Press releases

Cellular Biomedicine Group Reports Second Quarter and First Half of 2019 Financial Results and Business Highlights

6 August 2019

NEW YORK and SHANGHAI, Aug. 6, 2019 /PRNewswire/ -- Cellular Biomedicine Group Inc. (NASDAQ: 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 its financial results and business highlights for the second quarter and six months ended June 30, 2019.

Cellular Biomedicine Group logo (PRNewsfoto/Cellular Biomedicine Group)

"During the second quarter of 2019, we made strides in advancing CBMG's clinical pipeline in China. This includes expansion to multiple sites, dose escalation and robust patient recruitment for our B cell maturation antigen (BCMA) CAR-T program targeting multiple myeloma (MM). We have finished enrolling patients for the first cohort in a dose escalation study and currently are enrolling patients for the second cohort. We are also expanding the study into multiple sites. We are moving the alpha-fetoprotein T-cell receptor (AFP-TCR-T) program forward and will start to screen and enroll patients in hepatocellular carcinoma (HCC). We are actively preparing for a multisite trial for our AlloJoin® therapy for Knee Osteoarthritis (KOA)," commented Tony (Bizuo) Liu, Chief Executive Officer of CBMG.

Mr. Liu continued, "We continue to leverage the investigator initiated trial (IIT) process in China and plan to initiate these cancer clinical trials in the U.S. when we see positive proof of concept signals in the IIT studies in China. This allows us to prioritize and focus on developing clinical assets with the most potential and best chance to win both in China and globally."

Business Highlights for the Second Quarter and First Half 2019:

Advanced myriad of our immune-oncology (I/O) and regenerative medicine assets for the next stage in the translational medicine process, comprised of fine-tuning process development, multiple sites trial, increases in patient recruitment, and dose escalation;
Preparing to bring our I/O assets to the U.S. market.

Upcoming Clinical Milestones:

Present update of clinical data for CBMG's anti-BCMA CAR-T in the fourth quarter of 2019

Financial Results for the Second Quarter and First Half 2019:

Net loss allocable to common stock holders for the quarter and six months ended June 30, 2019 was $12.1 million and $21.4 million respectively, compared to $9.2 million and $17.7 million for the same periods in 2018.
General and administrative expenses for the quarter and six months ended June 30, 2019 were $3.2 million and $6.6 million, respectively, compared to $3.1 million and $6.3 million for the same periods in 2018.
Research and development expenses for the quarter and six months ended June 30, 2019 were $9.1 million and $15 million respectively, compared $6.2 million and $11.4 million for the same periods in 2018, primarily due to the increased clinical development for our leading cell therapy targets.
Net cash used in operating activities for first half of 2019 was $18.7 million, compared $13.7 million for the same period in 2018.
Cash, cash equivalents and restricted cash was $56.7 million as of June 30, 2019, compared to $62.0 million as of March 31, 2019.

Conference Call and Webcast Information

The Company will host a conference call and webcast with the investment community on Tuesday, August 6^th at 4:30 p.m. Eastern Time featuring remarks by Tony Liu, Executive Director, CEO and CFO of CBMG.

Live Call:	Toll-Free: 1-855-327-6838 International: 1-604-235-2082

Webcast:	http://public.viavid.com/index.php?id=135481

Replay:	Toll-Free: 1-844-512-2921 International: 1-412-317-6671 Conference ID: 10007371 (Available approximately two hours after the completion of the live call until 11:59 p.m. ET on August 20, 2019)

About Cellular Biomedicine Group

Cellular Biomedicine Group, Inc. (NASDAQ:CBMG) develops proprietary cell therapies for the treatment of cancer and degenerative diseases. We conduct immuno-oncology and stem cell clinical trials in China using products from our integrated GMP laboratory. Our GMP facilities in China, consisting of twelve independent cell production lines, are designed and managed according to both China and U.S. GMP standards. Our Shanghai facility includes a "Joint Laboratory of Cell Therapy" with GE Healthcare and a "Joint Cell Therapy Technology Innovation and Application Center" with Thermo Fisher Scientific, which partnerships focus on improving manufacturing processes for cell therapies. CBMG currently has ongoing CAR-T Phase I clinical trials in China and a Phase IIb trial in China for Rejoin® autologous Human Adipose-derived Mesenchymal Progenitor Cell (haMPC) for the treatment of Knee Osteoarthritis (KOA) as well as a Phase I trial in China for AlloJoin™ (CBMG's "Off-the-Shelf" haMPC) for the treatment of KOA. CBMG is included in the broad-market Russell 3000® Index and the small-cap Russell 2000® Index, and the Loncar China BioPharma index. To learn more about CBMG, please visit 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 and 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. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include those regarding our ability to implement our plans, strategies and objectives for future operations, including regulatory approval of our IND applications, our plan to configure part of our Shanghai facility with GE Healthcare's FlexFactory platform, our ability to execute on proposed new products, services or development thereof, results of our clinical research and development, regulatory infrastructure governing cell therapy and cellular biopharmaceuticals, our ability to enter into agreements with any necessary manufacturing, marketing and/or distribution partners for purposes of commercialization, our ability to seek intellectual property rights for our product candidates, competition in the industry in which we operate, overall market conditions, any statements or assumptions underlying any of the foregoing and other risks detailed from time to time in CBMG's reports filed with the Securities and Exchange Commission, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and. 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, they 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.

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

CELLULAR BIOMEDICINE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Six Months Ended
	June 30,
	2019	2018

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$(21,433,485)		$(17,682,499)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,659,038		2,486,145
Loss on disposal of assets	92,487		2,721
Stock based compensation expense	2,113,535		2,477,614
Other than temporary impairment on long-term investments	-		29,424
Interest expense	158,430		-
Interest from pledged bank deposits	(317,696)		-
Changes in operating assets and liabilities:
Accounts receivable	785		66,451
Other receivables	(19,821)		20,006
Prepaid expenses	(572,978)		(579,479)
Long-term prepaid expenses and other assets	(978,505)		(649,262)
Accounts payable	333,463		114,249
Accrued expenses	(818,327)		(9,892)
Deferred income	-		(4,515)
Other current liabilities	205,632		166,870
Other non-current liabilities	(74,105)		(93,732)
Net cash used in operating activities	(18,651,547)		(13,655,899)

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposal of assets	359		-
Putting six-month deposits with the banks	-		(10,000,000)
Purchases of intangibles	(752,449)		(34,172)
Purchases of assets	(7,468,850)		(2,167,527)
Net cash used in investing activities	(8,220,940)		(12,201,699)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the issuance of common stock	17,166,199		30,506,521
Proceeds from exercise of stock options	150,788		1,165,763
Proceeds from short-term debt	14,546,035		-
Interest paid	(145,159)		-
Repurchase of treasury stock	(1,039,028)		(2,536,064)
Net cash provided by financing activities	30,678,835		29,136,220

EFFECT OF EXCHANGE RATE CHANGES ON CASH	94,518		(61,177)

INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	3,900,866		3,217,445
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD	52,812,880		21,568,422
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$56,713,746		$24,785,867


SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for income taxes	$3,750		$2,400





	June 30,		June 30,
	2019		2018
Reconciliation of cash, cash equivalents and restricted cash in condensed consolidated statements of cash flows:
Restricted cash	$17,000,000		$-
Cash and cash equivalents	39,713,746		24,785,867

Cash, cash equivalents and restricted cash	$56,713,746		$24,785,867

CELLULAR BIOMEDICINE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

	June 30,	December 31,
	2019	2018

Assets
Cash and cash equivalents	$39,713,746	$52,812,880
Restricted cash	17,000,000	-
Accounts receivable, less allowance for doubtful accounts of nil and $94,868 as of June 30, 2019 and December 31, 2018, respectively	-	787
Other receivables	440,847	101,909
Prepaid expenses	2,262,527	1,692,135
Total current assets	59,417,120	54,607,711

Investments	240,000	240,000
Property, plant and equipment, net	19,992,728	15,193,761
Right of use	15,203,003	15,938,203
Goodwill	7,678,789	7,678,789
Intangibles, net	7,868,803	7,970,692
Long-term prepaid expenses and other assets	7,286,803	5,952,193
Total assets	$117,687,246	$107,581,349

Liabilities and Stockholders' Equity

Liabilities:
Short-term debt	$14,546,035	$-
Accounts payable	1,351,930	422,752
Accrued expenses	1,058,273	1,878,926
Taxes payable	28,950	28,950
Other current liabilities	5,186,335	5,710,578
Total current liabilities	22,171,523	8,041,206

Other non-current liabilities	13,338,721	14,321,751
Total liabilities	35,510,244	22,362,957



Stockholders' equity:

Preferred stock, par value $.001, 50,000,000 shares authorized; none issued and outstanding as of June 30, 2019 and December 31, 2018, respectively	-	-

Common stock, par value $.001, 300,000,000 shares authorized; 20,301,425 and 19,120,781 issued; and 19,245,926 and 18,119,282 outstanding, as of June 30, 2019 and December 31, 2018, respectively	20,301	19,121
Treasury stock at cost; 1,055,499 and 1,001,499 shares of common stock as of June 30, 2019 and December 31, 2018, respectively	(14,992,694)	(13,953,666)
Additional paid in capital	270,033,960	250,604,618
Accumulated deficit	(171,415,974)	(149,982,489)
Accumulated other comprehensive loss	(1,468,591)	(1,469,192)
Total stockholders' equity	82,177,002	85,218,392

Total liabilities and stockholders' equity	$117,687,246	$107,581,349

CELLULAR BIOMEDICINE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)

	For the Three Months Ended		For the Six Months Ended
	June 30,		June 30,
	2019	2018	2019	2018

Net sales and revenue	$-	$77,313	$49,265	$128,274

Operating expenses:
Cost of sales	-	54,393	8,087	76,693
General and administrative	3,180,709	3,121,695	6,628,443	6,310,492
Selling and marketing	41,252	92,880	83,512	167,465
Research and development	9,062,526	6,166,556	15,030,622	11,440,507
Impairment of long-term investments	-	29,424	-	29,424
Total operating expenses	12,284,487	9,464,948	21,750,664	18,024,581
Operating loss	(12,284,487)	(9,387,635)	(21,701,399)	(17,896,307)

Other income :
Interest income, net	182,017	116,835	279,051	122,284
Other income (expense), net	7,123	84,724	(7,387)	93,924
Total other income	189,140	201,559	271,664	216,208
Loss before taxes	(12,095,347)	(9,186,076)	(21,429,735)	(17,680,099)

Income taxes provision	(1,350)	-	(3,750)	(2,400)


Net loss	$(12,096,697)	$(9,186,076)	$(21,433,485)	$(17,682,499)
Other comprehensive income (loss):
Cumulative translation adjustment	(395,525)	(1,120,722)	601	(302,361)
Total other comprehensive income (loss):	(395,525)	(1,120,722)	601	(302,361)

Comprehensive loss	$(12,492,222)	$(10,306,798)	$(21,432,884)	$(17,984,860)

Net loss per share :
Basic and diluted	$(0.63)	$(0.53)	$(1.15)	$(1.03)


Weighted average common shares outstanding:
Basic and diluted	19,223,113	17,487,184	18,690,729	17,116,944

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SOURCE Cellular Biomedicine Group