Vitro Biopharma 3rd Quarter 2018 Financial Results of Operations
Golden, Colorado-September 24th, 2018-Vitro Diagnostics, Inc. (OTCPK: VODG), dba
Vitro BioPharma, announced its 3rd quarter financial results of operations, ended July 31st, 2018.
Vitro Diagnostics Inc. (“Vitro”) (“VODG”) is pleased to announce a record
3rd quarter in Stem Cell Revenues. Vitro recorded 3rd quarter revenues of
$141,783 vs $64,566, an increase of 220% over the same comparative quarter
Stem cell therapies accounted for 77% of the revenues up from 48% of the revenues in the prior
comparative quarter last year. Current quarter revenues from our advanced stem cell therapies
and a new clinical stem cell product was $109,717 for the 3rd quarter ended July 31st, 2018 vs
$31,268 for the 3rd quarter ended July 31st, 2017.
The Company’s gross profit margins improved to 76% up from 64% in the comparative
prior year’s quarter. Gross margin improvement is in line with the strategic direction of the
Company to expand the market for its offshore Stem Cell therapies and specifically our patentpending
allogeneic stem cell products that have higher margins than our stem cell and cancer
Overall operating expenses fell slightly in the quarter to $100,912 from $102,475 in the prior
year’s comparative quarter. Overall expenses where held relatively flat despite revenue growth
of 220%. The Company’s internal operating team consists of 4 full-time employees as well as
outside consultants. The Company expects to expand its team going forward to support its rapid
During the quarter, the Company was cashflow positive on an operating basis of $7,344 vs
negative ($60,869) in the comparative prior year’s quarter. The Company expects positive
cashflow going forward. The Company plans to pay its founder and C.E.O., who has provided
service without or deferred salary for some time, on a current basis going forward. While this
will add to SGA expenses, we anticipate that increased revenue growth will more than offset the
The Company’s financing efforts raised funds from the issuance of 3-year convertible
notes. These are due December 31st , 2021, bear interest at 10% per annum; and are
convertible into the common stock at $0.05 cents per share. At July 31st, 2018, there were
$819,849 of outstanding long-term convertible notes. The offering was over-subscribed,
and the Company has authorized $850,000 for these notes. From these results, the company
re-capitalized its balance sheet for the foreseeable future.
The Company achieved the following objectives during this quarter;
• Expanded its partnership with DaVinci Center in Grand Cayman Island:
The Company operates in partnership with the Davinci Centre to support IRB-approved
clinical trials utilizing Vitro Biopharma’s patent-pending allogenic stem cells. There is an
ongoing trial of inflammatory conditions yielding evidence of safety & efficacy. The
DaVinci Centre recently launched a new website, www.DVCstem.com to promote stem
cell medical tourism to the DaVinci Centre. Treated patients have described their
experience. Subsequent to our third quarter, treatments have expanded to include
Multiple Sclerosis (MS) utilizing Vitro Biopharma produced stem cells and initial results
• Expanded treatment of Neurodegenerative Conditions in New Zealand:
We continue to provide our stem cells to the Matamata Medical Centre for use in
terminal cases under regulations comparable to the “Right-to-Try” in the US. We have
added new Parkinson’s and dementia patients during our 3rd quarter. We monitor these
patients closely and are expanding diagnostic testing to quantify the results of therapy
with our stem cells. The results indicate safety and some preliminary evidence of
symptom improvement while we are presently assessing more quantitative diagnostic test
• Expanded opportunities for Stem Cell therapies in the US:
We continued the initial commercialization of NutraVivo™, our patent-pending
nutraceutical formulation for treatment of Concussion/TBI by establishing initial testing
and publication of evidence for stem cell activation.
We upgraded our web site and have established a social media program promoting our
products and services: www.vitrobiopharma.com. We are exploring various strategic
opportunities to expand distribution of our NutraVivo™ products as well as expansion of
our team to facilitate overall sales and marketing of the Company’s products.
• Research and Development:
o Developed a new allogenic stem cell-based cosmetic product and began initial
testing in the fourth quarter. The product is intended for topical use only and is
classified as a cosmetic device without mandatory requirements for FDA
registration. The Company is exploring a strategic relationship with a world
renown Cosmetic Surgeon with an affiliated clinician group with over 800
facilities in the US.
o Expanded regulatory certifications of its GMP manufacturing and clinical
laboratory diagnostic testing through ISO and CLIA respectively. We anticipate
full certification to ISO 9001:2015 & ISO13485:2016 and CLIA standards by the
end of the current calendar year.
o The company added 4 new patent applications in the US for its stem cell
activation technology and after the 3rd quarter, expanded filings of its proprietary
stem cell line patent application to include the UK for filings in the Cayman
Islands, other Caribbean countries and Hong Kong. This brings the Company’s
total stem cell patent portfolio to 14.
Dr. Jim Musick, CEO/CSO said, “We are pleased to see continued revenue growth in our core
allogenic stem cell therapies while our stem cell research products also provide revenues as well. We
are supporting offshore opportunities with patent filings in the Cayman Islands, other Caribbean
islands and Australia. The company entered into an exclusive stem cell distribution agreement to
expand its operations into Saudi Arabia; Columbia, Italy and the UK. These regions require IRB’s
that are under review. The Company expects these expansions to contribute to its growth in 2019.
Operations in the US are focused on stem cell activation therapies for concussion/TBI using our
patent-pending NutraVivo™ nutraceutical formulation that has been shown to activate neural stem
We have also developed a stem cell-based cosmetic product that is in early testing, has already
contributed to revenue growth and we expect to be expanding this product aggressively into 2019.
Thus, our overall strategy provides multiple revenue streams from off-shore operations while
developing stem therapies targeting select US markets positioning the Company for substantial
revenue growth and increased shareholder value.”
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 Frost & Sullivan for Best in Practice Innovation Leadership award for Stem Cell Tools and
Technology www.vitrobiopharma.com/frost-sullivan/ and a growing track record of successful
translation to clinical therapies. We plan to leverage our proprietary technology platform to the
establishment of international Stem Cell Centers of Excellence and over time gain regulatory
approvals in the US for our clinical stem cell lines.
James R. Musick, PhD.
CEO & CSO
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”, “hopes” and “foreseeable” 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.