Cord Blood America Files Annual Financial Report for 2009
LAS VEGAS, March 31 /PRNewswire-FirstCall/ -- Cord Blood America, Inc. (OTC Bulletin Board: CBAI), the umbilical cord blood stem cell preservation company (http://www.cordblood-america.com ) focused on bringing the life saving potential of stem cells, a biological insurance policy, to families nationwide and internationally, announced today that it has filed its Form 10-K for the fiscal year 2009 with the U.S. Securities and Exchange Commission.
Total liabilities decreased 62 percent to $5.2 million at the end of 2009 compared to $13.6 million at the conclusion of 2008. The decrease includes a reduction in promissory notes from $6.8 million at December 31, 2008, to $161,886 at December 31, 2009, and a $2.2 million decrease in accounts payable and accrued expenses. "Reducing the company debt in 2009 was a major goal and to see virtually all of our long term obligations, some dating back to 2005, removed from our balance sheet significantly strengthens our strategic growth plan for the Company in 2010," said Matthew Schissler, Cord Blood America co-founder and CEO.
The filing said gross profits as a percentage of revenues increased to 55.9 percent in 2009 up from 55.1 percent in 2008. "In the face of difficult economic factors, increasing our gross profit is an accomplishment. We are confident this trend will continue with the movement into our new, state-of-the-art laboratory in Las Vegas where the internal costs for storage and processing are expected to provide improved margins versus outsourcing," Mr. Schissler said.
Cord Blood America's CEO also emphasized that the Company had $716,576 in cash in the bank at year-end 2009 compared to zero at the end of 2008. He stressed that deferred revenue increased to $1.476 million at the end of 2009. "This means we increased the number of sales of long-term contracts. Once individuals begin to store with Cord Blood America, the vast majority continue to pay the required fee on an annual basis," Mr. Schissler said.
Revenues for 2009 were $3.24 million, a decrease from $4.17 million in 2008. Approximately 70 percent of the decrease is because Cord Blood America eliminated any pursuit of new business in its advertising subsidiary, Rainmakers International, which, at one time, was a major contributor to revenues. "The company needed to focus all of its resources on becoming a dominant player in the stem cell sector," according to Mr. Schissler. "We were willing to accept some short term loss in revenue for the tremendous upside in being focused solely on the stem cell space."
"While expenses increased in 2009 versus 2008, a large part of this is due to a $2.9 million non-cash expense for stock options. Our Board of Directors strongly believes in option based compensation as an incentive to grow shareholder value. The additional $700,000 increase in expenses, compared to 2008, is directly attributable to building our 17,000 square foot laboratory and headquarters in Las Vegas," Mr. Schissler said.
"Effectively for the last six months of 2009, we were incurring duplicative expenses; those from our continued outsourcing relationships for processing and storage plus those internal resource costs associated with the personnel and the build out of the laboratory. With the completion of the lab in February 2010, we are poised to leverage the expenditures in 2009 to improve operating performance in 2010," said Mr. Schissler. "2009 was about debt reduction and the construction of our new headquarters and laboratory. Strategically, we are no longer a 'reseller' of services, but rather a company with the opportunity to deliver unique services where we are in control of the costs and performance. I am confident that we have positioned CBAI for organic growth, to take advantage of acquisition opportunities in the sector, and to diversify our revenue stream in 2010 and beyond."
About Cord Blood America
Cord Blood America (OTC Bulletin Board: CBAI) is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and potentially life-saving resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders. To find out more about Cord Blood America, Inc. (OTC Bulletin Board: CBAI), visit our website at www.corcell.com. For investor information, visit www.cordblood-america.com.
Forward-Looking Statements
Some statements made in this press release are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate,'' "believe,'' "expect,'' "future,'' "intend,'' "plan,'' and similar expressions to identify forward-looking statements. These statements including those related to the growth of the industry, new stem cell treatments, and the Company's performance, are only predictions and are subject to certain risks, uncertainties and assumptions. Additional risks are identified and described in the Company's public filings with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, events, or circumstances after the date of such statement.
CONTACT: |
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Paul Knopick |
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E & E Communications |
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949/707-5365 |
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SOURCE Cord Blood America, Inc.
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