Biostage, Inc. (OTCQB: BSTG), Reports 1Q 2019 Financial Results

Biostage, Inc. (OTCQB: BSTG) (“Biostage” or the “Company”), a biotechnology company developing bioengineered organ implants to treat life-threatening conditions of the esophagus, bronchus, and trachea, today announced its financial results for the three months ended March 31, 2019.

Summary of Financial Results

For the three months ended March 31, 2019, the Company reported a net loss of approximately $1.9  M , or a net loss per share of $0.32, compared to a net loss of approximately $1.500  M , or a net loss per share of $0.5600 for the three months ended March 31, 2018. The $0.4 00 M  year-over-year increase in net loss was attributable primarily to a $0.500  M  increase in research and development costs and a $0.100  M  decrease in non-cash expense from change in the fair value of warrants.

The Company also recognized grant income for qualified expenditures from a Fast-Track Small Business Innovation Research (SBIR) grant of $114,000. 00 and $59,000. 00 for the three months ended March 31, 2019, and March 31, 2018, respectively.

Balance Sheet and Cash

At March 31, 2019, the Company had cash-on-hand of $1.100  M  and no debt. The Company used net cash in operations of approximately $1.200  M  during the quarter ended March 31, 2019.

During the three months ended March 31, 2019, the Company also issued 500,000. 00 shares of common stock to an investor in connection with the exercise of a portion of warrants that were issued on December 27, 2017. Such warrants were exercised in exchange for an aggregate cash exercise price of $1.000 M. Subsequent to the end of the quarter, the Company issued an additional 500,000. 00 shares of common stock to the same investor in exchange for warrant exercises. Such warrants were exercised in exchange for an aggregate cash exercise price of $1.000 M.

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