Grant
money, licensing fees from Summit, and other income. BioTime will need to
obtain
additional equity capital or licensing fees, which may include reimbursement
of
the cost of developing PentaLyte, during 2007 to finance its current operations
because its current line of credit and royalty revenues are not sufficient
to
fund anticipated operating expenses beyond September 30, 2007.
During
the years ended December 31, 2006 and 2005 BioTime received $500,000 and
$600,000, respectively, from an overseas partner for the right to co-develop
Hextend and PentaLyte in Japan, China, and Taiwan. In June 2005, BioTime
paid a
one-time fee of $130,000 for services in preparing a product development
plan
for Japan. In addition, BioTime received $237,356 in October 2005 as BioTime’s
40% share of a sublicense fee payment under the co-development agreement.
Full
recognition of these license fees has been deferred pending the completion
of
the development of PentaLyte. Revenue will be recognized over the life of
the
contracts based on the current expected life of the governing patents covering
the products. The unamortized portions of these license fees are reflected
on
BioTime’s balance sheet either as deferred license revenue or as a royalty
obligation.
In
an
important milestone, BioTime completed a Phase II clinical trial of
PentaLyte®
in which
PentaLyte was used as a plasma volume expander in cardiac surgery. BioTime
has
just prepared a report of the study results which it plans to use in seeking
licensing arrangements for PentaLyte with pharmaceutical companies in the
United
States and abroad.
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 United States 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.
BioTime,
Inc.
April
19, 2007
Page
3 of
5
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 factors that could affect
BioTime’s operations and financial condition are discussed in BioTime’s Annual
Report on Form 10-KSB filed with the Securities and Exchange Commission.
-Financial
Tables Follow-
BioTime,
Inc.
April
19, 2007
Page
4 of
5
BIOTIME,
INC.
BALANCE
SHEETS
|
|
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December
31,
2006
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||
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ASSETS
|
||||
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CURRENT
ASSETS
|
||||
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Cash
and cash equivalents
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$
|
561,017
|
||
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Prepaid
expenses and other current assets
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57,675
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|||
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Total
current assets
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618,692
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|||
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EQUIPMENT,
net of accumulated depreciation of $580,933
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10,839
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|||
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DEPOSITS
AND OTHER ASSETS
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20,976
|
|||
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TOTAL
ASSETS
|
$
|
650,507
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||
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LIABILITIES
AND SHAREHOLDERS' DEFICIT
|
||||
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CURRENT
LIABILITIES
|
||||
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Accounts
payable and accrued liabilities
|
$
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431,713
|
||
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Deferred
license revenue, current portion
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183,935
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|||
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Total
current liabilities
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615,648
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|||
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DEFERRED
LICENSE REVENUE, net of current portion
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1,258,205
|
|||
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ROYALTY
OBLIGATION
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631,757
|
|||
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DEFERRED
RENT
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10,118
|
|||
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Total
long-term liabilities
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1,900,080
|
|||
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COMMITMENTS
AND CONTINGENCIES
|
||||
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SHAREHOLDERS'
DEFICIT:
|
||||
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Common
Shares, no par value, authorized 50,000,000 shares; issued and
outstanding
22,574,374 shares
|
40,447,078
|
|||
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Contributed
capital
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93,972
|
|||
|
Accumulated
deficit
|
(42,406,271
|
)
|
||
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Total
shareholders' deficit
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(1,865,221
|
)
|
||
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TOTAL
LIABILITIES AND SHAREHOLDERS' DEFICIT
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$
|
650,507
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||
BioTime,
Inc.
April
19, 2007
Page
of 5
of 5
BIOTIME,
INC.
STATEMENTS
OF OPERATIONS
|
Year
Ended
December
31,
|
|||||||
|
2006
|
|
2005
|
|||||
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REVENUE:
|
|||||||
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License
fees
|
$
|
172,371
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$
|
113,039
|
|||
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Royalty
from product sales
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933,478
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626,135
|
|||||
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Grant
income
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56,166
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164,026
|
|||||
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Total
revenue
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1,162,015
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903,200
|
|||||
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EXPENSES:
|
|||||||
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Research
and development
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(1,422,257
|
)
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(1,525,686
|
)
|
|||
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General
and administrative
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(1,491,622
|
)
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(1,395,925
|
)
|
|||
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Total
expenses
|
(2,913,879
|
)
|
(2,921,611
|
)
|
|||
|
Loss
from operations
|
(1,751,864
|
)
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(2,018,411
|
)
|
|||
|
INTEREST
EXPENSE AND OTHER INCOME:
|
|||||||
|
Interest
and other expense
|
(157,114
|
)
|
(78,978
|
)
|
|||
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Other
income
|
44,357
|
23,138
|
|||||
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Total
interest expense and other income
|
(112,757
|
)
|
(55,840
|
)
|
|||
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NET
LOSS
|
$
|
(1,864,621
|
)
|
$
|
(2,074,251
|
)
|
|
|
BASIC
AND DILUTED LOSS PER COMMON SHARE
|
$
|
(0.08
|
)
|
$
|
(0.12
|
)
|
|
|
WEIGHTED
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC
AND DILUTED
|
22,538,003
|
17,903,230
|
|||||