CBA Florida Inc. (fka CBAI)

[Myth]

http://www.sec.gov/Archives/edgar/data/1289496/000135448815003826/cbai_10q.htm

Results of Operations for the Three-Months Ended June 30, 2015

For the three months ended June 30, 2015, total revenue increased to approximately $1.41 million from $1.02 million, an increase of 39% over the same period of 2014. Revenues are generated primarily from three sources; new enrollment/processing fees, recurring storage fees (both from cord blood and cord tissue) and fees associated with other tissue related products. The increase in revenue is due to growth in recurring storage fees and fees from other tissue related products. For the three months ended June 30, 2015 recurring revenues accounted for 47% of total revenue. Cord remains focused on strategic organic growth which management anticipates will provide sustainable operating cash flows and net income.


21


Cost of services as a percentage of revenue increased to 36% for the three month period ending June 30, 2015 compared to 28% the same prior period of 2014. The increasing mix of business related to other tissue related products is a primary contributor to the increase in cost of services. The cost of services include transportation of the umbilical cord blood from the hospital to the lab, direct material plus labor costs for processing and cryogenic storage, and allocated rent, utility and general administrative expenses. Gross profit increased by approximately $0.17 million or 24% to approximately $0.90 million for the three month period ending June 30, 2015 from the prior three month period of 2014.

The Company’s income from operations was $0.03 million versus a loss of $0.11 million for the three month comparative period of 2015 from 2014. The Company’s net income was $0.40 million for the three month period ending June 30, 2015, compared to a net loss of $0.93 million for the period ended June 30, 2014. The large positive increase in net income for the three month period ending June 30, 2015 is primarily attributable to a one-time adjustment in accounts payable and accrued expenses of approximately $346,000 as more fully described in Note 5, Commitments and Contingencies, Pharmastem.

Results of Operations for the Six-Months Ended June 30, 2015

For the six months ended June 30, 2015, total revenue increased to approximately $2.70 million from $1.94 million, an increase of 39% over the same period of 2014. Revenues are generated primarily from three sources; new enrollment/processing fees, recurring storage fees (both from cord blood and cord tissue) and fees associated with other tissue related products. The increase in revenue is due to growth in recurring storage fees and fees from other tissue related products. For the six months ended June 30, 2015 recurring revenues accounted for 49% of total revenue. Cord remains focused on strategic organic growth which management anticipates will provide sustainable operating cash flows and net income.

Cost of services as a percentage of revenue increased to 34% for the period ending March 31, 2015 compared to 29% the same prior period of 2014. The increasing mix of business related to other tissue related products is a primary contributor to the increase in cost of services. The cost of services include transportation of the umbilical cord blood from the hospital to the lab, direct material plus labor costs for processing and cryogenic storage, and allocated rent, utility and general administrative expenses. Gross profit increased by approximately $0.40 million or 29% to approximately $1.78 million for the six month period ending June 30, 2015 from the prior six month period of 2014.

The Company’s income from operations was $0.14 million versus a loss of $0.27 million for the six month comparative period of 2015 from 2014. The Company’s net income was $0.19 million for the six month period ending June 30, 2015, compared to a net loss of $1.47 million for the period ended June 30, 2014. The positive net income for the six month period ending June 30, 2015 is primarily attributable to a one-time adjustment in accounts payable and accrued expenses of approximately $346,000 as more fully described in Note 5, Commitments and Contingencies, Pharmastem.