- Grew system installed-base in Europe, Asia and U.S., bringing
cumulative revenue-generating units worldwide to 135;
- Shipped 221 consumables, including 162 consumable re-orders during the
third quarter;
- Expanded European Celution® regulatory approval to include breast
reconstruction and other medical indications such as treatment of Crohn's
fistulas;
- Received approval for and launched PureGraft™ into the U.S. and
European plastic and reconstructive surgery markets;
- Finalized protocol and identified initial sites for ADVANCE, the
Company's pivotal European heart attack study, with enrollment anticipated
to begin in the first quarter of 2011;
- Prepared Celution® pre-IDE applications, which will be submitted to
FDA to initiate a U.S. soft tissue defect repair study; and
- Capitalized the Company through 2012 from a public offering, raising $19.3 million in net proceeds.
CYTORI THERAPEUTICS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED)
-------------- --------------
As of As of
September 30, December 31,
2010 2009
-------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 30,729,000 $ 12,854,000
Accounts receivable, net of allowance for
doubtful accounts of $314,000 and
$751,000 in 2010 and 2009, respectively 1,664,000 1,631,000
Inventories, net 3,065,000 2,589,000
Other current assets 974,000 1,024,000
-------------- --------------
Total current assets 36,432,000 18,098,000
Property and equipment, net 1,172,000 1,314,000
Restricted cash and cash equivalents 350,000 --
Investment in joint venture 512,000 280,000
Other assets 520,000 500,000
Intangibles, net 469,000 635,000
Goodwill 3,922,000 3,922,000
-------------- --------------
Total assets $ 43,377,000 $ 24,749,000
============== ==============
Liabilities and Stockholders' Equity
(Deficit)
Current liabilities:
Accounts payable and accrued expenses $ 5,406,000 $ 5,478,000
Current portion of long-term debt 4,211,000 2,705,000
-------------- --------------
Total current liabilities 9,617,000 8,183,000
Deferred revenues, related party 5,512,000 7,634,000
Deferred revenues 2,417,000 2,388,000
Warrant liability 4,448,000 6,272,000
Option liability 1,320,000 1,140,000
Long-term deferred rent 302,000 --
Long-term debt, less current portion 15,243,000 2,790,000
-------------- --------------
Total liabilities 38,859,000 28,407,000
Commitments and contingencies
Stockholders' equity (deficit):
Preferred stock, $0.001 par value;
5,000,000 shares authorized; -0- shares
issued and outstanding in 2010 and 2009 -- --
Common stock, $0.001 par value; 95,000,000
shares authorized; 45,909,194 and
40,039,259 shares issued and 45,909,194
and 40,039,259 shares outstanding in 2010
and 2009, respectively 46,000 40,000
Additional paid-in capital 205,219,000 178,806,000
Accumulated deficit (200,747,000) (182,504,000)
-------------- --------------
Total stockholders' equity (deficit) 4,518,000 (3,658,000)
-------------- --------------
Total liabilities and stockholders'
equity (deficit) $ 43,377,000 $ 24,749,000
============== ==============
CYTORI THERAPEUTICS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
-------------------------- --------------------------
2010 2009 2010 2009
------------ ------------ ------------ ------------
Product revenues:
Related party $ 581,000 $ 9,000 $ 590,000 $ 582,000
Third party 938,000 1,377,000 5,286,000 3,994,000
------------ ------------ ------------ ------------
1,519,000 1,386,000 5,876,000 4,576,000
------------ ------------ ------------ ------------
Cost of product
revenues 920,000 782,000 2,733,000 2,645,000
------------ ------------ ------------ ------------
Gross profit 599,000 604,000 3,143,000 1,931,000
------------ ------------ ------------ ------------
Development
revenues:
Development,
related party -- -- 2,122,000 7,250,000
Research grant
and other 65,000 5,000 93,000 27,000
------------ ------------ ------------ ------------
65,000 5,000 2,215,000 7,277,000
------------ ------------ ------------ ------------
Operating expenses:
Research and
development 2,480,000 2,618,000 7,026,000 9,006,000
Sales and
marketing 2,932,000 1,621,000 7,356,000 4,369,000
General and
administrative 3,060,000 2,483,000 9,331,000 7,287,000
Change in fair
value of
warrants 1,803,000 446,000 (1,824,000) 1,558,000
Change in fair
value of option
liability (20,000) (140,000) 180,000 (560,000)
------------ ------------ ------------ ------------
Total
operating
expenses 10,255,000 7,028,000 22,069,000 21,660,000
------------ ------------ ------------ ------------
Operating
loss (9,591,000) (6,419,000) (16,711,000) (12,452,000)
------------ ------------ ------------ ------------
Other income
(expense):
Interest income 3,000 2,000 6,000 19,000
Interest expense (759,000) (346,000) (1,288,000) (1,120,000)
Other expense,
net (27,000) (31,000) (152,000) (139,000)
Equity loss
from investment
in joint
venture (43,000) (8,000) (98,000) (35,000)
------------ ------------ ------------ ------------
Total other
expense (826,000) (383,000) (1,532,000) (1,275,000)
------------ ------------ ------------ ------------
Net loss $(10,417,000) $ (6,802,000) $(18,243,000) $(13,727,000)
============ ============ ============ ============
Basic and diluted
net loss per common
share $ (0.23) $ (0.18) $ (0.40) $ (0.39)
============ ============ ============ ============
Basic and diluted
weighted average
common shares 45,905,580 37,176,165 45,185,774 34,893,303
============ ============ ============ ============
CYTORI THERAPEUTICS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Nine Months Ended
September 30,
------------------------------
2010 2009
-------------- --------------
Cash flows from operating activities:
Net loss $ (18,243,000) $ (13,727,000)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 772,000 1,279,000
Amortization of deferred financing costs
and debt discount 449,000 559,000
Warranty provision -- (23,000)
Provision for doubtful accounts 428,000 450,000
Change in fair value of warrants (1,824,000) 1,558,000
Change in fair value of option liability 180,000 (560,000)
Share-based compensation expense 2,294,000 1,991,000
Equity loss from investment in joint
venture 98,000 35,000
Increases (decreases) in cash caused by
changes in operating assets and
liabilities:
Accounts receivable (452,000) (997,000)
Inventories (476,000) 249,000
Other current assets (104,000) (26,000)
Other assets (64,000) 49,000
Accounts payable and accrued expenses (72,000) (1,066,000)
Deferred revenues, related party (2,122,000) (7,250,000)
Deferred revenues 29,000 (33,000)
Long-term deferred rent 302,000 (168,000)
-------------- --------------
Net cash used in operating activities (18,805,000) (17,680,000)
-------------- --------------
Cash flows from investing activities:
Purchases of property and equipment (473,000) (100,000)
Cash invested in restricted cash (350,000) --
Investment in joint venture (330,000) --
-------------- --------------
Net cash used in investing activities (1,153,000) (100,000)
-------------- --------------
Cash flows from financing activities:
Principal payments on long-term debt (5,454,000) (1,419,000)
Proceeds from long-term debt 20,000,000 --
Debt issuance costs and loan fees (559,000) --
Proceeds from exercise of employee stock
options and warrants 7,050,000 71,000
Proceeds from sale of common stock and
warrants 17,314,000 16,865,000
Costs from sale of common stock and warrants (518,000) (1,141,000)
Proceeds from sale of treasury stock -- 3,933,000
-------------- --------------
Net cash provided by financing
activities 37,833,000 18,309,000
-------------- --------------
Net increase in cash and cash
equivalents 17,875,000 529,000
Cash and cash equivalents at beginning of
period 12,854,000 12,611,000
-------------- --------------
Cash and cash equivalents at end of period $ 30,729,000 $ 13,140,000
============== ==============
Contact Information: Contact: Tom Baker 858.875.5258 tbaker@cytori.com