SANTA MONICA, Calif., Aug. 17 /PRNewswire-FirstCall/ -- Cord Blood America, Inc. (OTC Bulletin Board: CBAI - News), the umbilical cord blood stem cell preservation company (http://www.cordblood-america.com) focused on bringing the life saving potential of stem cells to families nationwide and internationally, said today that its 10Q filing with the U.S. Securities & Exchange Commission for the second quarter of 2009 shows a significantly improved balance sheet.
At June 30, 2009, Cord Blood America's working capital had increased by almost $4 million compared to year-end 2008. This is a 90 percent improvement in only six months.
The Company also had a balance of $324,549 in cash, an important increase as Cord Blood America moves forward with organic growth and possible acquisitions.
Further the 10Q has a schedule detailing the repayment of $5 million in debt in the first half of the year, one of the pillars needed for the Company to succeed.
"While revenues were down, due to very difficult economic conditions, and a significant de-emphasis on our advertising business, we are confident we have built the strong foundation necessary for the growth our shareholders want," said Matthew Schissler, founder and CEO.
"In addition, we anticipated being cash flow positive this year. However one time charges in Q2 including the cost of capital for the $7.5M raised, and significant testing and auditing of our SOP's, coupled with the excellent opportunity to build one of the largest stem cell storage facilities in the country, delayed this in the short term. There were significant sunk costs in Q2 that couldn't be avoided. All measures were taken to strengthen CBAI for the long term."
Mr. Schissler concluded: "Once the stem cell storage and research and development lab in Las Vegas is completed, CBAI will immediately increase our gross margins, bringing us closer to cash flow positive."
The 10Q can be found in its entirety at www.sec.gov.
About Cord Blood America
Cord Blood America (OTC Bulletin Board: CBAI - News) is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and potentially life-saving resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders. To find out more about Cord Blood America, Inc. (OTC Bulletin Board: CBAI - News), visit our website at www.corcell.com. For investor information, visit www.cordblood-america.com.
Forward-Looking Statements
Some statements made in this press release are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate,'' "believe,'' "expect,'' "future,'' "intend,'' "plan,'' and similar expressions to identify forward-looking statements. These statements including those related to the growth of the industry, new stem cell treatments, and the Company's performance, are only predictions and are subject to certain risks, uncertainties and assumptions. Additional risks are identified and described in the Company's public filings with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, events, or circumstances after the date of such statement.
CONTACT: Paul Knopick E & E Communications 949/707-5365 pknopick@eandecommunications.com
