Biostage, Inc.

For Q3 2022, Biostage reported a net loss of approximately $1.1 million, or $0.10 per basic and diluted share. That loss included approximately $0.3 million of non-cash charges related to share-based compensation and depreciation expenses. As of September 30, 2022, cash on hand was approximately $3 million and the company had no debt. Cash used in operations was approximately $1.6 million during the quarter. Looking ahead, management said current cash is expected to fund operating expenses and capital expenditure requirements into the second quarter of 2023.

Interim CEO David Green emphasized two business highlights: the addition of Joe Damasio as CFO on August 8, 2022, and the new U.S. patent received on October 25, 2022. He said the patent expands Biostage’s technology from hollow tubes such as the esophagus to patches, and that the Biostage Tissue Patch could enable treatment of fistulas, strictures, and damage from GERD as well as disease in other parts of the gastrointestinal tract. His tone was upbeat but brief, focused on platform expansion and future product potential.

CFO Joe Damasio kept the financial review concise, citing a Q3 net loss of approximately $1.1 million, or $0.10 per share, including about $0.3 million of non-cash charges. He said Biostage ended the quarter with approximately $3 million in cash and no debt, and used approximately $1.6 million in cash for operations. He also stated that, based on the current operating plan, the company expects its cash to last into the second quarter of 2023.

There was no analyst Q&A on the call because management noted the company was in a legally required quiet period related to its Form S-1 and related filings, and therefore would not take questions. As a result, the call consisted only of prepared remarks and no follow-up on the patent, cash runway, or operating plan was addressed. The only additional color was management’s brief statement that it looks forward to making Biostage a success.