Shiva Gajula's questions to Biostem Technologies Inc (BSEM) leadership • Q1 2025
Question
Shiva Gajula, a private investor, posed several questions regarding BioStem's financial performance and strategy. He asked about the drivers behind the significant year-over-year increase in operating expenses, the sustainability of high gross margins, the reasons for the sequential revenue decline, and the company's plans for full-year guidance. He also inquired about the timeline for the NASDAQ uplisting, clinical trial progress, and strategies to manage reliance on their distribution partner, Venture Medical.
Answer
CFO Mike Fortunato attributed the rise in operating expenses to business scaling, increased sales-related service fees, and legal costs associated with the NASDAQ uplisting process. He affirmed the sustainability of the 99% gross margin, driven by the shift to the license-fee-free VENDAJE AC product, and mentioned cost containment as key to improving EBITDA. CEO Jason Matuszewski addressed the sequential revenue dip, citing market uncertainty from the now-delayed LCD implementation which caused providers to pull back. Matuszewski confirmed no full-year guidance would be provided and stated that while they are exploring M&A to diversify, the partnership with Venture Medical remains central to their strategy. Regarding the NASDAQ uplisting, Fortunato noted ongoing productive discussions with the SEC but could not provide a specific timeline.