BioTime Announces Fourth Quarter and Fiscal Year End 2012 Financial Results and Recent Corporate Accomplishments

  BioTime Announces Fourth Quarter and Fiscal Year End 2012 Financial Results
  and Recent Corporate Accomplishments

Business Wire

ALAMEDA, Calif. -- March 18, 2013

BioTime, Inc. (NYSE MKT: BTX), today reported financial results for the fourth
quarter and year ended December 31, 2012 and highlighted its fourth quarter
and recent corporate accomplishments.

Fourth Quarter and Recent Highlighted Corporate Accomplishments

  *Entered into a definitive agreement with Geron Corporation in which
    BioTime’s subsidiary BioTime Acquisition Corporation (BAC) will acquire
    the patents and patent applications, biological materials, and other
    assets related to Geron’s human embryonic stem (hES) cell programs,
    including Geron’s Phase I clinical trial of oligodendrocyte progenitor
    cells in patients with acute spinal cord injury, as well as its Phase I/II
    clinical trial of its autologous cellular immunotherapy program in
    patients with acute myelogenous leukemia.
  *Expanded the HyStem^® field-of-use license from the University of Utah to
    an exclusive worldwide license for all human medical applications.
  *Submitted protocol to European regulatory authorities for initiation of
    human clinical trials of Renevia™ as a medical device for the delivery of
    adipose stem cells for reconstructive surgery.
  *Updated plans for OncoCyte’s initiation of a clinical study using PanC-Dx™
    for breast cancer screening in 2013.
  *Launched LifeMap BioReagents™ portal, Malacards database, and LifeMap
    Discovery™ database though LifeMap Sciences.
  *Raised cash proceeds of $14.7 million over the past five months through
    the sale of BioTime common shares, including $1.4 million in the fourth
    quarter of 2012, $13.3 million in the first quarter of 2013 to date, and
    will raise an additional $3 million through an amended agreement with an
    investor which is expected to close on April 10, 2013.

“We have positioned 2013 to be a very pivotal year in the development of our
product opportunities as BioTime begins human clinical trials for Renevia™,
OncoCyte initiates its PanC-Dx™ clinical study, LifeMap Sciences expands its
revenue generating product offerings, and we move to close our transaction
with BAC and Geron,” said Michael D. West, Ph.D., BioTime's President and
Chief Executive Officer. “The proceeds from our recent equity financings will
support the funding of our operations and cash commitment to BAC through this
year.”

Financial Results

Revenue

For the quarter ended December 31, 2012, on a consolidated basis, total
revenue was $1.2 million, down $0.5 million from $1.7 million for the same
period one year ago. The decrease in fourth quarter revenue is primarily
attributable to lower grant revenue related to the completion of BioTime’s
research grant from the California Institute for Regenerative Medicine (CIRM),
and a decrease in the sale of research products, partially offset by
subscription and advertising revenues from LifeMap Sciences’ online database
GeneCards^®, which LifeMap Sciences began marketing in May of 2012.

For the full year 2012, total revenue, on a consolidated basis, was $3.9
million, down $0.5 million from $4.4 million in 2011. The decrease in annual
revenue is primarily due to the same factors that contributed to the decline
in fourth quarter revenues. License revenue included subscription and
advertising revenues from LifeMap Sciences’ online database GeneCards^®, and
accounted for approximately $0.8 million in new revenue beginning at the end
of the second quarter of 2012.

Expenses

Total expenses for the three months ended December 31, 2012 were $8.1 million,
compared to expenses of $7.1 million for the same period of 2011. Fourth
quarter operating expenses increased 14% from 2011 due to an increase in
staffing, and the expansion of research and development efforts, including
additional expenses in the Renevia™  clinical development program and PanC-Dx™
cancer diagnostic development program, and one-time transaction legal expenses
related to Geron’s stem cell assets contribution agreement.

Total expenses for the full year ended December 31, 2012 were $28.5 million,
compared to $23.0 million for the full year ended December 31, 2011. The
increase in expenses is primarily related to an increase in staffing, the
expansion of research and development efforts, and transaction legal expenses.

Net Loss

Net loss attributable to BioTime for the three months ended December 31, 2012
was $6.0 million or $0.12 per share, compared to a net loss of $5.4 million or
$0.11 per share for the same period in 2011. Net loss attributable to BioTime
for the full year ended December 31, 2012 was $21.4 million or $0.44 per
share, compared to a net loss of $16.5 million or $0.35 per share for the full
year ended December 31, 2011. Net losses attributable to BioTime include
losses from BioTime majority owned subsidiaries based upon BioTime’s
percentage ownership of those subsidiaries.

Cash Flow

Net cash used in operating activities in the fourth quarter of 2012 was $5.0
million compared to $3.8 million in the fourth quarter of 2011. For the full
year ended December 31, 2012, net cash used in operating activities was $19.7
million, compared to $13.6 million for the same period in 2011. The increased
use of cash in 2012 reflects the hiring of additional staff and the increased
cost of research and development programs in BioTime subsidiaries, including
programs expanded through business acquisitions, and specific transaction
related legal and administrative expenses..

Balance Sheet and Subsequent Financing Events

Cash and cash equivalents, on a consolidated basis, totaled $4.3 million as of
December 31, 2012, compared with $22.2 million as of December 31, 2011.

During the fourth quarter of 2012, BioTime raised gross proceeds of $1.1
million from the sale of 314,386 BioTime common shares at an average price of
$3.60 per share, and thus far during 2013, BioTime has raised gross proceeds
of $9.7 million from the sale of 2,191,175 BioTime common shares at a weighted
average price of $4.43 per share, in at-the-market transactions. Additionally,
certain BioTime majority-owned subsidiaries hold BioTime common shares which
may be sold in at-the-market or similar transactions. During the fourth
quarter of 2012, BioTime subsidiaries raised gross proceeds of $0.3 million,
and since January 1, 2013, subsidiaries of BioTime have raised gross proceeds
of $1.6 million from the sale of BioTime common shares in at-the-market
transactions. Cantor Fitzgerald & Co. acted as sales agent for BioTime and
BioTime’s subsidiaries in these transactions.

In January 2013, we entered into a stock and warrant purchase agreement with
Romulus Films Ltd. to provide BioTime with $5 million in equity financing.
Under the terms of the agreement, Romulus committed to invest $5 million in
BioTime by purchasing an aggregate of 1,350,000 BioTime common shares at a
purchase price of approximately $3.70 per share and warrants to purchase
650,000 additional BioTime common shares with an exercise price of $5.00 per
share and a term expiring in January 2016. The first tranche of $2 million was
funded in January 2013 and the second investment tranche of $3 million will be
funded on April 10, 2013. This $5 million investment will be used to fund
BioTime’s $5 million cash contribution to BAC.

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 fields of stem cells and regenerative medicine, including a wide array
of proprietary PureStem™ 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, as part of an
integrated database suite that also includes the LifeMap Discovery™ database
of embryonic development, stem cell research and regenerative medicine, and
MalaCards, the human disease database. LifeMap Sciences also markets BioTime
research products and PanDaTox, an innovative, recently developed, searchable
database that can aid in the discovery of new antibiotics and
biotechnologically beneficial products. BioTime Acquisition Corporation is a
new subsidiary being used to acquire the stem cell assets of Geron
Corporation, including patents and other intellectual property, biological
materials, reagents, and equipment for the development of new therapeutic
products for regenerative medicine. 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 obtained 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,” “may” “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
                                                                 
                                        December 31,         December 31,
                                        2012                2011
                                                                 
  ASSETS
  CURRENT ASSETS
  Cash and cash equivalents             $ 4,349,967            $ 22,211,897
  Inventory                               55,316                 51,174
  Prepaid expenses and other current     2,774,196            2,692,303   
  assets
  Total current assets                    7,179,479              24,955,374
                                                                 
  Equipment, net                          1,348,554              1,347,779
  Deferred license and consulting         669,326                843,944
  fees
  Deposits                                64,442                 63,082
  Intangible assets, net                 20,486,792           18,619,516  
  TOTAL ASSETS                          $ 29,748,593          $ 45,829,695  
                                                                 
  LIABILITIES AND EQUITY
  CURRENT LIABILITIES
  Accounts payable and accrued          $ 3,989,962            $ 2,681,111
  liabilities
  Deferred grant income                   -                      261,777
  Deferred license revenue, current      400,870              203,767     
  portion
  Total current liabilities              4,390,832            3,146,655   
  LONG-TERM LIABILITIES
  Deferred license revenue, net of        768,678                899,551
  current portion
  Deferred rent, net of current           57,214                 66,688
  portion
  Other long term liabilities            237,496              258,620     
  Total long-term liabilities            1,063,388            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;
  51,183,318 issued, and 49,383,209       119,821,243            115,144,787
  outstanding as of December 31, 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         (59,570      )         (122,749    )
  income
  Accumulated deficit                     (101,895,712 )         (80,470,009 )
  Treasury Stock: 1,800,109 and
  1,286,174 outstanding at December       (8,375,397   )        (6,000,000  )
  31, 2012 and at December 31, 2011,
  respectively
  Total shareholders' equity              9,584,536              28,646,001
  Noncontrolling interest                14,709,837           12,812,180  
  Total equity                           24,294,373           41,458,181  
  TOTAL LIABILITIES AND EQUITY          $ 29,748,593          $ 45,829,695  

BIOTIME INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                                                                    
                     Unaudited
                     Three Months Ended December 31,    Full Year Ended December 31,
                     2012              2011             2012               2011
                                                                           
REVENUES:
License fees         $350,477          $62,168          $899,998           $263,757
Royalties from       133,878           187,693          541,681            756,950
product sales
Grant income         704,372           1,161,569        2,222,458          2,767,181
Sale of research     33,810           240,290         251,190           646,271      
products
Total revenues       1,222,537        1,651,720       3,915,327         4,434,159    
                                                                           
Cost of Sales        (160,355    )     (20,589     )    (434,271     )     (79,397      )
                                                                        
Total net revenues   1,062,182        1,631,131       3,481,056         4,354,762    
                                                                           
EXPENSES:
Research and         (4,793,278  )     (3,943,248  )    (18,116,688  )     (13,699,691  )
development
General and          (3,327,238  )     (3,148,119  )    (10,365,045  )     (9,341,502   )
administrative
Total expenses       (8,120,516  )     (7,091,367  )    (28,481,733  )     (23,041,193  )
Loss from            (7,058,334  )     (5,460,236  )    (25,000,677  )     (18,686,431  )
operations
OTHER
INCOME/(EXPENSES):
Interest income,     2,062             10,022           19,383             29,727
net
Other
income/(expense),    (93,811     )     (4,877      )    (317,710     )     219,067
net
Loss on sale of      (1,859      )     -               (6,856       )     (6,246       )
fixed assets
Total other
income/(expenses),   (93,608     )     5,145            (305,183     )     242,548
net
NET LOSS             (7,151,942  )     (5,455,091  )    (25,305,860  )     (18,443,883  )
Less: Net loss
attributable to    1,116,988          94,440          3,880,157         1,928,383    
the noncontrolling
interest
                                                                           
NET LOSS
ATTRIBUTABLE TO      $(6,034,954 )     $(5,360,651 )    $(21,425,703 )     $(16,515,500 )
BIOTIME, INC. ^(1)
                                                                           
Foreign currency
translation          137,814          (118,206    )    63,179            (1,020,087   )
gain/(loss)
                                                                           
TOTAL
COMPREHENSIVE LOSS   $(5,897,140 )     $(5,478,857 )    $(21,362,524 )     $(17,535,587 )
^(2)
                                                                           
BASIC AND DILUTED
LOSS PER COMMON      $(0.12      )     $(0.11      )    $(0.44       )     $(0.35       )
SHARE ^(1)
                                                                           
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES             49,263,968         48,990,590      49,213,687        47,053,518   
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 gain of $137,814 and
$63,179 for the three months and year ended December 31, 2012, respectively and
translation loss of $118,206 and loss of $1,020,087 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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