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Predictive Oncology Reports First Quarter 2020 Financial Results, Provides Business Update
Financial and Business Highlights
- Continued initial study to sequence ovarian tumors and validate ‘reach back’ process; study is on schedule to be completed in the second quarter of 2020
- Developing a potential COVID-19 vaccine in collaboration with Dr.
Daniel Carter , former NASA Chief of the Biophysics and Advanced Materials Branch and recipient of NASA Inventor of the Year Awards and NASA Exceptional Service Medal - Signed a letter of intent to acquire Quantitative Medicine, a biomedical analytics and computational biology company; closing is expected in the second quarter of 2020
- Signed a term sheet to acquire both BioDtech and Soluble Therapeutics and its HSC™ Technology; closing expected in second quarter of 2020.
- Streamlined capital structure with conversion of
$2.1 million promissory note held by the company’s CEO to newly issued equity - Strengthened balance sheet with issuance of 1.4 million shares of common stock and 1.4 million unregistered warrants for estimated gross proceeds of
$2.2 million
“We remain steadfast in our approach to assembling a portfolio of assets that leverages our unique collection of cancer tumors to develop and market AI-based, predictive models for personalized cancer treatments that improve patient outcomes,” commented Dr.
“The pending acquisitions of several innovative biotechnology companies provides further encouragement, as we believe this consolidation will further enhance the breadth of our capabilities by leveraging high quality formulations and stable protein and peptide-based solutions for the rapid manufacture of vaccines and other drug therapies,” added
First Quarter 2020 Financial Results
Revenues were
Net loss was
Outlook
Management continues to focus its resources on the
About
Forward-Looking Statements
Portions of the narrative set for this document that are not statements of historical or current facts are forward-looking statements, in particular, the commercial outlook provided above. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors.
These factors include, in addition to those mentioned elsewhere herein:
- We may not be able to continue operating without additional financing;
- Current negative operating cash flows;
- The terms of any further financing, which may be highly dilutive and may include onerous terms;
- Risks related to the 2019 merger with
Helomics including; 1) significant goodwill could result in further impairment; 2) possible failure to realize anticipated benefits of the merger; 3) costs associated with the merger may be higher than expected; 4) the merger may result in the disruption of our existing businesses; and 5) distraction of management and diversion of resources; - 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;
- Risks related to the transaction with Quantitative Medicine including: 1) completion of the transaction; 2) possible failure to realize anticipated benefits of the merger; 3) costs associated with the merger may be higher than expected; 4) the merger may result in the disruption of our existing businesses; and 5) distraction of management and diversion of resources;
- Risk that we will be unable to complete the transaction with InventaBioTech;
- Risk that we will be unable to protect our intellectual property or claims that we are infringing on others’ intellectual property;
- The impact of competition;
- Acquisition and maintenance of any necessary regulatory clearances applicable to applications of our technology;
- Inability to attract or retain qualified senior management personnel, including sales and marketing personnel;
- Risk that we never become profitable if our product is not accepted by potential customers;
- Possible impact of government regulation and scrutiny;
- Unexpected costs and operating deficits, and lower than expected sales and revenues, if any;
- Adverse results of any legal proceedings;
- The volatility of our operating results and financial condition, and,
- Other specific risks that may be alluded to in this report.
Investor Relations Contact:
Hayden IR
James Carbonara
(646)-755-7412
james@haydenir.com
-- Tables Follow –
Consolidated Balance Sheets
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 3,056,243 | $ | 150,831 | ||||
Accounts Receivable | 269,777 | 297,055 | ||||||
Inventories | 155,683 | 190,156 | ||||||
Prepaid Expense and Other Assets | 262,470 | 160,222 | ||||||
Total Current Assets | 3,744,173 | 798,264 | ||||||
Fixed Assets, net | 1,377,724 | 1,507,799 | ||||||
Intangibles, net | 3,605,417 | 3,649,412 | ||||||
Lease Right-of-Use Assets | 631,392 | 729,745 | ||||||
15,690,290 | 15,690,290 | |||||||
Total Assets | $ | 25,048,996 | $ | 22,375,510 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts Payable | $ | 3,128,520 | $ | 3,155,641 | ||||
Notes Payable – Net of Discounts of |
3,817,176 | 4,795,800 | ||||||
Accrued Expenses | 2,142,591 | 2,371,633 | ||||||
Derivative Liability | 2,814,798 | 50,989 | ||||||
Deferred Revenue | 44,129 | 40,384 | ||||||
Lease Liability – Net of Long-term Portion | 427,211 | 459,481 | ||||||
Total Current Liabilities | 12,374,425 | 10,873,928 | ||||||
Notes Payable, net of current portion | 2,115,000 | - | ||||||
Lease Liability | 204,181 | 270,264 | ||||||
Total Liabilities | 14,693,606 | 11,144,192 | ||||||
Stockholders’ Equity: | ||||||||
Preferred Stock, 20,000,000 authorized inclusive of designated below | ||||||||
Series B Convertible Preferred Stock, |
792 | 792 | ||||||
Series D Convertible Preferred Stock, |
35,000 | 35,000 | ||||||
Series E Convertible Preferred Stock, |
2 | 3 | ||||||
Common Stock, |
58,527 | 40,567 | ||||||
Additional paid-in capital | 97,289,097 | 93,653,667 | ||||||
Accumulated Deficit | (87,028,028 | ) | (82,498,711 | ) | ||||
Total Stockholders' Equity | 10,355,390 | 11,231,318 | ||||||
Total Liabilities and Stockholders' Equity | $ | 25,048,996 | $ | 22,375,510 | ||||
Consolidated Statements of Operations
Three Months Ended |
||||||||
2020 | 2019 | |||||||
Revenue | $ | 294,943 | $ | 255,241 | ||||
Cost of goods sold | 92,657 | 73,717 | ||||||
Gross margin | 202,286 | 181,524 | ||||||
General and administrative expense | 2,828,476 | 1,497,945 | ||||||
Operations expense | 548,753 | 466,566 | ||||||
Sales and marketing expense | 264,409 | 554,216 | ||||||
Total operating loss | (3,439,352 | ) | (2,337,203 | ) | ||||
Other income | 27,110 | 53,432 | ||||||
Other expense | (1,117,075 | ) | (569,776 | ) | ||||
Loss on equity method investment | - | (439,637 | ) | |||||
Net loss | $ | (4,529,317 | ) | $ | (3,293,184 | ) | ||
Loss per common share - basic and diluted | $ | (0.93 | ) | $ | (2.09 | ) | ||
Weighted average shares used in computation - basic and diluted | 4,886,328 | 1,573,15 | 2 |
Source: Predictive Oncology Inc.