Predictive Oncology Reports Year End 2020 Financial Results, Provides Business Update
- Reinforced balance sheet with net debt and equity offerings for estimated net proceeds of
- Completed an asset purchase agreement to acquire Soluble Therapeutics and its HSC™ Technology along with
BioDtech Inc; Soluble Biotech moves into new office/lab space tripling capacity.
- Completed the asset purchase of Quantitative Medicine (“QM”), a biomedical analytics and computational biology company, including an AI Engine™ (CoRE™) that facilitates accelerated drug discovery and development.
- Signed first contract with a pharmaceutical company for protein expression and solubility studies.
$2.1Mof debt for equity, streamlining capital structure and simplifying balance sheet. Sold 25 STREAMWAY® systems, including eight to a large university hospital organization in Virginia; Predictive’s legacy company Skyline Medical became self-supporting from a cash standpoint.
- Secured first commercial sale of novel ovarian cancer cell media for cancer cells collected from patient derived samples through TumorGenesis division.
- Strengthened Board of Directors with appointment of four new independent directors.
“We are pleased that this past year has resulted in so many significant milestones,” said Dr.
“In M&A activity, the Company acquired the assets of Soluble Therapeutics and BioDtech in May of 2020. Specifically, Soluble provides optimized FDA-approved formulations for vaccines, antibodies, and other protein therapeutics in a faster and lower cost basis to its customers and enables protein degradation studies which is a new and substantial line of business for the Company. As the newest business segment, Soluble signed its first contract during the third quarter of 2020, and additional contracts during the first quarter of 2021. Several of our clients have seen ten-fold and hundred-fold increases in their protein’s solubility while maintaining physical stability. For biopharmaceutical clients this means faster development times and quicker progression of molecules into the clinic.
“Our legacy company, Skyline Medical, our second business segment, operated with reduced personal and associated operating costs in 2020, in part aided by the Company lowering the number of full-time employees, thus becoming self-sustaining from an operation cash perspective. By streamlining our production, the Company maximized efficiency attaining similar revenue to 2019. Throughout the year we continued to receive indications of interest from several parties for the possible acquisition of the Skyline division, as well as other partnership initiatives,” continued
Fiscal Year 2020 Financial results
The Company recorded revenue of
The gross profit margin was 64% in 2020, a 2% increase over 2019. Our margins increased in 2020 primarily due to increased cost of sales related to sales in the Skyline Medical business in 2020 as a result of lower number of units, average cost increased slightly. Operations expense decreased by
Sales and marketing expenses decreased as well, dropping
Net cash used in operating activities was
We incurred a loss on impairment of goodwill of
COVID-19 has impacted the Company’s capital and financial resources, including our overall liquidity position and outlook. For instance, our accounts receivable has slowed while our suppliers continue to ask for pre-delivery deposits. We incurred net losses of
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||289,490||160,222|
|Total Current Assets||1,514,235||798,264|
|Fixed Assets, net||3,822,700||1,507,799|
|Lease Right-of-Use Assets||1,395,351||729,745|
|Other Long-Term Assets||116,257||-|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Notes Payable – Net of Discounts of
|Accrued Expenses and other liabilities||2,588,047||2,371,633|
|Lease Liability – Net of Long-Term Portion||597,469||459,481|
|Total Current Liabilities||9,336,921||10,873,928|
|Other Long-Term Liabilities||235,705||-|
|Lease Liability, long-term portion||845,129||270,264|
|Preferred Stock, 20,000,000 authorized inclusive of designated below||-||-|
|Series B Convertible Preferred Stock,
|Series D Convertible Preferred Stock,
|Series E Convertible Preferred Stock,
|Total Stockholders' Equity||2,642,681||11,231,318|
|Total Liabilities and Stockholders' Equity||$||13,060,436||$||22,375,510|
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS
|Cost of goods sold||447,192||531,810|
|General and administrative expense||10,351,973||9,781,218|
|Sales and marketing expense||584,937||1,912,899|
|Loss on goodwill impairment||12,876,498||8,100,000|
|Loss on intangible impairment||-||770,250|
|Total operating loss||(25,360,037||)||(22,644,743||)|
|Gain on revaluation of cash advances to
|Loss on early extinguishment of debt||(1,996,681||)||(513,250||)|
|Gain on derivative instruments||1,765,907||221,756|
|Gain on notes receivables associated with asset purchase||1,290,000||-|
|Loss on equity method investment||-||(439,637||)|
|Gain on revaluation of equity method investment||-||6,164,260|
|Deemed dividend on Series E Convertible Preferred Stock||554,287||289,935|
|Net loss attributable to common shareholders||$||(26,438,684||)||$||(19,680,701||)|
|Loss per common share - basic and diluted||$||(2.21||)||$||(6.86||)|
|Weighted average shares used in computation - basic and diluted||11,950,154||2,870,132|
Source: Predictive Oncology Inc.