Ernest Watts's questions to Biostem Technologies Inc (BSEM) leadership • Q3 2024
Question
Ernest Watts from Watts Associates asked for clarification on 'buildup costs' that precede revenues, requesting specific figures for these costs in Q2 and Q3.
Answer
Jason Matuszewski, Founder and CEO, clarified that the primary cost is 'bona fide service fees' paid to Venture Medical, which correlate directly with revenue. CFO Michael Fortunato specified these fees, part of sales and marketing, were $65.1 million in Q3 and approximately in the 'mid-50s' million range in Q2, reiterating that they scale with revenue.