Predictive Oncology Reports Financial Results for Quarter Ended March 31, 2021 and Provides Business Update
Q1 2021 Highlights:
- Net proceeds of
$35.6 millionfrom Private Placement, Registered Direct Offerings, and warrant exercises contributing to a cash and cash equivalents balance of $27.3 millionon March 31, 2021compared to $3.1 millionfor the same period in 2020.
- Total Stockholders’ Equity increased to
$35.5 millionfrom $2.6 millionon December 31, 2020.
- Strengthened balance sheet by repayment in full of outstanding debt incurred in 2018 through 2020.
J. Melville Engle, current chairman of the Board, as the Company’s new Chief Executive Officer.
- Signed contract with a large pharmaceutical company through subsidiary Soluble Biotech, to use Soluble Biotech’s proprietary protein formulation technology to improve the solubility and stability of a protein therapeutic destined for future clinical use.
- Initiated in-house drug repurposing project, focused on ovarian cancer, using subsidiary Helomics’ proprietary AI-driven, patient centric discovery platform (PeDAL™) to rapidly and cost-effectively profile panels of existing drugs against hundreds of patient cell lines, delivering both proof data for the PeDAL approach and valuable IP for the Company.
- Researchers from
Helomicscompleted key sequencing milestones for ovarian cancer to help build AI-driven models of the disease.
“Soluble Biotech’s contract with a large pharmaceutical company will allow the use of Soluble’s proprietary protein formulation technology to improve the solubility and stability of a protein therapeutic destined for future clinical use, which may also lead to strategic partnerships for other therapeutics currently being developed by the pharma company.
“Following the integration of Quantitative Medicine’s novel active-learning Computational Research Engine (CoRE™) with Helomics’ proprietary TumorSpace™ knowledgebase of 150,000 tumor drug response profiles and the TruTumor™ patient primary tumor cell line assay,
“Subsidiary TumorGenesis’ products aided researchers at a top-tier laboratory in
“We are pleased with the direction the Company and its subsidiaries are moving, as we work to achieve our vision of leveraging our databases and Intellectual Property to fill the unmet market need of pharmaceutical companies to deliver more targeted approaches to therapy, increasing our value to these companies while all working together to improve patient outcomes.”
Q1 2021 Financial results
The Company recorded revenue of
The gross profit margin was approximately 65% in the three months ended
Our (G&A) expenses increased by
Operations expenses increased by
The Company continues to decrease sales and marketing expenses, dropping
Net cash used in operating activities was
Net cash provided by financing activities was
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
CONDENSED CONSOLIDATED BALANCE SHEETS
|Prepaid Expense and Other Assets||344,921||289,490|
|Total Current Assets||28,202,080||1,514,235|
|Fixed Assets, net||3,975,453||3,822,700|
|Lease Right-of-Use Assets||1,229,773||1,395,351|
|Other Long-Term Assets||116,257||116,257|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Notes Payable – Net of Discounts of
|Total Current Liabilities||3,260,903||9,336,921|
|Lease Liability – Net of current portion||684,756||845,129|
|Other long-term liabilities||163,098||235,705|
|Preferred Stock, 20,000,000 authorized inclusive of designated below|
|Series B Convertible Preferred Stock,
|Additional paid-in capital||147,328,172||110,826,949|
|Total Stockholders' Equity||35,545,087||2,642,681|
|Total Liabilities and Stockholders' Equity||$||39,653,844||$||13,060,436|
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS
|Three Months Ended
|Cost of goods sold||97,758||92,657|
|General and administrative expense||3,270,777||2,828,476|
|Sales and marketing expense||114,641||264,409|
|Total operating loss||(3,777,671||)||(3,439,352||)|
|Gain on derivative instruments||95,671||27,107|
|Loss per common share - basic and diluted||$||(0.11||)||$||(0.93||)|
|Weighted average shares used in computation - basic and diluted||36,513,300||4,866,328|
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Source: Predictive Oncology Inc.