Lattice Biologics Ltd. (TSX-V: LBL) (OTCBB: LBLTF) (“Lattice Biologics” or the “Company”) announces financial results for Q1 2021.
Highlights of Three Months Ended December 31, 2020
Sales and Product Offerings
- Gross profit margin was 48.1% for the three months ended December 31, 2020, compared to 57.1% for the same period in the previous year.
- For the three months ended December 31, 2020, sales decreased 32% compared to the same period in the previous year, while gross profit decreased 43% for the same periods.
- Cash used in operations was $0.1 million for the three months ended December 31, 2020 compared to $0.1 million of cash provided by operations for the three months ended December 31, 2019.
Finance
- Gross profit of $0.2 million on sales of $0.5 million for the three months ended December 31, 2020 compared to $0.4 million on sales of $0.7 million for the three months ended December 31, 2019.
- Incurred a net loss of $0.3 million ($0.00 per share) for the three months ended December 31, 2020 compared to $0.1 million ($0.00 per share) for the three months ended December 31, 2019.
- Total liabilities increased to $9.5 million from $9.4 million for December 31, 2020 and September 30, 2020, respectively. Current liabilities increased to $8.0 million from $7.8 million for December 31, 2020 and September 30, 2020, respectively.
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.
2021 Business Update:
“Business conditions have been exceptionally trying this year, and Lattice Biologics is no exception. The American Dental Association issued guidance in mid-March 2020 that all US dental procedures be considered non-essential. The announcement significantly impacted revenues in March 2020, and continues to affect supply chain issues. As we focus on new markets, we expect to re-position the company for profitable and continued growth,” said Guy Cook, CEO of Lattice Biologics LTD.
With an enhanced product line intended for dental indications, we expect sales to continue to grow in the long term. Operationally, the company is much more efficient and has lowered its operating and overhead costs to effectively compete in the dental market space.
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 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:
| | | Dec-31 | | Sep-30 | | Jun-30 | | Mar-31 | | Dec-31 | | Sep-30 | | Jun-30 | | Mar-31 |
| | | 2020 | | 2020 | | 2020 | | 2020 | | 2019 | | 2019 | | 2019 | | 2019 |
| | | | | | | | | | | | | | | | | |
| Revenue | | $ | 474,573 | | | $ | 795,779 | | | $ | 504,217 | | | $ | 464,450 | | | $ | 699,898 | | | $ | 522,263 | | | $ | 447,973 | | | $ | 751,084 | |
| Cost of sales | | | 246,085 | | | | 583,509 | | | | 357,593 | | | | 202,634 | | | | 300,011 | | | | 640,749 | | | | 287,484 | | | | 172,788 | |
| Gross profit | | | 228,488 | | | | 212,270 | | | | 146,624 | | | | 261,816 | | | | 399,887 | | | | (118,486 | ) | | | 160,489 | | | | 578,296 | |
| Operating costs (i) | | | 323,520 | | | | 232,949 | | | | 336,838 | | | | 274,539 | | | | 291,843 | | | | 398,711 | | | | 331,795 | | | | 344,397 | |
| EBITDA (ii) | | | (52,839 | ) | | | 96,030 | | | | (175,476 | ) | | | 2,015 | | | | 122,468 | | | | (502,485 | ) | | | (156,771 | ) | | | 246,648 | |
| Net income (loss) | | | (269,132 | ) | | | (239,285 | ) | | | (319,739 | ) | | | (853,717 | ) | | | (69,893 | ) | | | (667,941 | ) | | | (291,203 | ) | | | 61,975 | |
| Basic and diluted loss per share | | | (0.00 | ) | | | (0.00 | ) | | | (0.00 | ) | | | (0.01 | ) | | | (0.00 | ) | | | (0.00 | ) | | | (0.00 | ) | | | (0.01 | ) |
| | | | | | | | | | | | | | | | | |
| Gross margin percent | | | 48.1 | % | | | 26.7 | % | | | 29.1 | % | | | 56.4 | % | | | 57.1 | % | | | -22.7 | % | | | 35.8 | % | | | 77.0 | % |
| (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). |
| | | |
| | | Dec-31 | | | | Sep-30 | | | | Jun-30 | | | | Mar-31 | | | | Dec-31 | | | | Sep-30 | | | | Jun-30 | | | | Mar-31 | | |
| | | 2020 | | | | 2020 | | | | 2020 | | | | 2020 | | | | 2019 | | | | 2019 | | | | 2019 | | | | 2019 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ADM dermis | | $ | - | | 0 | % | | $ | - | | 0 | % | | $ | - | | 0 | % | | $ | - | | 0 | % | | $ | - | | 0 | % | | $ | - | | 0 | % | | $ | - | | 0 | % | | $ | - | | 0 | % |
| DBM putty | | | - | | 0 | % | | | - | | 0 | % | | | - | | 0 | % | | | - | | 0 | % | | | - | | 0 | % | | | - | | 0 | % | | | - | | 0 | % | | | - | | 0 | % |
| Bone scaffold | | | 474,573 | | 100 | % | | | 795,779 | | 100 | % | | | 504,217 | | 100 | % | | | 464,450 | | 100 | % | | | 699,898 | | 100 | % | | | 508,458 | | 97 | % | | | 432,400 | | 97 | % | | | 725,435 | | 97 | % |
| Other | | | - | | 0 | % | | | - | | 0 | % | | | - | | 0 | % | | | - | | 0 | % | | | - | | 0 | % | | | 13,805 | | 3 | % | | | 15,573 | | 3 | % | | | 25,649 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total revenue | | $ | 474,573 | | 100 | % | | $ | 795,779 | | 100 | % | | $ | 504,217 | | 100 | % | | $ | 464,450 | | 100 | % | | $ | 699,898 | | 100 | % | | $ | 522,263 | | 100 | % | | $ | 447,973 | | 100 | % | | $ | 751,084 | | 100 | % |
About Lattice Biologics Ltd.:
Lattice Biologics is traded on the TSX-V under the symbol: LBL.
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. 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.
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.