Biostem Technologies (BSEM) H.C. Wainwright 28th Annual Global Investment Conference summary

Strategic acquisitions and business transformation

• Acquired BioTissue's surgical business in January 2026, adding $29 million in 2025 sales and expanding hospital sales force and GPO contracts to over 70% of U.S. hospital beds.

• Pivoted from wound care in physician offices to surgical applications, leveraging synergies in perinatal tissue products and integrating a robust commercial team.

• Completed uplisting to Nasdaq, requiring extensive audit work and financial restatements, with a focus on future growth and visibility.

• Hospital revenue now forms the majority of sales, with a focus on regenerative medicine for surgical healing across multiple specialties.

• Strategic rationale included acquiring differentiated products and commercial infrastructure, positioning for growth in the surgical biologics market.

Operational integration and commercial expansion

• Successfully integrated BioTissue's commercial team, doubling W-2 reps to over 40 and expanding agent network to 30+ by year-end.

• Implemented new ERP and CRM systems, supporting efficient operations and sales force ramp-up.

• Reps are expected to reach $750,000–$1 million in annualized revenue within 15–18 months of hiring.

• Focused on expanding hospital utilization through GPO contracts and Value Analysis Committee approvals, with recent success in adding VENDAJE products to GPO agreements.

• Urology is the primary entry point for hospital adoption, with plans to expand across six surgical specialties.

Financial outlook and margin improvement

• Q2 2026 revenue was $7.9 million with a $4.6 million adjusted EBITDA loss; breakeven expected after manufacturing transfer in 2027.

• Manufacturing transfer, starting in H1 2027, is projected to add 15–20 points to gross margin and drive EBITDA positive results.

• Facility scale-up and increased output expected to normalize costs and improve profitability.

• $7 million cash at quarter-end, with ongoing evaluation of non-dilutive financing options to strengthen the balance sheet.

• Contingent $10 million payment tied to 510(k) milestone for Catalyze product, with strategic planning underway for payment.