Cellular Biomedicine Group Announces Q4 and Full Year 2019 Financial Results and Recent Operational Progress

NEW YORK and SHANGHAI, Feb. 28, 2020 /PRNewswire/ -- Cellular Biomedicine Group, Inc. CBMG ("CBMG" or the "Company"), a biopharmaceutical firm engaged in the drug development of immunotherapies for cancer and stem cell therapies for degenerative diseases, today reported business highlights and financial results for the fourth quarter and full year ended December 31, 2019.

Cellular Biomedicine Group logo (PRNewsfoto/Cellular Biomedicine Group)

"We made significant progress in 2019 with four cancer immuno-cell therapy ("I/O") clinical studies and our allogeneic off-the-shelf, as well as autologous, stem cell assets on Knee Osteoarthritis ("KOA") clinical trials. We have also embarked on renovating a 22,000 square foot facility in Rockville to expand our research and development ("R&D") footprint in Maryland. Working with our partners, we have made substantial strides in our operation and further institutionalized our Shanghai manufacturing site," said Tony Liu, CEO of the company. "Because of our skills in tech transfer, process development and lean manufacturing, we are emboldened and plan to utilize our four cleanrooms at the Rockville site to support our U.S. clinical studies upon completion of the facility. This month we have also started to collaborate with Shanghai Ruijin Hospital on a pilot clinical study on inhalation of mesenchymal stem cell exosomes treating severe Novel Coronavirus Pneumonia ("NCP"). We are continuing to advance our I/O and KOA drug candidates both in China and the U.S."

Mr. Liu added, "Cell therapy has been embraced by both start-ups and large pharmas with the clear clinical benefits provided to patients globally. CBMG intends to leverage our internal capabilities, namely robust vein-to-vein integrated biopharma capabilities, as well as external collaboration, to rapidly bring these therapies to patients and help cure cancer.

"We are mindful of the ongoing risks posed by the coronavirus disease, or COVID-19. The full extent to which the coronavirus will negatively impact our business operations and results is still highly uncertain and cannot be accurately predicted; however, we have experienced, and expect to continue to experience, a slowdown in patient recruitment for our clinical studies."

2019 Clinical and Business Highlights

Initiated recruitment and showed early data for our Anti- B-cell maturation antigen ("BCMA") Chimeric antigen receptor T-cells ("CAR-T") for relapsed or refractory Multiple Myeloma ("r/r MM")
Began patient enrollment for our CD19/CD20 BiCar for Non-Hodgkins Lymphoma ("NHL")
Dosed first patient for our Alpha-Fetoprotein T-Cell Receptor ("AFP-TCR-T") technology targeting Hepatocellular Carcinoma ("HCC")
Began dosing patients for our Anti-CD20 CAR-T, targeting Anti-CD19 treated, relapsed Diffuse Large B-Cell Lymphoma ("DLBCL")
Received China National Medical Products Administration ("NMPA") Investigational New Drug application ("IND") acceptance to move to Phase II clinical trial for both off-the-shelf AlloJoin® and ReJoin® human adipose-derived mesenchymal progenitor cell ("haMPC") therapies for KOA
Expanding US footprint with new facility in Rockville, Maryland to support R&D and clinical studies

Fourth Quarter and Full Year 2019 Financial Results

Cash Position: Cash, cash equivalents and restricted cash as of December 31, 2019 were $32.4 million, compared to $52.8 million as of December 31, 2018
R&D Expenses: Research and development expenses were $37.7 million for 2019 as compared to $24.2 million for 2018
G&A Expenses: General and administrative expenses were $13.5 million for 2019 as compared to $13.2 million for 2018
Net Loss: Net loss was $50 million for 2019 as compared to $38.9 million for 2018

About Cellular Biomedicine Group, Inc.

Cellular Biomedicine Group, Inc. is a biopharmaceutical firm engaged in the drug development of immunotherapies for cancer and stem cell therapies for degenerative diseases. For more information, please visit https://www.cellbiomedgroup.com/.

Forward-Looking Statements

Statements in this press release relating to plans, strategies, trends, specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on management's expectations and assumptions as of the date of this press release and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those currently anticipated, including, but not limited to, the risks of failure inherent in the development of products based on new biomedical technologies as well as the other risks detailed from time to time in CBMG's reports filed with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Forward-looking statements may be identified by terms such as "may," "will," "expects," "plans," "intends," "estimates," "potential," or "continue," or similar terms or the negative of these terms. Although CBMG believes the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance or achievements will be obtained. CBMG does not have any obligation to update these forward-looking statements other than as required by law.


CELLULAR BIOMEDICINE GROUP, INC.
CONSOLIDATED BALANCE SHEETS


	December 31,	December 31,
	2019	2018

Assets
Cash and cash equivalents	$ 15,443,649	$ 52,812,880
Restricted cash	17,000,000	-
Accounts receivable, less allowance for doubtful amounts of nil and $94,868 as of December 31, 2019 and December 31, 2018, respectively	-	787
Other receivables	750,943	101,909
Prepaid expenses	835,048	1,692,135
Total current assets	34,029,640	54,607,711

Investments	240,000	240,000
Property, plant and equipment, net	21,434,414	15,193,761
Right of use	20,106,163	15,938,203
Goodwill	7,678,789	7,678,789
Intangibles, net	7,376,940	7,970,692
Long-term prepaid expenses and other assets	6,458,354	5,952,193
Total assets	$ 97,324,300	$ 107,581,349

Liabilities and Stockholders' Equity

Liabilities:
Short-term debt	$ 14,334,398	$ -
Accounts payable	2,039,686	422,752
Accrued expenses	1,904,829	1,878,926
Taxes payable	26,245	28,950
Other current liabilities	5,367,708	5,710,578
Total current liabilities	23,672,866	8,041,206

Other non-current liabilities	17,933,743	14,321,751
Total liabilities	41,606,609	22,362,957



Preferred stock, par value $.001, 50,000,000 shares authorized; none issued and outstanding as of December 31, 2019 and 2018, respectively	-	-

Common stock, par value $.001, 300,000,000 shares authorized; 20,359,889 and 19,120,781 issued; and 19,304,390 and 18,119,282 outstanding, as of December 31, 2019 and 2018, respectively	20,360	19,121
Treasury stock at cost; 1,055,499 and 1,001,499 shares of common stock	(14,992,694)	(13,953,666)
as of December 31, 2019 and December 31, 2018, respectively
Additional paid in capital	272,117,518	250,604,618
Accumulated deficit	(199,966,543)	(149,982,489)
Accumulated other comprehensive loss	(1,460,950)	(1,469,192)
Total stockholders' equity	55,717,691	85,218,392

Total liabilities and stockholders' equity	$ 97,324,300	$ 107,581,349




CELLULAR BIOMEDICINE GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Year Ended
	December 31,
	2019	2018	2017

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (49,984,054)	$ (38,945,492)	$ (25,490,310)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	5,638,303	5,049,523	2,985,963
Loss on disposal of assets	39,033	4,957	317
Stock based compensation expense	4,063,981	4,826,745	5,345,211
Other than temporary impairment on investments	-	29,424	-
Impairment on intangible assets	-	2,884,896	-
Interest income from six-month deposits with the banks	-	(175,479)	-
Interest income from pledged bank deposits	(500,219)	-	-
Interest expenses	481,895	-	-
Allowance for doubtful account	-	84,622	-
Changes in operating assets and liabilities:
Accounts receivable	774	107,263	(160,628)
Other receivables	(150,222)	66,108	(467,985)
Prepaid expenses	831,686	68,435	(812,675)
Long-term prepaid expenses and other assets	(1,324,924)	(538,349)	(1,005,029)
Accounts payable	1,170,688	133,740	(814)
Accrued expenses	48,762	816,936	(118,968)
Other current liabilities	(43,401)	390,181	1,339,866
Taxes payable	(2,705)	75	-
Other non-current liabilities	80,420	83,416	(208,340)
Net cash used in operating activities	(39,649,983)	(25,112,999)	(18,593,392)

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposal of assets	148,393	1,625	-
Withdrawing six-month deposits with the banks	-	10,175,479	-
Putting six-month deposits with the banks	-	(10,000,000)	-
Purchases of intangible assets	(869,110)	(196,836)	(23,734)
Purchases of property, plant and equipment	(10,674,812)	(6,589,493)	(10,169,134)
Net cash used in investing activities	(11,395,529)	(6,609,225)	(10,192,868)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the issuance of common stock	17,166,199	70,351,173	14,496,040
Proceeds from exercise of stock options	283,959	2,738,866	308,371
Proceeds from short-term debt	14,546,035	-	-
Interest paid	(470,901)	-	-
Repurchase of treasury stock	(1,039,028)	(9,975,737)	(3,977,929)
Net cash provided by financing activities	30,486,264	63,114,302	10,826,482

EFFECT OF EXCHANGE RATE CHANGES ON CASH	190,017	(147,620)	275,768

INCREASE/(DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(20,369,231)	31,244,458	(17,684,010)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD	52,812,880	21,568,422	39,252,432
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$ 32,443,649	$ 52,812,880	$ 21,568,422

SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for income taxes	$ 3,750	$ 4,879	$ 2,450



	December 31,	December 31,	December 31,
	2019	2018	2017
Reconciliation of cash, cash equivalents and restricted cash in condensed consolidated statements of cash flows:
Restricted cash	$ 17,000,000	$ -	$ -
Cash and cash equivalents	15,443,649	52,812,880	21,568,422

Cash, cash equivalents and restricted cash	$ 32,443,649	$ 52,812,880	$ 21,568,422



CELLULAR BIOMEDICINE GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

	For the Year Ended December 31,
	For the Year Ended December 31,
	2019	2018	2017

Net sales and revenue	$ 339,920	$ 224,403	$ 336,817

Operating expenses:
Cost of sales	62,378	135,761	162,218
General and administrative	13,458,151	13,220,757	12,780,483
Selling and marketing	141,597	308,830	360,766
Research and development	37,669,978	24,150,480	14,609,917
Impairment of non-current assets	-	2,914,320	-
Total operating expenses	51,332,104	40,730,148	27,913,384
Operating loss	(50,992,184)	(40,505,745)	(27,576,567)

Other income:
Interest income	809,785	392,328	133,621
Other income	199,390	1,172,879	1,955,086
Total other income	1,009,175	1,565,207	2,088,707
Loss before taxes	(49,983,009)	(38,940,538)	(25,487,860)

Income taxes provision	(1,045)	(4,954)	(2,450)


Net loss	$ (49,984,054)	$ (38,945,492)	$ (25,490,310)
Other comprehensive income (loss):
Cumulative translation adjustment	8,242	(1,079,689)	967,189
Unrealized loss on investments, net of tax	-	-	(240,000)
Total other comprehensive income (loss):	8,242	(1,079,689)	727,189

Comprehensive loss	$ (49,975,812)	$ (40,025,181)	$ (24,763,121)

Net loss per share:
Basic and diluted	$ (2.63)	$ (2.20)	$ (1.78)

Weighted average common shares outstanding:
Basic and diluted	18,983,206	17,741,104	14,345,604

For more information, please contact:
Company Contact:
Derrick C. Li
Head of Strategy and Investor Relations, CBMG
Phone: 917-717-0994
Email: derrick.li@cellbiomedgroup.com

Investor Contact:
Valter Pinto / Allison Soss
KCSA Strategic Communications
Phone: 212-896-1254 / 212-896-1267
Email: cellbiomed@kcsa.com

SOURCE Cellular Biomedicine Group

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