Mitchell Sacks's questions to BIOSTEM TECHNOLOGIES (BSEM) leadership • Q4 2024
Question
Mitchell Sacks of Grand Slam asked about the potential impact on gross margin percentage under a worst-case SEC accounting scenario and questioned if Q4 revenue was influenced by seasonality or one-time stocking that would affect the 2025 run-rate.
Answer
CFO Michael Fortunato and CEO Jason Matuszewski explained that in the worst-case scenario, bona fide service fees would be netted against revenue, which would lower the gross margin percentage, but did not provide a specific pro-forma figure. Jason Matuszewski stated that while chronic wounds are not seasonal, some Q4 adoption may have been accelerated by the since-delayed LCD implementation date. He also confirmed that inventory with their partner Venture Medical has a rapid sell-through, minimizing one-time stocking effects, and that the company's goal is to build on Q4's performance.