Results from the third quarter show strong potential for future
growth, said Predictive Oncology (Nasdaq: POAI) today, announcing
financial results for the quarter ended September 30, 2021. All
three of Predictive Oncology’s reportable segments recognized
revenue for the quarter, and the loss per common share was reduced
to $0.08, compared to $0.46 for the same period in 2020.
The knowledge-driven company, which is applying
artificial intelligence (“AI”) to personalized medicine and drug
discovery, also provided an update on its business activities.
Highlights from the quarter include:
- Net increase in cash and
equivalents amounting to $41 million in the nine months ended
September 30, 2021, compared to $2.3 million for the same period in
2020.
- No outstanding debt.
- Subsidiary Helomics used data from
100,000 Genomes Project to better predict ovarian cancer
outcomes.
- Introduced Raymond F. Vennare,
accomplished senior executive, board director and biotechnology
entrepreneur as newest member of the Board of Directors.
“We are looking forward to the outcome of our
Discovery 21 program, which we believe will realize our goal of
providing pharmaceutical companies with a quicker, less costly
means to drug discovery,” said J. Melville Engle, the Company’s
Chairman and Chief Executive Officer. “We expect our CoRE™ platform
to disrupt pharma, with our AI technology leading to new
discoveries that will drive steady growth in our business
segments.”
Q3 2021 Financial results
The Company recorded revenue of $313,663 for the
quarter, compared to $480,757 for the same quarter in 2020. The
difference was largely due to fewer STREAMWAY System units being
sold in its Skyline Medical business, the segment that typically
generates most of the Company’s current revenue.
G&A expenses decreased $165,176 for the
three months ended September 30, 2021, compared to 2020, and
$856,719 for the nine months ended September 30, 2021, compared to
2020.
The gross profit margin was approximately 65%
and 63% in the three and nine months ended September 30, 2021,
respectively, roughly equivalent to the prior year.
Operations expense increased by $80,169 to
$648,935 in the three months ended September 30, 2021 compared to
2020, primarily due to higher staff and AI computing costs. These
were partially offset by lower consulting expenses.
Net cash used in operating activities was
$8,464,821 and $9,953,785 for the nine months ended September 30,
2021 and September 30, 2020, respectively. Cash used in operating
activities decreased in the 2021 period primarily because of the
decrease in cash used for working capital and the lower operating
costs related to the Helomics and Skyline business.
The Company’s quarterly sales and marketing
expenses increased by $51,355 for the quarter to $172,869 compared
to the same period in 2020. This was a direct result of increased
advertising and promotion including website development, market
research and trade shows, offset by lower commissions expenditures
in the Skyline Medical business.
About Predictive Oncology
Inc.Predictive Oncology (NASDAQ: POAI) operates through
three segments (Skyline, Helomics, and Soluble Biotech), which
contain four subsidiaries: Helomics, TumorGenesis, Skyline Medical
and Soluble Biotech.
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.
PREDICTIVE ONCOLOGY
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited)
|
|
|
|
|
September 30,2021 |
|
December 31,2020 |
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
|
|
Current Assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
41,771,515 |
|
|
$ |
678,332 |
|
Accounts Receivable |
|
275,193 |
|
|
|
256,878 |
|
Inventories |
|
397,976 |
|
|
|
289,535 |
|
Prepaid Expense and Other
Assets |
|
595,224 |
|
|
|
289,490 |
|
Total Current Assets |
|
43,039,908 |
|
|
|
1,514,235 |
|
|
|
|
|
|
|
Fixed Assets, net |
|
3,810,640 |
|
|
|
3,822,700 |
|
Intangibles, net |
|
3,199,047 |
|
|
|
3,398,101 |
|
Lease Right-of-Use Assets |
|
961,419 |
|
|
|
1,395,351 |
|
Other Long-Term Assets |
|
179,096 |
|
|
|
116,257 |
|
Goodwill |
|
- |
|
|
|
2,813,792 |
|
Total Assets |
$ |
51,190,110 |
|
|
$ |
13,060,436 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
Accounts Payable |
$ |
1,029,545 |
|
|
$ |
1,372,070 |
|
Notes Payable – Net of
Discounts of $0 and $244,830 |
|
- |
|
|
|
4,431,925 |
|
Accrued Expenses and other
liabilities |
|
940,892 |
|
|
|
2,588,047 |
|
Derivative Liability |
|
225,498 |
|
|
|
294,382 |
|
Deferred Revenue |
|
152,546 |
|
|
|
53,028 |
|
Lease Liability |
|
637,352 |
|
|
|
597,469 |
|
Total Current Liabilities |
|
2,985,833 |
|
|
|
9,336,921 |
|
|
|
|
|
|
|
Lease Liability – Net of
current portion |
|
388,473 |
|
|
|
845,129 |
|
Other long-term
liabilities |
|
30,898 |
|
|
|
235,705 |
|
Total Liabilities |
|
3,405,204 |
|
|
|
10,417,755 |
|
|
|
|
|
|
|
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 and
79,246 shares outstanding |
|
792 |
|
|
|
792 |
|
Common Stock, $.01 par value,
200,000,000 and 100,000,000 shares authorized, 65,457,484 and
19,804,787 outstanding |
|
654,575 |
|
|
|
198,048 |
|
Additional paid-in
capital |
|
167,413,309 |
|
|
|
110,826,949 |
|
Accumulated Deficit |
|
(120,283,770 |
) |
|
|
(108,383,108 |
) |
|
|
|
|
|
|
Total Stockholders’
Equity |
|
47,784,906 |
|
|
|
2,642,681 |
|
|
|
|
|
|
|
Total Liabilities and
Stockholders’ Equity |
$ |
51,190,110 |
|
|
$ |
13,060,436 |
|
|
|
|
|
|
|
|
|
PREDICTIVE ONCOLOGY
INC.CONDENSED CONSOLIDATED STATEMENTS OF NET
LOSS(Unaudited)
|
|
|
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember
30, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Revenue |
$ |
313,663 |
|
|
$ |
480,757 |
|
|
$ |
944,187 |
|
|
$ |
958,484 |
|
Cost of goods sold |
|
110,165 |
|
|
|
175,206 |
|
|
|
350,800 |
|
|
|
353,124 |
|
Gross profit |
|
203,498 |
|
|
|
305,551 |
|
|
|
593,387 |
|
|
|
605,360 |
|
|
|
|
|
|
|
|
|
General and administrative
expense |
|
2,061,458 |
|
|
|
2,226,634 |
|
|
|
7,410,208 |
|
|
|
8,266,927 |
|
Operations expense |
|
648,935 |
|
|
|
568,766 |
|
|
|
1,791,543 |
|
|
|
1,638,635 |
|
Sales and marketing expense |
|
172,869 |
|
|
|
121,514 |
|
|
|
447,298 |
|
|
|
518,938 |
|
Loss on goodwill impairment |
|
2,813,792 |
|
|
|
2,997,000 |
|
|
|
2,813,792 |
|
|
|
2,997,000 |
|
Total operating loss |
|
(5,493,556 |
) |
|
|
(5,608,363 |
) |
|
|
(11,869,454 |
) |
|
|
(12,816,140 |
) |
Other income |
|
58,830 |
|
|
|
44,926 |
|
|
|
144,122 |
|
|
|
97,894 |
|
Other expense |
|
(7,413 |
) |
|
|
(2,147,057 |
) |
|
|
(244,214 |
) |
|
|
(3,993,969 |
) |
Gain (loss) on derivative
instruments |
|
4,122 |
|
|
|
1,402,768 |
|
|
|
68,884 |
|
|
|
1,007,794 |
|
Gain on notes receivables
associated with asset purchase |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,290,000 |
|
Net loss |
$ |
(5,438,017 |
) |
|
$ |
(6,307,726 |
) |
|
$ |
(11,900,662 |
) |
|
$ |
(14,414,421 |
) |
Deemed dividend |
|
- |
|
|
|
554,287 |
|
|
|
- |
|
|
|
554,287 |
|
Net loss attributable to common
shareholders per common shares-basic and diluted |
$ |
(5,438,017 |
) |
|
$ |
(6,862,013 |
) |
|
$ |
(11,900,662 |
) |
|
$ |
(14,968,708 |
) |
Loss per common share basic and
diluted |
$ |
(0.08 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.23 |
) |
|
$ |
(1.51 |
) |
Weighted average shared used in
computation - basic |
|
65,406,312 |
|
|
|
15,026,789 |
|
|
|
51,272,960 |
|
|
|
9,935,738 |
|
|
|
|
|
|
|
|
|
Investor Relations Contact:
Landon Capital Keith Pinder (404)
995-6671kpinder@landoncapital.net
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