Press Releases
Site - Investor Relations
Precision Therapeutics Reports First Quarter 2019 Financial Results and Provides Corporate Update
Business highlights of the first quarter of 2019 through recent weeks include:
Helomics, Inc. andNational Alopecia Areata Foundation signed a services agreement to provide next-generation patient registry forAlopecia Areata Research - TumorGenesis and partner 48Hour Discovery received Alberta Innovates grant for development of novel cancer treatments
- Helomics contracted to provide CRO and Artificial Intelligence drug development services to SpeciCare for a precision medicine trial
- Helomics initiated a collaboration with Viome to determine role of gut microbiome in ovarian cancer
- Helomics merger completed on
April 4, 2019 - Completed public offerings of
$1.2 and$1.1 million - Skyline Medical division completed sales in
Saudi Arabia andAustralia - TumorGenesis identified key biomarkers that may be potential treatment approaches for thyroid cancer
- Skyline Medical division signed Taiwanese distribution agreement
- CEO
Carl Schwartz invested$1.62 million into the company sinceNovember 2018
Dr.
Financial Results
Revenue for the quarter ended
Cash balance as of
Conference Call
The company will host a conference call at 4:30 today to review these results. Participants are asked to preregister for the call through the following link http://dpregister.com/10131658. Please note that registered participants will receive their dial in number upon registration and will dial directly into the call without delay. Those without internet access or who are unable to pre-register may dial in by calling: 1-866-777-2509 (domestic), 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the Precision Therapeutics Inc., call. Following management’s formal remarks, there will be a question and answer session with equity analysts.
The conference call will also be available through a live webcast, which can be accessed via the following link: https://services.choruscall.com/links/aipt190515.html, which will also be available through the company’s website at: http://investors.skylinemedical.com/events-and-presentations.
A replay of the call will be available approximately one hour after the end of the call through June 15, 2019. The replay can be accessed via Precision’s website or by dialing 1-877-344-7529 (U.S.) or +1-412-317-0088 (international). The replay conference playback code is 10131658.
A webcast replay of the call will also be available approximately one hour after the end of the call through August 15, 2019. The replay can be accessed through the above links.
About Precision Therapeutics Inc.
Forward-looking Statements
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; Precision’s ability to implement its long range business plan for various applications of its technology; Precision’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 Precision’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
Contacts:
Investor Relations
CORE IR
(212) 896-1203
brets@coreir.com
Media
CORE IR
julesa@coreir.com
917-885-7378
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, 2019 |
December 31, 2018 |
||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | $ | 1,124,730 | $ | 162,152 | |||
Accounts Receivable | 173,443 | 232,602 | |||||
Notes Receivable (inclusive of $738,138 and $452,775 in advances to Helomics) | 1,801,479 | 497,276 | |||||
Inventories | 289,023 | 241,066 | |||||
Prepaid Expense and other assets | 265,584 | 318,431 | |||||
Total Current Assets | 3,654,259 | 1,451,527 | |||||
Notes Receivable | - | 1,112,524 | |||||
Fixed Assets, net | 148,709 | 180,453 | |||||
Intangibles, net | 950,049 | 964,495 | |||||
Lease Right-of-Use Assets | 333,944 | - | |||||
Total Assets | $ | 5,086,961 | $ | 3,708,999 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities: | |||||||
Accounts Payable | $ | 432,198 | $ | 445,689 | |||
Note Payable – Bridge Loan Net of Discount of $646,524 and $969,786 | 1,812,037 | 1,327,942 | |||||
Notes Payable – Net of Discount of $352,961 and $63,028 | 1,267,039 | 306,972 | |||||
Accrued Expenses | 797,599 | 1,279,114 | |||||
Derivative Liability | 353,210 | 272,745 | |||||
Deferred Revenue | 20,929 | 23,065 | |||||
Current Lease Liability | 78,819 | - | |||||
Total Current Liabilities | 4,761,831 | 3,655,527 | |||||
Lease Liability | 225,125 | - | |||||
Total Liabilities | 5,016,956 | 3,655,527 | |||||
Stockholders’ Equity: | |||||||
Series B Convertible Preferred Stock, $.01 par value, 20,000,000 authorized, 79,246 and 79,246 outstanding | 792 | 792 | |||||
Common Stock, $.01 par value, 100,000,000 authorized, 17,360,144 and 14,091,748 outstanding | 173,601 | 140,917 | |||||
Additional paid-in capital | 66,296,741 | 63,019,708 | |||||
Accumulated Deficit | (66,401,129 | ) | (63,107,945 | ) | |||
Total Stockholders' Equity | 70,005 | 53,472 | |||||
Total Liabilities and Stockholders' Equity | $ | 5,086,961 | $ | 3,708,999 | |||
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS
(Unaudited)
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenue | $ | 255,241 | $ | 411,593 | |||
Cost of goods sold | 73,717 | 117,343 | |||||
Gross margin | 181,524 | 294,250 | |||||
General and administrative expense | 1,497,945 | 1,241,961 | |||||
Operations expense | 466,566 | 287,590 | |||||
Sales and marketing expense | 554,216 | 550,538 | |||||
Total operating loss | 2,337,203 | 1,785,839 | |||||
Other income | 53,432 | 27,655 | |||||
Other expense | 569,776 | 1,838 | |||||
Loss on equity method investment | 439,637 | - | |||||
Net loss attributable to common shareholders | $ | (3,293,184 | ) | $ | (1,760,022 | ) | |
Loss per common share - basic and diluted | $ | (0.21 | ) | $ | (0.15 | ) | |
Weighted average shares used in computation - basic and diluted | 15,731,517 | 11,383,217 | |||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31, |
|||||||
2019 | 2018 | ||||||
Cash flow from operating activities: | |||||||
Net loss | $ | (3,293,184 | ) | $ | (1,760,022 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Loss on equity method investment | 439,637 | - | |||||
Depreciation and amortization | 39,526 | 18,167 | |||||
Vesting expense for stock options | 263,600 | 226,387 | |||||
Amortization of debt discount | 468,564 | - | |||||
Loss on valuation of equity-linked instruments | 19,408 | - | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 59,159 | (104,265 | ) | ||||
Inventories | (47,957 | ) | (7,511 | ) | |||
Prepaid expense and other assets | (3,273 | ) | 81,661 | ||||
Accounts payable | (13,491 | ) | 45,847 | ||||
Accrued expenses | 21,494 | (226,775 | ) | ||||
Deferred revenue | (2,136 | ) | 32,193 | ||||
Net cash used in operating activities: | (2,048,653 | ) | (1,694,318 | ) | |||
Cash flow from investing activities: | |||||||
Redemption of certificates of deposit | - | 244,971 | |||||
Advance on notes receivable | (631,316 | ) | (42,524 | ) | |||
Purchase of fixed assets | - | (32,789 | ) | ||||
Transfer of fixed assets to inventory | 9,863 | - | |||||
Acquisition of intangibles | (3,198 | ) | (24,029 | ) | |||
Net cash (used in) provided by investing activities: | (624,651 | ) | 145,629 | ||||
Cash flow from financing activities: | |||||||
Extinguishment of convertible debt | (93,827 | ) | - | ||||
Proceeds from debt issuance | 1,250,000 | - | |||||
Proceeds from exercise of warrants into common stock | - | 55,794 | |||||
Issuance of common stock | 2,479,709 | 2,959,509 | |||||
Net cash provided by financing activities | 3,635,882 | 3,015,303 | |||||
Net increase in cash and cash equivalents | 962,578 | 1,466,614 | |||||
Cash at beginning of period | 162,152 | 766,189 | |||||
Cash at end of period | $ | 1,124,730 | $ | 2,232,803 | |||
Non-cash transactions: | |||||||
Bridge loan conversion into common stock | $ | 90,000 | $ | - | |||
Forbearance settlement bridge loan | $ | 503,009 | $ | - | |||
Additional warrants issued pursuant to CEO note payable | $ | 8,665 | $ | - | |||
Conversion of preferred stock to common stock | $ | - | $ | 6,479 | |||
Equity method investment - Helomics | $ | - | $ | 1,542,250 |
Source: Precision Therapeutics Inc.