Q2 2023 and Recent Highlights:
- Initiated PEDAL-Cancer Research Horizons collaboration for the analysis of drug compounds;
- Initiated strategic collaboration with Cvergenx to identify novel molecules and compounds and the repurposing of radioprotective or radiosensitizing drugs;
- Delivered a presentation on the importance of addressing patient heterogeneity in drug discovery and the advantages of leveraging active machine learning at the
Bio International Convention inBoston in June; met with more than 30 biopharmaceutical development customer prospects and further expanding Predictive Oncology’s sales pipeline; - Established new
Business Advisory Board and announced first two appointments: Dr.Bernard Harris andAndrew Einhorn ; - Appointed pharma, biotech and digital health industry veteran, Dr.
Veen Rao , to the Company’s Board of Directors; - Relocated corporate headquarters to
Pittsburgh, PA fromEagan, MN.
“We are very pleased with the steady progress that we have made since our last quarterly update, both advancing current PEDAL relationships with CRH, Cvergenx and others, while in parallel building our pipeline as more drug developers – both biopharmaceutical companies as well as research institutions – see the value that only
“The tangible impact of our presence at
Q2 2023 Financial Summary:
- Concluded the second quarter of 2023 with
$14.8 million in cash and cash equivalents, compared to$22.1 million as ofDecember 31, 2022 , and$14.7 million in Stockholder’s Equity, compared to$21.8 million as ofDecember 31, 2022 . - Loss per common share for Q2 2023 was
$0.98 , as compared to$2.89 for the second quarter of 2022.
Q2 2023 Financial results
Predictive Oncology recorded revenue of$490,110 in the second quarter of 2023, compared to$371,591 in 2022. Sales of Streamway related products and services by ourEagan operating segment were responsible for the majority of the revenue.- Gross profit margin increased to 67% during the three months ended
June 30, 2023 as compared to 64% in the comparable period in 2022 due to sales mix and higher margins on disposables for Streamway machines. - G&A expenses increased by
$352,831 to$2,704,527 for the three months endedJune 30, 2023 , compared to$2,351,696 for the same period in 2022. The increase was primarily due to increased investor relations fees related to the reverse stock split, office rent and other general and administrative expenses. - Operations expense increased by
$83,929 to$993,042 for the three months endedJune 30, 2023 compared to$909,113 for the comparable three months ended in 2022, primarily due to higher cloud computing expenses, offset by decreases in expenses related to the closure of the offices of the Company’s former wholly-owned subsidiaries. - Sales and marketing expenses increased by
$158,081 for the three months endedJune 30, 2023 , to$429,103 , compared to$271,022 for the same period in 2022. The increase was due primarily due to the increase in marketing and business development staff hired afterJune 20, 2022 . - Net cash used in operating activities was
$7,002,033 and$6,427,806 for the six months endedJune 30, 2023 andJune 30, 2022 , respectively. Cash used in operating activities increased in the 2023 period primarily due to an increase in operating expenses and changes in working capital.
Conference call and webcast details:
To participate in the call, investors and analysts should dial 1-877-407-3982 (domestic) or 1-201-493-6780 (international) and reference conference ID 13739784.
To access the Call Me™ feature, which eliminates the need to wait for a call operator, please click here.
The live webcast of the call can be accessed here.
Forward-Looking Statements:
Certain matters discussed in this release contain forward-looking statements. These forward-looking statements reflect our current expectations and projections about future events and are subject to substantial risks, uncertainties and assumptions about our operations and the investments we make. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue and financial performance, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “would,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors including, among other things, factors discussed under the heading “Risk Factors” in our filings with the
Investor Relations Contact:
tim@lifesciadvisors.com
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
2023 | 2022 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 14,763,745 | $ | 22,071,523 | ||||
Accounts receivable | 430,849 | 331,196 | ||||||
Inventories | 393,698 | 430,493 | ||||||
Prepaid expense and other assets | 381,233 | 526,801 | ||||||
Total current assets | 15,969,525 | 23,360,013 | ||||||
Property and equipment, net | 1,548,805 | 1,833,255 | ||||||
Intangibles, net | 266,183 | 253,865 | ||||||
Lease right-of-use assets | 3,008,397 | 211,893 | ||||||
Other long-term assets | 174,096 | 75,618 | ||||||
Total assets | $ | 20,967,006 | $ | 25,734,644 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,013,481 | $ | 943,452 | ||||
Accrued expenses and other liabilities | 1,650,300 | 2,229,075 | ||||||
Derivative liability | 5,572 | 13,833 | ||||||
Contract liabilities | 627,896 | 602,073 | ||||||
Lease liability | 466,087 | 94,237 | ||||||
Total current liabilities | 3,763,336 | 3,882,670 | ||||||
Lease liability – net of current portion | 2,498,613 | 86,082 | ||||||
Total liabilities | 6,261,949 | 3,968,752 | ||||||
Stockholders’ equity: | ||||||||
Total stockholders' equity | 14,705,057 | 21,765,892 | ||||||
Total liabilities and stockholders' equity | $ | 20,967,006 | $ | 25,734,644 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS (Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 490,110 | $ | 371,591 | $ | 730,005 | $ | 686,159 | ||||||||
Cost of goods sold | 159,761 | 134,075 | 279,900 | 243,518 | ||||||||||||
Gross margin | 330,349 | 237,516 | 450,105 | 442,641 | ||||||||||||
General and administrative expense | 2,704,527 | 2,351,696 | 5,040,511 | 4,775,347 | ||||||||||||
Operations expense | 993,042 | 909,113 | 1,871,560 | 1,800,184 | ||||||||||||
Sales and marketing expense | 429,103 | 271,022 | 799,340 | 575,489 | ||||||||||||
Loss on impairment of goodwill | - | 7,231,093 | - | 7,231,093 | ||||||||||||
Loss on impairment of property and equipment | 162,905 | - | 162,905 | |||||||||||||
Total operating loss | (3,959,228 | ) | (10,525,408 | ) | (7,424,211 | ) | (13,939,472 | ) | ||||||||
Other income | 28,552 | 41,047 | 70,780 | 83,477 | ||||||||||||
Other expense | - | (2,217 | ) | - | (3,206 | ) | ||||||||||
Gain on derivative instruments | 7,308 | 95,254 | 8,261 | 97,162 | ||||||||||||
Net loss | $ | (3,923,368 | ) | $ | (10,391,324 | ) | $ | (7,345,170 | ) | $ | (13,762,039 | ) | ||||
Net loss per common share - basic and diluted | $ | (0.98 | ) | $ | (2.89 | ) | $ | (1.84 | ) | $ | (4.00 | ) | ||||
Weighted average shares used in computation – basic and diluted | 3,996,512 | 3,589,684 | 3,982,384 | 3,441,546 |
Source:
2023 GlobeNewswire, Inc., source