BioLife Solutions, Inc.
For the 2002 third quarter, revenue was $138,007 compared to $150,199 for the year-earlier period. The decrease was due to slightly lower NIH grant revenue that was drawn down by the Company during the quarter from an award pool to BioLife, offset by slightly higher revenues from corporate consulting contracts. The loss from continuing operations for the third quarter of 2002 was $210,073, or a $0.02 loss per share, compared to income from continuing operations of $6,494, or $0.00 per share. For the 2002 third quarter, the loss from discontinued operations was $92,934, or a $0.01 loss per share, compared to $1.1 million, or a $0.09 loss per share for the third quarter of 2001. The net loss for the third quarter of 2002 was $303,007, or a $0.02 loss per share, versus a net loss of $1.1 million, or a $0.09 loss per share, for the year-earlier period.
President and CEO John Baust, Ph.D., commented, "During the quarter, we established ourselves as a standalone company in the biomedical field; we began laying out plans to the investment community through presentations at investor conferences and communications with online resources and we made many contacts with potential customers and development partners. Looking forward, our near-term milestones include the creation of a sales distribution partnership for our preservation solutions, the expansion of our customer base and patent portfolio and increased exposure in the clinical press."
For the nine months ended September 30, 2002, revenue increased 127 percent to $516,819 from $227,237 for the year-earlier period. The increase was due to higher revenues across the board, including revenue from product sales, NIH grants and corporate research contracts. The loss from continuing operations for the first nine months of 2002 was $371,725, or a $0.03 loss per share, compared to $171,069, or a $0.01 loss per share for the first nine months of 2001. The loss from discontinued operations for the 2002 nine-month period was $1.5 million, or a $0.12 loss per share, compared to $3.4 million, or a $0.27 loss per share for the 2001 nine-month period. Net income for the first nine months of 2002 was $506,560, or $0.04 per share, compared to a net loss of $3.6 million, or a $0.29 loss per share. The 2002 nine-month results include the gain on disposal of cryosurgical assets, net of assets sold at cost, of $2.4 million, or $0.20 per share.
Research and development expenses for the 2002 third quarter and first nine months were $209,434 and $441,684, respectively, versus $115,299 and $254,926, respectively, for the year-earlier periods. The increase in research and development expenses was due primarily to higher expenses relating to academic presentations made by the Company's engineers at scientific conferences during the quarter and an overall higher level of product development activity for the nine months.
Sales and marketing expense for the third quarter and nine months of 2002 was $4,126 and $4,146, respectively, compared to $715 and $29,561, respectively, for the year-earlier periods. The increase for the third quarter was the direct result of the Company's presence at a tradeshow during the period. The decrease for the first nine months was principally due to a shift in the allocation of sales and marketing personnel related expenditure to product development.
General and administrative expense for the third quarter and nine months of 2002 was $134,520 and $417,068, respectively, compared to $25,853 and $110,599, respectively, for the year-earlier periods. The increase in general and administrative expense was due to the shift in the burden of general and administrative expense to the Company's continuing operations from discontinued operations. As a result of this shift, the Company experienced higher salary, travel, legal and accounting expense.
Subsequent to the end of the quarter, BioLife announced the addition of a $158,000 grant by the NIH to help fund research into the development of additional applications for BioLife's product technologies for cell and gene therapies and tissue engineering.
About BioLife Solutions, Inc.
BioLife Solutions has pioneered the next generation of preservation solutions designed to maintain the viability and health of cellular matter and tissues during freezing, transportation and storage. Based on the Company's proprietary bio-packaging technology and a patented understanding of the mechanism of cellular damage and death, these products enable the biotechnology and medical community to address a growing problem that exists today. The expanding practice of cell and gene therapy has created a need for products that ensure the biological viability of mammalian cell and tissue material during transportation and storage. The HypoThermosol® and CryoStor™ products that the Company is selling today are a significant step forward in meeting these needs.
For further information please contact: investors, Jill Bertotti,
This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include any statements that relate to the intent, belief, plans or expectations of the Company or its management, or that are not a statement of historical fact. Any forward-looking statements in this news release are based on current expectations and beliefs and are subject to numerous risks and uncertainties that could cause actual results to differ materially. Some of the specific factors that could cause BioLife Solutions' actual results to differ materially are discussed in the Company's recent filings with the Securities and Exchange Commission. BioLife Solutions disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
BIOLIFE SOLUTIONS, INC. STATEMENTS OF OPERATIONS (unaudited) Three months ended Nine months ended September 30, September 30, 2002 2001 2002 2001 Revenue: Product sales $1,975 $-- $20,527 $-- Grants 106,032 125,199 385,572 202,237 Services and other 30,000 25,000 110,720 25,000 Total revenue 138,007 150,199 516,819 227,237 Cost of product sales -- 1,089 25,646 2,455 Gross profit 138,007 149,110 491,173 224,782 Expenses: Research and development 209,434 115,299 441,684 254,926 Sales and marketing 4,126 715 4,146 29,561 General and administrative 134,520 25,853 417,068 110,599 Total expenses 348,080 141,867 862,898 395,086 Operating income (loss) (210,073) 7,243 (371,725) (170,304) Interest expense, net -- 749 -- 765 Income (loss) from continuing operations (210,073) 6,494 (371,725) (171,069) Discontinued operations: Loss from discontinued operations (92,934) (1,140,775) (1,547,824) (3,409,153) Gain on disposal of cryosurgical assets, net -- -- 2,426,109 -- Net income (loss) $(303,007) $(1,134,281) $506,560 $(3,580,222) Basic earnings (loss) per share: Loss from continuing operations $(0.02) $-- $(0.03) $(0.01) Loss from operation of cryosurgical assets (0.01) (0.09) (0.12) (0.27) Gain on disposal of cryosurgical assets, net -- -- 0.20 -- Total $(0.02) $(0.09) $0.04 $(0.29) Diluted earnings per share from continuing operations $-- Weighted average number of common shares outstanding: Basic 12,413,209 12,413,209 12,413,209 12,413,209 Diluted 17,213,209
SOURCE: BioLife Solutions, Inc.
CONTACT: investors, Jill Bertotti,
BioLife Solutions, Inc.