Predictive Oncology Inc. Reports Q3 Results; Revenues Increase 58%
Revenue for the quarter ended September 30, 2019 was $522,696 compared with $329,930 for the same period of 2018, a 58 percent increase year over year. Revenue included the sale of 19 STREAMWAY systems and disposable supplies, compared to 10 sales of the system in the comparable period of 2018. Cost of sales was $208,096 in the third quarter of 2019, compared to $83,006 in Q3 2018. Gross profit margin declined to 60% percent versus 75% in the third quarters of 2019 and 2018 respectively. Operating expenses for the quarter ended September 30, 2019 declined to
Business highlights of the third quarter of 2019 through recent weeks include:
- Initial models in progress with Interpace Diagnostics for Thyroid.
- Helomics has initiated pilot sequencing (48 samples)
- ChemImage additional validation utilizing our platform and AI (D-CHIP) in prostate cancer.
- Specicare “Pioneer” Precision Medicine trial in progress (All tumor types)
Predictive Oncologycontinues to execute on Cancer Quest 2020 leveraging unique assets:
- TumorGenesis has initiated, with its global distributor,
U.S. Biological Corp.the building of media kits to allow the growth of ovarian cancer cells in their labs.
- Clinically validated patient-derived (PDx) tumor profiling platform to generate drug response profiles and multi-omic data.
- Data on drug response profiles of over 150,000 tumors across 137 cancer types using the PDx platform in over 10+ years of clinical testing.
- The Skyline Medical division sold 19 STREAMWAY units in Q3.
Dr. Carl Schwartz, the Company’s Chief Executive Officer commented, “I am very pleased with the growth and development of our unique assets, Helomics and Tumor Genesis, and the and the increase in international interest in our Skyline products. The future looks very bright.”
Certain of the matters discussed in the press release contain forward-looking statements that involve material risks to and uncertainties in the Company’s business that may cause actual results to differ materially from those anticipated by the statements made herein. Such risks and uncertainties include (i) risks related to the recent merger with Helomics, including the fact that the combined company will not be able to continue operating without additional financing; possible failure to realize anticipated benefits of the merger; costs associated with the merger may be higher than expected; the merger may result in disruption of the Company’s and Helomics’ existing businesses, distraction of management and diversion of resources; and the market price of the Company’s common stock may decline as a result of the merger; (ii) risks related to our partnerships with other companies, including the need to negotiate the definitive agreements; possible failure to realize anticipated benefits of these partnerships; and costs of providing funding to our partner companies, which may never be repaid or provide anticipated returns; and (iii) other risks and uncertainties relating to the Company that include, among other things, current negative operating cash flows and a need for additional funding to finance our operating plan; the terms of any further financing, which may be highly dilutive and may include onerous terms; unexpected costs and operating deficits, and lower than expected sales and revenues; sales cycles that can be longer than expected, resulting in delays in projected sales or failure to make such sales; uncertain willingness and ability of customers to adopt new technologies and other factors that may affect further market acceptance, if our product is not accepted by our potential customers, it is unlikely that we will ever become profitable; adverse economic conditions; adverse results of any legal proceedings; the volatility of our operating results and financial condition; inability to attract or retain qualified senior management personnel, including sales and marketing personnel; our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; Predictive’s ability to implement its long range business plan for various applications of its technology; Predictive’s ability to enter into agreements with any necessary marketing and/or distribution partners and with any strategic or joint venture partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of Predictive’s technology; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company’s reports filed with the
|September 30, 2019||December 31, 2018|
|Cash and Cash Equivalents||$||98,599||$||162,152|
|Notes Receivable (inclusive of $0 and $452,775 in advances to Helomics; net of $787,524 and $0 in allowance for credit losses)||250,000||497,276|
|Prepaid Expense and other assets||131,558||318,431|
|Total Current Assets||1,062,626||1,451,527|
|Fixed Assets, net||1,633,750||180,453|
|Lease Right-of-Use Assets||886,712||-|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Notes Payable –Net of Discounts of $499,215 and $1,032,814||4,470,380||1,634,914|
|Lease Liability – Net of Long-term Portion||500,732||-|
|Total Current Liabilities||10,782,168||3,655,527|
|Series E Convertible Preferred Stock, $.01 par value, 350 shares authorized, 257.7 and 0 shares outstanding (Liquidation value $2,577,000)||3||-|
|Series B Convertible Preferred Stock, $.01 par value, 20,000,000 shares authorized, 79,246 and 79,246 outstanding||792||792|
|Series D Convertible Preferred Stock, $.01 par value, 20,000,000 shares authorized, 3,500,000 and 0 outstanding||35,000||-|
|Common Stock, $.01 par value, 100,000,000 shares authorized, 3,149,751 and 1,409,175 outstanding||31,497||14,092|
|Additional paid-in capital||89,590,908||63,146,533|
|Total Stockholders' Equity||20,713,663||53,472|
|Total Liabilities and Stockholders' Equity||$||31,881,811||$||3,708,999|
|Three Months Ended
|Nine Months Ended
|Cost of goods sold||208,096||83,006||400,202||309,320|
|General and administrative expense||2,616,991||762,603||7,425,305||2,708,274|
|Sales and marketing expense||434,955||621,465||1,674,200||1,726,087|
|Total operating loss||(3,444,760)||(1,861,083)||(10,880,857)||(5,034,007)|
|Gain on revaluation of cash advances to Helomics||-||-||1,222,244||-|
|Loss on equity method investment||-||645,786||439,637||1,606,294|
|Gain on revaluation of equity method investment||-||-||6,164,260||-|
|Deemed dividend on Series E Convertible Preferred Stock||125,801||-||146,199||-|
|Net loss attributable to common shareholders per common shares – basic and diluted||$||(4,134,313)||$||(2,506,869)||$||(5,982,791)||$||(6,640,301)|
|Loss per common share - basic and diluted||$||(1.31)||$||(1.89)||$||(2.32)||$||(5.45)|
|Weighted average shares used in computation - basic and diluted||3,146,609||1,325,261||2,581,014||1,217,829|
Source: Predictive Oncology Inc.