US Stem Cell Inc (OTCMKTS:USRM) Could Be A Nice Recovery Play

US Stem Cell Inc (OTCMKTS:USRM) is a company that we have looked at on a few occasions over the last 12 months here at Insider Financial but it's one that, over the last few months in particular, hasn't had a particularly easy time in the markets.The company is down 33% over the last 90 days and dipped from $0.045 a share mid July to less than $0.019 a share during the middle of September.Over the last few weeks, however, we have seen US Stem Cell stage something of a recovery and the company currently goes for just shy of $0.03 a piece, having appreciated by around 50% across the last 30 days. USRM Daily ChartThe recovery is rooted in a debt restructuring that comes as part of a wider effort to clean up the company's balance sheet. If effective, and there looks to be no reason why it can't be, the effort could position US Stem Cell for a longer-term recovery from current prices and, in turn, makes the company one to keep an eye on going forward.For those new to US Stem Cell, it's a biotechnology stock that – as its name suggests – operates in the stem cell arena in the US. It's created a technology platform that allows for the treatment of a huge number of different conditions and a large portion of resources over the last 12 to 24 months have been dedicated to bringing this platform to fruition in the US. Right now, the company carries out various treatments but the real opportunity is in getting its stem cell therapy approved in the US by the FDA and the subsequent allowing of the company to market its treatment options as administrable therapies to physicians.In the US, the stem cell space is incredibly young. In countries like Japan, which is far more accommodative of this type of regenerative medicine and has dedicated billions of dollars in government revenues towards advancing stem cell therapy in various conditions, the market is much more mature. US Stem Cell, therefore, is suffering from a general wider market ignorance towards the potential of this type of therapy.Over time, and as the healthcare landscape in the US becomes more tolerant and educated towards stem cell therapies and regenerative medicine in general, those younger companies that are pioneering the sector right now should appreciate in value in line with wider markets.Of course, traders and investors still want to see some degree of progress and quantitative risk mitigation right now, and there's plenty of it with US Stem Cell as things stand. In its most recent financials, the company reported revenues of $1.38 million, up from the $678K recorded during the same period in 2016.For the six months between January and June this year, net income came in at $100K, which is up from a net loss during the same period last year of $272K. In other words, the company went from relying on shareholder capital to being able to support its own operations and bringing in a positive bottom line in the process.So where are we looking for further growth from here?Management expects to open up 10 new treatment centers across the next 12 months and every new opening, for us, represents a potential upside catalyst. There is a large demand for this sort of treatment across the US, albeit, right now, at the more experimental end of the spectrum, and US Stem Cell is expanding to accommodate this demand faster and further than many of its peers in the space.Sure, there is a chance we will see some dilution during the next 12 months as the company seeks to capitalize its expansion, but if it can operate efficiently and, at the same time, manage its debt (which has weighed on sentiment until the most recent restructuring) then any downside impact of dilution should be quickly mitigated by increased topline growth.Check out our previous coverage of USRM here. We will be updating our subscribers as soon as we know more. For the latest updates on USRM, sign up below!Image courtesy of Joseph Elsbernd via FlickrDisclosure: We have no position in USRM and have not been compensated for this article.