Ann: Quarterly Activity Report & Appendix 4C, page-22

Seems some people above still struggling with accounting revenue recognition and R&D expenses. I did give some insight on my full results review, specifically the BioHOrizons cash recognition:


OCC is clearly seeing very good (71%) quarterly growth (YoY) in revenue based on Striate sales globally and Remplir in Oz....and for those who prefer to see cash:

"Cash receipts received from customers, inclusive of GST, for Q1 FY24 increased to $898k, compared to $645k in the prior quarter."

A 31% increase in physical cash received quarter to quarter....for those who don't like accrual accounting.

BioHorizons beginning to dominate strongly in sales:

"This has translated to 17% average quarterly growth rate (compounded for the previous three quarters) since US product launch in Q2 FY23 and a 50% increase in Striate+ sales in Q1 FY24 since the previous quarter Q4 FY23."

R&D costs do not surprise me at all:

"In line with the Company’s expectations, net cash used in operating activities for the quarter was $2.3m. Most of the expenditure was allocated to commercial and R&D related activities."

Hardly surprising given the company preparing for a launch of Remplir in the US (and ATI in Oz) on trials run in the quarter:

"Nerve repair study for US regulatory approval
On 18 April 2023, Orthocell announced the commencement of a comparator study as part of a comprehensive pre-clinical and clinical development program in nerve repair and regeneration. The study provides information regarding mechanism of action that is not possible to collect in human clinical trials. The outcomes from the study will support product marketing initiatives and international regulatory approval and reimbursement strategies for Remplir."

(to be completed in 1QCY2024 and ATI vs Surgery RCT finally complete and about to be announced of course - imminent we hear....)

I get the entire market is crapping itself about capital, but at the end of the quarter, Orthocell reported a cash balance of A$22.3 million still. It earnt $237K in interest alone in one quarter! Do the math on cost growth (outside of R&D) and revenue growth. OCC gets to cash flow positive on Striate alone before running out of cash if BH continues to add Striate sales at recent rates. Let alone with the addition of Remplir in the US. As Kain points out above, the company reports TAM for Striate as $US1 billion. It will be selling Remplir at far higher margins into what it reports as a $US1.1billion TAM. Throw in ATI, ACI and other CelGro applications and as Paul points out (on its much better website) "Our Company is pursuing a total addressable market for our dental, nerve and autologous tendon therapy products of US$17.7 billion per annum – a compelling investment and growth opportunity."Orthocell MD, Paul Anderson.

Don't know what investors were expecting, but $1.77 million for the quarter in revenues slightly beats my expectations. Product sales of $857k, interest received of $273k (!!), Striate+ license revenue of $576k (this known per my post above on recognising revenues). Just for a little perspective it announced full year FY2021 revenues at $1.256 million ($1.018 million product sales). Its blown through its yearly revenues of 2 years ago in one quarter.

The figures don't lie. Take out R&D (for its Remplir and ATI ambitions) and OCC is already operating cash flow positive:




From another simple perspective, OCC is simply slowly using the BioHorizons cash for its Remplir and ATI ambitions - just as I had hoped and management said it would - whilst letting Striate blossom into a freestanding business, as already shown by those cash flows.