REHOVOT, Israel, May 27, 2020 /PRNewswire/
-- CollPlant (NASDAQ: CLGN), a regenerative and
aesthetics medicine company, today announced financial results for
the first quarter ended March 31,
2020 and provided an update on the Company's business
developments. Certain metrics, including those expressed on an
adjusted basis, are non-GAAP measures. See "Use of Non-GAAP
Measures" below.
CollPlant reported revenues of $609,000 for the first quarter of 2020. The
Company ended the first quarter of 2020 with $5.6 million in cash and cash equivalents.
Comprehensive loss for the first quarter of 2020 was $1.6 million on a GAAP basis, or adjusted
comprehensive loss of $1.4 million,
on a non-GAAP basis.
"We are advancing the development of dermal fillers that combine
our rhCollagen with hyaluronic acid to treat wrinkles and
rejuvenate the skin. We also continue the intensive development
work with United Therapeutics which is using our rhCollagen-based
BioInk for 3D bioprint lung scaffolds, all despite the inherent
challenges stemming from the rapid global spread of COVID-19,"
stated Yehiel Tal, the Chief
Executive Officer of CollPlant. "We implemented remote working and
workplace protocols for our employees in accordance with Israel
Health Ministry guidelines and all employees have been instructed
on and encouraged to practice best social distancing behaviors. We
continue to closely evaluate the evolving pandemic as it unfolds
and we currently remain on track to achieve the Company's business
plan. Additionally, I am happy to share with you a new scientific
animation video for our cutting-edge Photocurable Dermal Filler
product, that is currently in the pre-clinical phase. We continue
to advance discussions towards new strategic partnerships with
industry leaders, relying on our technology platform to develop
innovative products regenerative and aesthetic medicine."
Financial Results
First Quarter 2020 Financial Results on US GAAP basis
("GAAP")
Revenues for the first three months ended March 31, 2020 increased by 3% to $609,000, compared to $594,000 in the first quarter of 2019. Revenues
were derived mainly from CollPlant's BioInk for the development of
3D bioprinting of tissues and life savings organs, and from sales
of rhCollagen to medical aesthetics and 3D bioprinting business
collaborators.
The Company's gross profit for the first three months ended
March 31, 2020 decreased by 23% to
$134,000 compared to $174,000 in the first quarter of 2019.
Total operating costs and expenses for the first three months
ended March 31, 2020 were
$1.8 million, an increase of 6%
compared to $1.7 million in the first
quarter of 2019.
Operating loss for the first three months ended March 31, 2020 was $1.7
million, an increase of 13% compared to an operating loss of
$1.5 million in the first quarter of
2019.
Financial income, net for the first three months ended
March 31, 2020 was $106,000 compared to financial expenses, net of
$713,000 in the first quarter of
2019. Financial income in the first three months ended March 31, 2020 derived from non-cash exchange
differences of operating lease liabilities under ASC 842, compared
to financial expenses in the first three months ended March 31, 2019 which derived from re-evaluation
of financial instruments.
Comprehensive loss for the first quarter of 2020 was
$1.6 million, or $0.24 per share, compared to a comprehensive loss
of $2.2 million, or $0.48 per share, for the first quarter of
2019.
Cash used in operating activities during the first quarter was
$2.6 million compared to $959,000 in the first quarter of 2019. As of
March 31, 2020, cash and cash
equivalents totaled $5.6 million.
Cash used in investing activities during the first quarter was
$85,000 compared to $711,000 in the first quarter of 2019. The
decrease is mainly attribute to the establishment in 2019 of
CollPlant's new HQ and R&D center in Rehovot, Israel.
Cash provided by financing activities during the first quarter
was $4.5 million compared to
$21,000 in the first quarter of 2019.
The increase is mainly attribute to proceeds from issuance of
shares in a private placement in February
2020.
First Quarter 2020 Financial Results on Non-US GAAP Basis
("non-GAAP")
On a non-GAAP basis, the operating costs and expenses for the
first quarter of 2020 were $1.6
million, compared to $1.2
million for the first quarter of 2019.
Comprehensive loss for the first quarter of 2020 was
$1.4 million, or $0.21 per share, compared to $1.1 million, or $0.23 per share, for the first quarter of
2019.
Non-GAAP measures exclude certain non-cash expenses. The table
on page 11 includes a reconciliation of the Company's GAAP results
to non-GAAP results. The reconciliation reflects non-cash expenses
in the amount of $212,000 with
respect to (i) change in fair value of financial instruments, (ii)
share-based compensation to employees, directors and consultants
and (iii) change of operating lease accounts, including related
financial expenses.
Use of Non-GAAP Measures
This press release contains certain non-GAAP financial measures
for operating costs and expenses, operating loss, comprehensive
loss and basic and diluted comprehensive loss per share that
exclude the effects of non-cash expense for fair market value
attributed to services received through the share purchase
agreement, change in fair value of financial instruments,
share-based compensation to employees, directors and consultants,
and change in operating lease accounts. Management believes that
these non-GAAP financial measures provide meaningful supplemental
information regarding the Company's performance that enhances
management's and investors' ability to evaluate the Company's
operating costs, comprehensive loss and loss per share, and to
compare them to historical Company results.
The presentation of this non-GAAP financial information is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. Management uses both GAAP and non-GAAP measures when
operating and evaluating the Company's business internally and
therefore decided to make these non-GAAP adjustments available to
investors. The non-GAAP financial measures used by the Company in
this press release may be different from the measures used by other
companies.
For more information on the non-GAAP financial measures, please
see the "Reconciliation of GAAP to Non-GAAP Financial Measures"
table on page 11 in this press release. This accompanying table on
page 11 has more details on the GAAP financial measures that are
most directly comparable to non-GAAP financial measures and the
related reconciliations between these financial measures.
The Company's consolidated financial results as of, and for the
three months ended 31, 2020 are presented in accordance with
generally accepted accounting principles in the United States of America ("U.S.
GAAP").
About CollPlant
CollPlant is a regenerative medicine company focused on 3D
bioprinting of tissues and organs, and medical aesthetics. Our
products are based on our rhCollagen (recombinant human collagen)
that is produced with CollPlant's proprietary plant based genetic
engineering technology.
Our products address indications for the diverse fields of
tissue repair, aesthetics and organ manufacturing, and, we believe,
are ushering in a new era in regenerative and aesthetic
medicine.
Our flagship rhCollagen BioInk product line is ideal for 3D
bioprinting of tissues and organs. Our flagship rhCollagen BioInk
product line is ideal for 3D bioprinting of tissues and organs. In
October 2018, we entered into a
licensing agreement with United Therapeutics, whereby United
Therapeutics is using CollPlant's BioInks in the manufacture of 3D
bioprinted lungs for transplant in humans.
In January 2020, we also entered
into a Joint Development Agreement with 3D Systems Corporation, or
3D Systems, pursuant to which we and 3D Systems jointly develop
tissue and scaffold bioprinting processes for third party
collaborators. Our industry collaboration also includes the
Advanced Regenerative Manufacturing Institute, or ARMI.
For more information about CollPlant, visit
http://www.collplant.com
Safe Harbor Statements
This press release may include forward-looking statements.
Forward-looking statements may include, but are not limited to,
statements relating to CollPlant's objectives plans and strategies,
as well as statements, other than historical facts, that address
activities, events or developments that CollPlant intends, expects,
projects, believes or anticipates will or may occur in the future.
These statements are often characterized by terminology such as
"believes," "hopes," "may," "anticipates," "should," "intends,"
"plans," "will," "expects," "estimates," "projects," "positioned,"
"strategy" and similar expressions and are based on assumptions and
assessments made in light of management's experience and perception
of historical trends, current conditions, expected future
developments and other factors believed to be appropriate.
Forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties that could cause actual
results to differ materially from those expressed or implied in
such statements. Many factors could cause CollPlant's actual
activities or results to differ materially from the activities and
results anticipated in forward-looking statements, including, but
not limited to, the following: the Company's history of significant
losses, its ability to continue as a going concern, and its need to
raise additional capital and its inability to obtain additional
capital on acceptable terms, or at all; the outbreak of
coronavirus; the Company's expectations regarding the timing and
cost of commencing clinical trials with respect to tissues and
organs which are based on its rhCollagen based BioInk and products
for medical aesthetics; the Company's ability to obtain favorable
pre-clinical and clinical trial results; regulatory action with
respect to rhCollagen based BioInk and medical aesthetics products
including but not limited to acceptance of an application for
marketing authorization review and approval of such application,
and, if approved, the scope of the approved indication and
labeling; commercial success and market acceptance of the Company's
rhCollagen based products in 3D Bioprinting and medical aesthetics;
the Company's ability to establish sales and marketing capabilities
or enter into agreements with third parties and its reliance on
third party distributors and resellers; the Company's ability to
establish and maintain strategic partnerships and other corporate
collaborations; the Company's reliance on third parties to conduct
some or all aspects of its product manufacturing; the scope of
protection the Company is able to establish and maintain for
intellectual property rights and the Company's ability to operate
its business without infringing the intellectual property rights of
others; the overall global economic environment; the impact of
competition and new technologies; general market, political, and
economic conditions in the countries in which the Company operates;
projected capital expenditures and liquidity; changes in the
Company's strategy; and litigation and regulatory proceedings. More
detailed information about the risks and uncertainties affecting
CollPlant is contained under the heading "Risk Factors" included in
CollPlant's most recent annual report on Form 20-F filed with the
SEC, and in other filings that CollPlant has made and may make with
the SEC in the future. The forward-looking statements contained in
this press release are made as of the date of this press release
and reflect CollPlant's current views with respect to future
events, and CollPlant does not undertake and specifically disclaims
any obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
COLLPLANT
BIOTECHNOLOGIES LTD.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
(U.S. dollars in
thousands, except share and per share data)
|
(Unaudited)
|
|
|
|
Three months
ended
March 31,
|
|
|
|
2020
|
|
|
2019
|
|
Revenues
|
|
$
|
609
|
|
|
$
|
594
|
|
Cost of
revenues
|
|
|
475
|
|
|
|
420
|
|
Gross
Profit
|
|
|
134
|
|
|
|
174
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development, net
|
|
|
810
|
|
|
|
772
|
|
General,
administrative and marketing
|
|
|
1,031
|
|
|
|
929
|
|
Total operating
loss
|
|
|
1,707
|
|
|
|
1,527
|
|
Financial
income
|
|
|
17
|
|
|
|
-
|
|
Financial
expenses
|
|
|
(4)
|
|
|
|
(582)
|
|
Exchange
differences
|
|
|
93
|
|
|
|
(131)
|
|
Financial income
(expenses), net
|
|
|
106
|
|
|
|
(713)
|
|
Loss for the
period
|
|
$
|
1,601
|
|
|
$
|
2,240
|
|
Basic and diluted
loss per ordinary share
|
|
|
0.24
|
|
|
|
0.48
|
|
Weighted average
number of shares outstanding used in computation of basic and
diluted loss per share
|
|
|
6,659,611
|
|
|
|
4,660,218
|
|
COLLPLANT
BIOTECHNOLOGIES LTD.
|
CONSOLIDATED
BALANCE SHEETS
|
(U.S. dollars in
thousands)
(Unaudited)
|
|
|
|
|
March 31,
|
|
|
December
31,
|
|
|
|
2020
|
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,614
|
|
|
$
|
3,791
|
|
Trade
receivables
|
|
|
398
|
|
|
|
79
|
|
Other accounts
receivable and prepaid expenses
|
|
|
213
|
|
|
|
270
|
|
Restricted
deposit
|
|
|
11
|
|
|
|
12
|
|
Inventory
|
|
|
1,107
|
|
|
|
888
|
|
Total current
assets
|
|
|
7,343
|
|
|
|
5,040
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Restricted
deposit
|
|
|
163
|
|
|
|
168
|
|
Operating lease
right-of-use assets
|
|
|
3,122
|
|
|
|
3,215
|
|
Property and
equipment, net
|
|
|
2,250
|
|
|
|
2,329
|
|
Total non-current
assets
|
|
|
5,535
|
|
|
|
5,712
|
|
Total
assets
|
|
$
|
12,878
|
|
|
$
|
10,752
|
|
COLLPLANT
BIOTECHNOLOGIES LTD.
|
CONSOLIDATED
BALANCE SHEETS
|
(U.S. dollars in
thousands)
|
(Unaudited)
|
|
|
|
March 31,
|
|
|
December
31,
|
|
|
|
2020
|
|
|
2019
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Loan
|
|
$
|
18
|
|
|
$
|
24
|
|
Accounts
payable:
|
|
|
|
|
|
|
|
|
Trade
payables
|
|
|
629
|
|
|
|
833
|
|
Accrued liabilities
and other
|
|
|
842
|
|
|
|
1,203
|
|
Operating lease
liabilities
|
|
|
435
|
|
|
|
455
|
|
Deferred
revenues
|
|
|
687
|
|
|
|
942
|
|
Total current
liabilities
|
|
|
2,611
|
|
|
|
3,457
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
Derivatives
|
|
|
51
|
|
|
|
68
|
|
Operating lease
liabilities
|
|
|
2,947
|
|
|
|
3,139
|
|
Total non-current
liabilities
|
|
|
2,998
|
|
|
|
3,207
|
|
Total
liabilities
|
|
|
5,609
|
|
|
|
6,664
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
Ordinary shares,
NIS 1.5 par value - authorized: 30,000,000 ordinary shares as
of
March 31, 2020 and December 31, 2019; issued and outstanding:
6,463,695 and
5,670,829 ordinary shares as of March 31, 2020 and December 31,
2019,
respectively
|
|
|
2,712
|
|
|
|
2,368
|
|
Additional paid in
capital and warrants
|
|
|
74,387
|
|
|
|
69,949
|
|
Currency translation
differences
|
|
|
(969)
|
|
|
|
(969)
|
|
Accumulated
deficit
|
|
|
(68,861)
|
|
|
|
(67,260)
|
|
Total
shareholders' equity
|
|
|
7,269
|
|
|
|
4,088
|
|
Total liabilities
and shareholders' equity
|
|
$
|
12,878
|
|
|
$
|
10,752
|
|
COLLPLANT
BIOTECHNOLOGIES LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(U.S. dollars in
thousands)
|
(Unaudited)
|
|
|
|
Three months
ended
March 31,
|
|
|
|
2020
|
|
|
2019
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net cash used in
operations (see Appendix A)
|
|
$
|
(2,585)
|
|
|
$
|
(959)
|
|
Net cash used in
operating activities
|
|
|
(2,585)
|
|
|
|
(959)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(85)
|
|
|
|
(711)
|
|
Net cash used in
investing activities
|
|
|
(85)
|
|
|
|
(711)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of shares, net
|
|
|
4,450
|
|
|
|
-
|
|
Exercise of options
into shares
|
|
|
65
|
|
|
|
-
|
|
Loan paid
|
|
|
(6)
|
|
|
|
(4)
|
|
Payments made for
equipment on financing terms
|
|
|
-
|
|
|
|
(17)
|
|
Net cash provided by
(used in) financing activities
|
|
|
4,509
|
|
|
|
(21)
|
|
Increase
(Decrease) in cash and cash equivalents and restricted
deposits
|
|
|
1,839
|
|
|
|
(1,691)
|
|
Cash and cash
equivalents and restricted deposits at the beginning of the
year
|
|
|
3,971
|
|
|
|
5,663
|
|
Exchange
differences on cash and cash equivalents and restricted
deposits
|
|
|
(22)
|
|
|
|
53
|
|
Cash and cash
equivalents and restricted deposits at the end of the
year
|
|
$
|
5,788
|
|
|
$
|
4,025
|
|
COLLPLANT
BIOTECHNOLOGIES LTD.
|
APPENDICES TO THE
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(U.S. dollars in
thousands)
|
(Unaudited)
|
|
|
|
Three months
ended
March 31,
|
|
|
|
2020
|
|
|
2019
|
|
Appendix to the
statement of cash flows
|
|
|
|
|
|
|
A. Net cash used
in operations:
|
|
|
|
|
|
|
Loss
|
|
$
|
(1,601)
|
|
|
$
|
(2,240)
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
164
|
|
|
|
97
|
|
Share-based
compensation to employees and consultants
|
|
|
348
|
|
|
|
340
|
|
Exchange differences
on cash and cash equivalents
|
|
|
22
|
|
|
|
(53)
|
|
Financial expenses
related to financial instruments
|
|
|
(17)
|
|
|
|
639
|
|
Net change of
operating lease accounts
|
|
|
(119)
|
|
|
|
204
|
|
|
|
|
(1,203)
|
|
|
|
(1,013)
|
|
Changes in operating
asset and liability items:
|
|
|
|
|
|
|
|
|
Increase in trade
receivables
|
|
|
(319)
|
|
|
|
(97)
|
|
Increase in
inventory
|
|
|
(219)
|
|
|
|
(56)
|
|
Decrease (increase)
in other receivables (including long-term receivables)
|
|
|
57
|
|
|
|
(162)
|
|
Increase (decrease)
in trade payables (including long-term payables)
|
|
|
(285)
|
|
|
|
450
|
|
Increase
(decrease) in accrued liabilities and other
payables
|
|
|
(361)
|
|
|
|
45
|
|
Decrease in deferred
revenues (including long term deferred revenues)
|
|
|
(255)
|
|
|
|
(126)
|
|
|
|
|
(1,382)
|
|
|
|
54
|
|
Net cash used in
operations
|
|
$
|
(2,585)
|
|
|
$
|
(959)
|
|
B. Supplementary
information on operating and financing activities not involving
cash flows:
|
|
|
|
|
|
|
|
|
Conversion of
pre-paid warrants to ordinary shares
|
|
|
137
|
|
|
|
|
|
Obtaining right of
use assets in exchange for a lease liability
|
|
|
|
|
|
|
3,458
|
|
Classification of
warrants from equity to liabilities, net
|
|
|
|
|
|
|
1,804
|
|
Issuance
costs
|
|
|
50
|
|
|
|
|
|
|
CollPlant
Biotechnologies Ltd.
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(U.S. dollars in
thousands, except per share data)
|
(Unaudited)
|
|
|
|
Three months
ended
March 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
GAAP
gross profit
|
|
$
|
134
|
|
|
$
|
174
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
costs and expenses:
|
|
|
1,841
|
|
|
|
1,701
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation to employees, directors and consultants
|
|
|
(348)
|
|
|
|
(340)
|
|
Change of operating
lease accounts
|
|
|
119
|
|
|
|
(204)
|
|
Non-GAAP operating
costs and expenses:
|
|
|
1,612
|
|
|
|
1,157
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss
|
|
|
1,707
|
|
|
|
1,527
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
loss
|
|
|
1,478
|
|
|
|
983
|
|
|
|
|
|
|
|
|
|
|
GAAP Comprehensive
loss
|
|
|
1,601
|
|
|
|
2,240
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation to employees, directors and consultants
|
|
|
(348)
|
|
|
|
(340)
|
|
Change of operating
lease accounts
|
|
|
119
|
|
|
|
(204)
|
|
Change in fair value
of financial instruments
|
|
|
17
|
|
|
|
(639)
|
|
Non-GAAP
Comprehensive loss
|
|
$
|
1,389
|
|
|
$
|
1,057
|
|
GAAP Basic and
diluted loss per ordinary share
|
|
|
0.24
|
|
|
|
0.48
|
|
Non-GAAP Basic and diluted loss per ordinary
share
|
|
|
0.21
|
|
|
|
0.23
|
|
Contact at CollPlant:
Eran Rotem
Deputy CEO & CFO
Tel: + 972-73-2325600
Email: Eran@collplant.com
Sophia Ononye-Onyia, PhD MPH
MBA
Founder & CEO, The Sophia Consulting Firm
Tel: +1-347-533-4578
E-mail: sophia@sophiaconsultingfirm.com
View original
content:http://www.prnewswire.com/news-releases/collplant-biotechnologies-reports-first-quarter-q1-2020-financial-results-301065935.html
SOURCE CollPlant