Lattice Biologics Ltd. Reports Fourth Quarter and Year End 2020 Highlights

BELGRADE, Mont.–(BUSINESS WIRE)–Lattice Biologics Ltd. (TSX-V: LBL) (OTCBB: LBLTF) (“Lattice Biologics” or the “Company”) announces financial results for Q4 2020 and year end 2020.

Highlights of Year Ended September 30, 2020

Sales and Product Offerings

• Sales increased 57.8% fourth quarter 2020 over third quarter 2020.
• For the year ended September 30, 2020, sales increased 12.6% year over year.
• Cash from operations was $0.5 million for the year ended September 30, 2020 compared to $0.2 million for the year ended September 30, 2019.
• Gross profit margin was 41.4% for the year ended September 30, 2020, compared to 43.1% for the year ended September 30, 2019.

Finance

• Gross profit of $1.0 million on sales of $2.5 million for the year ended September 30, 2020 compared to $0.94 million on sales of $2.2 million for the year ended September 30, 2019.
• Incurred a net loss of $1.5 million ($0.01 per share) for the year ended September 30, 2020 compared to $1.0 million ($0.01 per share) for the year ended September 30, 2019.
• Total liabilities increased to $9.4 million from $8.6 million for September 30, 2020 and September 30, 2019, respectively. Current liabilities increased to $7.8 million from $7.7 million for September 30, 2020 and September 30, 2019, respectively.

Research and Development

• Development of room temperature AmnioBoost and room temperature dermis for dental markets.
• Development of allograft fiber plug for dental markets.
• Developed proprietary liquid nitrogen shipping containers.

2020 Business Update:

“I am pleased to announce that the Company has maintained its distribution relationships during the COVID19 pandemic. Business conditions have been exceptionally trying this year, and Lattice Biologics is no exception. The American Dental Association issued guidance in mid-March 2020 that all US dental procedures be considered non essential. The announcement significantly impacted revenues in March 2020, and continues to affect supply chain issues. The Company has secured long term contracts that we expect to significantly enhance revenues in FY 2021 and beyond. As we continue to focus on higher margin product lines, and to re-position the AmnioBoost line for additional indications, we are confident we have turned the corner and positioned the company for profitable and continued growth,” said Guy Cook, CEO of Lattice Biologics Ltd.

With strong distribution partners and an enhanced product line intended for dental indications, we expect sales to continue to grow in the long term. Operationally, the company is much more efficient and has lowered its operating and overhead costs to effectively compete in the dental market space.

Lattice Biologics maintains its commitment to honoring the gift of donation by implementing a strong quality control environment for the recovery and processing of donors. The Company has significantly increased its processing efficiencies, and has substantial inventory reserves to meet customer demand.

As indicated below, the Company continues efforts to diversify the sales mix across the new higher margin product lines added in prior years.

Year End Financial Results (all figures denoted in USD):

The following table sets out selected unaudited financial information, prepared in accordance with IFRS. The information contained herein is drawn from interim financial statements of the Company for each of the following quarterly periods ending:

About Lattice Biologics Ltd.:

Lattice Biologics is traded on the TSX-V under the symbol: LBL.

Lattice Biologics develops and manufactures biologic products to domestic and international markets. The Company’s products are used in a variety of surgical applications.

Lattice Biologics maintains its headquarters, laboratory and manufacturing facilities in Belgrade, Montana .The facility includes ISO Class 1000 and ISO Class 100 clean rooms, and specialized equipment capable of crafting traditional allografts and precision specialty allografts for various clinical applications. The Lattice Biologics team includes highly trained tissue bank specialists, surgical technicians, certified sterile processing and distribution technicians, and CNC operators who maintain the highest standards of aseptic technique throughout each step of the manufacturing process. From donor acceptance to the final packaging and distribution of finished allografts, Lattice is committed to maintaining the highest standards of allograft quality, innovation, and customer satisfaction.

Lattice Biologics maintains all necessary licensures to process and sell its tissue engineered products within the U.S. and internationally.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement on Forward-Looking Information:

Certain information contained in this news release constitutes “forward-looking statements” within the meaning of the ‘safe harbour’ provisions of Canadian securities laws. All statements herein, other than statements of historical fact, are to be considered forward looking. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “planned”, “potential”, “future”, “expected”, “could”, “possible”, “goal”, “intends”, “will” or similar expressions. Forward-looking statements in this news release include, without limitation: information pertaining to the Company’s strategy, plans, or future financial performance, such as statements with respect to the Transaction, and other statements that express management’s expectations or estimates of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lattice to be materially different from those expressed or implied by such forward-looking statements.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management as of the date such statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions that could prove to be incorrect, include, but are not limited to: that market prices will be consistent with expectations, the continued availability of capital and financing, and that general economic, market and business conditions will be consistent with expectations. The forward-looking statements are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.

United States Advisory: The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the U.S. Securities Act) unless an exemption from the registration requirements of the U.S. Securities Act is available. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in the state in the United States in which such offer, solicitation or sale would be unlawful.

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Contacts

Media Contact:
Guy Cook, CEO

Lattice Biologics Ltd.

(TSX-V: LBL) (OTCBB: LBLTF)

512 E. Madison Ave. Suite#A1

Belgrade, MT 59714

480-563-0800 Office

News@LatticeBiologics.com
www.LatticeBiologics.com