Connect with us
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

News

Lattice Biologics Ltd. Reports Q3 2020 Results

gbafNews28

Lattice Biologics Ltd. (TSX-V: LBL) (OTCBB: LBLTF) (Lattice Biologics or the Company) announces financial results for Q3 2020.

Highlights of the Three Months Ended June 30, 2020

Sales and Product Offerings

  • Gross profit margin was 29% for the three months ended June 30, 2020, compared to 36% for the same period in the previous year. Gross profit margin was 48% for the nine months ended June 30, 2020, compared to 64% for the same period in the previous year.
  • For the three months ended June 30, 2020, sales increased 13% compared to the same period in the previous year, while gross profit decreased 9% for the same period. For the nine months ended June 30, 2020, sales increased less than 1% compared to the same period in the previous year, while gross profit decreased 24% for the same period.
  • Launched new products into a higher margin dental market.
  • Cash used in operations was $16,236 for the nine months ended June 30, 2020, compared to cash provided by operations of $147,848 for the nine months ended June 30, 2019.

Finance

  • Gross profit of $0.1 million on sales of $0.5 million for the three months ended June 30, 2020, compared to the same period in the previous year of $0.2 million on $0.4 million of sales. Gross profit of $0.8 million on sales of $1.7 million for the nine months ended June 30, 2020, compared to the same period in the previous year of $1.1 million on $1.7 million of sales.
  • Incurred a net loss of $0.3 million ($0.00 per share) for the three months ended June 30, 2020, compared to a net loss of $0.3 million ($0.00 per share) for the same period in the previous year. Incurred a net loss of $1.2 million ($0.01 per share) for the nine months ended June 30, 2020, compared to a net loss of $0.3 million ($0.00 per share) for the same period in the previous year.
  • Total liabilities increased to $9.3 million at June 30, 2020, from $8.6 million at September 30, 2019. Current liabilities increased to $8.0 million at June 30, 2020, from $7.7 million at September 30, 2019.

Research and Development

  • Development of room temperature AmnioBoost and room temperature dermis for dental markets.
  • Development of allograft fiber plug for dental markets.
  • Developed proprietary liquid nitrogen shipping containers.

2020 Business Update:

I am pleased to announce that the Company has continued to maintain its relationship with critical customers during the COVID-19 Pandemic, with sales increasing 13% year over year. We expect revenues to continue to grow throughout the year and revenues to be $3.5-4.0 million for 2021, said Guy Cook, CEO of Lattice Biologics Ltd.

With strong distribution partners and an enhanced product line intended for dental indications, we expect sales to continue to grow throughout 2021. Operationally, the company is much more efficient and has lowered its operating and overhead costs to effectively compete in the dental market space.

As we continue to focus to higher margin product line, and to reposition the AmnioBoost line for dental indications, we are confident we have turned the corner and positioned the company for profitable and continued growth.

The Company continues to make significant improvements on the balance sheet, and is working with creditors to reduce certain balances, or convert 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 $504,217 in the three months ended June 30, 2020, compared to $447,973 for the three months ended June 30, 2019, an increase of 13%, as shown in the following quarter sales table:

Jun-30

 

Mar-31

 

Dec-31

 

Sep-30

 

Jun-30

 

Mar-31

 

Dec-31

 

Sep-30

2020

 

2020

 

2019

 

2019

 

2019

 

2019

 

2018

 

2018

 
Revenue

$

504,217

 

$

464,450

 

$

699,898

 

$

522,263

 

$

447,973

 

$

751,084

 

$

467,311

 

$

278,459

 

Cost of sales

 

357,593

 

 

202,634

 

 

300,011

 

 

640,749

 

 

287,484

 

 

172,788

 

 

144,849

 

 

271,398

 

Gross profit

 

146,624

 

 

261,816

 

 

399,887

 

 

(118,486

)

 

160,489

 

 

578,296

 

 

322,462

 

 

7,061

 

Operating costs (i)

 

336,838

 

 

274,539

 

 

291,843

 

 

398,711

 

 

331,795

 

 

344,397

 

 

283,062

 

 

567,058

 

EBITDA (ii)

 

(175,476

)

 

2,015

 

 

122,468

 

 

(502,485

)

 

(156,771

)

 

246,648

 

 

52,149

 

 

(546,873

)

Net income (loss)

 

(319,739

)

 

(853,717

)

 

(69,893

)

 

(667,941

)

 

(291,203

)

 

61,975

 

 

(114,743

)

 

(306,206

)

 
Gross margin percent

 

29.1

%

 

56.4

%

 

57.1

%

 

-22.7

%

 

35.8

%

 

77.0

%

 

69.0

%

 

2.5

%

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:

Jun-30

 

 

 

Mar-31

 

 

 

Dec-31

 

 

 

Sep-30

 

 

 

Jun-30

 

 

 

Mar-31

 

 

 

Dec-31

 

 

 

Sep-30

2020

 

 

 

2020

 

 

 

2019

 

 

 

2019

 

 

 

2019

 

 

 

2019

 

 

 

2018

 

 

 

2018

 
ADM dermis

$

0

%

$

0

%

$

0

%

$

0

%

$

0

%

$

0

%

$

0

%

$

0

%

DBM putty

 

0

%

 

0

%

 

0

%

 

0

%

 

0

%

 

0

%

 

0

%

 

0

%

Bone scaffold

 

504,217

100

%

 

464,450

100

%

 

699,898

100

%

 

508,458

97

%

 

432,400

97

%

 

725,435

97

%

 

453,111

97

%

 

222,333

80

%

Other

 

0

%

 

0

%

 

0

%

 

13,805

3

%

 

15,573

3

%

 

25,649

3

%

 

14,200

3

%

 

56,126

20

%

 
Total revenue

$

504,217

100

%

$

464,450

100

%

$

699,898

100

%

$

522,263

100

%

$

447,973

100

%

$

751,084

100

%

$

467,311

100

%

$

278,459

100

%

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 Companys 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) accept 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 Companys strategy, plans, or future financial performance, such as statements with respect to the Transaction, and other statements that express managements 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.

Subscribe to Lattice News Updates Follow us on Twitter: @LatticeBio

Media Contact:

Guy Cook, CEO

Lattice Biologics Ltd.

(TSX-V: LBL) (OTCBB: LBLTF)

512 E. Madison Ave. Suite#A1

Belgrade, MT 59714

480-563-0800 Office

News@LatticeBiologics.com

www.LatticeBiologics.com

Advertisement
Editorial & Advertiser disclosure

Call for Entries

Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate

Newsletters with Secrets & Analysis. Subscribe Now

Recommended

Global Banking & Finance Review® is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management. Copyright © 2010-2021 GBAF Publications Ltd - All Rights Reserved.