USRM Announces 2017 Financial Results
SUNRISE, Fla., April 16, 2018 /PRNewswire/ — U.S. Stem Cell, Inc. (OTC: USRM), a leader in the development of proprietary, physician-based stem cell therapies and novel regenerative medicine solutions, today filed a Form 10-K reporting year-end numbers for 2017, which reflect continued growth and increased cash flow from operations.
Revenue for 2017 increased 79% to $5.5m — up $2.4m from $3.1m in 2016. Revenue also increased 53% in the fourth quarter of 2017 to $964k from $508k in the same quarter in 2016. Net gross profit in 2017 increased 72% to $2.1m from $1.5m in the previous year. For the fourth quarter 2017, net gross profit was also up while overall debt decreased.
Cash flow provided from operations also increased in 2017 to $1.2m, from $112k in 2016.
USRM has sustained revenue growth for two consecutive years — from $2.2m in 2015 to $3.1m in 2016, a 41% increase; and again in 2017, with a 79% increase to $5.5m. This sustained growth may be attributable to an increased awareness of stem cell therapy, as Americans seek alternatives to pain management and opioids. Moreover, market demand for stem cell therapy may also be increasing as a result of an improving economy, which makes out-of-pocket procedures like stem cell therapy more attainable.
“We are pleased to report our year-end results, which demonstrate we have reached a milestone in our ability to meet increasing demand for an emerging therapy in the marketplace, while simultaneously streamlining our operations,” said Mike Tomas, Chief Executive Officer of U.S. Stem Cell, Inc. “Marketing, finance, sales, clinical — each of our divisions is working in harmony with the other in order to attain and sustain the next level of development and growth.”
Gross profit margin decreased slightly in 2017 to 66% from 69%, due to depreciation of leased equipment. Likewise, gross profit margin for the fourth quarter decreased from 74% to 55%, as a direct result of ramping up inventory to meet increasing demand for stem cell treatments. Increasing inventory paid off: In January 2018, USRM’s proprietary AdipoCell™ stem cell kit reached 10,000 in sales.
Operating expenses increased 36% from $3.3m in 2016 to $4.4m in 2017, primarily as a result of stock-based and other compensation. Operating expenses also increased 14% for the fourth quarter of 2017, from $581k to $663k, primarily as a result of an increase in core operating activities.
Loss from operations decreased 31%, or $355k, from $1.16m in 2016 to $805k in 2017. Working capital deficit is also down, 7%, from $5.8m at the end of 2016 to $5.4m at the end of 2017.
USRM’s net loss in 2017 was $3.5m, up 68% from a net loss of $2.1m in 2016. This increase was due to non-operating items, the largest being a $1.9m loss on change of fair value of derivative liability.
USRM has been instrumental in performing thousands of stem cell procedures in the past 19 years for a variety of indications, including orthopedic, autoimmune, degenerative and neurological diseases. USRM also trains and certifies physicians in stem cell therapy — to date, more than 700+ physicians worldwide — and has engaged with more than 288 clinics.
Dr. Kristin Comella, USRM’s Chief Science Officer, is well published in the scientific literature and has been recognized by her peers as an innovator and world leader in the development and clinical practice of stem cell products and therapies. She has also been instrumental in developing and bringing to market USRM’s AdipoCell™, a stem cell kit which enables physicians to separate potent stem cells from a patient’s own fat cells, which are harvested and reinserted in a minimally invasive, two-hour procedure without general anesthesia.
U.S. Stem Cell, Inc. is an emerging leader in the regenerative medicine / cellular therapy industry specializing in physician training and certification and stem cell products including its lead product AdipoCell™, as well as veterinary stem cell training and stem cell banking and creation and management of stem cell clinics.
Forward-Looking Statements: Except for historical matters contained herein, statements made in this press release are forward-looking statements. Without limiting the generality of the foregoing, words such as “may”, “will”, “to”, “plan”, “expect”, “believe”, “anticipate”, “intend”, “could”, “would”, “estimate”, or “continue”, or the negative other variations thereof or comparable terminology are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements and represent our management’s beliefs and assumptions only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future. The Company’s business and the risks and uncertainties of the business are described in its filings with the Securities and Exchange Commission which can be found at sec.gov.
Media Contact: U.S. Stem Cell, Inc.
13794 NW 4th Street, Suite 212
Sunrise, Fl 33325
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SOURCE U.S. Stem Cell, Inc.