BioStem Technologies, Inc. Common Stock 2026 Q2 Earnings Call

Please go ahead. Good afternoon, everyone, and thank you for joining our conference call to discuss BioStem's second quarter 2026 financial results and corporate highlights.

Leading the call today will be Jason Matuszewski, the company's Chairman and Chief Executive Officer, Brandon Poe, the company's Chief Financial Officer, and Barry Hassett, the company's Chief Commercial Officer. Before we begin, I'd like to remind everyone that our remarks may contain forward-looking statements based on management's current expectations. These risks and uncertainties are more fully described in our press release issued today and in our filings with the U.S. Securities and Exchange Commission. Our SEC filings can be found on our website or the SEC's website. Investors are cautioned not to place undue reliance on forward-looking statements. Finally, this call also includes reference to non-GAAP financial measures.

A reconciliation to comparable GAAP measures and related information can be found in our earnings press release posted on the investor relations section of BioStem's website. With that, I would now like to turn the call over to Jason Matuszewski.

Thank you, Philip, and good afternoon, everyone. The second quarter was BioStem's first full quarter operating as a predominantly hospital-focused business. During the quarter, we increased hospital revenue sequentially to $6.7 million, completed the implementation of BioStem's own customer relationship management system, and continued building the commercial organization needed to support our growth strategy. After quarter end, we also completed our uplisting to the Nasdaq Capital Market and our common stock began trading on Nasdaq on August 7th. I want to congratulate our team and thank our shareholders, employees, and business partners whose hard work helped us reach this important milestone. The Nasdaq uplisting broadens BioStem's visibility, expands our access to the capital markets, and supports our ability to attract and retain talent.

It is an important corporate achievement, and we are pleased to be trading on a national exchange that will enable us to maximize the value of the company through our fundamental business execution. We remain focused on four priorities designed to maximize value. First, completing and optimizing the integration of our product lines, internal systems, and commercial organization. Second, driving adoption and utilization across the hospital channel. Third, advancing our first 510(k) product and the broader product roadmap. Fourth, preparing for the manufacturing transfer of the Neox and Clarix product lines. We have made progress on each of these priorities during the quarter. Beginning with integration, our core commercial infrastructure is now in place and operating in line with our expectations. Until the beginning of August, BioTissue provided sales logistics, operational support, invoicing, and collections under a transition services agreement.

That agreement provided business continuity while we built our internal systems and capabilities. We have now transitioned those functions in-house and launched the first phase of our new customer relationship management platform integrated with our enterprise resource planning system. This automates and connects order processing, invoicing, and collections across our organization. These capabilities give us better visibility into account activity, ordering patterns, product utilization, and sales performance. They also improve our ability to target new accounts and support the organization as it scales. In parallel, we continued integrating and expanding the commercial team. During the quarter, we introduced our BioRetain dry products to the hospital sales organization, giving the team an additional product line to offer across its customer base. As our systems, order processing, and logistics become more integrated and automated, we expect the organization to become increasingly productive.

To discuss our commercial efforts and product roadmap in greater detail, I will turn the call over to Barry Hassett, our Chief Commercial Officer.

Thanks, Jason. Turning to our second priority, driving adoption of our product portfolio, including the Neox, Clarix, and VENDAJE brands in the hospital channel. These products are used across a broad and growing set of surgical and wound care applications, including urology, orthopedics, spine, women's health, foot and ankle, colorectal surgery, and acute and chronic wound care. Collectively, these applications represent an estimated $26 billion addressable market for BioStem. Our commercial focus is straightforward, continuing to add new surgeons and new hospital accounts while increasing utilization among surgeons and hospitals already using the Neox and Clarix allografts. With the core integration substantially complete, we have continued to expand our direct sales organization and remain on track to reach more than 40 W2 representatives and more than 30 independent sales agents by year end, more than doubling our direct sales force since the time of the acquisition.

This expansion increases our coverage of hospital call points nationwide, supports deeper engagement with existing customers, and extends our reach into new accounts. As we complete the scaling of our commercial organization, we believe we are well-positioned to drive broader adoption of our portfolio and support sustained growth. We are also working to convert our broad contractual access to drive market penetration. We have agreements with major hospital group purchasing organizations whose member facilities represent access to more than 70% of U.S. hospital beds. We are working to add the VENDAJE product line to applicable GPO contracts, giving surgeons access to our full portfolio of products, all of which are supported by clinical evidence. At the local level, our team remains focused on value analysis committee approvals, surgeon education, and recurring case utilization. Product differentiation is also central to our strategy.

During the quarter, we received eight new U.S. design patents covering aspects of our fenestrated human placental allograft designs. These patents expand the protection around our product form factors and complement our clinical and commercial differentiation. Turning to our third priority, advancing our product roadmap, we continue to anticipate launching our first 510(k) cleared product later this year. We believe this product can provide an additional point of differentiation between BioStem and our competitors and support the continued expansion of our portfolio. We are also evaluating whether selected existing products could benefit from alternative regulatory pathways. This review considers clinical need, market opportunity, development requirements, and appropriate regulatory next steps. Clinical evidence remains a central pillar of our commercial strategy, and we believe it is another increasingly important differentiator in this market.

Our BioRetain DFU and VLU programs, anchored by the Level One randomized controlled trial results, reflect a deep level of investment in clinical data generation, as demonstrated by the publication of our top-line DFU results in late 2025. We expect to publish additional results from our DFU trial in the coming months and complete the VLU study with top-line published data later this year. As the reimbursement landscape evolves, we believe high-quality clinical evidence will play an increasingly important role in product selection and coverage decisions. We intend to use our data to support both continued adoption and expanded payer coverage. This evidence base also informs how we engage directly with surgeons and clinicians.

During the quarter, we expanded our presence at key professional society meetings, hosted hands-on training events, and worked alongside key opinion leaders to increase awareness of our products and the clinical experience supporting them across multiple specialties. These activities are increasing clinician familiarity with our differentiated portfolio, reinforcing confidence in our products' performance, and creating additional opportunities to expand utilization in both existing and new accounts. Finally, I would like to briefly address the physician office market. Results during the quarter were stronger than we expected, but one quarter does not indicate broader stabilization or recovery of the market. We continue to anticipate gradual stabilization during the second half of the year. Venture Medical, along with our recently launched pilot program, continue to serve physician office, mobile wound care, and alternative site customers.

We will continue supporting this market segment through these channels while directing the majority of our incremental commercial resources toward the hospital market. I'll now turn it back to Jason to discuss our technology transfer in further detail.