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BioTime Announces Third Quarter 2012 Financial Results and Recent Corporate Accomplishments



  BioTime Announces Third Quarter 2012 Financial Results and Recent Corporate
  Accomplishments

Business Wire

ALAMEDA, Calif. -- November 09, 2012

BioTime, Inc. (NYSE MKT: BTX), a biotechnology company that develops and
markets products in the field of regenerative medicine, today reported
financial results for the third quarter and year-to-date period ended
September 30, 2012 and highlighted recent corporate accomplishments.

Financial Results

Net Loss

Net loss attributable to BioTime for the third quarter of 2012 was $5.0
million or $0.10 per share, compared to a net loss of $3.7 million or $0.08
per share for the same period of 2011. For the nine months ended September 30,
2012, net loss attributable to BioTime was $15.4 million, or $0.31 per share,
compared to $11.2 million, or $0.23 per share for the same period of 2011.

Revenue

Total revenue, on a consolidated basis, was approximately $1.0 million and
$2.7 million for the third quarter and year-to-date period ended September 30,
2012, respectively, compared to $1.2 million and $2.8 million for the same
periods of 2011. Total revenue was effectively the same as prior periods, but
license revenue increased based upon our subsidiary LifeMap Sciences’
subscription and advertising revenue for GeneCards^®, which was offset by
lower grant revenue recognized due to the completion of the California
Institute of Regenerative Medicine (CIRM) grant in August 2012.

Expenses

Total operating expenses for the third quarter of 2012 were $6.8 million,
compared to $5.4 million for the comparable period in 2011. Research and
development expenses for the second quarter of 2012 were $4.6 million,
compared to $3.5 million for the comparable 2011 period. General and
administrative expenses for the third quarter of 2012 were $2.2 million,
compared to $1.9 million for the comparable 2011 period.

Total operating expenses for the first nine months of 2012 were $20.4 million,
compared to $15.9 million for the comparable period in 2011. Research and
development expenses for the first nine months of 2012 were $13.3 million,
compared to $9.8 million for the comparable 2011 period. General and
administrative expenses for the first nine months of 2012 were $7.0 million,
compared to $6.2 million for the comparable 2011 period.

The increase in research and development expenses for the three and nine month
periods ending September 30, 2012, compared to the same periods in 2011,
continue to be due to increased headcount-related expenses, patent-related
legal fees, and increased efforts in the Renevia^TM clinical development
program and PanC-Dx^TM diagnostic development program. The increases in
general and administrative expenses for the third quarter of 2012 and the nine
months ended September 30, 2012, compared to the same periods in 2011, are
primarily due to increased headcount-related expenses, including non-cash
stock compensation expense.

Cash Flow

Net cash used in operating activities was $5.0 million for the three months
ended September 30, 2012 compared to $3.6 million for the three months ended
September 30, 2011, reflecting additional expenses related to increased
headcount and research and development programs in BioTime’s subsidiaries year
over year. Net cash used in operating activities for the nine months ended
September 30, 2012 was $14.7 million for the nine months ended September 30,
2012 compared to $9.7 million for the nine months ended September 30, 2011.

Balance Sheet

Cash and cash equivalents, on a consolidated basis, totaled $7.8 million as of
September 30, 2012, compared with $22.2 million as of December 31, 2011.

As of September 30, 2012, BioTime subsidiaries, OncoCyte and LifeMap Sciences,
held 1,286,174 and 420,000 BioTime common shares, respectively. The common
shares are accounted for as Treasury Stock on a consolidated basis, but the
investment accounts held by each subsidiary with a current combined value of
approximately $6 million, are available to fund the operations of OncoCyte and
LifeMap. The BioTime shares held by LifeMap were contributed as part of an
investment of approximately $2 million in LifeMap through a share exchange
agreement with an investor in July 2012.

On August 24, 2012, BioTime entered into a sales agreement with Cantor
Fitzgerald & Co., under which BioTime may, at its discretion, from time to
time sell up to a maximum of $25 million of its common shares through an
"at-the-market" equity offering program known as a Controlled Equity Offering
("CEO"). Cantor Fitzgerald & Co. will act as sales agent for any sales made
under the CEO. The common shares will be sold at market prices prevailing at
the time of a sale (if any) of the common shares or at prices negotiated with
Cantor Fitzgerald & Co., and, as a result, prices may vary during the period
of the offering. BioTime is not required to sell any of the reserved shares at
any time during the term of the CEO and there are no stand-by fees for having
established the arrangement. The sales agreement does not prohibit BioTime
from conducting additional financings.

Third Quarter and Recent Corporate Accomplishments

Potential of Expanded Operations and New Subsidiaries

  * Announced the formation of a new wholly owned subsidiary, BioTime
    Acquisition Corporation, or BAC, to pursue opportunities and acquire
    assets and businesses in the fields of stem cells and regenerative
    medicine.

Entered Into Strategic Financings

  * Subsidiary LifeMap Sciences, Inc. announced that it entered into a share
    exchange with an investor where the investor agreed to contribute to
    LifeMap, in the aggregate, BioTime common shares having an aggregate value
    of not less than $2 million and not more than $3 million. LifeMap may
    sell, from time to time, some or all of the BioTime shares it receives and
    will use proceeds from the sale of the shares to expand the development
    and marketing of its database products, its research products, and its
    therapeutic discovery activities.
  * Subsidiary Cell Cure Neurosciences Ltd. announced a share purchase
    agreement through which BioTime agreed to purchase 87,456 Cell Cure
    ordinary shares in exchange for 906,735 BioTime common shares, with an
    approximate investment of $3.5 million. As a result of the share purchase,
    once the transaction is completed, BioTime will own approximately 62.6% of
    the outstanding ordinary shares of Cell Cure.

Advanced Near-Term Product Development

  * LifeMap Sciences announced progress on key development initiatives. In
    October, LifeMap launched its database product MalaCards, a new database
    of human diseases that is based on their leading GeneCards^® platform.
    MalaCards (www.malacards.org) contains computerized “cards” classifying
    information relating to a wide array of human diseases. This novel
    research tool will aid researchers in studying the roles of genes and
    cells in disease processes. LifeMap expects to launch or upgrade its other
    database products: GeneCards^®, PanDaTox, and LifeMap Discovery™ by year
    end and will soon launch the marketing and sales of BioTime’s proprietary
    research product lines, including PureStem™ human progenitor and human
    embryonic stem cell lines via the company’s LifeMap BioReagents™ portal.
  * LifeMap Sciences expanded on its therapeutic discovery collaboration with
    BioTime, which utilizes the LifeMap Discovery™ platform and leverages the
    LifeMap scientific team (including ten PhD and four MS biologists and
    bioinformatics specialists) to research and identify those progenitor cell
    lines that are most likely to be useful in developing cell-based
    regenerative medicine therapies for a wide range of diseases. Once
    identified, selected cell lines will be marketed by LifeMap for research
    purposes via the LifeMap BioReagents™ portal and may be advanced into
    therapeutic development by BioTime and/or LifeMap.
  * Announced an amended license from the University of Utah to expand the
    field of use for which BioTime is licensed to produce and market products
    covered by the core patents underlying HyStem^® technology. BioTime now is
    licensed worldwide for all uses, with the exception of veterinary medicine
    and animal health. The field of use includes, but is not limited to, all
    human pharmaceutical and medical device applications, all tissue
    engineering and regenerative medicine uses, and all research applications.
    Previously, BioTime’s license in the United States was not exclusive and
    the fields of use of the technology permitted by the license were not as
    broad.

New Research Grant

  * Subsidiary Cell Cure Neurosciences Ltd. was awarded a grant for 2012 in
    the amount of approximately $1.33 million from Israel’s Office of the
    Chief Scientist to help finance the development of OpRegen^®, Cell Cure’s
    cell-based therapeutic product in development for the treatment of dry
    age-related macular degeneration, a severe form of acute vision loss and
    the leading cause of blindness in an aging population.

Additional Collaborations

  * Announced the signing of an exclusive sublicense agreement and a supply
    agreement with Jade Therapeutics, LLC, a developer of an ophthalmological
    therapeutic sustained-release drug delivery platform. BioTime will provide
    Jade with clinical-grade HyStem^® hydrogels and certain patented
    technology for use by Jade in the development of new pharmaceutical
    products for ophthalmologic use. Jade plans to utilize the hydrogels to
    facilitate the time-released topical delivery of recombinant human growth
    hormone to help heal lesions on the surface of the eye.

Expanded Management and Board of Directors

  * BioTime Acquisition Corp. (BAC) announced that Thomas Okarma, PhD, MD,
    will serve as the BAC’s Chief Executive Officer and as a member of the
    board of directors. Dr. Okarma is the former President and Chief Executive
    Officer of Geron Corporation and served on that company’s board of
    directors.
  * BioTime’s subsidiary OrthoCyte Corporation announced the appointment of
    Francois Binette, PhD, as their Vice President of Research and Business
    Development. Dr. Binette’s primary focus will be to develop and partner
    near- and long-term product opportunities in regenerative medicine with an
    emphasis on orthopedic diseases and injuries.
  * LifeMap Sciences announced the appointment of Louis E. Silverman to their
    board of directors. Mr. Silverman is an experienced health care executive
    with board level and operating experience in health care IT,
    pharmaceuticals, home health care, worker’s compensation managed care and
    revenue cycle management.

Key Research Publications and Presentations.

  * BioTime’s subsidiary OncoCyte Corporation announced the publication of a
    scientific report on the gene COL10A1 and its potential as a marker for
    numerous types of human cancers. The paper, published in the peer-reviewed
    journal Future Oncology, describes the microarray-based approach used to
    identify COL10A1 as a pan-cancer biomarker with significantly elevated
    expression in diverse malignant tumor types including cancers of the
    breast, stomach, colon, lung, bladder, pancreas, and ovaries. In addition,
    the protein was shown to be specifically localized within tumor
    vasculature. Combined, these findings will be an important basis for the
    development and application of new diagnostic and therapeutic strategies,
    including the measurement of Collagen Type X in the blood as a screen for
    the presence of cancer, the use of antibodies that recognize and bind to
    the protein to visualize and locate tumors in the body, and the targeted
    delivery of tumor-destroying agents.
  * Presented at the following scientific and investor meetings:  Stem Cells
    USA & Regenerative Medicine Congress 2012, and  the 2012 Agora Financial
    Investment Symposium.

About BioTime, Inc.

BioTime, headquartered in Alameda, California, is a biotechnology company
focused on regenerative medicine and blood plasma volume expanders. Its broad
platform of stem cell technologies is enhanced through subsidiaries focused on
specific fields of application. BioTime develops and markets research products
in the field of stem cells and regenerative medicine, including a wide array
of proprietary ACTCellerate™ cell lines, HyStem^® hydrogels, culture media,
and differentiation kits. BioTime is developing Renevia™ (formerly known as
HyStem^®-Rx), a biocompatible, implantable hyaluronan and collagen-based
matrix for cell delivery in human clinical applications. BioTime's therapeutic
product development strategy is pursued through subsidiaries that focus on
specific organ systems and related diseases for which there is a high unmet
medical need. BioTime's majority-owned subsidiary Cell Cure Neurosciences Ltd.
is developing therapeutic products derived from stem cells for the treatment
of retinal and neural degenerative diseases. BioTime's subsidiary OrthoCyte
Corporation is developing therapeutic applications of stem cells to treat
orthopedic diseases and injuries. Another subsidiary, OncoCyte Corporation,
focuses on the diagnostic and therapeutic applications of stem cell technology
in cancer, including the diagnostic product PanC-Dx™ currently being developed
for the detection of cancer in blood samples. ReCyte Therapeutics, Inc. is
developing applications of BioTime's proprietary induced pluripotent stem cell
technology to reverse the developmental aging of human cells to treat
cardiovascular and blood cell diseases. BioTime's subsidiary LifeMap Sciences,
Inc. markets GeneCards^®, the leading human gene database, and is developing
an integrated database suite to complement GeneCards^® that will also include
the LifeMap™ database of embryonic development, stem cell research, and
regenerative medicine, and MalaCards, the human disease database. LifeMap will
also market BioTime research products. BioTime's lead product, Hextend^®, is a
blood plasma volume expander manufactured and distributed in the U.S. by
Hospira, Inc. and in South Korea by CJ CheilJedang Corporation under exclusive
licensing agreements. Additional information about BioTime can be found on the
web at www.biotimeinc.com.

Forward-Looking Statements

Statements pertaining to future financial and/or operating results, future
growth in research, technology, clinical development, and potential
opportunities for BioTime and its subsidiaries, along with other statements
about the future expectations, beliefs, goals, plans, or prospects expressed
by management constitute forward-looking statements. Any statements that are
not historical fact (including, but not limited to statements that contain
words such as "will," "believes," "plans," "anticipates," "expects,"
"estimates") should also be considered to be forward-looking statements.
Forward-looking statements involve risks and uncertainties, including, without
limitation, risks inherent in the development and/or commercialization of
potential products, uncertainty in the results of clinical trials or
regulatory approvals, need and ability to obtain future capital, and
maintenance of intellectual property rights. Actual results may differ
materially from the results anticipated in these forward-looking statements
and as such should be evaluated together with the many uncertainties that
affect the business of BioTime and its subsidiaries, particularly those
mentioned in the cautionary statements found in BioTime's Securities and
Exchange Commission filings. BioTime disclaims any intent or obligation to
update these forward-looking statements.

To receive ongoing BioTime corporate communications, please click on the
following link to join our email alert list:
http://phx.corporate-ir.net/phoenix.zhtml?c=83805&p=irol-alerts

 
BIOTIME, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
                                        September 30, 2012   December 31,
                                        (unaudited)          2011
                                                              
ASSETS
CURRENT ASSETS
Cash and cash equivalents               $  7,830,347           $ 22,211,897
Inventory                                  56,968                51,174
Prepaid expenses and other current         1,861,407             2,692,303
assets
Total current assets                       9,748,722             24,955,374
                                                                              
Equipment, net                             1,251,083             1,347,779
Deferred license and consulting fees       712,981               843,944
Deposits                                   67,889                63,082
Intangible assets, net                     21,089,661            18,619,516
TOTAL ASSETS                            $  32,870,336          $ 45,829,695
                                                                              
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable and accrued            $  2,162,390           $ 2,681,111
liabilities
Deferred grant income                      55,710                261,777
Deferred license revenue, current          354,703               203,767
portion
Total current liabilities                  2,572,803             3,146,655
Commitments and contingencies
LONG-TERM LIABILITIES
Deferred license revenue, net of           790,146               899,551
current portion
Deferred rent, net of current portion      60,462                66,688
Other long term liabilities                235,330               258,620
Total long-term liabilities                1,085,938             1,224,859
                                                                              
Commitments and contingencies
                                                                              
EQUITY
Preferred Shares, no par value,
authorized 1,000,000 shares; none          -                     -
issued
Common Shares, no par value,
authorized 75,000,000 shares; issued
and outstanding shares; 50,868,932
issued and 49,162,758 outstanding as       120,905,891           115,144,787
of September 30, 2012 and 50,321,962
issued and 49,035,788 outstanding at
December 31, 2011, respectively
Contributed capital                        93,972                93,972
Accumulated other comprehensive            (197,384     )        (122,749    )
income
Accumulated deficit                        (95,860,758  )        (80,470,009 )
Treasury stock at cost: 1,706,174
shares at September 30, 2012 and           (8,001,762   )        (6,000,000  )
1,286,174 shares at December 31, 2011
Total shareholders' equity                 16,939,959            28,646,001
Noncontrolling interest                    12,271,636            12,812,180
Total equity                               29,211,595            41,458,181
TOTAL LIABILITIES AND EQUITY            $  32,870,336          $ 45,829,695
                                                                              

BIOTIME, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
 
                     Three Months Ended                Nine Months Ended
                     September 30,    September 30,    September 30,     September 30,
                     2012             2011             2012              2011
                                                                                        
REVENUES:
License fees         $ 337,633        $ 54,900         $ 549,521         $ 201,589
Royalties from         133,946          176,027          407,803           569,257
product sales
Grant income           441,630          746,426          1,518,086         1,605,612
Sale of research       90,342           184,217          217,380           405,981
products
Total revenues         1,003,551        1,161,570        2,692,790         2,782,439
                                                                                        
Cost of Sales          (169,734   )     (18,516    )     (273,916    )     (58,808     )
                                                                          
Total net revenues     833,817          1,143,054        2,418,874         2,723,631
                                                                                        
EXPENSES:
Research and           (4,545,470 )     (3,488,121 )     (13,323,410 )     (9,756,443  )
development
General and            (2,234,905 )     (1,887,298 )     (7,037,807  )     (6,193,383  )
administrative
Total expenses         (6,780,375 )     (5,375,419 )     (20,361,217 )     (15,949,826 )
Loss from              (5,946,558 )     (4,232,365 )     (17,942,343 )     (13,226,195 )
operations
OTHER
INCOME/(EXPENSES):
Interest income,       5,624            2,911            17,321            19,705
net
Loss on sale of        (1,451     )     (6,246     )     (4,997      )     (6,246      )
fixed assets
Other
income/(expense),      18,766           (919       )     (223,899    )     223,944
net
Total other
income/(expenses),     22,939           (4,254     )     (211,575    )     237,403
net
NET LOSS               (5,923,619 )     (4,236,619 )     (18,153,918 )     (12,988,792 )
Less: Net loss
attributable to        965,605          498,993          2,763,169         1,833,943
the noncontrolling
interest
                                                                                        
NET LOSS
ATTRIBUTABLE TO      $ (4,958,014 )   $ (3,737,626 )   $ (15,390,749 )   $ (11,154,849 )
BIOTIME, INC. ^(1)
                                                                                        
Foreign currency
translation            (15,777    )     696,661          (74,635     )     (901,881    )
gain/(loss)
                                                                                        
TOTAL
COMPREHENSIVE LOSS   $ (4,973,791 )   $ (3,040,965 )   $ (15,465,384 )   $ (12,056,730 )
^(2)
                                                                                        
BASIC AND DILUTED
LOSS PER COMMON      $ (0.10      )   $ (0.08      )   $ (0.31       )   $ (0.23       )
SHARE ^(1)
                                                                                        
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES                 49,291,177       48,896,973       49,196,804        48,681,879
OUTSTANDING: BASIC
AND DILUTED

(1) Basic and diluted loss per common share is calculated using "Net loss
attributable to BioTime, Inc."
 
(2) Comprehensive net loss includes foreign currency translation loss of
$15,777 and $74,635 for the three and nine months ended September 30, 2012,
respectively and transaction gain of $696,661 and loss of $901,881 for the
same periods in the prior year, respectively arise entirely from the
translation of foreign subsidiary financial information for consolidation
purposes and therefore not used in the calculation of basic and diluted loss
per common share.

Contact:

BioTime, Inc.
Peter Garcia, 510-521-3390 ext. 367
Chief Financial Officer
pgarcia@biotimemail.com
or
Judith Segall, 510-521-3390 ext. 301
jsegall@biotimemail.com
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