US Stem Cell Inc. (OTCMKTS:USRM)
US Stem Cell Inc. (OTCMKTS:USRM) traded higher after reporting third quarter financial results that beat Wall Street expectations. The stock gained 15.75% after the developer of physician-based stem cell therapies reported a 106% increase in revenue.
USRM Investors Reaction
The better than expected financial results appear to have strengthened investor sentiments on the stock. US Stem Cell is up by more than 100% for the year. However, it has shed a considerable amount of value after coming under pressure after touching highs of $0.13 a share in April.
Investors are slowly taking note of the company’s stem cell therapy process, which empowers patient to utilize their own stem cells to treat chronic pain. Texas joined 30 other states in approving stem cell treatments which has underscored the growth potential of the company’s technology. US Stem Cell Inc. (OTCMKTS:USRM) plans to leverage emerging opportunities as more states join the ranks in approving such technologies.
Q3 Financial Results
For the three months ended September 30, 2017, the stem-cell therapy developer generated revenues of $1.5 million. Revenue for the first nine months of the year grew 92% to $4.04 million compared to $2.1 million as of last year. Gross profits increased 158% to $1 million in the quarter
Cash from operations increased 1004% from (-$113k) as of last year, to more than $1 million. However, operating expenses rose 47% due to a 103% increase in depreciation and one-time costs associations including stock-based compensation.
During the quarter U.S, stem cell strengthened its balance sheet by converting outstanding debt into equity. A debt restructuring agreement entered with Hunton & Williams will provide a debt relief of about $393,180.
US Stem Cell Inc. (OTCMKTS:USRM) attributes the stellar performance in the quarter to an increase in the number of physicians who use the company’s proprietary stem cell technology.
“The increase in operational success – which includes certifying 700 physicians and 287 clinics in the use of our proprietary stem cell technology – is being bolstered by more than 30 states that are passing laws to allow regenerative, cutting-edge procedures like ours. It’s an exciting time to be in the marketplace, and we are looking forward to our continued growth,” said CEO Mike Tomas.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $USRM and receive breaking news on other hot stocks by signing up for our free newsletter!