Here's A Look At The US Stem Cell Inc (OTCMKTS:USRM) Numbers

US Stem Cell Inc (OTCMKTS:USRM) is a company that we have continuously highlighted as being one to keep an eye on in the biotechnology space. It is one that we feel remained under the radar for far too long, and - to some extent - still does. Gradually, however, markets are switching on to the company’s potential and this switching on is translating to strength in its share price.At the start of this month, US Stem Cell put out some numbers related to its progress over the last few months. In our previous coverage, we highlighted the lack of quantitative insight as being one of the major risks associated with an exposure to the company at this early stage, and as such, the most recent release serves to mitigate a large portion of this risk.This, of course, makes US Stem Cell all the more attractive, and we expect it to continue its shift from an under the radar stock to a popular small-cap biotech play as 2017 matures and beyond.With this in mind, here is a look at the latest numbers, what they say about the company, and what we are looking for going forward as supportive of our thesis.For those new to this one, it is a stem cell stock (as its name suggests) that has developed a proprietary technology and based a therapy protocol on said technology. It’s actually pretty interesting from a scientific perspective. Instead of having to take stem cells from a donor (which is one of the more popular methods of meeting supply requirements right now), the company takes stem cells from the fatty tissue of the patient being treated. Only a tiny sample is required, and the company uses its technology to basically grow fresh stem cells from those harvested from the fatty tissue. Physicians then inject the stem cells directly into the area of the body requiring treatment. If a patient wants treatment for osteoarthritis of the knee, for example, the physician will inject the stem cells directly into the knee.The beauty of this kind of therapy is it has a whole host of potential indications; essentially, think of a condition, and this treatment (hypothetically, at least) should be able to cover it.Already, there's a bunch of anecdotal evidence that supports efficacy and safety.Of course, without FDA approval for specific indications, it is only classed as experimental therapy, and revenue potential is limited. As we highlighted in our previous coverage, the company recognizes this and just restarted a trial that is working to get this therapy approved (by way of the traditional regulatory pathway in the US) as a treatment for chronic heart failure after myocardial infarction (under the brand MyoCell). This trial serves up numerous near-term catalysts and it forms the basis of our forward strategic approach to a US Stem Cell exposure. So what did the numbers tell us?As mentioned, the status of the therapy as experimental somewhat limits revenue potential, but this doesn’t mean US Stem Cell hasn’t been able to generate sales. For the quarter ended March 31, 2017, revenues came in at $1.15 million. That’s a 62% increase from the $710,000 recorded during the same period in 2016. Across the same two periods, revenues increased from $556,000 to $810,000. Importantly, the company also shifted from cash flow negative ($62,000) in the first quarter of 2016, to cash flow positive ($268,000) in the first quarter of 2017. Additionally, all debt-to-equity convertible notes have been either fully paid or converted as of March 31, 2017. That's a real bonus in our eyes. Keep in mind, these revenues are generated from patients that have basically run out of options in various conditions, and are walking in off the street to facilities owned by US Stem Cell as a last resort. If the treatment they seek were to pick up FDA approval, and as these limited numbers highlight, there’s a massive potential to build on current sales.As we have highlighted a couple of occasions in the past, cash remains a concern for this one. The company may be cash flow positive, but if it is going to fund its asset through clinical development, something that is already underway, it’s going to need a cash injection to keep the ball rolling. Said cash injection is going to come from equity issue, and that is going to be dilutive to early-stage shareholders. Again, as we have noted in the past, we believe this is far from prohibitive to an exposure, but nevertheless it’s well worth keeping in mind going forward.We will be updating our subscribers as soon as we know more. For the latest updates on USRM, sign up below!Disclosure: We have no position in USRM and have not been compensated for this article.