BELGRADE, Mont.–(BUSINESS WIRE)–Lattice Biologics Ltd. (TSX-V:
LBL) (OTCBB: LBLTF) (“Lattice Biologics” or the “Company”)
announces financial results for Q1 2019, and preliminary revenues for Q2
Sales and Product Offerings
Completion of the relocated processing facility to Belgrade, Montana
and expanding reach into dental markets.
Gross profit margin was 69% for the three months ended December 31,
2018, compared to 65.8% for the same period in the previous year.
Sales increased 29% year over year, while gross profit increased 35%
year over year.
- Launched new products into a higher margin dental market.
Sales have increased quarter over quarter for three successive
quarters with estimated revenues of $700,000 – $750,000 for the 3
months ended March 31, 2019.
Relocated operations to Belgrade, Montana from Scottsdale, AZ,
resulting in operational efficiencies.
Gross profit of $.32 million on sales of $.46 million for the three
months ended December 31, 2018 compared to the same period in the
previous year of $0.2 million on $0.4 million of sales.
Incurred a net loss of less than $0.1 million ($0.00 per share) for
the three months ended December 31, 2018 compared to $0.1 million
($0.00 per share) for the same period in the previous year.
Total liabilities increased to $8.5 million at December 31, 2018 from
$8.4 million at September 30, 2018. Current liabilities increased to
$7.1 million at December 31, 2018 from $7.0 million at September 30,
Research and Development
- Patent pending for AmnioBoost product.
- Developed next generation AmnioBoost for dental indications.
- Developing pipeline of new products to compete in new dental markets.
2019 Business Update:
“I am pleased to announce that the Company has had four quarters of
successive growth culminating in the second quarter 2019 sales estimate
of $ 700,000 – $750.000,” said Guy Cook, CEO of Lattice Biologics Ltd.
We estimate revenues to be $ 2.2-2.4 million for 2019.
With strong distribution partners and an enhanced product line intended
for dental indications, we expect sales to continue to grow throughout
2019. Operationally, the company is much more efficient and has lowered
its operating and overhead costs to effectively compete in the dental
As we continue to focus to higher margin product line, and to
re-position the Amnioboost line for dental indications, we are confident
we have turned the corner and positioned the company for profitable and
The Company continues to make significant improvements on the balance
sheet, and is working with creditors to convert certain balances to
equity for working capital purposes.
Lattice Biologics maintains its commitment to honoring the gift of
donation by implementing a strong quality control environment for the
recovery and processing of donors. The Company has significantly
increased its processing efficiencies, and has substantial inventory
reserves to meet customer demand.
As indicated below, the Company continues efforts to diversify the sales
mix across the new higher margin product lines added in prior years.
Year End Financial Results (all figures denoted in USD):
The product launches have been well received by our clients and the
Company continues to replace unprofitable legacy contracts and focus on
the newer higher margin products. Lattice Biologics’ total revenue was
$467,311 in the three months ended December 31, 2018 compared to
$362,137 for the three months ended December 31, 2017, an increase of
29%, as shown in the following quarter sales table:
|Cost of sales||144,849||271,398||115,588||102,963||123,938||554,717||514,761||533,957|
|Operating costs (i)||283,062||567,058||434,925||382,764||336,332||536,590||605,968||950,833|
|Gross margin percent||69.0||%||2.5||%||39.3||%||68.2||%||65.8||%||-39.2||%||24.7||%||30.2||%|
The following table sets out selected unaudited financial information,
prepared in accordance with IFRS. The information contained herein is
drawn from interim financial statements of the Company for each of the
following quarterly periods ending:
|Revenue per quarterly data table||467,311||278,459||190,524||323,921||362,137||398,542||684,026||765,357|
Certain adjustments have been made to the quarterly information for the
first three quarters of the fiscal year ended September 30, 2016, as
compared to data contained in the quarterly filings for such quarters.
These changes relate to certain adjustments for cost of sales and
operating costs that were not recognized until the fourth quarter of
such fiscal year.
(i) Operating costs are defined as all general and
administrative costs, professional fees, rent, salaries and benefits,
sales and marketing, and utilities expenses.
(ii) EBITDA is defined as gross profit less operating costs
(as defined above).
About Lattice Biologics Ltd.:
Lattice Biologics is traded on the TSX-V under the symbol: LBL. The
Company is an emerging personalized/precision medicine leader in the
field of cellular therapies and tissue engineering, with a focus on
bone, skin, and cartilage regeneration.
Lattice Biologics develops and manufactures biologic products to
domestic and international markets. The Company’s products are used in a
variety of surgical applications.
Lattice Biologics maintains its headquarters, laboratory and
manufacturing facilities in Belgrade, Montana as well as offices in
Phoenix, Arizona. The facility includes ISO Class 1000 and ISO Class 100
clean rooms, and specialized equipment capable of crafting traditional
allografts and precision specialty allografts for various clinical
applications. The Lattice Biologics team includes highly trained tissue
bank specialists, surgical technicians, certified sterile processing and
distribution technicians, and CNC operators who maintain the highest
standards of aseptic technique throughout each step of the manufacturing
process. From donor acceptance to the final packaging and distribution
of finished allografts, Lattice is committed to maintaining the highest
standards of allograft quality, innovation, and customer satisfaction.
Lattice Biologics maintains all necessary licensures to process and sell
its tissue engineered products within the U.S. and internationally. This
includes Certificates to Foreign Governments from the U.S. Food and Drug
Administration (FDA) and registrations for 29 countries, which allow the
export of bone, tendon, meniscus, ligament, soft tissue, and cartilage
products outside of the U.S.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Cautionary Statement on Forward-Looking Information:
Certain information contained in this news release constitutes
“forward-looking statements” within the meaning of the ‘safe harbour’
provisions of Canadian securities laws. All statements herein, other
than statements of historical fact, are to be considered forward looking.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as “planned”, “potential”, “future”,
“expected”, “could”, “possible”, “goal”, “intends”, “will” or similar
expressions. Forward-looking statements in this news release include,
without limitation: information pertaining to the Company’s strategy,
plans, or future financial performance, such as statements with respect
to the Transaction, and other statements that express management’s
expectations or estimates of future performance. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity,
performance or achievements of Lattice to be materially different from
those expressed or implied by such forward-looking statements.
Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by management
as of the date such statements are made, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. The factors and assumptions that could prove to be
incorrect, include, but are not limited to: that market prices will be
consistent with expectations, the continued availability of capital and
financing, and that general economic, market and business conditions
will be consistent with expectations. The forward-looking
statements are not guarantees of future performance. We disclaim
any obligation to update or revise any forward-looking statements,
except as required by law. Readers are cautioned not to put undue
reliance on these forward-looking statements.
United States Advisory: The securities referred to herein have not
been and will not be registered under the United States Securities Act
of 1933, as amended (the “U.S. Securities Act”), and may not be offered,
sold, or resold in the United States or to, or for the account of or
benefit of, a U.S. Person (as such term is defined in Regulation S under
the U.S. Securities Act) unless an exemption from the registration
requirements of the U.S. Securities Act is available. This press
release shall not constitute an offer to sell or the solicitation of an
offer to buy any securities, nor shall there be any sale of securities
in the state in the United States in which such offer, solicitation or
sale would be unlawful.
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