Press Releases

Predictive Oncology Reports Second Quarter 2022 Financial Results

EAGAN, Minn., Aug. 11, 2022 (GLOBE NEWSWIRE) -- Predictive Oncology Inc. (NASDAQ: POAI) today announced the financial results for its second quarter ended June 30, 2022, which shows a strong balance sheet with a solid cash balance, commensurate equity and no debt. Highlights from the quarter include:

  • Commercialization launch of PeDAL, our innovative AI product, and presence at BIO International that included one-on-one partnering meetings with pharmaceutical and biotech companies
  • The appointment of Julia Kirshner, Ph.D., as Chief Scientific Officer
  • The consolidation and expansion of the research and development arm in Pittsburgh with the move of TumorGenesis to that location
  • An increase of cash and equivalents from $25 million on March 31, 2022, to $28 million at quarter end, which represents a positive change of 12%

Q2 2022 financial results
Predictive Oncology’s recognized net sales revenue of $0.4 million for the quarter was an increase of 6% from the comparative three-month period in 2021. The positive change was mainly due to zPREDICTA recognizing sales of $0.1 million.

The gross profit margin grew from 59% in the second quarter of 2021 to 64% for the comparable quarter of 2022. The increase is directly attributable to zPREDICTA with strong margins.

Net cash used in operating activities was $6.4 million and $5.5 million for the six months ended June 30, 2022, and June 30, 2021, respectively, primarily because of the increase in operating costs associated with zPREDICTA and POAI’s PeDAL commercial strategy.

General and administrative expenses increased from $2.1 million in the quarter ended June 30, 2021, to $2.4 million for the corresponding quarter in 2022. Operations expenses increased from $0.6 million in the quarter ended June 30, 2021 to $0.9 million in the quarter ended June 30, 2022, primarily due to higher staffing at zPREDICTA. This was partially offset by the timing of research and development expenses and lower consulting expenses.

Quarterly sales and marketing expenses of the company increased by $0.1 million for the quarter ended June 30, 2022, to $0.3 million, as compared to the corresponding period in 2021, due to staff-related expenses and the implementation of advertising and marketing initiatives.

Current market conditions, coupled with POAI’s lower quantitative valuation of zPREDICTA, resulted in a $7.2 million (non-cash) goodwill impairment in the quarter. zPREDICTA is anticipating stronger business growth in the second half of the year with current and potential customers of its validated models for multiple myeloma (existing), breast cancer (new) and pancreatic cancer (new), as well as the development of new therapies in immuno-oncology.

Other developments
First is the strategic move POAI made to further strengthen the company’s scientific and product offerings with the appointment of Dr. Julia Kirshner as Chief Scientific Officer. Dr. Kirshner was elevated from her role as Senior Vice President of Predictive Oncology and President of zPREDICTA (the company she founded and POAI acquired in Q4 2021). Dr. Kirshner will focus on the integration of POAI’s product lines and future development of its scientific programs. She will also be working closely with Dr. Pamela Bush, Senior Vice President of Strategic Sales and Business Development, to identify and meet customer needs and provide expanded solutions along the AI and drug development continuum.

Second is POAI’s decision to streamline the company’s research and development operations, which Dr. Kirshner will oversee. POAI will consolidate its TumorGenesis division by moving this business from Massachusetts to the flagship location in Pittsburgh, PA. By doing this, POAI can better focus on growth opportunities with its artificial intelligence technology and lab functions, while reducing overhead and centralizing scientific operations. This also provides the potential to bring in greater revenue levels as the company explores more expanded offerings for clients in the pharmaceutical and biotech industries.

Additionally, POAI attended the BIO International conference in June, specifically presenting PeDAL and Soluble Biotech. POAI launched the PeDAL platform as part of a comprehensive business development and marketing plan aimed to establish key relationships with targeted pharmaceutical and biotech companies. Soluble Biotech also looked to expand its customer base at the conference with parallel initiatives.

Shareholder earnings call
POAI will conduct a 2Q 2022 shareholder earnings call to take place on Friday, August 12, at 12:00 PM ET. The links to register for the webcast will be available at the links below:
To register and view the webcast, please go to this link:
For Q&A’s, please register here:

About Predictive Oncology Inc.
Predictive Oncology (NASDAQ: POAI) is a knowledge-driven company, applying artificial intelligence to develop personalized cancer therapies that improve patient outcomes. The company, which offers a suite of solutions for oncology drug development, operates through four segments (Skyline, Helomics, zPREDICTA and Soluble), which covers five subsidiaries: Helomics, zPREDICTA, Soluble Biotech, TumorGenesis and Skyline Medical.

Helomics Holding Corporation is involved in applying artificial intelligence (“AI”) in the Company’s precision medicine business, to offer AI-driven predictive models of tumor drug response to enhance clinical results for patients and to aid diagnostic, biotech and pharmaceutical companies in new personalized diagnostic and drug development. Skyline Medical Inc. (“Skyline Medical”) sells the STREAMWAY System®, a fully automated wall-mounted product, which is utilized to dispose of an unlimited quantity of suction fluid in an operating room setting. It offers continuous performance for medical practitioners by effectively eradicating the healthcare professional’s exposure to potentially infectious liquids gathered during surgical and other medical operations. Soluble Biotech Inc. is involved in research and commercialization focused on protein production, stability studies and solubility improvements. zPREDICTA, Inc. does tumor-specific research using in vitro models for oncology and drug development. TumorGenesis serves as the company’s arm for research and development for zPREDICTA, Soluble and Helomics. This subsidiary is also involved in cellular media kit production which aids cancer cells to grow outside the body of patients while preserving their proteomic and RNA/DNA signatures.

Forward-Looking Statements
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, changes in management, 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 SEC. Except as expressly required by law, the Company disclaims any intent or obligation to update these forward-looking statements.


    June 30, 2022   December 31, 2021  
    (unaudited)   (audited)  
Current Assets:              
Cash and Cash Equivalents   $ 28,249,452     $ 28,202,615  
Accounts Receivable     336,397       354,196  
Inventories     474,616       387,684  
Prepaid Expense and Other Assets     763,053       513,778  
Total Current Assets     29,823,518       29,458,273  
Fixed Assets, net     2,300,327       2,511,571  
Intangibles, net     3,790,637       3,962,118  
Lease Right-of-Use Assets     505,667       814,454  
Other Long-Term Assets     75,618       167,065  
Goodwill     -       6,857,790  
Total Assets   $ 36,495,767       43,771,271  
Current Liabilities:              
Accounts Payable   $ 983,672     $ 1,021,774  
Accrued Expenses and other liabilities     856,654       1,262,641  
Derivative Liability     32,318       129,480  
Deferred Revenue     530,797       186,951  
Lease Liability     421,736       639,662  
Total Current Liabilities     2,825,177       3,240,508  
Lease Liability – Net of current portion     113,462       239,664  
Other long-term liabilities     21,731       25,415  
Total Liabilities     2,960,370       3,505,587  
Stockholders’ Equity:              
Preferred Stock, 20,000,000 authorized inclusive of designated below              
Series B Convertible Preferred Stock, $.01 par value, 2,300,000 shares authorized, 79,246 shares outstanding     792       792  
Common Stock, $.01 par value, 200,000,000 shares authorized, 78,155,127 and 65,614,597 outstanding     781,551       656,146  
Additional paid-in capital     174,555,375       167,649,028  
Accumulated Deficit     (141,802,321 )     (128,040,282 )
Total Stockholders’ Equity     33,535,397       40,265,684  
Total Liabilities and Stockholders’ Equity   $ 36,495,767     $ 43,771,271  


  Three Months Ended June 30,   Six Months Ended June 30,
    2022       2021       2022       2021  
Revenue $ 371,591     $ 350,207     $ 686,159     $ 630,524  
Cost of goods sold   134,075       142,877       243,518       240,635  
Gross profit   237,516       207,330       442,641       389,889  
General and administrative expense   2,351,696       2,077,973       4,775,347       5,348,750  
Operations expense   909,113       567,796       1,800,184       1,142,608  
Sales and marketing expense   271,022       159,788       575,489       274,429  
Loss on impairment of goodwill   7,231,093       -       7,231,093       -  
Total operating loss   (10,525,408 )     (2,598,227 )     (13,939,472 )     (6,375,898 )
Other income   41,047       57,033       83,477       85,292  
Other expense   (2,217 )     (1,829 )     (3,206 )     (236,801 )
Gain (loss) on derivative instruments   95,254       (30,909 )     97,162       64,762  
Net loss $ (10,391,324 )   $ (2,573,932 )   $ (13,762,039 )   $ (6,462,645 )
Net loss attributable to common shareholders per common shares-basic and diluted $ (10,391,324 )   $ (2,573,932 )   $ (13,762,039 )   $ (6,462,645 )
Loss per common share basic $ (0.15 )   $ (0.05 )   $ (0.20 )   $ (0.15 )
Loss per common share diluted $ (0.15 )   $ (0.05 )   $ (0.20 )   $ (0.15 )
Weighted average shared used in computation - basic   68,896,506       51,581,762       67,374,250       44,089,157  
Weighted average shared used in computation - diluted   68,896,506       51,581,762       67,374,250       44,089,157  

Media relations contact:
Predictive Oncology
Theresa Ferguson

Investor relations contact:
Landon Capital
Keith Pinder
(404) 995-6671

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Source: Predictive Oncology Inc.