SUNRISE, FL – August 7, 2019 – 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 announced earnings for the second quarter that ended June 30, 2019. Correction: U.S. Stem Cell, Inc. posted second-quarter revenues of $1.2M.
While second-quarter earnings lagged, the Company’s results took into account the current regulatory environment. Compared to second quarter of 2018, year-over-year revenue decreased $522k or 29%, from $1.8M to $1.2M. Likewise for the six month period ending June 30, 2019 over six months, the Company’s revenue reduced $926k or 26%.
After 12 quarters of steady growth, the Company saw its first significant dip starting in January 2019.
“While the Company was fortunate to see tremendous growth for nearly four years, pioneering the field of stem cell treatment does not come without obstacles. We have introduced new products and will continue to adjust the business accordingly as we navigate the complexities of an evolving regulatory structure,” said Mike Tomas, President & CEO of U.S. Stem Cell Inc.
“We are transitioning the clinics to a more diversified regenerative medicine platform, while complying with recent court rulings. While we are considering our appellate options to seek a reversal of those rulings, we are planning to replace the demand for adipose stem cell therapies in the coming years and we expect to see a lag as we shift the business.”
Net decrease in gross profit margin for the second quarter 2019 was 36.8%, or $791k, compared to second quarter 2018. Operating expenses were down 36.1% or $750k, for the second quarter, and also decreased for six-month ending 2019 23.8% from $3.2M to $2.5M.
Working capital deficit is up for the second quarter, $7.1M from $4.4M since December 2018 due to current maturities from Promissory Notes. Net operating income (loss) from operations decreased from ($823k) to ($534k) from the same period last year. Income (loss) from operations decreased from ($933k) in the six-month ending June 30, 2018, to a loss of ($832k) in the six month ending June 30, 2019.
U.S. Stem Cell, Inc. is a leader in the regenerative medicine / cellular therapy industry. To management’s knowledge, USRM has completed more autologous stem cell clinical treatments than any other stem cell company in the world.
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.