iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen”
or the “Company”), an online global marketplace that
connects scientists in need of biospecimens for medical research
with a network of healthcare specimen providers, today reported its
financial and operating results for the three- and six-month period
ended June 30, 2022.
“During the first half of 2022, we remained
intensely focused on refining the iSpecimen Marketplace® platform
along with expanding our healthcare specimen provider network. As a
result, during the second quarter, we expanded the capabilities of
the iSpecimen Marketplace to better support the sourcing of
biospecimens critical for medical research and welcomed new
healthcare providers specializing in oncology and cardiovascular
disease research. Together, these efforts are helping to alleviate
supply constraints, which will ultimately help researchers get the
specimens they need to advance the pace of medical discovery,” said
Christopher Ianelli, MD, PhD, CEO and President of iSpecimen.
“The first half of 2022 also posed challenges
outside of our control, namely geopolitical unrest that affected
some key suppliers and a difficult economic environment that is
impacting some of our research clients. Despite these challenges,
we remain extremely confident that the execution of our strategy,
along with our investments in technology, supply development, and
key personnel will continue to improve our position to gain market
share over the coming quarters. I also believe that our leadership,
including our senior team and our board, has done a great job of
navigating the challenges of the past two years and we look forward
to realizing the benefits of the ongoing development work and the
restructuring of our marketing and sales processes – and returning
to growth,” concluded Dr. Ianelli.
Q2 2022 Financial & Operational
Highlights
- Revenue mix in Q2 2022 was
comprised of approximately $2.2 million in general specimen revenue
and approximately $0.2 million in COVID-related revenue, or 93% and
7% of revenue, respectively, compared to approximately $2.0 million
in general specimen revenue and $0.9 million in COVID-related
revenue, or 69% and 31% of revenue, respectively the same period a
year ago. This resulted in an 8% increase in general specimen
revenue for Q2 2022 compared to the same prior year’s period.
- Unique supplier organizations under
agreement were 214 as of June 30, 2022, up from 205 as of March 31,
2022.
- Unique customer organizations who
have purchased from iSpecimen totaled 459 as of June 30, 2022, an
increase of 21% year over year.
- iSpecimen Marketplace had nearly
6,000 registered research and supplier users as of June 30, 2022,
up 32% year-over-year.
Recent Corporate Updates
- Expanded its global biospecimen
suppliers list on the iSpecimen Marketplace® platform with the
addition of new suppliers concentrated on the advancement of
oncology and cardiovascular disease research.
- Appointed Evan Cox, an industry
veteran and healthcare data expert, as Vice President of Product
Management to better support development efforts. In this role,
Evan Cox is focused on the growth and future development of the
Marketplace platform.
- Presented new research on
optimizing biobanking in three presentations at a key industry
event, this year's International Society for Biological and
Environmental Repositories (ISBER) Annual Meeting in Atlanta,
GA.
- Enhanced its iSpecimen Marketplace®
platform with a redesigned platform with an easy-to-use interface
that allows researchers to directly search for desired samples in
iSpecimen's provider network via a Google-like search bar. The new
software includes improved search and supplier data integration
capabilities that have been designed to efficiently connect
scientists with well-matched samples for their research, as well as
help to increase supplier inventory utilization.
- Added Acutis Diagnostics, a
clinical diagnostics laboratory, to its platform as a laboratory
services provider. Through this relationship, iSpecimen now offers
sequencing services to its research community to help researchers
better understand genetic mutations and their impact on diseases
such as COVID-19 and cancer.
Financial Results for the Second Quarter
of 2022
Revenue for the second quarter of 2022 was
approximately $2.3 million, compared to approximately $2.9 million
for the second quarter of 2021. The decrease in revenue was due to
was primarily attributable to the continuing decline in sales of
COVID-19 specimens, when compared to the same period in the prior
year.
Cost of revenue was approximately $1.0 million
for the second quarter of 2022, compared to approximately $1.5
million for the second quarter of 2021. The decrease was
attributable to a 40% decrease in the average cost per specimen
impacted by the specimen mix, offset somewhat by a 12% increase in
the number of specimens accessioned for the current period compared
to the same prior year's period.
General and administrative expenses were
approximately $1.6 million for the second quarter of 2022, compared
to approximately $1.5 million for the second quarter of 2021. The
increase was primarily attributable to increases in directors’ and
officers’ insurance and operating and maintenance expenses,
somewhat offset by a reduction in compensation costs.
Net loss was approximately $2.6 million or
$(0.30) per share for the second quarter 2022, compared to net loss
of approximately $1.4 million or $(0.87) per share for the same
period in 2021.
Cash was approximately $23.7 million as of June
30, 2022, compared to approximately 27.7 million as of December 31,
2021.
Conference Call and Webcast
Information
The Company will host a conference call and audio webcast today,
Thursday, August 4, 2022 at 8:30 a.m. Eastern Time featuring
remarks by Christopher Ianelli, MD, PhD, CEO and President, Tracy
Curley, CFO and Treasurer, and Jill Mullan, COO and Secretary.
Event: |
iSpecimen Second Quarter 2022
Results Conference Call |
Date: |
Thursday, August 4, 2022 |
Time: |
8:30 a.m. Eastern Time |
Live
Call: |
+1-877-425-9470 (U.S. Toll
Free) or +1-201-389-0878 (International) |
Webcast: |
https://event.choruscall.com/mediaframe/webcast.html?webcastid=4jeXXrdH |
For interested individuals unable to join the conference call, a
replay will be available through August 18, 2022, at
+1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671
(International). Participants must use the following code to access
the replay of the call: 13730127. An archived version of the
webcast will also be available on iSpecimen’s Investor Relations
site: https://ispecimen.irpass.com/.
About iSpecimeniSpecimen (Nasdaq: ISPC) offers
an online marketplace for human biospecimens, connecting scientists
in commercial and non-profit organizations with healthcare
providers that have access to patients and specimens needed for
medical discovery. Proprietary, cloud-based technology enables
scientists to intuitively search for specimens and patients across
a federated partner network of hospitals, labs, biobanks, blood
centers and other healthcare organizations. For more information,
please visit www.ispecimen.com.
Forward Looking StatementsThis press release
may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements are characterized by future or
conditional verbs such as "may," "will," "expect," "intend,"
"anticipate," believe," "estimate" and "continue" or similar words.
You should read statements that contain these words carefully
because they discuss future expectations and plans, which contain
projections of future results of operations or financial condition
or state other forward-looking information.
Forward-looking statements are predictions, projections and
other statements about future events that are based on current
expectations and assumptions and, as a result, are subject to risks
and uncertainties. Many factors could cause actual future events to
differ materially from the forward-looking statements in this press
release, including but not limited to the risks factors contained
in the Company's filings with the Securities and Exchange
Commission, which are available for review at www.sec.gov.
Forward-looking statements speak only as of the date they are made.
New risks and uncertainties arise over time, and it is not possible
for the Company to predict those events or how they may affect the
Company. If a change to the events and circumstances reflected in
the Company's forward-looking statements occurs, the Company's
business, financial condition and operating results may vary
materially from those expressed in the Company's forward-looking
statements.
Readers are cautioned not to put undue reliance on
forward-looking statements, and the Company assumes no obligation
and do not intend to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
For further information, please contact:
Investor ContactKCSA Strategic
CommunicationsAllison SossiSpecimen@kcsa.com
Media ContactsKCSA Strategic
CommunicationsRaquel Cona / Shana MarinoiSpecimen@kcsa.com
iSpecimen Inc.Condensed Balance
Sheets |
|
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
December 31, 2021 |
|
ASSETS |
|
(Unaudited) |
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash |
|
$ |
23,691,175 |
|
|
$ |
27,738,979 |
|
|
Accounts receivable - unbilled |
|
|
1,264,278 |
|
|
|
1,739,020 |
|
|
Accounts receivable, net of allowance for doubtful accounts of
$289,207 and $269,170 at June 30, 2022 and
December 31, 2021, respectively |
|
|
1,660,076 |
|
|
|
3,002,442 |
|
|
Prepaid expenses and other current assets |
|
|
374,867 |
|
|
|
327,035 |
|
|
Tax credit receivable, current portion |
|
|
140,873 |
|
|
|
140,873 |
|
|
Total current assets |
|
|
27,131,269 |
|
|
|
32,948,349 |
|
|
Property and equipment, net |
|
|
23,648 |
|
|
|
32,781 |
|
|
Internally developed software, net |
|
|
2,954,936 |
|
|
|
2,710,867 |
|
|
Operating lease right-of-use asset |
|
|
260,003 |
|
|
|
— |
|
|
Security deposits |
|
|
27,601 |
|
|
|
27,601 |
|
|
Total assets |
|
$ |
30,397,457 |
|
|
$ |
35,719,598 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
433,026 |
|
|
$ |
832,678 |
|
|
Accrued expenses |
|
|
634,256 |
|
|
|
1,009,803 |
|
|
Accrued interest |
|
|
7,778 |
|
|
|
8,167 |
|
|
Operating lease current obligation |
|
|
152,780 |
|
|
|
— |
|
|
Term loan, net of debt
discount, current portion |
|
|
466,667 |
|
|
|
— |
|
|
Deferred revenue |
|
|
334,980 |
|
|
|
654,746 |
|
|
Total current liabilities |
|
|
2,029,487 |
|
|
|
2,505,394 |
|
|
Operating lease long-term
obligation |
|
|
107,975 |
|
|
|
— |
|
|
Term loan, net of debt
discount - long term |
|
|
2,962,065 |
|
|
|
3,422,616 |
|
|
Total liabilities |
|
|
5,099,527 |
|
|
|
5,928,010 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (See Note 6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
Common stock, $0.0001 par value, 200,000,000 shares authorized,
8,904,711 issued, and 8,873,711 outstanding at June 30, 2022
and 8,764,479 issued and 8,733,479 outstanding at
December 31, 2021 |
|
|
887 |
|
|
|
873 |
|
|
Additional paid-in capital |
|
|
68,307,168 |
|
|
|
67,810,289 |
|
|
Treasury stock, 31,000 shares at June 30, 2022 and
December 31, 2021, at cost |
|
|
(172 |
) |
|
|
(172 |
) |
|
Accumulated deficit |
|
|
(43,009,953 |
) |
|
|
(38,019,402 |
) |
|
Total stockholders’ equity |
|
|
25,297,930 |
|
|
|
29,791,588 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
30,397,457 |
|
|
$ |
35,719,598 |
|
|
iSpecimen Inc.Condensed Statements of
Operations(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Revenue |
|
$ |
2,338,688 |
|
|
$ |
2,903,876 |
|
|
$ |
4,857,348 |
|
|
$ |
5,867,683 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
999,743 |
|
|
|
1,489,196 |
|
|
|
2,165,659 |
|
|
|
3,112,847 |
|
|
Technology |
|
|
635,650 |
|
|
|
361,799 |
|
|
|
1,163,173 |
|
|
|
771,750 |
|
|
Sales and marketing |
|
|
950,563 |
|
|
|
647,592 |
|
|
|
1,697,994 |
|
|
|
1,176,978 |
|
|
Supply development |
|
|
242,380 |
|
|
|
100,693 |
|
|
|
424,450 |
|
|
|
212,269 |
|
|
Fulfillment |
|
|
519,994 |
|
|
|
287,275 |
|
|
|
963,788 |
|
|
|
556,371 |
|
|
General and administrative |
|
|
1,575,365 |
|
|
|
1,545,852 |
|
|
|
3,385,679 |
|
|
|
2,508,643 |
|
|
Total operating expenses |
|
|
4,923,695 |
|
|
|
4,432,407 |
|
|
|
9,800,743 |
|
|
|
8,338,858 |
|
|
Loss from operations |
|
|
(2,585,007 |
) |
|
|
(1,528,531 |
) |
|
|
(4,943,395 |
) |
|
|
(2,471,175 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(42,273 |
) |
|
|
(1,133,479 |
) |
|
|
(80,321 |
) |
|
|
(1,986,407 |
) |
|
Change in fair value of derivative liability on convertible
notes |
|
|
— |
|
|
|
(117,000 |
) |
|
|
— |
|
|
|
(271,000 |
) |
|
Change in fair value of derivative liability on bridge notes and
bridge notes, related parties |
|
|
— |
|
|
|
1,630,700 |
|
|
|
— |
|
|
|
1,582,700 |
|
|
Gain (loss) on extinguishment of bridge notes and bridge notes,
related parties |
|
|
— |
|
|
|
9,746 |
|
|
|
— |
|
|
|
(2,740,425 |
) |
|
Loss on extinguishment of convertible notes and convertible notes,
related parties |
|
|
— |
|
|
|
(260,185 |
) |
|
|
— |
|
|
|
(260,185 |
) |
|
Gain on extinguishment of note payable |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
788,156 |
|
|
Other income (expense), net |
|
|
6,590 |
|
|
|
3,663 |
|
|
|
6,630 |
|
|
|
(69 |
) |
|
Interest income |
|
|
13,881 |
|
|
|
172 |
|
|
|
26,535 |
|
|
|
— |
|
|
Total other income (expense),
net |
|
|
(21,802 |
) |
|
|
133,617 |
|
|
|
(47,156 |
) |
|
|
(2,887,230 |
) |
|
Net loss |
|
$ |
(2,606,809 |
) |
|
$ |
(1,394,914 |
) |
|
$ |
(4,990,551 |
) |
|
$ |
(5,358,405 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share - basic and
diluted |
|
$ |
(0.30 |
) |
|
$ |
0.87 |
|
|
$ |
(0.57 |
) |
|
$ |
(4.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock outstanding - basic and
diluted |
|
|
8,821,698 |
|
|
|
1,611,774 |
|
|
|
8,793,723 |
|
|
|
1,273,993 |
|
|
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