Press Release Source: Vitro Diagnostics, Inc.
Vitro Biopharma 2018 CEO Shareholder Letter:
Record Revenues from Stem Cell Treatments Lead to 4th Quarter Breakeven
Cashflow & Growth Continues in Early 2019.
Golden, Colorado—January 24, 2019—Vitro Diagnostics, Inc. (OTCQB: VODG), dba Vitro
Biopharma, announced its CEO letter to its shareholders including discussion of its 2018 results of
operations ended October 31st 2018 and its expansion plans for 2019.
In 2017-2018 we achieved:
• Increased allogeneic MSC stem cell therapy sales drove revenue in our Cayman Island and
New Zealand clinical trials.
• Launched a stem cell based cosmetic device for topical use only through a partnership with
Jack Zamora MD, a Denver-based cosmetic surgeon. We private label this product as
Limitless MD Cell. We are an FDA-Registered Cosmetic manufacturer for this product and
its sales contributed over $100,000 to our 2018 revenues. The company expects this new
product to more than triple in its contributions to revenue in 2019.
• Expanded our clinical product regulatory compliance leading to ISO 9001 certification in
early 2019. This complements our clinical laboratory (CLIA) registration and cGMP/FDA
compliant laboratory. Additional quality certifications are underway for 2019.
• During the year we added 4 new US patent applications for our stem cell activation
technology and expanded filings for our proprietary stem cell line in the UK for filings in the
Cayman Islands, other Caribbean countries and Hong Kong under the umbrella of former
• Expanded our management team and Advisory Board with the addition of Keith Burge as our
Director of Sales and Marketing. Dr. Jack Zamora was added to our advisory board to
support the development of our new Stem Cell Cosmetic product.
• Raised over $500,000 in capital and financing to fund expansion of laboratory operations,
new product development, consultants to support ISO 9001 & CLIA certification and the
expanded management team. Re-capitalized the company with the financing and with the
founder’s debt to equity conversion of $1,003,119 and restatement of outstanding debts as
long-term debts to the company. As a result, the company had a healthy current ratio of
approx. 4 to 1 at the end of the fiscal year 2018 and $392,996 of cash on hand versus $2,612
• The company plans to double its laboratory capacity and clean room capacity in the latter
half of 2019.
Golden, Colorado— January 24th 2019 —Vitro Diagnostics, Inc. (OTCPK: VODG),
dba Vitro Biopharma, announced record revenues for the fiscal year ended
October 31st 2018 of $523,905 vs. $262,148 in 2017 based on the expansion of stem cell
therapies and treatments of $305,625 in 2018 vs. $104,919 in 2017. Total stem cell revenues were up
approximately 300% from 2017. This represented 58% of total revenue derived from stem cell
treatments in the fiscal year ended October 31st 2018 versus 40% in 2017. The growth in stem cell
treatment revenues is expected to comprise over 70% of the company’s Revenues in 2019. The
company also experienced a significant improvement in its operating loss going from an Operating
loss of ($275,352) in 2017 to ($60,895) in 2018.
In the 4th quarter of 2018 the company had record quarterly revenues of $169,051 versus $83,909 in
2017. The company experienced a break even cashflow quarter of $1,909 in the fourth quarter
ended October 31st 2018. The financial statements (unaudited) for 2018 & 2017 are summarized
below. The Company converted short term debt to long term debt; raised over $500,000 during the
year and reduced overall debts when offset by $392,996 of cash on hand in 2018 versus $2,612 of
cash on hand in 2017. Overall the company’s profit margins were 71% for 2018 up from 60% in
2017. The stem cell revenues continue to improve overall margins that translated into an increased
gross profit of $373,309 in 2018 versus $157,440 in 2017. As a result, the companies’ sales are
starting to support its overall operations with only a ($60,895) Net Operating profit ($Loss) in
2018 versus ($275,352) in the prior year 2017.
The company experienced growth in its allogenic MSC product for clinical therapies being conducted
in New Zealand under right to try laws (Section 25 of the Medicines Act of 1981).
The company launched a new stem cell-based cosmetic device product in 2018 and added Dr. Jack
Zamora, MD to its scientific advisory board. Our joint development arrangement contributed over
$100,000 to stem cell revenue treatments in 2018 vs none in 2017. The company expects sales of this
new product to increase substantially in 2019. www.jackzamoramd.com
Our Stem Cell research products continued to grow providing $179,729 of revenues in 2018 up from
$150,203 a 20% year over year increase. The company is experiencing growth in its international
customers from prestigious Universities and Medical Institutions. We expect these products to
continue to grow as the research community continues to expand its stem cell research and clinical
trials of stem cell regenerative medicine. (Our customer base includes such prestigious names as
Harvard University; Cambridge University; The University of France; the Mayo Clinic, Pfizer,
The company put out a major effort in 2018 to upgrade our quality systems to the elite status of a
biologics manufacturer with ISO 9001:2015 certification. The company is pursuing new international
sources of stem cell therapies and many foreign ministries require ISO9001 Certification to conduct
business. We expect the cost of being ISO9001 certified to be more than offset by these new revenues
in the latter half of 2019 and into 2020.
We continue to expand our intellectual property (IP) that includes a novel US stem cell line patent
application for use in numerous regenerative medicine applications including auto-immune disorders
such as MS, Lupus; cardiovascular disease, musculoskeletal conditions such as OA and various
neurodegenerative disorders. Additional patent applications had been previously filed for treatment of
neurological disorders by activation of stem cells within the brain. Our IP now allows proprietary
therapies of neurological conditions including Parkinson’s disease, Alzheimer’s disease and traumatic
brain injury (TBI), etc. Neurological conditions have been under-treated for many years while stem
cell therapies offer potentially effective solutions. Hence, we plan commercialization of TBI therapies
in 2019. There are more than 1.7 million TBI patients per year in the US while therapy consists of
life-saving measures followed by rehabilitation with minimal therapeutic options. Recent advances in
stroke recovery by stem cell therapy highlight the regenerative potential of stem cell therapies for
neurodegenerative conditions and support the concept of brain regeneration by stem cell therapy. Our
TBI initiative involves stem cell activation therapy and advanced diagnostics including biomarker
profiling and brain scans. www.vitrobiopharma.com/blog/
Current management has decided to focus our operational resources to achieve rapid revenue growth
& profitability in our high value-added Stem Cell therapies while seeking appropriate strategic
alliances and partnerships. Our eventual goal is to be acquired by a larger firm with complimentary
resources to those of the Company. The company has made a strategic decision to focus its resources
on expanding its revenue base driven by internal growth and limited capital raising. This decision will
minimize shareholder dilution while building the company’s market value. We intend to return to SEC
reporting compliance once cashflow from operations supports the added burden of SEC legal counsel
and SEC auditors. Until then the company will provide unaudited quarterly and yearly financial
reports and the publication of material transactions while maintaining future options to becoming fully
reporting with the SEC if required or be acquired in an acquisition transaction.
In summary, Vitro Biopharma is advancing as a key player in regenerative medicine with 10-years’
experience in the development and commercialization of stem cell products for research, recognized
by a “Best in Practice Technology Innovation Leadership award for Stem Cell Tools and Technology”
www.vitrobiopharma.com/frost-sullivan and a growing track record of successful translation to
therapy. We plan to leverage our proprietary and patented technology platform to the establishment of
international Stem Cell Centers of Excellence while operating in full compliance of FDA and other
James R. Musick, PhD.
President, CEO & Chairman of the Board
Statements herein regarding financial performance have not yet been reported to the SEC nor
reviewed by the Company’s auditors. Certain statements contained herein and subsequent statements
made by and on behalf of the Company, whether oral or written may contain “forward-looking
statements”. Such forward looking statements are identified by words such as “intends,”
“anticipates,” “believes,” “expects” and “hopes” and include, without limitation, statements regarding
the Company’s plan of business operations, product research and development activities, potential
contractual arrangements, receipt of working capital, anticipated revenues and related expenditures.
Factors that could cause actual results to differ materially include, among others, acceptability of the
Company’s products in the market place, general economic conditions, receipt of additional working
capital, the overall state of the biotechnology industry and other factors set forth in the Company’s
filings with the Securities and Exchange Commission. Most of these factors are outside the control of
the Company. Investors are cautioned not to put undue reliance on forward-looking statements.
Except as otherwise required by applicable securities statutes or regulations, the Company disclaims
any intent or obligation to update publicly these forward-looking statements, whether as a result of
new information, future events or otherwise.
Dr. James Musick
Chief Executive Officer
(303) 999-2130 Ext. 3
E-mail: [email protected]
Source: Vitro Diagnostics, Inc.