Predictive Oncology Inc. Reports Q3 Results; Revenues Increase 58%
November 15 2019 - 5:10PM
Predictive Oncology Inc., (NASDAQ: POAI) (“Predictive Oncology” or
“the Company”) an artificial intelligence (AI) and data-driven
functional precision medicine company with the mission of improving
the standard of care for cancer patients through innovative
data-driven products and services announced financial results for
the quarter ended September 30, 2019 and provided a
business update.
Financial Results
Revenue for the quarter ended September 30,
2019 was $522,696 compared
with $329,930 for the same period of 2018, a 58 percent
increase year over year. Revenue included the sale of 19 STREAMWAY
systems and disposable supplies, compared to 10 sales of the system
in the comparable period of 2018. Cost of sales
was $208,096 in the third quarter of 2019, compared
to $83,006 in Q3 2018. Gross profit margin declined to
60% percent versus 75% in the third quarters of 2019 and 2018
respectively. Operating expenses for the quarter
ended September 30, 2019 declined to $707,414 compared
to $723,939 for the third quarter of 2018. General and
administrative expenses were $2,616,991, compared to
$762,603 during the same period of the previous year. Sales
and marketing expenses also declined to $434,955 in Q3 2019
compared to $621,465 for the previous year.
Business highlights of the third quarter of 2019 through recent
weeks include:
- Initial models in progress with Interpace Diagnostics for
Thyroid.
- Helomics has initiated pilot sequencing (48 samples)
- ChemImage additional validation utilizing our platform and AI
(D-CHIP) in prostate cancer.
- Specicare “Pioneer” Precision Medicine trial in progress (All
tumor types)
- Predictive Oncology continues to execute on Cancer Quest 2020
leveraging unique assets:
- TumorGenesis has initiated, with its global distributor, U.S.
Biological Corp. the building of media kits to allow the growth of
ovarian cancer cells in their labs.
- Clinically validated patient-derived (PDx) tumor profiling
platform to generate drug response profiles and multi-omic
data.
- Data on drug response profiles of over 150,000 tumors across
137 cancer types using the PDx platform in over 10+ years of
clinical testing.
- The Skyline Medical division sold 19 STREAMWAY units in
Q3.
Dr. Carl Schwartz, the Company’s Chief Executive Officer
commented, “I am very pleased with the growth and development of
our unique assets, Helomics and Tumor Genesis, and the and the
increase in international interest in our Skyline products. The
future looks very bright.”
About Predictive Oncology
Inc.
Predictive Oncology (Nasdaq: POAI) operates through five
segments (Domestic, International, Clinical, CRO and DCHIP), which
contain four subsidiaries; Helomics, TumorGenesis, Skyline Medical
and Skyline Europe. 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.
Helomics’ CLIA-certified lab provides clinical testing that assists
oncologists in individualizing patient treatment decisions, by
providing an evidence-based roadmap for therapy. In addition to its
proprietary precision oncology platform, Helomics offers boutique
CRO services that leverage its TruTumor™, patient-derived tumor
models coupled to a wide range of multi-omics assays (genomics,
proteomics and biochemical), and an AI-powered proprietary
bioinformatics platform (D- CHIP) to provide a tailored solution to
its clients’ specific needs. Predictive Oncology’s TumorGenesis
subsidiary is developing a new rapid approach to growing tumors in
the laboratory, which essentially “fools” cancer cells into
thinking they are still growing inside a patient. Its proprietary
Oncology Discovery Technology Platform kits will assist researchers
and clinicians to identify which cancer cells bind to specific
biomarkers. Once the biomarkers are identified they can be used in
TumorGenesis’ Oncology Capture Technology Platforms which isolate
and help categorize an individual patient’s heterogeneous tumor
samples to enable the development of patient specific treatment
options. Helomics and TumorGenesis are focused on ovarian cancer.
Predictive Oncology’s Skyline Medical division 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. The company has achieved
sales in five of the seven continents through both direct sales and
distributor partners. For more information, please visit
www.predictive-oncology.com.
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; Predictive’s
ability to implement its long range business plan for various
applications of its technology; Predictive’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
Predictive’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 SEC, which are available for
review at www.sec.gov. This is not a solicitation to buy or sell
securities and does not purport to be an analysis of Predictive’s
financial position. See Predictive’s most recent Annual Report on
Form 10-K, and subsequent reports and other filings at
www.sec.gov.
Contacts:
Charles MoskowitzEmail: info@MoneyInfo-llc.comTelephone:
339-660-7457
Bob MyersEmail: bmyers@skylinemedical.com Telephone:
651-389-4800
|
|
September 30, 2019 |
|
December 31, 2018 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and Cash Equivalents |
|
$ |
98,599 |
|
|
$ |
162,152 |
|
Accounts Receivable |
|
|
372,119 |
|
|
|
232,602 |
|
Notes Receivable (inclusive of
$0 and $452,775 in advances to Helomics; net of $787,524 and $0 in
allowance for credit losses) |
|
|
250,000 |
|
|
|
497,276 |
|
Inventories |
|
|
210,350 |
|
|
|
241,066 |
|
Prepaid Expense and other
assets |
|
|
131,558 |
|
|
|
318,431 |
|
Total Current Assets |
|
|
1,062,626 |
|
|
|
1,451,527 |
|
|
|
|
|
|
|
|
|
|
Notes Receivable |
|
|
- |
|
|
|
1,112,524 |
|
Fixed Assets, net |
|
|
1,633,750 |
|
|
|
180,453 |
|
Intangibles, net |
|
|
4,508,433 |
|
|
|
964,495 |
|
Lease Right-of-Use Assets |
|
|
886,712 |
|
|
|
- |
|
Goodwill |
|
|
23,790,290 |
|
|
|
- |
|
Total Assets |
|
$ |
31,881,811 |
|
|
$ |
3,708,999 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts Payable |
|
$ |
3,762,468 |
|
|
$ |
445,689 |
|
Notes Payable –Net of
Discounts of $499,215 and $1,032,814 |
|
|
4,470,380 |
|
|
|
1,634,914 |
|
Accrued Expenses |
|
|
1,807,188 |
|
|
|
1,279,114 |
|
Derivative Liability |
|
|
210,762 |
|
|
|
272,745 |
|
Deferred Revenue |
|
|
30,638 |
|
|
|
23,065 |
|
Lease Liability – Net of
Long-term Portion |
|
|
500,732 |
|
|
|
- |
|
Total Current Liabilities |
|
|
10,782,168 |
|
|
|
3,655,527 |
|
|
|
|
|
|
|
|
|
|
Lease Liability |
|
|
385,980 |
|
|
|
- |
|
Total Liabilities |
|
|
11,168,148 |
|
|
|
3,655,527 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
Series E Convertible Preferred
Stock, $.01 par value, 350 shares authorized, 257.7 and 0 shares
outstanding (Liquidation value $2,577,000) |
|
|
3 |
|
|
|
- |
|
Series B Convertible Preferred
Stock, $.01 par value, 20,000,000 shares authorized, 79,246 and
79,246 outstanding |
|
|
792 |
|
|
|
792 |
|
Series D Convertible Preferred
Stock, $.01 par value, 20,000,000 shares authorized, 3,500,000 and
0 outstanding |
|
|
35,000 |
|
|
|
- |
|
Common Stock, $.01 par value,
100,000,000 shares authorized, 3,149,751 and 1,409,175
outstanding |
|
|
31,497 |
|
|
|
14,092 |
|
Additional paid-in
capital |
|
|
89,590,908 |
|
|
|
63,146,533 |
|
Accumulated Deficit |
|
|
(68,944,537) |
|
|
|
(63,107,945) |
|
|
|
|
|
|
|
|
|
|
Total Stockholders'
Equity |
|
|
20,713,663 |
|
|
|
53,472 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity |
|
$ |
31,881,811 |
|
|
$ |
3,708,999 |
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenue |
|
$ |
522,696 |
|
|
$ |
329,930 |
|
|
$ |
1,064,088 |
|
|
$ |
1,100,108 |
|
Cost of goods sold |
|
|
208,096 |
|
|
|
83,006 |
|
|
|
400,202 |
|
|
|
309,320 |
|
Gross margin |
|
|
314,600 |
|
|
|
246,924 |
|
|
|
663,886 |
|
|
|
790,788 |
|
General and administrative
expense |
|
|
2,616,991 |
|
|
|
762,603 |
|
|
|
7,425,305 |
|
|
|
2,708,274 |
|
Operations expense |
|
|
707,414 |
|
|
|
723,939 |
|
|
|
2,445,238 |
|
|
|
1,390,434 |
|
Sales and marketing
expense |
|
|
434,955 |
|
|
|
621,465 |
|
|
|
1,674,200 |
|
|
|
1,726,087 |
|
Total operating loss |
|
|
(3,444,760) |
|
|
|
(1,861,083) |
|
|
|
(10,880,857) |
|
|
|
(5,034,007) |
|
Gain on revaluation of cash
advances to Helomics |
|
|
- |
|
|
|
- |
|
|
|
1,222,244 |
|
|
|
- |
|
Other income |
|
|
15,084 |
|
|
|
- |
|
|
|
65,293 |
|
|
|
- |
|
Other expense |
|
|
578,836 |
|
|
|
- |
|
|
|
1,967,895 |
|
|
|
- |
|
Loss on equity method
investment |
|
|
- |
|
|
|
645,786 |
|
|
|
439,637 |
|
|
|
1,606,294 |
|
Gain on revaluation of equity
method investment |
|
|
- |
|
|
|
- |
|
|
|
6,164,260 |
|
|
|
- |
|
Net loss |
|
$ |
(4,008,512) |
|
|
$ |
(2,506,869) |
|
|
$ |
(5,836,592) |
|
|
$ |
(6,640,301) |
|
Deemed dividend on Series E
Convertible Preferred Stock |
|
|
125,801 |
|
|
|
- |
|
|
|
146,199 |
|
|
|
- |
|
Net loss attributable to
common shareholders per common shares – basic and diluted |
|
$ |
(4,134,313) |
|
|
$ |
(2,506,869) |
|
|
$ |
(5,982,791) |
|
|
$ |
(6,640,301) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share - basic
and diluted |
|
$ |
(1.31) |
|
|
$ |
(1.89) |
|
|
$ |
(2.32) |
|
|
$ |
(5.45) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used
in computation - basic and diluted |
|
|
3,146,609 |
|
|
|
1,325,261 |
|
|
|
2,581,014 |
|
|
|
1,217,829 |
|
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