POMPANO BEACH, Fla., May 14, 2026 (GLOBE NEWSWIRE) -- BioStem Technologies, Inc. (OTC: BSEM), a leading regenerative medicine company focused on the development, manufacturing, and commercialization of perinatal tissue allograft products, today reported financial results for the first quarter ended March 31, 2026.
Recent Financial and Business Highlights
-- Generated net revenue of $6.1 million for the first quarter 2026
-- Progressed integration initiatives following the BioTissue assets
acquisition including reassignment of all GPO contracts
-- Expanded direct sales force to 35 representatives, up from 18 at the
close of the BioTissue assets acquisition
-- Strengthened leadership team with appointment of Katherine Gorrell as
Chief Legal and Compliance Officer
-- Retired outstanding debt with GMA to resolve two existing promissory
notes, with an aggregate principal amount of $3 million
and accrued interest of $2.3M
-- Advanced capital markets strategy with the completion of audited
financial statements for 2024 and 2025; progressing toward planned Nasdaq
uplisting
"The first quarter of 2026 marked the beginning of a strategic transformation for BioStem, as we completed our acquisition of the surgical and wound care assets from BioTissue and repositioned the company as a fully integrated, hospital-focused commercial organization. To best leverage these new resources in alignment with what we see as our most attractive market opportunity, the majority of our focus is now being prioritized on the hospital market. During the quarter, we expanded our presence across hospital-based settings, increased exposure to commercially insured patients, and made strong progress on key priorities including commercial integration," said Jason Matuszewski, Chairman and CEO of BioStem. "In addition, we continue to advance our capital markets strategy as we progress toward our Nasdaq uplisting. We believe that our achievements in the first quarter have built a foundational platform from which we can deliver durable growth over the long-term."
Nasdaq Uplisting Update
The Company issued its audited financial statements for both 2024 and 2025 during the first quarter of 2026. The Company plans to continue moving forward with the next steps required for Nasdaq uplisting and expects to provide updates as additional milestones are reached.
First Quarter 2026 Financial Results
Net revenue was $6.1 million, compared to $10.1 million in the fourth quarter of 2025 and $16.0 million in the first quarter of 2025. Revenue for the first quarter was primarily driven by Neox$(R)$ and Clarix(R) product sales. Hospital revenue represented approximately 87% of total revenue, or $5.4 million, and physician office revenue contributed $0.8 million.
Gross profit was $3.8 million, representing a gross margin of 61%, compared to $9.8 million and 97% in the fourth quarter of 2025, and $15.1 million and 95% in the first quarter of 2025. The sequential decrease in gross margin reflects the mix shift to the Neox(R) and Clarix(R) products which are subject to the cost-plus markup under the current manufacturing supply agreement. The company expects gross margin to improve significantly upon the completion of the planned manufacturing technology transfer in 2027.
Operating expenses totaled $12.6 million, compared to $17.3 million in the fourth quarter of 2025 and $9.9 million in the first quarter of 2025. The sequential decline is primarily driven by the bad debt expense recorded in the fourth quarter of 2025 partly offset by the addition of the acquired workforce and expenses related to the BioTissue assets transaction and the uplist process.
GAAP net loss was ($8.8 million) or ($0.52) per share, compared to net income of $3.9 million or $0.23 per share in the first quarter of 2025.
Adjusted EBITDA was ($5.7 million), compared to $7.8 million in the first quarter of 2025.
As of March 31, 2026, cash and cash equivalents totaled $13.7 million, compared to $29.5 million at the end of the fourth quarter of 2025.
2026 Financial Outlook
BioStem expects its revenue for full year 2026 to be in the range of $25 million to $29 million.
In the second half of the year, with continuing integration of the acquired BioTissue assets, expansion of its salesforce and execution of its strategic plan, the Company expects to drive sequential growth in the hospital business. As the physician office market begins to stabilize, the Company expects sequential revenue growth in that business in the second half of 2026.
Conference Call & Webcast Information:
-- Conference ID: 9695874 -- North America Toll-Free: (800) 715-9871 -- International Toll: +1 (646) 307-1963 -- Webcast Link: https://events.q4inc.com/attendee/844730655
About BioStem Technologies, Inc. (OTC: BSEM): BioStem Technologies is a publicly traded biomedical innovator, focused on developing, manufacturing and commercializing advanced allograft solutions derived from perinatal tissue. The company leverages its industry-leading proprietary BioRetain(R), CryoTek(R) and SteriTek(R) processing technologies, designed to optimize the preservation of the natural properties of these tissues, supporting their use in clinical settings. Its allografts are used by clinicians across a wide range of specialties. With a growing portfolio of products, expanding clinical research initiatives, and a national commercial footprint, BioStem is committed to advancing innovation in regenerative medicine.
BioStem Technologies' quality management system and standard operating procedures have been reviewed and accredited by the American Association of Tissue Banks ("AATB"). These systems and procedures are established in compliance with current Good Tissue Practices ("cGTP") and current Good Manufacturing Processes ("cGMP"). BioStem's portfolio of quality brands includes its Neox(R), Clarix(R), VENDAJE(R) and American Amnion$(TM)$ product lines.
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Forward-Looking Statements:
Certain statements in this press release may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to expectations or forecasts of future events including with respect to the operations of the Company, strategies, prospects, and other aspects of the business of the Company. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate", "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical fact. Forward-looking statements in this release include, among other things, statements regarding: the Company's expectations regarding its financial and operational strength and diversity; the Company's expectations regarding the benefits and integration of the acquired BioTissue assets; the Company's expectations regarding its ability to navigate the evolving reimbursement landscape; the Company's expectations regarding its ability to execute on its strategic plans, including expanding its salesforce; the Company's expectations regarding its ability to uplist to Nasdaq; the Company's expectations regarding second half and full year 2026 financial results; and the Company's expectations regarding its ability to grow and the market penetration of the Company's products.
Forward-looking statements with respect to the operations of the Company, strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. These factors include, but are not limited to: the impact of any changes to the reimbursement levels for the Company's products; significant and continuing competition, which could adversely affect the Company's business, results of operations and financial condition; rapid technological change, which could cause the Company's products to become outdated or obsolete, harming the Company's ability to effectively compete; the Company's ability to convince physicians that its products are safe and effective alternatives to existing treatments and that its products should be used in their procedures; the risk that the Company may be unable to successfully market its products to the end users of such products; the impact of any changes to the accounting treatment of the Company's revenue and expenses; the Company's ability to obtain financing on terms acceptable to it, or at all; the Company has incurred significant losses since inception and may incur losses in the future; the impact of any changes in applicable laws or regulations; the Company's accounts receivable collection risk and concentration; the Company's ability to maintain production of its products in sufficient quantities to meet demand; and the possibility that the Company may be adversely affected by other general economic, business, and/or competitive factors. There may be additional risks about which the Company is presently unaware of or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company undertakes no duty to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact BioStem:
Website: www.biostemtechnologies.com
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