Predictive Oncology Inc. Reports Second Quarter 2019 Financial Results and Provides Corporate Update
August 19 2019 - 5:15PM
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 June 30, 2019 and provided a business update.
Business highlights of the second quarter of 2019 through recent
weeks include:
- The Skyline Medical division has received its first order from
India for four machines to be sold to local hospitals. The sale of
these four STREAMWAY units in India marks our entry into that
country.
- Helomics announced a joint collaborative agreement with UPMC to
study the use of artificial intelligence to improve clinical
decision making for ovarian cancer patients.
- Helomics signed a collaborative research agreement with
Pittsburgh, Pa.-based molecular imaging company, ChemImage to
better determine disease progression in prostate cancer.
- Predictive Oncology appointed Amelia Warner, Pharm.D., RPh, as
the interim chief operating officer for its Helomics division.
- Announced our corporate name change to Predictive Oncology
Inc., which reflects the company’s mission and strategic
focus.
- Helomics, Inc. and National Alopecia Areata Foundation signed a
services agreement to provide next-generation patient registry for
Alopecia Areata Research.
- TumorGenesis and partner 48Hour Discovery received Alberta
Innovates grant for development of novel cancer treatments.
- Helomics contracted to provide CRO and Artificial Intelligence
drug development services to SpeciCare for a precision medicine
trial.
- Helomics initiated a collaboration with Viome to determine role
of gut microbiome in ovarian cancer.
- Helomics merger completed on April 4, 2019.
Dr. Carl Schwartz, Predictive’s Chief Executive Officer
commented, “During the quarter we officially changed our company
name to Predictive Oncology Inc. which better reflects our
commitment to applying artificial intelligence to precision
medicine and drug discovery. Along with the name change, we
appointed Amelia Warner, Pharm.D., RPh, as Interim Chief Operating
Officer of Helomics to bolster our management team. Dr. Warner
brings 15 years of experience in building businesses in the area of
personalized medicine. Also, we continue to see multiple
collaborations taking place across our businesses. We entered an
agreement with Interpace Diagnostics (NASDAQ: IDXG) to develop a
pipeline of products that work seamlessly together to diagnose and
assess the risk for thyroid cancer as well as provide appropriate
therapeutic recommendations. Our Helomic subsidiary signed a
collaborative research agreement with molecular imaging company,
ChemImage to expand personalized medicine to prostate cancer
prognosis and treatment. The collaboration will focus on the
feasibility of coupling genomics to Raman spectroscopy to better
determine disease progression in prostate cancer. Lastly, our
Skyline Medical Division expanded its Asian market share with
first-ever orders of STREAMWAY Systems in India. This marks an
exciting milestone in our continued global market expansion. We
continue to make progress building and shaping our businesses and
expect this momentum to continue for the rest of 2019.”
Financial Results
Revenue for the quarter ended June 30, 2019 was $286,151
compared with $358,586 for the same period of 2018, a 20 percent
decrease year over year. Revenue included the sale of 14 STREAMWAY
systems and disposable supplies, 10 domestically and 4
internationally, compared to 25 sales of the system in the
comparable period of 2018. Cost of sales was $118,000 in the second
quarter of 2019, compared to $109,000 in Q2 2018. Gross profit
margin declined to 59% percent versus 70% in the second quarters of
2019 and 2018 respectively. Operating expenses for the quarter
ended June 30, 2019 were $1,271,258 compared to $378,906 for the
second quarter of 2018. General and accounting expenses were
approximately $3,310,368, compared to approximately $729,528 during
the same period of the previous year. Sales and marketing expenses
remained relatively consistent at $685,029, compared to $554,084
for the second quarter of 2018.
Cash balance was approximately $70,000 as of June 30, 2019.
Conference Call
The company will host a conference call at 5:30 pm eastern time
today to review financial results and provide a corporate update.
Participants are asked to preregister for the call through the
following link: http://dpregister.com/10134447. Please note that
registered participants will receive their dial in number upon
registration and will dial directly into the call without delay.
Those without internet access or who are unable to pre-register may
dial in by calling: 1-800-603-0527 (domestic), 1-412-317-2508
(international). All callers should dial in approximately 10
minutes prior to the scheduled start time and ask to be joined into
the Predictive Oncology call.
The conference call will also be available through a live
webcast, which can be accessed via the following link:
https://services.choruscall.com/links/poai190819.html which will
also be available through the company’s website at:
http://investors.skylinemedical.com/events-and-presentations.
An audio replay of the call will be available approximately one
hour after the end of the call through September 19, 2019. The
replay can be accessed via Predictive Oncology’s website or by
dialing 1-877-344-7529 (U.S.) or +1-412-317-0088 (international).
The replay conference playback code is 10134447.
A webcast replay of the call will also be available
approximately one hour after the end of the call through November
19, 2019. The replay can be accessed through the above links.
About Predictive Oncology Inc.Predictive
Oncology (formerly Precision Therapeutics Inc.) (Nasdaq: POAI)
operates through its three business units, Helomics, TumorGenesis
and Skyline Medical. 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.predictiveoncology.net.
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; Precision’s ability to implement its
long range business plan for various applications of its
technology; Precision’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 Precision’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 Precision’s financial position. See Precision’s most
recent Annual Report on Form 10-K, and subsequent reports and other
filings at www.sec.gov.
Contacts: Investor Relations CORE IR Bret
Shapiro 516-222-2560brets@coreir.com
MediaJules Abraham CORE IRjulesa@coreir.com917-885-7378
|
Predictive Oncology, Inc. |
Condensed Consolidated Balance Sheet |
(Unaudited) |
|
|
|
|
|
|
June 30, 2019 |
|
|
December 31, 2018 |
|
ASSETS |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
69,557 |
|
|
$ |
162,152 |
|
Certificates of deposit |
|
- |
|
|
|
- |
|
Accounts Receivable |
|
299,046 |
|
|
|
232,602 |
|
Notes Receivable (inclusive of
$0 and $452,775 in advances to Helomics; net of $787,524 allowance
for credit losses) |
|
250,000 |
|
|
|
497,276 |
|
Loan Receivable |
|
- |
|
|
|
- |
|
Inventories |
|
320,876 |
|
|
|
241,066 |
|
Prepaid Expense and other
assets |
|
154,523 |
|
|
|
318,431 |
|
Total Current Assets |
|
1,094,002 |
|
|
|
1,451,527 |
|
|
|
|
|
Notes Receivable |
|
- |
|
|
|
1,112,524 |
|
Fixed Assets, net |
|
1,769,813 |
|
|
|
180,453 |
|
Intangibles, net |
|
4,591,872 |
|
|
|
964,495 |
|
Lease Right of Use Assets |
|
1,005,525 |
|
|
|
- |
|
Goodwill |
|
23,790,290 |
|
|
|
- |
|
Total Assets |
$ |
32,251,502 |
|
|
$ |
3,708,999 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
Accounts Payable |
$ |
3,538,832 |
|
|
$ |
445,689 |
|
Note Payable - Net of
Discounts of $573,155 and $1,032,814 |
|
3,808,751 |
|
|
|
1,634,914 |
|
Accrued Expenses |
|
1,035,501 |
|
|
|
1,279,114 |
|
Derivative Liability |
|
541,599 |
|
|
|
272,745 |
|
Deferred Revenue |
|
29,706 |
|
|
|
23,065 |
|
Lease Liability - Net of
Long-Term Portion |
|
501,427 |
|
|
|
- |
|
Total Current Liabilities |
|
9,455,816 |
|
|
|
3,655,527 |
|
|
|
|
|
Long-Term Liabilities: |
|
|
|
Accrued Expenses |
|
- |
|
|
|
- |
|
Lease Liability |
|
504,098 |
|
|
|
- |
|
|
|
|
|
Total Liabilities |
|
9,959,914 |
|
|
|
3,655,527 |
|
Commitments and
Contingencies |
|
- |
|
|
|
- |
|
|
|
|
|
Stockholders' Equity |
|
|
|
Series E Convertible Preferred
Stock, $.01 par value, 350 shares authorized, 83.4 and 0 shares
outstanding (Liquidation value$843,000) |
|
1 |
|
|
|
- |
|
Series B Convertible Preferred
Stock, $.01 par value, 20,000,000 authorized, 79,246 and 79,246
outstanding |
|
792 |
|
|
|
792 |
|
Series D Convertible Preferred
Stock, $.01 par value, 20,000,000 authorized, 3,500,000 and 0
outstanding |
|
35,000 |
|
|
|
- |
|
Common Stock, $.01 par value,
100,000,000 authorized, 30,974,761 and 14,091,748 outstanding |
|
309,747 |
|
|
|
140,917 |
|
Additional paid-in
capital |
|
86,882,073 |
|
|
|
63,019,708 |
|
Accumulated Deficit |
|
(64,936,025 |
) |
|
|
(63,107,945 |
) |
Accumulated Other
Comprehensive income |
|
- |
|
|
|
- |
|
Total Stockholders'
Equity |
|
22,291,588 |
|
|
|
53,472 |
|
|
|
|
|
Total Liabilities and
Stockholders' Equity |
$ |
32,251,502 |
|
|
$ |
3,708,999 |
|
|
|
|
|
Predictive Oncology, Inc. |
Condensed Consolidated Statements of Net Loss |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Revenue |
$ |
286,151 |
|
|
$ |
358,586 |
|
|
$ |
541,392 |
|
|
$ |
770,179 |
|
|
Cost of goods sold |
|
118,390 |
|
|
|
108,970 |
|
|
|
192,106 |
|
|
|
226,314 |
|
|
Gross margin |
|
167,761 |
|
|
|
249,616 |
|
|
|
349,286 |
|
|
|
543,865 |
|
|
General and administrative
expense |
|
3,310,368 |
|
|
|
729,528 |
|
|
|
4,808,314 |
|
|
|
1,945,670 |
|
|
Operations expense |
|
1,271,258 |
|
|
|
378,906 |
|
|
|
1,737,824 |
|
|
|
666,496 |
|
|
Sales and marketing
expense |
|
685,029 |
|
|
|
554,084 |
|
|
|
1,239,245 |
|
|
|
1,104,623 |
|
|
Total operating loss |
|
(5,098,894 |
) |
|
|
(1,412,902 |
) |
|
|
(7,436,097 |
) |
|
|
(3,172,924 |
) |
|
Gain on revaluation of cash advances to Helomics |
|
1,222,244 |
|
|
1,222,244 |
|
|
Other income |
|
(3,223 |
) |
|
|
- |
|
|
|
50,209 |
|
|
|
- |
|
|
Other Expense |
|
819,283 |
|
|
|
- |
|
|
|
1,389,059 |
|
|
|
- |
|
|
Gain/(loss) on equity method
investment |
|
6,164,260 |
|
|
|
(960,508 |
) |
|
|
5,724,623 |
|
|
|
(960,508 |
) |
|
Net Income/(loss ) |
|
1,465,104 |
|
|
|
(2,373,410 |
) |
|
|
(1,828,080 |
) |
|
|
(4,133,432 |
) |
|
Deemed dividend on Series E
Convertible Preferred Stock |
|
20,398 |
|
|
|
- |
|
|
|
20,398 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) attributable
to common shareholders |
$ |
1,444,706 |
|
|
$ |
(2,373,410 |
) |
|
$ |
(1,848,478 |
) |
|
$ |
(4,133,432 |
) |
|
Gain/(loss) attributable to
common shareholders per common share - basic |
$ |
0.05 |
|
|
$ |
(0.20 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.36 |
) |
Gain/(loss) attributable to
common shareholders per common share - diluted |
$ |
0.02 |
|
|
$ |
(0.20 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.36 |
) |
|
Weighted average shares used
in computation - basic |
|
29,609,373 |
|
|
|
11,878,490 |
|
|
|
22,747,544 |
|
|
|
11,632,221 |
|
Weighted average shares used
in computation - diluted |
|
60,070,783 |
|
|
|
11,878,490 |
|
|
|
22,747,544 |
|
|
|
11,632,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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