Delaware
|
11-3054851
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.001 par value per share
|
BSTC
|
The Nasdaq Capital Market
|
Large accelerated filer ☐
|
Accelerated filer ☒
|
Non-accelerated filer ☐
|
Smaller reporting company ☒
Emerging growth company ☐
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for comply with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ☐
|
Page
|
||
PART I – FINANCIAL INFORMATION
|
||
ITEM 1.
|
Financial Statements
Unaudited Condensed
Consolidated Financial Statements
|
|
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
ITEM 2.
|
18
|
|
ITEM 3.
|
26
|
|
ITEM 4.
|
27
|
PART II – OTHER INFORMATION
|
||
ITEM 1.
|
27
|
|
ITEM 1A.
|
27
|
|
ITEM 2.
|
27
|
|
ITEM 6.
|
29
|
|
30
|
Item 1:
|
Condensed Consolidated Financial Statements
|
June 30,
2019
|
December 31,
2018
|
|||||||
(unaudited)
|
(audited)
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
13,972,558
|
$
|
13,176,452
|
||||
Short term investments
|
71,304,188
|
67,707,143
|
||||||
Accounts receivable
|
16,729,636
|
16,518,687
|
||||||
Deferred royalty buy-down
|
-
|
184,931
|
||||||
Prepaid expenses and other current assets
|
1,012,172
|
646,749
|
||||||
Total current assets
|
103,018,554
|
98,233,962
|
||||||
Long-term investments
|
8,233,138
|
1,099,834
|
||||||
Deferred tax assets, net
|
154,309
|
313,768
|
||||||
Patent costs, net
|
493,856
|
444,478
|
||||||
Total assets
|
$
|
111,899,857
|
$
|
100,092,042
|
||||
Liabilities and stockholders’ equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued expenses
|
$
|
710,812
|
$
|
1,798,588
|
||||
Income tax payable
|
878,624
|
704,934
|
||||||
Total current liabilities
|
1,589,436
|
2,503,522
|
||||||
Commitments and Contingencies
|
||||||||
Stockholders’ equity:
|
||||||||
Series A Preferred stock, $.50 par value, 700,000 shares authorized; none outstanding
|
-
|
-
|
||||||
Common stock, $.001 par value; 10,000,000 shares authorized 7,796,230 and 7,738,167 shares issued, 7,331,917 and 7,275,902 shares outstanding as of June 30, 2019 and December 31, 2018,
respectively
|
7,796
|
7,738
|
||||||
Additional paid-in capital
|
38,299,800
|
36,302,446
|
||||||
Retained earnings
|
83,019,774
|
72,176,719
|
||||||
Treasury stock, 464,313 and 462,265 shares at cost as of June 30, 2019 and December 31, 2018, respectively
|
(11,016,949
|
)
|
(10,898,383
|
)
|
||||
Total stockholders’ equity
|
110,310,421
|
97,588,520
|
||||||
Total liabilities and stockholders’ equity
|
$
|
111,899,857
|
$
|
100,092,042
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Revenues:
|
||||||||||||||||
Royalties
|
$
|
8,852,986
|
$
|
7,815,504
|
$
|
16,982,127
|
$
|
14,900,504
|
||||||||
Licensing revenues
|
-
|
35,270
|
-
|
39,679
|
||||||||||||
Total Revenues
|
8,852,986
|
7,850,774
|
16,982,127
|
14,940,183
|
||||||||||||
Costs and expenses:
|
||||||||||||||||
Research and development
|
161,321
|
211,796
|
310,857
|
407,023
|
||||||||||||
General and administrative
|
1,728,125
|
2,043,952
|
4,635,284
|
4,113,585
|
||||||||||||
Total Cost and Expenses
|
1,889,446
|
2,255,748
|
4,946,141
|
4,520,608
|
||||||||||||
Operating income
|
6,963,540
|
5,595,026
|
12,035,986
|
10,419,575
|
||||||||||||
Other income:
|
||||||||||||||||
Interest income
|
517,156
|
273,746
|
966,580
|
491,697
|
||||||||||||
Other income (expense)
|
-
|
81,985
|
-
|
96,663
|
||||||||||||
517,156
|
355,731
|
966,580
|
588,360
|
|||||||||||||
Income before income tax expense
|
7,480,696
|
5,950,757
|
13,002,566
|
11,007,935
|
||||||||||||
Provision for income tax expense
|
(1,054,236
|
)
|
(1,102,826
|
)
|
(2,159,511
|
)
|
(2,181,400
|
)
|
||||||||
Net income
|
$
|
6,426,460
|
$
|
4,847,931
|
$
|
10,843,055
|
$
|
8,826,535
|
||||||||
Basic net income per share
|
$
|
0.88
|
$
|
0.67
|
$
|
1.49
|
$
|
1.23
|
||||||||
Diluted net income per share
|
$
|
0.87
|
$
|
0.66
|
$
|
1.48
|
$
|
1.21
|
||||||||
Shares used in computation of basic net income per share
|
7,308,268
|
7,215,057
|
7,292,663
|
7,204,040
|
||||||||||||
Shares used in computation of diluted net income per share
|
7,349,696
|
7,315,276
|
7,344,008
|
7,309,325
|
|
Common Stock
|
|
|
|||||||||||||||||||||
Shares
|
Amount
|
Additional
Paid in
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Stockholders’
Equity
Total
|
|||||||||||||||||||
Balances - December 31, 2018
|
7,738,167
|
$
|
7,738
|
$
|
36,302,446
|
$
|
72,176,719
|
$
|
(10,898,383
|
)
|
$
|
97,588,520
|
||||||||||||
Issuance of common stock upon stock option exercise
|
58,063
|
58
|
1,736,888
|
-
|
-
|
1,736,946
|
||||||||||||||||||
Stock compensation expense
|
-
|
-
|
260,466
|
-
|
-
|
260,466
|
||||||||||||||||||
Repurchases of common stock
|
-
|
-
|
-
|
-
|
(118,566
|
)
|
(118,566
|
)
|
||||||||||||||||
Net income
|
-
|
-
|
-
|
10,843,055
|
-
|
10,843,055
|
||||||||||||||||||
Balances – June 30, 2019
|
7,796,230
|
$
|
7,796
|
$
|
38,299,800
|
$
|
83,019,774
|
$
|
(11,016,949
|
)
|
$
|
110,310,421
|
|
Common Stock
|
|
|
|||||||||||||||||||||
Shares
|
Amount
|
Additional
Paid in
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Stockholders’
Equity
Total
|
|||||||||||||||||||
Balances – March 31, 2019
|
7,740,167
|
$
|
7,740
|
$
|
36,502,652
|
$
|
76,593,314
|
$
|
(10,898,383
|
)
|
$
|
102,205,323
|
||||||||||||
Issuance of common stock upon stock option exercise
|
56,063
|
56
|
1,678,470
|
-
|
-
|
1,678,526
|
||||||||||||||||||
Stock compensation expense
|
-
|
-
|
118,678
|
-
|
-
|
118,678
|
||||||||||||||||||
Repurchases of common stock
|
-
|
-
|
-
|
-
|
(118,566
|
)
|
(118,566
|
)
|
||||||||||||||||
Net income
|
-
|
-
|
-
|
6,426,460
|
-
|
6,426,460
|
||||||||||||||||||
Balances – June 30, 2019
|
7,796,230
|
$
|
7,796
|
$
|
38,299,800
|
$
|
83,019,774
|
$
|
(11,016,949
|
)
|
$
|
110,310,421
|
|
Common Stock
|
|
|
|||||||||||||||||||||
Shares
|
Amount
|
Additional
Paid in
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Stockholders’
Equity
Total
|
|||||||||||||||||||
Balances - December 31, 2017
|
7,600,167
|
$
|
7,600
|
$
|
33,468,323
|
$
|
41,939,115
|
$
|
(7,898,200
|
)
|
$
|
67,516,838
|
||||||||||||
Adjustment due to adoption of ASC606
|
-
|
-
|
-
|
10,184,335
|
-
|
10,184,335
|
||||||||||||||||||
Issuance of common stock upon stock option exercise
|
55,000
|
55
|
859,995
|
-
|
-
|
860,050
|
||||||||||||||||||
Stock compensation expense
|
-
|
-
|
96,314
|
-
|
-
|
96,314
|
||||||||||||||||||
Net income
|
-
|
-
|
-
|
8,826,535
|
-
|
8,826,535
|
||||||||||||||||||
Balances – June 30, 2018
|
7,655,167
|
$
|
7,655
|
$
|
34,424,632
|
$
|
60,949,985
|
$
|
(7,898,200
|
)
|
$
|
87,484,072
|
|
Common Stock
|
|
|
|||||||||||||||||||||
Shares
|
Amount
|
Additional
Paid in
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Stockholders’
Equity
Total
|
|||||||||||||||||||
Balances – March 31, 2018
|
7,610,167
|
$
|
7,610
|
$
|
33,633,225
|
$
|
56,102,054
|
$
|
(7,898,200
|
)
|
$
|
81,844,689
|
||||||||||||
Issuance of common stock upon stock option exercise
|
45,000
|
45
|
727,605
|
-
|
-
|
727,650
|
||||||||||||||||||
Stock compensation expense
|
-
|
-
|
63,802
|
-
|
-
|
63,802
|
||||||||||||||||||
Net income
|
-
|
-
|
-
|
4,847,931
|
-
|
4,847,931
|
||||||||||||||||||
Balances – June 30, 2018
|
7,655,167
|
$
|
7,655
|
$
|
34,424,632
|
$
|
60,949,985
|
$
|
(7,898,200
|
)
|
$
|
87,484,072
|
Six Months Ended
June 30,
|
||||||||
Cash flows from operating activities:
|
2019
|
2018
|
||||||
Net income
|
$
|
10,843,055
|
$
|
8,826,535
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization
|
150,636
|
1,369,227
|
||||||
Stock-based compensation expense
|
260,466
|
96,314
|
||||||
Deferred tax expense
|
159,459
|
82,341
|
||||||
Extinguishment of accrued liabilities
|
-
|
(78,138
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(210,949
|
)
|
(1,438,426
|
)
|
||||
Income tax payable
|
173,690
|
(518,513
|
)
|
|||||
Prepaid expenses and other current assets
|
(365,423
|
)
|
(213,476
|
)
|
||||
Patent costs
|
(92,582
|
)
|
(79,485
|
)
|
||||
Accounts payable and accrued expenses
|
(1,087,775
|
)
|
177,436
|
|||||
Deferred revenue
|
-
|
(139,680
|
)
|
|||||
Net cash provided by operating activities
|
9,830,577
|
8,084,135
|
||||||
Cash flows from investing activities:
|
||||||||
Maturity of marketable investments
|
42,451,229
|
37,279,000
|
||||||
Purchases of marketable investments
|
(53,104,080
|
)
|
(40,596,520
|
)
|
||||
Net cash used in investing activities
|
(10,652,851
|
)
|
(3,317,520
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from stock option exercises
|
1,736,946
|
860,050
|
||||||
Payments for repurchase of common stock
|
(118,566
|
)
|
-
|
|||||
Net cash provided by financing activities
|
1,618,380
|
860,050
|
||||||
Increase in cash and cash equivalents
|
796,106
|
5,626,665
|
||||||
Cash and cash equivalents at beginning of year
|
13,176,452
|
7,333,810
|
||||||
Cash and cash equivalents at end of period
|
$
|
13,972,558
|
$
|
12,960,475
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
-
|
-
|
||||||
Taxes
|
$
|
1,826,362
|
$
|
2,617,572
|
|
• |
An agreement with Swedish Orphan Biovitrum AB (“Sobi”), pursuant to which Sobi has marketing rights for Xiapex® for the treatment of DC and PD in Europe and certain Eurasian countries;
|
|
• |
An agreement with Asahi Kasei Pharma Corporation (“Asahi”), pursuant to which Asahi has the right to commercialize XIAFLEX® for the treatment of DC and PD in Japan; and
|
|
• |
An agreement with Actelion Pharmaceuticals Ltd. (“Actelion”), pursuant to which Actelion obtained marketing and commercial rights for XIAFLEX® in Australia and New Zealand.
|
Maturities as of
June 30, 2019
|
Maturities as of
December 31, 2018
|
|||||||||||||||
1 Year or
Less
|
Greater than 1
Year
|
1 Year or
Less
|
Greater than 1
Year
|
|||||||||||||
U.S Government agency
|
$
|
1,993,638
|
$
|
2,235,124
|
$
|
-
|
$
|
-
|
||||||||
Municipal bonds
|
10,821,680
|
$
|
-
|
1,295,350
|
-
|
|||||||||||
Corporate bonds
|
53,392,333
|
5,749,303
|
61,321,162
|
1,099,834
|
||||||||||||
Certificates of deposit
|
5,096,537
|
248,711
|
5,090,631
|
|||||||||||||
Total
|
$
|
71,304,188
|
$
|
8,233,138
|
$
|
67,707,143
|
$
|
1,099,834
|
June 30, 2019
|
Type of Instrument
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Cash equivalents
|
Institutional Money Market
|
$
|
1,267,261
|
$
|
1,267,261
|
$
|
-
|
$
|
-
|
|||||||||
Investments
|
U.S. Government Agency
|
4,228,762
|
-
|
4,228,762
|
-
|
|||||||||||||
Investments
|
Municipal Bonds
|
10,821,680
|
-
|
10,821,680
|
-
|
|||||||||||||
Investments
|
Corporate Bonds
|
59,141,636
|
-
|
59,141,636
|
-
|
|||||||||||||
Investments
|
Certificates of Deposit
|
5,345,248
|
5,345,248
|
-
|
-
|
December 31, 2018
|
Type of Instrument
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Cash equivalents
|
Institutional Money Market
|
$
|
6,078,025
|
$
|
6,078,025
|
$
|
-
|
$
|
-
|
|||||||||
Investments
|
Municipal Bonds
|
1,295,350
|
-
|
1,295,350
|
-
|
|||||||||||||
Investments
|
Corporate Bonds
|
62,420,996
|
-
|
62,420,996
|
-
|
|||||||||||||
Investments
|
Certificates of Deposit
|
5,090,631
|
5,090,631
|
-
|
-
|
|
Six Months Ended
June 30, 2019
|
|||
Risk-free interest rate
|
2.18
|
%
|
||
Expected term of option
|
|
6.25 years
|
||
Expected stock price volatility
|
39.5
|
%
|
||
Expected dividend yield
|
$
|
0.0
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Outstanding at December 31, 2018
|
175,500
|
$
|
37.73
|
6.33
|
$
|
4,014,235
|
||||||||||
Grants
|
10,000
|
66.40
|
-
|
-
|
||||||||||||
Exercised
|
(58,063
|
)
|
29.91
|
-
|
1,729,995
|
|||||||||||
Forfeitures
|
(11,250
|
)
|
41.82
|
-
|
-
|
|||||||||||
Outstanding at June 30, 2019
|
116,187
|
$
|
43.70
|
6.89
|
$
|
1,926,782
|
||||||||||
Exercisable at June 30, 2019
|
92,000
|
$
|
23.35
|
2.84
|
$
|
1,593,140
|
June 30,
2019
|
December 31,
2018
|
|||||||
Trade accounts payable
|
$
|
84,617
|
$
|
122,199
|
||||
Accrued legal and other professional fees
|
228,548
|
308,725
|
||||||
Accrued payroll and related costs
|
105,787
|
173,123
|
||||||
Third party royalties
|
170,005
|
1,168,837
|
||||||
Other accruals
|
121,855
|
25,704
|
||||||
Total
|
$
|
710,812
|
$
|
1,798,588
|
June 30,
2019
|
December 31,
2018
|
|||||||
Patents
|
$
|
1,138,797
|
$
|
1,046,216
|
||||
Accumulated amortization
|
(644,941
|
)
|
(601,738
|
)
|
||||
Total
|
$
|
493,856
|
$
|
444,478
|
July 1, 2019 – December 31, 2019
|
$
|
43,000
|
||
2020
|
68,000
|
|||
2021
|
51,000
|
|||
2022
|
51,000
|
|||
2023
|
51,000
|
|||
Thereafter
|
230,000
|
|||
Total
|
$
|
494,000
|
|
• |
An agreement with Swedish Orphan Biovitrum AB (“Sobi”), pursuant to which Sobi has marketing rights for Xiapex® for the treatment of DC and PD in Europe and certain Eurasian countries;
|
|
• |
An agreement with Asahi Kasei Pharma Corporation (“Asahi”), pursuant to which Asahi has the right to commercialize XIAFLEX® for the treatment of DC and PD in Japan; and
|
|
• |
An agreement with Actelion Pharmaceuticals Ltd. (“Actelion”), pursuant to which Actelion obtained marketing and commercial rights for XIAFLEX® in Australia and New Zealand.
|
Three Months Ended
June 30, 2019
|
Three Months Ended
June 30, 2018
|
|||||||
Program
|
||||||||
Uterine Fibroids
|
$
|
66,127
|
$
|
104,596
|
||||
Pre-clinical/other research projects
|
95,194
|
107,200
|
||||||
Total R&D expenses
|
$
|
161,321
|
$
|
211,796
|
|
• |
the nature, timing and estimated costs of the efforts necessary to complete the development of our drug candidate projects;
|
|
• |
the anticipated completion dates for our drug candidate projects;
|
|
• |
the scope, rate of progress and cost of our clinical trials that we are currently running or may commence in the future with respect to our drug candidate projects;
|
|
• |
the scope, rate of progress of our preclinical studies and other R&D activities related to our drug candidate projects;
|
|
• |
clinical trial results for our drug candidate projects;
|
|
• |
the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights relating to our drug candidate projects;
|
|
• |
the terms and timing of any strategic alliance, licensing and other arrangements that we have or may establish in the future relating to our drug candidate projects;
|
|
• |
the cost and timing of regulatory approvals with respect to our drug candidate projects; and
|
|
• |
the cost of establishing clinical supplies for our drug candidate projects.
|
Six Months Ended
June 30, 2019
|
Six Months Ended
June 30, 2018
|
|||||||
Program
|
||||||||
Uterine Fibroids
|
$
|
126,412
|
$
|
127,534
|
||||
Pre-clinical/other research projects
|
184,445
|
279,489
|
||||||
Total R&D expenses
|
$
|
310,857
|
$
|
407,023
|
|
• |
the nature, timing and estimated costs of the efforts necessary to complete the development of our drug candidate projects;
|
|
• |
the anticipated completion dates for our drug candidate projects;
|
|
• |
the scope, rate of progress and cost of our clinical trials that we are currently running or may commence in the future with respect to our drug candidate projects;
|
|
• |
the scope, rate of progress of our preclinical studies and other R&D activities related to our drug candidate projects;
|
|
• |
clinical trial results for our drug candidate projects;
|
|
• |
the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights relating to our drug candidate projects;
|
|
• |
the terms and timing of any strategic alliance, licensing and other arrangements that we have or may establish in the future relating to our drug candidate projects;
|
|
• |
the cost and timing of regulatory approvals with respect to our drug candidate projects; and
|
|
• |
the cost of establishing clinical supplies for our drug candidate projects.
|
Period
|
Total Number of
Shares
Purchased
(1)
|
Average
Price Paid
Per Share
(2)
|
Total Number of
Shares
Purchased as
Part of Publicly
Announced Plan
|
Maximum
Number (or
Dollar Value) of
Shares that May
Yet be Purchased
under the Plan
|
||||||||||||
$
|
4,000,000
|
(3)
|
||||||||||||||
April 1, 2019 – April 30, 2019
|
-
|
-
|
-
|
-
|
||||||||||||
May 1, 2019 – May 31, 2019
|
-
|
-
|
-
|
-
|
||||||||||||
June 1, 2019 – June 30, 2019
|
2,048
|
$
|
57.8937
|
2,048
|
$
|
3,881,433
|
||||||||||
Total
|
2,048
|
(1) |
The purchases were made in open-market transactions in compliance with rule 10b-18 or under the company’s 10b-18 plan.
|
(2) |
Includes commissions paid, if any, related to the stock repurchase transactions.
|
(3) |
On May 23, 2019, we announced that our Board of Directors had authorized the repurchase of up to $4.0 million of our common stock under the stock repurchase program, which program is not
subject to an expiration date.
|
Form of Director Restricted Stock Unit Award Agreement
|
||
Restricted Stock Unit Award Agreement for P. Caldwell
|
||
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002
|
BIOSPECIFICS TECHNOLOGIES CORP.
|
|
(Registrant)
|
|
Date: August 9, 2019
|
/s/ Ronald E. Law
|
Ronald E. Law
|
|
Principal Executive Officer
|
BIOSPECIFICS TECHNOLOGIES CORP.
|
||
|
||
Name:
|
||
Title:
|
|
|
||
Date
|
Participant
|
BIOSPECIFICS TECHNOLOGIES CORP.
|
||
/s/ Ronald E. Law
|
||
Name:
|
Ronald E. Law
|
|
Title:
|
Principal Executive Officer
|
July 12, 2019
|
/s/ Patrick M. Caldwell
|
Date
|
Patrick M. Caldwell
|
|
1. |
I have reviewed this quarterly report on Form 10-Q of BioSpecifics Technologies Corp. for the
quarterly period ended
June 30, 2019;
|
|
2. |
Based on my knowledge, the report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;
|
|
3. |
Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and
|
|
(d) |
Disclosed in this report any change in the
registrant’s
internal control over financial reporting that occurred during the
registrant’s
most recent fiscal
quarter (the
registrant’s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over
financial reporting; and
|
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and to the audit committee of
the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information; and
|
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
|
1. |
I have reviewed this quarterly report on Form 10-Q of BioSpecifics Technologies Corp. for the quarterly period ended June 30, 2019;
|
|
2. |
Based on my knowledge, the report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;
|
|
3. |
Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and
|
|
(d) |
Disclosed in this report any change in the
registrant’s
internal control over financial reporting that occurred during the
registrant’s
most recent fiscal
quarter (the
registrant’s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over
financial reporting; and
|
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and to the audit committee of
the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information; and
|
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
|
1. |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
August 9, 2019
|
/s/ Ronald Law
|
|
Ronald Law
|
|
Principal Executive Officer
|
|
/s/ Pat Caldwell
|
|
Pat Caldwell
|
|
Principal Financial Officer
|