Cytomedix Reports First Quarter 2012 Financial Results

Cytomedix Reports First Quarter 2012 Financial Results 
Record Product Sales Showed Increase of 23%; Conference Call Begins
Wednesday, May 16th at 10:00 a.m. Eastern Time 
GAITHERSBURG, MD -- (Marketwire) -- 05/15/12 --   Cytomedix, Inc.
(OTCBB: CMXI) (the "Company"), a regenerative therapies company
commercializing and developing innovative platelet and adult stem
cell technologies for wound and tissue repair, today announced
financial results for the three months ended March 31, 2012.  
Financial highlights for the 2012 first quarter include (all
comparisons are with the 2011 first quarter): 

--  Total revenues increased 121% to $3.02 million from $1.37 million
--  Product sales increased 23% to $1.69 million from $1.37 million
--  Licensing revenue of $1.33 million was recorded as partial recognition
    of the $4.50 million non-refundable option payments received to date
    in connection with the potential strategic supply and distribution
    partnership for the AutoloGel(TM) System
--  Net loss to common stockholders of $4.74 million or $0.07 per share
    included $3.44 million in non-recurring and/or non-cash expenses and
    transaction costs, compared with a net loss to common stockholders of
    $1.50 million or $0.03 per share
--  Cash used in operations was $0.51 million compared with $1.29 million

Management Discussion 
Martin P. Rosendale, Chief Executive Officer of Cytomedix, said, "The
first quarter of 2012 and recent weeks have been noteworthy for
Cytomedix. In addition to posting double-digit revenue growth with
our commercial products, we made significant inroads with our
reimbursement initiatives for AutoloGel and received an additional
$2.5 million non-refundable option payment from our potential
strategic partner for AutoloGel. Most significantly, we expanded our
commitment to regenerative medicine with the acquisition of Aldagen
in February 2012 and now have in place the three pillars of
regenerative medicine with autologous stem cells, platelet-derived
signal molecules and plasma scaffolds. 
"The acquisition of Aldagen broadened our footprint in regenerative
medicine and provided us with a robust pipeline of product candidates
in areas of large unmet medical need. We are in the process of
integrating the Aldagen technology into the business and have made
progress with ongoing development programs. We have advanced the
Phase 2 RECOVER-Stroke trial, which is assessing ALD-401 to treat
post-acute ischemic stroke, and saw positive data from a Phase 1
clinical trial of ALD-201 to treat ischemic heart failure published
in the American Heart Journal. 
"We continued to post significant revenue growth for the Angel(R)
Whole Blood Separation System during the quarter, and we look forward
to expanding its potential with enhanced targeted marketing efforts
as well as expansion into other indications where we can increase
utilization. We have a 510(k) application on file with the U.S. Food
and Drug Administration for Angel to process bone marrow and are
evaluating our strategy to leverage the utility of this product in
sports medicine and orthopedics where there is a growing market
opportunity. In addition, we also posted a record revenue quarter for
AutoloGel even though our commercial sales focus was on Angel while
AutoloGel efforts were dedicated to reimbursement and partnership
"During the quarter we substantially strengthened our balance sheet,
simplified our capital structure and increased our shareholders'
equity, which along with growing product sales positions us to
implement our strategic growth plan. The year is off to a strong
start and we remain very encouraged by the prospects for both our
commercial products and our pipeline," concluded Mr. Rosendale. 
First Quarter Financial Results  
Total revenues for the first quarter of 2012 were $3.02 million, an
increase of 121% compared with total revenues of $1.37 million for
the first quarter of 2011. The increase was largely attributable to
the recognition of $1.33 million in license revenue from the $4.50
million in total non-refundable option fees received to date in
connection with the potential agreement with a global pharmaceutical
company, as well as from higher sales of the Angel and AutoloGel
Sales from the Angel product line increased 18% to $1.51 million from
$1.28 million in the prior-year first quarter. Record quarterly
AutoloGel System sales of $164,000 increased 89% compared with the
first quarter of 2011. 
Gross profit for the first quarter of 2012 increased 201% to $2.17
million from $720,000 for the same period in 2011, primarily due to
the $1.33 million in licensing revenue that had no related cost of
revenue. Gross profit on product sales increased 16% to $838,000. 
Gross margin on product sales for the three months ended March 31,
2012 was 50% compared with 53% for the comparable 2011 period,
primarily the result of a shift in product mix to lower-margin
products as the Company recorded a significant number of Angel device
sales to international distributors and wrote off some obsolete
First quarter cash margin on product sales, excluding $116,000 in
patent amortization and depreciation expense, was 56%. Cash margin is
a non-GAAP financial measure, most directly comparable to gross
margin, and should not be considered as an alternative thereto.
Cytomedix defines cash margin as gross margin exclusive of patent
amortization and depreciation expense, and it is a significant
performance metric used by management to indicate cash profitability
on product sales. 
Operating expenses for the first quarter of 2012 increased to $4.89
million from $2.20 million in the prior-year first quarter. This
increase was primarily attributable to transaction related costs
associated with the Aldagen acquisition of approximately $528,000,
and approximately $979,000 in non-recurring, non-cash stock
compensation expense for options granted to former Aldagen employees,
consultants and board members. The Company also incurred additional
expenses in the 2012 first quarter related to reimbursement,
regulatory and marketing initiatives.  
Other expense for the first quarter of 2012 of $2.0 million compared
with other income of $78,000 in the first quarter of 2011. The change
was primarily due to approximately $1.50 million in non-cash
inducement expense associated with common stock issued in exchange
for the early conversion of Series D preferred stock and incentive
warrants issued in exchange for the early exercise of existing
warrants. Additionally, there was an approximate $424,000 in expense
associated with non-cash interest costs and change in fair value of
derivative liabilities. 
Net loss to common stockholders for the first quarter of 2012 was
$4.74 million or $0.07 per share, compared with a net loss to common
stockholders of $1.50 million or $0.03 per share for the first
quarter of 2011.  
Cash and Liquidity 
Cash and cash equivalents as of March 31, 2012 were $8.50 million,
compared with $2.25 million as of December 31, 2011. The Company used
$509,000 in cash to fund operating activities during the first
quarter 2012. An additional $1.18 million in cash from warrant
exercises was received post quarter end associated with the remaining
binding commitments for warrant exercises by June 30, 2012. 
Andrew Maslan, Cytomedix's Chief Financial Officer, noted, "During
the first quarter of 2012, we considerably strengthened our balance
sheet with the receipt of the additional $2.5 million non-refundabl
payment in connection with the option agreement with a top 20 global
pharmaceutical company to extend the exclusive due diligence period
for the rights to negotiate a license agreement for AutoloGel until
June 30, 2012. In addition we raised $5.0 million in a private
placement from certain Aldagen investors and received $1.1 million
from the exercise of existing options and warrants.  
"In addition to strengthening our balance sheet, we took a number of
steps to simplify our capital structure, including the redemption of
Series A and B preferred stock and the conversion of Series D
preferred stock. Series E preferred stock issued to Aldagen investors
as the upfront consideration in February will automatically convert
into common shares upon shareholder approval of an increase to
authorized common shares at our upcoming Special Shareholders'
Meeting on May 18th.  
"Importantly, we are pleased to report that we have significantly
increased shareholders' equity to $10.3 million from $3.3 million at
year-end 2011. We expect a further significant increase of
approximately $19 million to equity as the conversion of Series E
preferred stock to common stock occurs, and believe maintaining a
healthy shareholders' equity balance will be important as we consider
an uplisting to a national stock exchange," added Mr. Maslan.  
For additional information, please refer to the Company's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2012, filed with
the U.S. Securities and Exchange Commission on May 15, 2012. 
Conference Call 
Cytomedix management will hold a conference call to discuss these
results and answer questions beginning at 10:00 a.m. Eastern time on
Wednesday, May 16, 2012. Shareholders and other interested parties
may participate in the call by dialing 888-679-8034 (domestic) or
617-213-4847 (international) and entering passcode 23291244. The call
will also be broadcast live on the Internet at, and 
A replay of the conference call will be available beginning two hours
after its completion through May 23, 2012 by dialing 888-286-8010
(domestic) or 617-801-6888 (international) and entering passcode
78509324. The call will also be archived for 90 days at, and 
About Cytomedix, Inc.  
Cytomedix, Inc. develops, sells and licenses regenerative biological
therapies primarily for wound care, inflammation and angiogenesis.
The Company markets the AutoloGel(TM) System, a device for the
production of autologous platelet rich plasma ("PRP") gel for use on
a variety of exuding wounds and the Angel(R) Whole Blood Separation
System, a blood processing device and disposable products used for
the separation of whole blood into red cells, platelet poor plasma
("PPP") and PRP in surgical settings. On February 8, 2012 Cytomedix
closed the acquisition of Aldagen, a biopharmaceutical company
developing regenerative cell therapies based on its proprietary ALDH
bright cell ("ALDHbr") technology, currently in a Phase 2 trial for
the treatment of ischemic stroke. For additional information please
Non-GAAP financial measures  
The non-GAAP financial measures discussed in the text of this press
release and accompanying non-GAAP supplemental information are
financial measures used by our management to evaluate our operating
performance and to calculate our cash profitability. These non-GAAP
measures are not in accordance with, or an alternative for, U.S.
generally accepted accounting principles ("GAAP") and may be
different from non-GAAP measures used by other companies. In
addition, these non-GAAP measures are not based on any comprehensive
set of accounting rules or principles and management exercises
judgment in determining which items should be excluded in the
calculation of non-GAAP measures. While we believe that non-GAAP
measures have limitations in that they do not reflect all of the
amounts associated with our results of operations as determined in
accordance with GAAP, we believe that non-GAAP measures are valuable
in analyzing our cash profitability. Management analyzes current and
future results on a GAAP basis as well as a non-GAAP basis and also
provides GAAP and non-GAAP measures in our earnings release. The
presentation of non-GAAP financial information is not meant to be
considered in isolation or as a substitute for the directly
comparable financial measures prepared in accordance with GAAP. The
non-GAAP financial measures are meant to supplement, and be viewed in
conjunction with, GAAP financial measures. We believe that the
presentation of non-GAAP measures, when shown in conjunction with the
corresponding GAAP measures, provides useful information to investors
and management regarding financial and business trends relating to
our financial condition and results of operations. Investors are
advised to carefully review and consider this information as well as
the GAAP financial results that are disclosed in our SEC filings. 
Safe Harbor Statement 
Statements contained in this press release not relating to historical
facts are forward-looking statements that are intended to fall within
the safe harbor rule for such statements under the Private Securities
Litigation Reform Act of 1995. The information contained in the
forward-looking statements is inherently uncertain, and Cytomedix'
actual results may differ materially due to a number of factors, many
of which are beyond Cytomedix' ability to predict or control,
including among many others, risks and uncertainties related to the
Company's ability to successfully integrate the Aldagen acquisition,
to successfully manage contemplated clinical trials, to manage and
address the capital needs, human resource, management, compliance and
other challenges of a larger, more complex and integrated business
enterprise, viability and effectiveness of the Company's sales
approach and overall marketing strategies, commercial success or
acceptance by the medical community, competitive responses, the
Company's ability to list its securities on a national stock
exchange, the Company's ability to raise additional capital and to
continue as a going concern, and Cytomedix's ability to execute on
its strategy to market the AutoloGel(TM) System as contemplated. To
the extent that any statements made here are not historical, these
statements are essentially forward-looking. The Company uses words
and phrases such as "believes", "forecasted," "projects," "is
expected," "remain confident," "will" and/or similar expressions to
identify forward-looking statements in this press release. Undue
reliance should not be placed on forward-looking information. These
forward-looking statements are subject to known and unknown risks and
uncertainties that could cause actual events to differ from the
forward-looking statements. More information about some of these
risks and uncertainties may be found in the reports filed with the
Securities and Exchange Commission by Cytomedix, Inc. Cytomedix
operates in a highly competitive and rapidly changing business and
regulatory environment, thus new or unforeseen risks may arise.
Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. Except
as is expressly required by the federal securities laws, Cytomedix
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, changed
circumstances or future events or for any other reason. Additional
risks that could affect our future operating results are more fully
described in our U.S. Securities and Exchange Commission filings,
including our Annual Report for the year ended December 31, 2011 and
other subsequent filings. These filings are available at 
-Tables to Follow- 

                               CYTOMEDIX, INC.                              
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                                                   March 31,   December 31, 
                    2012          2011     
                                                 ------------  ------------ 
Current assets                                                              
  Cash (including $4 million of cash dedicated                              
   for clinical trials and related matters)      $  8,480,996  $  2,246,050 
  Short-term investments, restricted                   53,176        52,840 
  Accounts and other receivable, net                1,853,320     1,480,463 
  Inventory                                           511,826       548,159 
  Prepaid expenses and other current assets           490,133       695,567 
  Deferred costs, current portion                     136,436       136,436 
                                                 ------------  ------------ 
Total current assets                               11,525,887     5,159,515 
Property and equipment, net                         1,797,753       978,893 
Deferred costs                                        283,110       317,219 
Intangible assets, net                             34,410,037     2,916,042 
Goodwill                                            1,323,649       706,823 
Other long-term assets                                  9,256            -- 
                                                 ------------  ------------ 
Total assets                                     $ 49,349,692  $ 10,078,492 
                                                 ============  ============ 
      LIABILITIES AND STOCKHOLDERS' EQUITY                                  
Current liabilities                                                         
  Accounts payable and accrued expenses          $  2,599,841  $  1,849,133 
  Deferred revenues, current portion                1,824,359       654,721 
  Dividends payable on preferred stock                     --       105,533 
  Derivative liabilities, current portion                  --       528,467 
                                                 ------------  ------------ 
Total current liabilities                           4,424,200     3,137,854 
Note payable                                        2,100,000     2,100,000 
Series E liability                                 18,955,742            -- 
Contingent consideration                           11,109,020            -- 
Derivative and other liabilities                    2,446,971     1,559,055 
                                                 ------------  ------------ 
Total liabilities                                  39,035,933     6,796,909 
                                                 ------------  ------------ 
Commitments and contingencies                                               
Stockholders' equity                                                        
  Series A Convertible preferred stock; $.0001                              
   par value, authorized 5,000,000 shares;                                  
    2012 issued and outstanding - 0 shares;                                 
    2011 issued and outstanding - 97,663 shares;                            
    2012 liquidation preference of $0;                     --            10 
    2011 liquidation preference of $97,663                                  
  Series B Convertible preferred stock; $.0001                              
   par value, authorized 5,000,000 shares;                                  
    2012 issued and outstanding - 0 shares;                                 
    2011 issued and outstanding - 65,784 shares;                            
    2012 liquidation preference of $0;                                      
    2011 liquidation preference of $65,784                 --             7 
  Series D Convertible preferred stock; $.0001                              
   par value, authorized 2,000,000 shares;                                  
    2012 issued and outstanding - 0 shares;                                 
    2011 issued and outstanding - 3,300 shares;                             
    2012 liquidation preference of $0;                                      
    2011 liquidation preference of $3,300,000              --            -- 
  Common stock; $.0001 par value, authorized                                
    2012 issued and outstanding - 70,913,196                                
    2011 issued and outstanding - 55,536,292                                
     shares                                             7,091         5,554 
  Common stock issuable                             2,121,149            -- 
  Subscriptions receivable                         (2,121,149)           -- 
  Additional paid-in capital                       66,212,471    54,458,170 
  Accumulated deficit                             (55,905,803)  (51,182,158)
                                                 ------------  ------------ 
Total stockholders' equity                         10,313,759     3,281,583 
                                                 ------------  ------------ 
Total liabilities and stockholders' equity       $ 49,349,692  $ 10,078,492 
                                                 ============  ============ 
                            CYTOMEDIX, INC.                                 
                                                     Three Months Ended     
                                                          March 31,         
                                                     2012          2011     
                                                 ------------  ------------ 
                                                  (UNAUDITED)   (UNAUDITED) 
  Product Sales                                  $  1,686,392  $  1,365,613 
  License Fees                                      1,330,362            -- 
                                                 ------------  ------------ 
Total revenues                                      3,016,754     1,365,613 
                                                 ------------  ------------ 
Cost of revenues                                                            
  Cost of sales                                       848,436       645,384 
                                                 ------------  ------------ 
Total cost of revenues                                848,436       645,384 
                                                 ------------  ------------ 
Gross profit                                        2,168,318       720,229 
              ------------  ------------ 
Operating expenses                                                          
  Salaries and wages                                2,062,128       726,063 
  Consulting expenses                                 829,047       336,482 
  Professional fees                                   463,037       236,921 
  Research, development, trials and studies           357,308        59,946 
  General and administrative expenses               1,176,227       843,544 
                                                 ------------  ------------ 
Total operating expenses                            4,887,747     2,202,956 
                                                 ------------  ------------ 
Loss from operations                               (2,719,429)   (1,482,727)
                                                 ------------  ------------ 
Other income (expense)                                                      
  Interest, net                                      (267,145)     (250,381)
  Change in fair value of derivative liabilities     (220,314)      378,125 
  Inducement expense                               (1,512,148)           -- 
  Other                                                    --       (50,237)
                                                 ------------  ------------ 
Total other income (expenses)                      (1,999,607)       77,507 
                                                 ------------  ------------ 
Loss before provision for income taxes             (4,719,036)   (1,405,220)
Income tax provision                                    4,609         5,000 
                                                 ------------  ------------ 
Net loss                                           (4,723,645)   (1,410,220)
Preferred dividends:                                                        
  Series A preferred stock                                 --         2,199 
  Series B preferred stock                                 --         1,496 
  Series D preferred stock                             13,562        82,875 
                                                 ------------  ------------ 
Net loss to common stockholders                  $ (4,737,207) $ (1,496,790)
                                                 ============  ============ 
Loss per common share --                                                    
  Basic and diluted                              $      (0.07) $      (0.03)
                                                 ============  ============ 
Weighted average shares outstanding --                                      
  Basic and diluted                                63,262,699    46,059,041 
                                                 ============  ============ 

Cytomedix, Inc.
Martin Rosendale, Chief Executive Officer
Andrew Maslan, Chief Financial Officer 
David Jorden, Executive Chairman
(240) 499-2680 
Investor Inquiries
Anne Marie Fields 
(212) 838-3777 
Bruce Voss
(310) 691-7100
Media Inquiries
Michelle Linn
Linnden Communications
(508) 362-3087 
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