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Predictive Oncology Reports Third Quarter 2020 Financial Results, Provides Business Update
Business Highlights
- Helomics Magee study completing early in Q4;
Helomics presents viable model to Pharma - Soluble Biotech moves into new office/lab space tripling capacity; new lab equipment installed
- Signed first contract with a pharmaceutical company for protein expression and solubility studies
- Licensed an additional 71 unique ovarian cancer cell lines from Ximbio, the world’s largest non-profit dedicated to life science reagents of all kinds, bringing its total number of unique patient derived cells to 96
- Completed the asset purchase of Quantitative Medicine (“QM”), a biomedical analytics and computational biology company, in an all-stock transaction valued at approximately
$1.8 million - Sold 15 STREAMWAY® systems, including eight to a large university hospital organization in
Virginia
“During the third quarter, we continued our work of laying a foundation for our precision medicine business,” commented Dr.
“At our Soluble Biotech division, which provides optimized FDA-approved formulations for vaccines, antibodies and other protein therapeutics faster and at a lower cost basis to its customers, we signed our first contract with a pharmaceutical company for protein expression and solubility studies,” continued
“The Skyline Medical division continues to be self-sustaining, from an operating cash perspective, as sales of new waste fluid management systems and recurring sales of disposables to support those systems more than cover the operating expenses and capital needs of this segment of our business,” noted
“Our operating cash improved over the first nine months of 2020 as a result of an improvement in operating expenses, if the non-cash expense for goodwill impairment is excluded, continued new sales of our STREAMWAY Systems, which provide an annuity-like revenue stream from ongoing sales of disposables, and proceeds from equity offerings, indicating investor confidence in our emerging precision medicine business,” concluded
“Management continues to focus the majority of its resources on the Company’s primary mission of applying artificial intelligence to precision medicine and to drug discovery. Our approach and the mediums used to replace rats and mice in preliminary cancer studies are working in three of our operating subsidiaries,
Third Quarter 2020 Financial Results
Revenues of
Gross margin was 64% in the third quarter of 2020 compared with 60% in the 2019 period. The increase in gross margin was driven by lower manufacturing costs. General & administrative expenses declined 15% to
Operating loss was
Net loss attributable to common shareholders was
About
Helomics applies artificial intelligence to its rich data gathered from patient tumors to both personalize cancer therapies for patients and drive the development of new targeted therapies in collaborations with pharmaceutical companies. TumorGenesis Inc. specializes in media that help cancer cells grow and retain their DNA/RNA and proteomic signatures, providing researchers with a tool to expand and study cancer cell types found in tumors of the blood and organ systems of all mammals, including humans. Skyline Medical markets its patented and FDA cleared STREAMWAY System, which automates the collection, measurement and disposal of waste fluid, including blood, irrigation fluid and others, within a medical facility, through both domestic and international divisions. Soluble Biotech is a provider of soluble and stable formulations for proteins including vaccines, antibodies, large and small proteins and protein complexes.
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, 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.
Investor Relations Contact:
Hayden IR
James Carbonara
(646)-755-7412
james@haydenir.com
-- Tables Follow –
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 2,474,312 | $ | 150,831 | ||||
Accounts Receivable | 508,265 | 297,055 | ||||||
Inventories | 205,908 | 190,156 | ||||||
Prepaid Expense and Other Assets | 269,282 | 160,222 | ||||||
Total Current Assets | 3,457,767 | 798,264 | ||||||
Fixed Assets, net | 3,755,464 | 1,507,799 | ||||||
Intangibles, net | 3,464,327 | 3,649,412 | ||||||
Lease Right-of-Use Assets | 1,790,130 | 729,745 | ||||||
12,693,290 | 15,690,290 | |||||||
Total Assets | $ | 25,160,978 | $ | 22,375,510 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts Payable | $ | 1,628,944 | $ | 3,155,641 | ||||
Notes Payable – Net of Discounts of |
5,751,876 | 4,795,800 | ||||||
Accrued Expenses | 2,530,385 | 2,371,633 | ||||||
Derivative Liability | 1,052,494 | 50,989 | ||||||
Deferred Revenue | 66,123 | 40,384 | ||||||
Lease Liability | 577,505 | 459,481 | ||||||
Total Current Liabilities | 11,607,327 | 10,873,928 | ||||||
Lease Liability – Net of current portion | 1,221,806 | 270,264 | ||||||
Other long-term liabilities | 95,079 | - | ||||||
Total Liabilities | 12,924,212 | 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 | ||||||
Series E Convertible Preferred Stock, |
- | 3 | ||||||
Common Stock, |
165,932 | 40,567 | ||||||
Additional paid-in capital | 108,983,174 | 93,653,667 | ||||||
Accumulated Deficit | (96,913,132 | ) | (82,498,711 | ) | ||||
Total Stockholders' Equity | 12,236,766 | 11,231,318 | ||||||
Total Liabilities and Stockholders' Equity | $ | 25,160,978 | $ | 22,375,510 |
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue | $ | 480,757 | $ | 522,696 | $ | 958,484 | $ | 1,064,088 | |||||||
Cost of goods sold | 175,206 | 208,096 | 353,124 | 400,202 | |||||||||||
Gross margin | 305,551 | 314,600 | 605,360 | 663,886 | |||||||||||
General and administrative expense | 2,226,634 | 2,616,991 | 8,266,927 | 7,425,305 | |||||||||||
Operations expense | 568,766 | 707,414 | 1,638,635 | 2,445,238 | |||||||||||
Sales and marketing expense | 121,514 | 434,955 | 518,938 | 1,674,200 | |||||||||||
Loss on goodwill impairment | 2,997,000 | - | 2,997,000 | - | |||||||||||
Total operating loss | (5,608,363 | ) | (3,444,760 | ) | ( 12,816,140 | ) | (10,880,857 | ) | |||||||
Gain on revaluation of cash advances to |
- | - | - | 1,222,244 | |||||||||||
Other income | 44,926 | 15,084 | 97,894 | 65,293 | |||||||||||
Other expense | (2,147,057 | ) | (894,811 | ) | (3,993,969 | ) | (2,052,522 | ) | |||||||
Gain (loss) on derivative instruments | 1,402,768 | 315,975 | 1,007,794 | 84,627 | |||||||||||
Gain on notes receivables associated with asset purchase | - |
- |
1,290,000 |
- |
|||||||||||
Loss on equity method investment | - | - | - | 439,637 | |||||||||||
Gain on revaluation of equity method in investment | - | - | - | 6,164,260 | |||||||||||
Net (loss) | $ | (6,307,726 | ) | $ | (4,008,512 | ) | $ | (14,414,421 | ) | $ | (5,836,592 | ) | |||
Deemed dividend | 554,287 | 125,801 | 554,287 | 146,199 | |||||||||||
Net income (loss) attributable to common shareholders per common shares-basic and diluted | $ | (6,862,013 | ) | $ | (4,134,313 | ) | $ | (14,968,708 | ) | $ | (5,982,791 | ) | |||
Gain (loss) per common share basic and diluted | $ | (0.46 | ) | $ | (1.31 | ) | $ | (1.51 | ) | $ | (2.32 | ) | |||
Weighted average shared used in computation – basic and diluted | 15,026,789 | 3,146,609 | 9,935,738 | 2,581,014 | |||||||||||
Source: Predictive Oncology Inc.