BioStem Evaluates $10 Million to $12 Million in Annual Cash Cost Cuts

BioStem Technologies, Inc. is evaluating annual cash expense cuts of $10 million to $12 million as it works to narrow losses and prepare for in-house manufacturing in 2027.

Management expects a substantial reduction in operating expenses and narrower adjusted EBITDA losses during 2027. It is assessing possible cost-cutting actions and has not determined what share of the savings would be structural.

BioStem had $1 million in cash, while its operations used $8.8 million in cash during the third quarter of 2026. Management is weighing financing options and a land sale. It expects a tax refund of about $1 million, though receipt is not assured.

BioStem CEO, President, Secretary and Chairman Jason Matuszewski described the third quarter as the company's second full quarter focused primarily on hospitals. He said, “Our focus now is on executing a clear plan to accelerate our path to breakeven.”

Gross margins are expected to remain in the 50% range until in-house manufacturing begins. Management has said margins could eventually reach 70%, with a 10-to-15-percentage-point improvement over time. The company targets the manufacturing shift for the first half of 2027, subject to validation and regulatory requirements.