GOLDEN, CO / ACCESSWIRE / December 20, 2017 / Vitro Diagnostics, Inc. (OTC PINK: VODG), dba Vitro Biopharma, announced its CEO letter to its shareholders, including discussion of 2016 & 2017 results, and plans for 2018, including regenerative medicine initiatives for expanding indications.
Dear Shareholders,
In 2016-2017 we achieved:
- Accelerated translation from research products to stem cell therapies.
- Expansion of our facility costing $125,000 to comply with FDA Good Manufacturing Practices (GMP) for clinical manufacturing. Thus, positioning us for regulatory certifications.
- Expanded our management team to include a seasoned executive as CFO who has executed numerous M&A transactions, raised substantial capital and grown revenues exceeding $250 million per year in his prior companies.
- Added stem cell medical experts to our advisory board and clinical trial support team.
- Increased revenues by 153% with the addition of 40% of total revenue derived from stem cell therapy products and services in 2017.
- Filed 7 patents protecting novel technology for stem transplants, stem cell activation, and diagnostics.
- Raised $400,000 in capital and financing to fund the expansion of cleanroom operations and new product development.
Vitro Biopharma announced record revenues for 2017 of $262,148 vs. $171,772 in 2016 based on both expansions of revenues from its core products, including cancer-associated fibroblasts used to accelerate development of immunotherapy of solid tumors and especially new revenues derived from stem cell therapies $104,919 in 2017 vs. $38,860 in 2016. The financial statements (unaudited) for 2016 & 2017 are included below.
The Company raised capital to install a GMP-compliant clean-room for manufacturing of all clinical products and develop a Quality Management System (QMS). This is important since clinical trial protocols require adherence to GMP guidelines issued by the FDA. The Company plans near-term completion of ISO (International Standards Organization) certification together with CLIA (Clinical Laboratory Improvement Act) certification, for manufacturing and clinical diagnostics, respectively. We also intend appropriate FDA filings to support our clinical manufacturing. Our current clinical trials include autism and anti-inflammation though collaborators in the Czech Republic and the Cayman Islands, respectfully. We also supply our first in class stem cell expansion culture medium (MSC-Gro™) to an Australian firm conducting clinical trials of MSC transplants for osteoarthritis (OA). All clinical manufacturing operations occur within a sterile clean room environment that is rigorously controlled to ensure sterility and the absence of contamination during the processing of cellular materials and cell culture media.
We also expanded our intellectual property (IP) to include a novel stem cell line patent application for use in numerous regenerative medicine applications including auto-immune disorders such as Lupus, cardiovascular disease, musculoskeletal conditions such as OA and various neurodegenerative disorders. Additional patent applications have been filed for treatment of neurological disorders by activation of stem cells within the brain. Our IP now allows proprietary therapies of neurological conditions including Parkinson's disease, Alzheimer's disease and traumatic brain injury (TBI), etc. Neurological conditions have been under-treated for many years while stem cell therapies offer potentially effective solutions. Hence, we plan commercialization of TBI therapies beginning in early 2018. There are more than 1.7 million TBI patients per year in the US while therapy consists of life-saving measures followed by rehabilitation with minimal therapeutic options. Recent advances in stroke recovery by stem cell therapy highlight the regenerative potential of stem cell therapies for neurodegenerative conditions and support the concept of brain regeneration by stem cell therapy. Our TBI initiative involves stem cell activation therapy and advanced diagnostics including biomarker profiling and brain scans.
Current management has decided to focus our operational resources to achieve rapid revenue growth & profitability in our high value-added Stem Cell therapies while seeking appropriate strategic alliances and partnerships. Our eventual goal is to be acquired by a larger firm with complementary resources to those of the Company. The company has made a strategic decision to focus its resources on expanding its revenue base driven by internal growth and limited capital raising. This decision will minimize shareholder dilution while building the company's market value. We do not intend to maintain SEC reporting compliance because of the excessive cost burden of Audits and SEC legal compliance. The company will provide unaudited financial reports and publication of material transactions while maintaining future options to becoming fully reporting with the SEC if required or be acquired in an acquisition transaction.
In summary, Vitro Biopharma is advancing as a key player in regenerative medicine with 10-years' experience in the development and commercialization of stem cell products for research, recognized by a Best in Practice Technology Innovation Leadership Award for Stem Cell Tools and Technology and a growing track record of successful translation to therapy. We plan to leverage our proprietary technology platform to the establishment of international Stem Cell Centers of Excellence and regulatory approvals in the US.
Sincerely yours,
James R. Musick, PhD.
President, CEO & Chairman of the Board
Forward-Looking Statements
Statements herein regarding financial performance have not yet been reported to the SEC nor reviewed by the Company's auditors. Certain statements contained herein and subsequent statements made by and on behalf of the Company, whether oral or written may contain 'forward-looking statements.' Such forward-looking statements are identified by words such as 'intends,' 'anticipates,' 'believes,' 'expects' and 'hopes' and include, without limitation, statements regarding the Company's plan of business operations, product research and development activities, potential contractual arrangements, receipt of working capital, anticipated revenues and related expenditures. Factors that could cause actual results to differ materially include, among others, acceptability of the Company's products in the marketplace, general economic conditions, receipt of additional working capital, the overall state of the biotechnology industry and other factors set forth in the Company's filings with the Securities and Exchange Commission. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulations, the Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT:
Dr. James Musick
Chief Executive Officer
Vitro Biopharma
(303) 999-2130 Ext. 3
E-mail: jim@vitrobiopharma.com
Vitro Diagnostics Inc. | ||||||||
Year Ended Oct 31; | 2017 | 2016 | ||||||
Income Statement | ||||||||
Stem Cell Therapies | 104,919 | 38,860 | ||||||
Stem Cell Products | 150,203 | 126,438 | ||||||
Other | 7,026 | 6,474 | ||||||
Total Revenues | $ | 262,148 | $ | 171,772 | ||||
Cost of Goods Sold | 104,707 | 65,130 | ||||||
Gross Profit | 157,440 | 106,642 | ||||||
SGA Expenses | 165,588 | 48,073 | ||||||
Office Expenses | 27,986 | 20,512 | ||||||
Legal, Accounting, Banking Fees & Expenses | 137,460 | 77,036 | ||||||
Laboratory R&D & Q.C. Expenses | 122,170 | 92,386 | ||||||
Total Operating Expenses | 453,203 | 238,006 | ||||||
Net Operating Profit (Loss) | (295,763) | (131,364) | ||||||
Non-Cash Interest on Secured Notes Payable | (10,417) | |||||||
Non-Cash Interest on Shareholder Debt | (144,018) | (125,868) | ||||||
Net Income (Loss) | (450,198) | (257,232) | ||||||
The company provides its financial information for investor purposes the results published however are not audited or necessarily SEC compliant.
Vitro Diagnostics Inc. | ||||||||
Year Ended Oct 31; | 2017 | 2016 | ||||||
Balance Sheet | ||||||||
ASSETS | ||||||||
Cash | 2,612 | 3,121 | ||||||
Accounts Receivable | 40,882 | 32,979 | ||||||
Inventory | 24,978 | 28,806 | ||||||
Fixed Assets | 172,519 | 49,681 | ||||||
Intangible Assets | 22,269 | 29,131 | ||||||
Total Assets | 263,260 | 143,718 | ||||||
LIABILITIES | ||||||||
Accounts Payable | 49,929 | 153,366 | ||||||
Short Term Credit Cards | 53,365 | 41,717 | ||||||
Capital Lease Obligations | 18,544 | 11,495 | ||||||
Current Liabilities | 121,838 | 206,578 | ||||||
Secured Notes Payable | 360,417 | - | ||||||
Capital Lease Obligations | 74,178 | - | ||||||
Shareholder Accrued Compensation Payable | 1,205,958 | 1,205,958 | ||||||
Shareholder Debts Payable | 1,532,785 | 1,365,900 | ||||||
Long Term Liabitlites | 3,173,338 | 2,571,857 | ||||||
Total Liabilites | 3,295,176 | 2,778,436 | ||||||
SHAREHOLDERS EQUITY | ||||||||
Common Stock | 21,432 | 20,372 | ||||||
Paid in Capital | 5,508,387 | 5,456,447 | ||||||
Retained Earnings | (8,111,537) | (7,854,305) | ||||||
Net Income | (450,198) | (257,232) | ||||||
Total Equity | (3,031,916) | (2,634,718) | ||||||
TOTAL LIABILITIES AND EQUITY | 263,260 | 143,718 | ||||||
The company provides its financial information for investor purposes the results published however are not audited or necessarily SEC compliant.
STATEMENTS OF CASH FLOW | 2017 | |||
For the year ended: | ||||
Net Loss | (450,198) | |||
Non-Cash Depreciation | 9,220 | |||
Amortization of Intangible Assets, net | (6,862) | |||
Increase in current Assets | 3,567 | |||
Increase in Current Liabilities | (84,740) | |||
Principal payments on capital leases | (36,312) | |||
Net cash used in operating activites | (115,126) | |||
Cashflows from Investing Activities | ||||
Halo Intercompany Account, net | (37,532) | |||
Purchases of equipment | (125,930) | |||
Equipment Financed | 120,459 | |||
Draws on lines of credit, net | 11,648 | |||
Secured Notes Payable | 360,417 | |||
Increase in Shareholder Debt | 28,318 | |||
Non-Cash Services provided for Stock | 53,000 | |||
Non-Cash Shareholder Debt Interest | 154,435 | |||
Net Cash provided by Financing Activities | 564,815 | |||
| Net Change in Cash | (509) | |||
| Cash Beginning of the year | 3,121 | |||
Cash End of the year | 2,612 | |||
STATEMENT OF CHANGES IN SHAREHOLDER EQUITY | Shares | Par Value | Paid in Capital | |||||||||
Balance October 31, 2016 | 20,371,822 | 20,371 | 5,456,447 | |||||||||
Services Paid with Stock 2017 | 1,060,000 | 1,060 | 51,940 | |||||||||
Balance October 31, 2017 | 21,431,822 | 21,431 | 5,508,387 | |||||||||
The company provides its financial information for investor purposes the results published however are not audited or necessarily SEC compliant.
SOURCE: Vitro Diagnostics, Inc.
