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 ☐
|
Page
|
||
PART I – FINANCIAL INFORMATION
|
||
ITEM 1.
|
Financial Statements
|
|
Unaudited Condensed Consolidated Financial Statements | ||
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
ITEM 2.
|
18 | |
ITEM 3.
|
24 | |
ITEM 4.
|
24 |
PART II – OTHER INFORMATION
|
||
ITEM 1.
|
25 | |
ITEM 1A.
|
25 | |
ITEM 2.
|
25 | |
ITEM 5.
|
Other Information
|
25 |
ITEM 6.
|
26 | |
27 |
Item 1:
|
Condensed Consolidated Financial Statements
|
September 30,
2019
|
December 31,
2018
|
|||||||
(unaudited)
|
(audited)
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
12,769,293
|
$
|
13,176,452
|
||||
Short term investments
|
69,089,724
|
67,707,143
|
||||||
Accounts receivable
|
17,768,757
|
16,518,687
|
||||||
Deferred royalty buy-down
|
-
|
184,931
|
||||||
Prepaid expenses and other current assets
|
836,708
|
646,749
|
||||||
Prepaid income taxes
|
951,776
|
|||||||
Total current assets
|
101,416,258
|
98,233,962
|
||||||
Long-term investments
|
16,492,528
|
1,099,834
|
||||||
Deferred tax assets, net
|
-
|
313,768
|
||||||
Patent costs, net
|
562,503
|
444,478
|
||||||
Total assets
|
$
|
118,471,289
|
$
|
100,092,042
|
||||
Liabilities and stockholders’ equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued expenses
|
$
|
877,228
|
$
|
1,798,588
|
||||
Income tax payable
|
-
|
704,934
|
||||||
Total current liabilities
|
877,228
|
2,503,522
|
||||||
Deferred tax liability, net
|
593,059
|
-
|
||||||
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 7,811,230 and 7,738,167 shares issued, 7,342,756 and 7,275,902 shares outstanding as of September 30,
2019 and December 31, 2018, respectively
|
7,811
|
7,738
|
||||||
Additional paid-in capital
|
38,956,156
|
36,302,446
|
||||||
Retained earnings
|
89,292,707
|
72,176,719
|
||||||
Treasury stock, 468,474 and 462,265 shares at cost as of September 30, 2019 and December 31, 2018, respectively
|
(11,255,672
|
)
|
(10,898,383
|
)
|
||||
Total stockholders’ equity
|
117,001,002
|
97,588,520
|
||||||
Total liabilities and stockholders’ equity
|
$
|
118,471,289
|
$
|
100,092,042
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Revenues:
|
||||||||||||||||
Royalties
|
$
|
9,442,253
|
$
|
8,168,081
|
$
|
26,424,380
|
$
|
23,068,585
|
||||||||
Licensing revenues
|
-
|
-
|
-
|
39,679
|
||||||||||||
Total Revenues
|
9,442,253
|
8,168,081
|
26,424,380
|
23,108,264
|
||||||||||||
Costs and expenses:
|
||||||||||||||||
Research and development
|
143,185
|
162,625
|
454,042
|
569,648
|
||||||||||||
General and administrative
|
1,978,078
|
2,232,077
|
6,613,362
|
6,345,662
|
||||||||||||
Total Cost and Expenses
|
2,121,263
|
2,394,702
|
7,067,404
|
6,915,310
|
||||||||||||
Operating income
|
7,320,990
|
5,773,379
|
19,356,976
|
16,192,954
|
||||||||||||
Other income:
|
||||||||||||||||
Interest income
|
504,909
|
359,637
|
1,471,489
|
851,334
|
||||||||||||
Other income
|
-
|
-
|
-
|
96,663
|
||||||||||||
504,909
|
359,637
|
1,471,489
|
947,997
|
|||||||||||||
Income before income tax expense
|
7,825,899
|
6,133,016
|
20,828,465
|
17,140,951
|
||||||||||||
Provision for income tax expense
|
(1,552,966
|
)
|
(1,089,966
|
)
|
(3,712,477
|
)
|
(3,271,366
|
)
|
||||||||
Net income
|
$
|
6,272,933
|
$
|
5,043,050
|
$
|
17,115,988
|
$
|
13,869,585
|
||||||||
Basic net income per share
|
$
|
0.86
|
$
|
0.69
|
$
|
2.34
|
$
|
1.92
|
||||||||
Diluted net income per share
|
$
|
0.85
|
$
|
0.69
|
$
|
2.33
|
$
|
1.89
|
||||||||
Shares used in computation of basic net income per share
|
7,334,212
|
7,281,388
|
7,306,665
|
7,230,106
|
||||||||||||
Shares used in computation of diluted net income per share
|
7,359,034
|
7,356,885
|
7,347,701
|
7,327,029
|
|
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
|
73,063
|
73
|
$
|
2,133,323
|
-
|
-
|
2,133,396
|
|||||||||||||||||
Stock compensation expense
|
-
|
-
|
$
|
520,387
|
-
|
-
|
520,387
|
|||||||||||||||||
Repurchases of common stock
|
-
|
-
|
-
|
-
|
(357,289
|
)
|
(357,289
|
)
|
||||||||||||||||
Net income
|
-
|
-
|
-
|
17,115,988
|
-
|
17,115,988
|
||||||||||||||||||
Balances – September 30, 2019
|
7,811,230
|
$
|
7,811
|
$
|
38,956,156
|
$
|
89,292,707
|
$
|
(11,255,672
|
)
|
$
|
117,001,002
|
Common Stock
|
||||||||||||||||||||||||
Shares
|
Amount
|
Additional
Paid in
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Stockholders’
Equity
Total
|
|||||||||||||||||||
Balances – June 30, 2019
|
7,796,230
|
$
|
7,796
|
$
|
38,299,800
|
$
|
83,019,774
|
$
|
(11,016,949
|
)
|
$
|
110,310,421
|
||||||||||||
Issuance of common stock upon stock option exercise
|
15,000
|
15
|
396,435
|
-
|
-
|
396,450
|
||||||||||||||||||
Stock compensation expense
|
-
|
-
|
259,921
|
-
|
-
|
259,921
|
||||||||||||||||||
Repurchases of common stock
|
-
|
-
|
-
|
-
|
(238,723
|
)
|
(238,723
|
)
|
||||||||||||||||
Net income
|
-
|
-
|
-
|
6,272,933
|
-
|
6,272,933
|
||||||||||||||||||
Balances – September 30, 2019
|
7,811,230
|
$
|
7,811
|
$
|
38,956,156
|
$
|
89,292,707
|
$
|
(11,255,672
|
)
|
$
|
117,001,002
|
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
|
138,000
|
138
|
2,570,692
|
-
|
-
|
2,570,830
|
||||||||||||||||||
Stock compensation expense
|
-
|
-
|
159,883
|
-
|
-
|
159,883
|
||||||||||||||||||
Repurchases of common stock
|
-
|
-
|
-
|
-
|
(2,559,050
|
)
|
(2,559,050
|
)
|
||||||||||||||||
Net income
|
-
|
-
|
-
|
13,869,585
|
-
|
13,869,585
|
||||||||||||||||||
Balances – September 30, 2018
|
7,738,167
|
$
|
7,738
|
$
|
36,198,898
|
$
|
65,993,035
|
(10,457,250
|
)
|
$
|
91,742,421
|
Common Stock
|
||||||||||||||||||||||||
Shares
|
Amount
|
Additional
Paid in
Capital
|
Retained
Earnings |
Treasury
Stock
|
Stockholders’
Equity
Total
|
|||||||||||||||||||
Balances – June 30, 2018
|
7,655,167
|
$
|
7,655
|
$
|
34,424,632
|
$
|
60,949,985
|
$
|
(7,898,200
|
)
|
$
|
87,484,072
|
||||||||||||
Issuance of common stock upon stock option exercise
|
83,000
|
83
|
1,710,697
|
-
|
-
|
1,710,780
|
||||||||||||||||||
Stock compensation expense
|
-
|
-
|
63,569
|
-
|
-
|
63,569
|
||||||||||||||||||
Repurchases of common stock
|
-
|
-
|
-
|
-
|
(2,559,050
|
)
|
(2,559,050
|
)
|
||||||||||||||||
Net income
|
-
|
-
|
-
|
5,043,050
|
-
|
5,043,050
|
||||||||||||||||||
Balances – September 30, 2018
|
7,738,167
|
$
|
7,738
|
$
|
36,198,898
|
$
|
65,993,035
|
$
|
(10,457,250
|
)
|
$
|
91,742,421
|
Nine Months Ended
September 30,
|
||||||||
Cash flows from operating activities:
|
2019
|
2018
|
||||||
Net income
|
$
|
17,115,988
|
$
|
13,869,585
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization
|
202,875
|
1,984,577
|
||||||
Stock-based compensation expense
|
520,387
|
159,883
|
||||||
Deferred tax expense
|
199,908
|
128,418
|
||||||
Extinguishment of accrued liabilities
|
-
|
(78,138
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(1,250,070
|
)
|
(2,245,522
|
)
|
||||
Income tax payable / receivable
|
(949,791
|
)
|
(774,624
|
)
|
||||
Prepaid expenses and other current assets
|
(189,959
|
)
|
(178,453
|
)
|
||||
Patent costs
|
(189,704
|
)
|
(95,399
|
)
|
||||
Accounts payable and accrued expenses
|
(921,360
|
)
|
(356,548
|
)
|
||||
Deferred revenue
|
-
|
(139,680
|
)
|
|||||
Net cash provided by operating activities
|
14,538,274
|
12,274,099
|
||||||
Cash flows from investing activities:
|
||||||||
Maturity of marketable investments
|
76,636,059
|
58,380,000
|
||||||
Purchases of marketable investments
|
(93,357,599
|
)
|
(64,618,676
|
)
|
||||
Net cash used in investing activities
|
(16,721,540
|
)
|
(6,238,676
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from stock option exercises
|
2,133,396
|
2,570,830
|
||||||
Payments for repurchase of common stock
|
(357,289
|
)
|
(2,559,050
|
)
|
||||
Net cash provided by financing activities
|
1,776,107
|
11,780
|
||||||
Increase (decrease) in cash and cash equivalents
|
(407,159
|
)
|
6,047,203
|
|||||
Cash and cash equivalents at beginning of year
|
13,176,452
|
7,333,810
|
||||||
Cash and cash equivalents at end of period
|
$
|
12,769,293
|
$
|
13,381,013
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
-
|
-
|
||||||
Taxes
|
$
|
4,462,362
|
$
|
3,917,572
|
• |
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
September 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
|
$
|
4,234,076
|
$
|
6,228,685
|
$
|
-
|
$
|
-
|
||||||||
Municipal bonds
|
6,593,224
|
545,265
|
1,295,350
|
-
|
||||||||||||
Corporate bonds
|
56,061,185
|
5,948,250
|
61,321,162
|
1,099,834
|
||||||||||||
Certificates of deposit
|
2,201,239
|
3,770,328
|
5,090,631
|
-
|
||||||||||||
Total
|
$
|
69,089,724
|
$
|
16,492,528
|
$
|
67,707,143
|
$
|
1,099,834
|
September 30, 2019
|
Type of Instrument
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Cash equivalents
|
Institutional Money Market
|
$
|
2,433,542
|
$
|
2,433,542
|
$
|
-
|
$
|
-
|
||||||||
Cash equivalents
|
U.S. Government Agency
|
$
|
3,995,097
|
$
|
3,995,097
|
||||||||||||
Investments
|
U.S. Government Agency
|
10,462,761
|
-
|
10,462,761
|
-
|
||||||||||||
Investments
|
Municipal Bonds
|
7,138,489
|
-
|
7,138,489
|
-
|
||||||||||||
Investments
|
Corporate Bonds
|
62,009,435
|
-
|
62,009,435
|
-
|
||||||||||||
Investments
|
Certificates of Deposit
|
5,971,567
|
5,971,567
|
-
|
-
|
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
|
-
|
-
|
|
Restricted Stock
|
Weighted-Average Grant Date Fair Value Per
Share
|
||||||
Nonvested at December 31, 2018
|
-
|
$
|
-
|
|||||
Issued
|
9,950
|
60.85
|
||||||
Vested
|
-
|
-
|
||||||
Forfeited
|
-
|
-
|
||||||
Nonvested at September 30, 2019
|
9,950
|
$
|
60.85
|
|
Nine Months Ended
September 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
|
(73,063
|
)
|
29.20
|
-
|
2,229,195
|
|||||||||||
Forfeitures
|
(11,250
|
)
|
41.82
|
-
|
-
|
|||||||||||
Outstanding at September 30, 2019
|
101,187
|
$
|
46.26
|
7.63
|
$
|
1,061,135
|
||||||||||
Exercisable at September 30, 2019
|
28,812
|
$
|
21.74
|
3.96
|
$
|
915,593
|
September 30,
2019
|
December 31,
2018
|
|||||||
Trade accounts payable
|
$
|
87,446
|
$
|
122,199
|
||||
Accrued legal and other professional fees
|
450,300
|
308,725
|
||||||
Accrued payroll and related costs
|
94,205
|
173,123
|
||||||
Third party royalties
|
173,005
|
1,168,837
|
||||||
Other accruals
|
72,272
|
25,704
|
||||||
Total
|
$
|
877,228
|
$
|
1,798,588
|
September 30,
2019
|
December 31,
2018
|
|||||||
Patents
|
$
|
1,235,919
|
$
|
1,046,216
|
||||
Accumulated amortization
|
(673,416
|
)
|
(601,738
|
)
|
||||
Total
|
$
|
562,503
|
$
|
444,478
|
|
• |
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
September 30, 2019
|
Three Months Ended
September 30, 2018
|
|||||||
Program
|
||||||||
Uterine Fibroids
|
$
|
42,819
|
$
|
82,716
|
||||
Pre-clinical/other research projects
|
100,366
|
79,909
|
||||||
Total R&D expenses
|
$
|
143,185
|
$
|
162,625
|
|
• |
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;
|
|
• |
the cost of establishing clinical supplies for our drug candidate projects;
|
|
• |
costs and/or risks relating to future product opportunities.
|
|
Nine Months Ended
September 30, 2019
|
Nine Months Ended
September 30, 2018
|
||||||
Program | ||||||||
Uterine Fibroids |
$
|
169,231
|
$
|
210,250
|
||||
Pre-clinical/other research projects
|
284,811
|
359,398
|
||||||
Total R&D expenses
|
$
|
454,042
|
$
|
569,648
|
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(3)
|
||||||||||||
Remaining balance as of June 30, 2019
|
$
|
3,881,433
|
||||||||||||||
July 1, 2019 – July 30, 2019
|
1,033
|
$
|
60.27
|
3,081
|
3,819,170
|
|||||||||||
August 1, 2019 – August 31, 2019
|
1,717
|
56.39
|
4,798
|
3,722,346
|
||||||||||||
September 1, 2019 – September 30, 2019
|
1,411
|
$
|
56.44
|
6,209
|
$
|
3,642,711
|
||||||||||
Total
|
4,161
|
(1) |
The purchases were made in open-market transactions in compliance with Exchange Act 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.
|
Employment Agreement by and between BioSpecifics Technology Corp., Advance Biofactures Corporation, and J. Kevin Buchi
|
||
Form of Non-Qualified Stock Option Award Agreement
|
||
Amended Agreement of Lease, dated as of November 6, 2019, among the Company, ABC-NY and 35 Wilbur Street Associates
|
||
Certification of Chief Executive Officer and 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 Chief Executive Officer and 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: November 12, 2019
|
/s/ J. Kevin Buchi
|
J. Kevin Buchi
|
|
Chief Executive Officer and Principal Executive Officer
|
ADVANCE BIOFACTURES CORPORATION
|
||
/s/ Jennifer Chao
|
Name:
|
Jennifer Chao | ||
Title:
|
Attorney-in-Fact | ||
BIOSPECIFICS TECHNOLOGY CORP.
|
|||
/s/ Jennifer Chao
|
Name:
|
Jennifer Chao | ||
Title:
|
Chair of Compensation Committee | ||
EXECUTIVE
|
|||
/s/ J. Kevin Buchi
|
Name:
|
J. Kevin Buchi |
|
• |
you read this Agreement and you understand it;
|
|
• |
you are signing this Agreement voluntarily in order to release your claims against the Company and the Employer in exchange for payment that is greater than you would otherwise have received;
|
|
• |
you are signing this Agreement after the date of your separation from the Employer and you were offered at least 21 days to consider your choice to sign this Agreement;
|
|
• |
the Company and the Employer advise you to consult with an attorney;
|
|
• |
you know that you can revoke this Agreement within seven days of signing it and that the Agreement does not become effective until that seven-day period has passed. To revoke, contact [Insert name or title and address and/or email
address]; and
|
|
• |
you agree that changes to this Agreement before its execution, whether material or immaterial, do not restart your time to review this Agreement.
|
Employee:
|
Date:
|
||||
Company:
|
Date:
|
||||
Name:
|
|||||
Title:
|
|||||
Employer:
|
Date:
|
||||
Name:
|
|||||
Title:
|
BIOSPECIFICS TECHNOLOGIES CORP.
|
||
Name:
|
||
Title:
|
Participant:
|
Date:
|
Re:
|
Lease dated November 21, 2013 between 35 Wilbur Street Assoc., LLC and Advance Biofactures Corp., premises; 35 Wilbur Street, Lynbrook, NY 11563.
|
|
1) |
The lease will be renewed for 6 months. $12,073.95/ month.
|
Patrick Caldwell, CFO
|
Richard Arote Jr.
|
Advance Biofactures Corp.
|
35 Wilbur Street Assoc., LLC
|
/s/ Patrick Caldwell
|
/s/ Richard Arote Jr.
|
|
1. |
I have reviewed this quarterly report on Form 10-Q of BioSpecifics Technologies Corp. for the quarterly
period ended September 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.
|
/s/ J. Kevin Buchi
|
J. Kevin Buchi
|
Chief Executive Officer and Principal Executive Officer
|
|
1. |
I have reviewed this quarterly report on Form 10-Q of BioSpecifics Technologies Corp. for the quarterly period ended September 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.
|
Date: November 12, 2019
|
/s/ Pat Caldwell
|
Pat Caldwell
|
Principal Financial Officer
|
|
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:
|
November 12, 2019
|
||
/s/ J. Kevin Buchi
|
|||
J. Kevin Buchi
|
|||
Chief Executive Officer and Principal Executive Officer
|
|||
/s/ Pat Caldwell
|
|||
Pat Caldwell
|
|||
Principal Financial Officer
|