BioStem Technologies files restated financial statements

BioStem Technologies Inc. (OTC: BSEM) filed restated interim financial statements for Q1 2024 through Q2 2025 and restated annual financial statements for 2023 and 2024, the company announced.

The restatement adjusts how the company accounts for bona fide services fees associated with its distribution agreement with Venture Medical. Previously recorded as sales and marketing expenses, these fees are now classified as contra revenue, reducing gross revenue to arrive at net revenue.

The accounting change does not impact EBITDA, net income, or cash flow, according to the company. For 2023, previously reported revenue of $16.7 million was restated to $7.1 million, while sales and marketing expenses decreased by the same $9.5 million adjustment.

For 2024, revenue was restated from $301.8 million to $69.7 million, with a corresponding reduction in sales and marketing expenses of $232.2 million. Net income for 2024 remained unchanged at $31.9 million.

On the balance sheet, amounts owed to Venture related to bona fide services fees payable are now netted against accounts receivable due from Venture, rather than shown as a separate current liability.

The restatement remains subject to completion of an independent audit by KPMG. The company anticipates audits for fiscal years 2024 and 2025 will be completed by the end of Q1 2026.

BioStem develops, manufactures, and commercializes placental-derived products for advanced wound care applications.

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