Precision Therapeutics Inc. (NASDAQ: AIPT) (“Precision” or “the
Company”), a company focused on applying artificial intelligence to
personalized medicine and drug discovery, announced today financial
results for the three and six months ended June 30, 2018 and
provided a business update.
Highlights of the second quarter of 2018 and recent
weeks include:
- Signed a definitive merger agreement with Helomics Holding
Corporation (“Helomics”). Upon completion of the merger, Precision
will increase its equity stake in Helomics from 25% to
100%.— Helomics is predicted to generate approximately $3.2
million in revenues by the end of 2018.
- Helomics launched its new Precision Oncology Insights platform.
This unique platform, tests the patient’s own tumor, providing
additional context (a roadmap) to help the oncologist personalize
the treatment for their patients. The initial focus is on
gynecologic cancers, especially ovarian.
- Helomics announced the commercial launch of the
‘HelomicsDiscover’ program to drive forward the discovery of the
next generation of precision cancer therapies in partnership with
Pharma and Diagnostic companies.
- Launch of new website www.precisiontherapeutics.com
to offer a more comprehensive understanding of the Company's
new value proposition and strategic direction in the precision
oncology industry.
Highlights from Skyline Medical, a
division of Precision Therapeutics:
- Sold nine STREAMWAY Systems in the second quarter of 2018,
compared with no STREAMWAY Systems in Q2 2017, bringing the total
number of STREAMWAY Systems sold to 132 as of June 30, 2o18
- On July 11, 2018, the European Patent Office (“EPO”) granted
European Patent No. 2948200, covering the Company’s STREAMWAY®
System.
Dr. Carl Schwartz, Chief Executive Officer of Precision,
commented, “We recently advanced our strategy to penetrate the
fast-growing precision oncology market by signing a definitive
merger agreement with Helomics which, when completed, will allow us
to increase our equity stake in Helomics from 25% to 100%.
Helomics’ cutting-edge precision oncology solutions not only drive
improved outcomes for cancer patients by helping clinicians
personalize treatments but are also integral to the development of
new precision therapies through its integrated Contract Research
Organization (‘CRO’) business. What makes these solutions superior
to others on the market, is their ability to leverage Helomics’
proprietary D-CHIP (‘Digital Clinical Health Insights Platform’),
an artificial intelligence powered bioinformatics engine that
provides actionable insights from patient data to drive
improvements in both the effectiveness of current cancer treatments
and the discovery of new treatments.
Dr. Schwartz continued, “Over the past several weeks, we have
worked closely with Helomics as it transforms its business model
into one that not only utilizes this one-of-a-kind offering but is
also supported by more sustainable revenue streams. Rather than
relying upon unreliable reimbursement policies for the specific
tests it conducts, like a traditional diagnostics company does,
Helomics has repositioned itself as a precision medicine business -
using artificial intelligence and its comprehensive disease
database to provide ‘roadmaps’ that help the oncologist guide
therapy for the patient and improve outcomes. We believe this new
precision medicine business model which provides for a more
consistent billing approach will benefit payors and patients, while
improving revenue consistency.
“Looking ahead to the second half of the year, we expect
Helomics to generate additional revenues from its CRO services
business. Most importantly, Helomics is launching its D-CHIP
offering for pharma companies, which should drive both
project-based revenue and subscription payments. This development
is critical, as it will provide revenue growth and stability for
many years to come. Moreover, as Helomics’ specimen volumes grow,
so too does the number of tumor profiles that are available to the
D-CHIP platform. This increases Helomics’ value, and also helps
create a more effective platform to improve treatment options for
the patients of tomorrow. As we look to the second half of 2018, we
expect Helomics to significantly ramp revenues from its CRO,
precision oncology insights and D-CHIP solutions.
“In the Skyline Medical division, we continued to focus our
efforts on growing sales of the STREAMWAY System, resulting in nine
units sold in the second quarter and a further two sold subsequent
to the quarter end. All of these sales were to hospitals and
medical centers in the United States. We expect STREAMWAY sales to
be heavily weighted toward the second half of the year. We are
currently ramping our commercialization efforts internationally,
with an initial focus on the European market. In July, we were
pleased to be granted a European patent for the STREAMWAY System.
This will help protect our competitive positioning in the market,
and also validates the system’s ‘one-of-a-kind’ value proposition,”
concluded Dr. Schwartz.
Financial Results
Revenue for the three months ended June 30, 2018 was $358,586,
compared with $106,822 for the three months ended June 30, 2017.
Revenue was derived from the sales of nine STREAMWAY Systems and
the sale of STREAMWAY disposable products during the second quarter
of 2018.
Gross profit for the three months ended June 30, 2018 was
$249,616 or 69.6% of revenue, compared with $84,812 or 79.4% of
revenue for the same period in 2017.
Total operating expenses for the three months ended June 30,
2018 were $1.7 million, compared with $2.6 million for the three
months ended June 30, 2017. The decrease was primarily the result
of lower general and administrative expenses associated with
investors stock compensation that was recorded in 2017 due to a
registered direct offering in November 2016 with warrants that
vested in 2017.
The Company also reported a $960,508 loss related to the
Company’s 25% equity method investment in Helomics, for the
three-month period.
Comprehensive loss for the three months ended June 30, 2018,
which includes this loss on equity method investment, was $2.4
million or a loss of $0.20 per share. This compares with
comprehensive loss for the three months ended June 30, 2017 of $2.5
million or a loss of $0.41 per share.
Revenue for the six months ended June 30, 2018 was $770,179,
compared with $281,988 for the six months ended June 30, 2017.
Revenue was derived from the sales of 25 STREAMWAY Systems and the
sale of STREAMWAY disposable products during the first half of
2018.
Gross profit for the six months ended June 30, 2018 was $543,865
or 69.6% of revenue, compared with $222,985 or 79.4% of revenue for
the same period in 2017.
Total operating expenses for the six months ended June 30, 2018
were $3.7 million, compared with $4.1 million for the six months
ended June 30, 2017. The decrease was primarily the result of lower
General and administrative expenses associated with investors stock
compensation that was recorded in 2017 due to a registered direct
offering in November 2016 with warrants that vested in 2017.
The Company also reported a $960,508 loss related to the
Company’s equity method investment in Helomics, for the six-month
period.
Comprehensive loss for the six months ended June 30, 2018, which
includes this loss on equity method investment, was $4.1 million or
a loss of $0.36 per share. This compares with a comprehensive loss
for the six months ended June 30, 2017 of $3.9 million or a loss of
$0.62 per share.
The Company had cash, cash equivalents and marketable securities
of $1 million as of June 30, 2018, compared with $766,189 as of
December 31, 2017.
Conference Call and Webcast
Management will also hold a conference call to provide a general
business update and discuss upcoming milestones. The conference
call is scheduled to begin today at 4:30 p.m. Eastern Time. A
webcast of the event will be available via the ‘Investor Info’
section of the Company’s website at
http://www.precisiontherapeutics.com/.
To access the conference call, U.S.-based listeners should dial
+1 (866) 548-4713 and international listeners should dial +1 (323)
794-2093. All listeners should provide the following passcode:
5618301.
A dial-in replay of the call will also be available to those
interested until August 28, 2018. To access the replay, dial +1
(844) 512-2921 (United States) or +1 (412) 317-6671 (International)
and enter replay pin number: 5618301.
To be added to the Precision Therapeutics’ database, please
email Info@MoneyInfo-llc.com with your email address. This is
solely for the use of Precision Therapeutics and will not be sold
or distributed to third parties.
About Precision Therapeutics Inc.
Precision Therapeutics (NASDAQ:AIPT) operates in two
business areas: first, applying artificial intelligence to
personalized medicine and drug discovery to provide personalized
medicine solutions for patients and clinicians as well as clients
in the pharmaceutical, diagnostic, and biotech industries, and
second, production of the FDA-approved STREAMWAY® System for
automated, direct-to-drain medical fluid disposal. For additional
information, please visit www.precisiontherapeutics.com.
Precision Therapeutics’ medicine business is committed to
improving the effectiveness of cancer therapy using the power of
artificial intelligence (AI) applied to rich data diseases
databases. This business has launched with Precision
Therapeutics' investment in Helomics Corporation, a
precision medicine company and integrated clinical contract
research organization whose mission is to improve patient care by
partnering with pharmaceutical, diagnostic, and academic
organizations to bring innovative clinical products and
technologies to the marketplace. In addition to its proprietary
precision diagnostics for oncology, Helomics offers boutique CRO
services that leverage their patient-derived tumor models, coupled
to a wide range of multi-omics assays (genomics, proteomics and
biochemical), and a proprietary bioinformatics platform (D-CHIP) to
provide a tailored solution to our client's specific needs.
Helomics is currently 25% owned by Precision Therapeutics.
Helomics® is headquartered in Pittsburgh,
Pennsylvania where the company maintains state-of-the-art,
CLIA-certified, clinical and research laboratories. For more
information, please visit www.Helomics.com.
Precision Therapeutics has also announced the formation of
a subsidiary, TumorGenesis to pursue a new rapid approach to
growing tumors in the laboratory, which essentially “fools” the
cancer cells into thinking they are still growing inside the
patient. Precision Therapeutics and Helomics have also
announced a proposed joint venture with GLG
Pharma focused on using their combined technologies to bring
personalized medicines and testing to ovarian and breast cancer
patients, especially those who present with ascites fluid (over
one-third of patients). The growth strategy in this business
includes securing new partnerships and considering acquisitions in
the precision medicine space.
Sold through the Skyline Medical business of Precision
Therapeutics, The STREAMWAY System virtually eliminates staff
exposure to blood, irrigation fluid and other potentially
infectious fluids found in the healthcare environment. Antiquated
manual fluid handling methods that require hand carrying and
emptying filled fluid canisters present an exposure risk and
potential liability. Skyline Medical's STREAMWAY System fully
automates the collection, measurement, and disposal of waste fluids
and is designed to: 1) reduce overhead costs to hospitals and
surgical centers; 2) improve compliance with OSHA and
other regulatory agency safety guidelines; 3) improve efficiency in
the operating room, and radiology and endoscopy departments,
thereby leading to greater profitability; and 4) provide greater
environmental stewardship by helping to eliminate the approximately
50 million potentially disease-infected canisters that go into
landfills each year in the U.S. For additional information, please
visit www.skylinemedical.com.
Forward-looking Statements
Certain of the matters discussed in this announcement 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 (1)
risks related to the proposed merger with Helomics, including the
fact that we may not complete the merger; we do not have complete
information about Helomics; 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;
delay in completion of the merger may significantly reduce the
expected benefits; and the market price of the Company’s common
stock may decline as a result of the merger; (2) 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 (3) 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; the Company's ability to implement
its long range business plan for various applications of its
technology; the Company'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 the Company'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 Securities and Exchange Commission, 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 the
Company's financial position. See the Company's most recent Annual
Report on Form 10-K, and subsequent reports and other filings
at www.sec.gov.
Contacts: Investor Relations KCSA Strategic
Communications Elizabeth Barker (212) 896-1203 ebarker@kcsa.com
MONEYINFO, LLC Charles Moskowitz 617-827-1296
info@moneyinfo-llc.com
|
PRECISION THERAPEUTICS INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Unaudited) |
|
|
|
June 30, 2018 |
|
December 31, 2017 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents |
|
$ |
1,004,269 |
|
|
$ |
766,189 |
|
Certificates of
Deposit |
|
|
- |
|
|
|
244,971 |
|
|
|
|
|
|
|
|
|
|
Accounts
Receivable |
|
|
315,327 |
|
|
|
137,499 |
|
Notes Receivable |
|
|
167,512 |
|
|
|
667,512 |
|
Inventories |
|
|
244,660 |
|
|
|
265,045 |
|
Prepaid Expense and
other assets |
|
|
275,476 |
|
|
|
289,966 |
|
Total Current
Assets |
|
|
2,007,244 |
|
|
|
2,371,182 |
|
|
|
|
|
|
|
|
|
|
Notes Receivable |
|
|
1,112,524 |
|
|
|
1,070,000 |
|
Equity Method
Investment (Note 2) |
|
|
581,742 |
|
|
|
- |
|
Fixed Assets, net |
|
|
184,385 |
|
|
|
87,716 |
|
Intangibles, net |
|
|
115,139 |
|
|
|
95,356 |
|
Total Assets |
|
$ |
4,001,034 |
|
|
$ |
3,624,254 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current
Liabilities: |
|
|
|
|
|
|
|
|
Accounts Payable |
|
$ |
165,588 |
|
|
$ |
140,462 |
|
Accrued Expenses |
|
|
455,326 |
|
|
|
785,215 |
|
Deferred Revenue |
|
|
18,342 |
|
|
|
6,663 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
639,256 |
|
|
|
932,340 |
|
Commitments and
Contingencies |
|
|
- |
|
|
|
- |
|
Stockholders’
Equity: |
|
|
|
|
|
|
|
|
Series B Convertible
Preferred Stock, $.01 par value, 20,000,000 authorized, 79,246 and
79,246 outstanding |
|
|
792 |
|
|
|
792 |
|
Series C Convertible
Preferred Stock, $.01 par value, 20,000,000 authorized, 0 and
647,819 outstanding |
|
|
- |
|
|
|
6,479 |
|
Common Stock, $.01 par
value, 50,000,000 authorized, 12,089,446 and 6,943,283
outstanding |
|
|
120,893 |
|
|
|
69,432 |
|
Additional paid-in
capital |
|
|
62,138,569 |
|
|
|
57,380,256 |
|
Accumulated
Deficit |
|
|
(58,898,476 |
) |
|
|
(54,765,045 |
) |
|
|
|
|
|
|
|
|
|
Total Stockholders'
Equity |
|
|
3,361,778 |
|
|
|
2,691,914 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity |
|
$ |
4,001,034 |
|
|
$ |
3,624,254 |
|
|
See Notes to Condensed Consolidated Financial
Statements |
PRECISION THERAPEUTICS INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND OTHER COMPREHENSIVE LOSS |
(Unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Revenue |
$ |
358,586 |
|
|
$ |
106,822 |
|
|
$ |
770,179 |
|
|
$ |
281,988 |
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
108,970 |
|
|
|
22,010 |
|
|
|
226,314 |
|
|
|
59,003 |
|
|
|
|
|
|
|
|
|
Gross margin |
|
249,616 |
|
|
|
84,812 |
|
|
|
543,865 |
|
|
|
222,985 |
|
|
|
|
|
|
|
|
|
General and
administrative expense |
|
729,528 |
|
|
|
2,214,705 |
|
|
|
1,945,670 |
|
|
|
3,346,777 |
|
|
|
|
|
|
|
|
|
Operations expense |
|
378,906 |
|
|
|
182,507 |
|
|
|
666,496 |
|
|
|
383,001 |
|
|
|
|
|
|
|
|
|
Sales and marketing
expense |
|
554,084 |
|
|
|
231,270 |
|
|
|
1,104,623 |
|
|
|
378,724 |
|
|
|
|
|
|
|
|
|
Total Expense |
|
1,662,518 |
|
|
|
2,628,482 |
|
|
|
3,716,789 |
|
|
|
4,108,502 |
|
|
|
|
|
|
|
|
|
Loss on equity method
investment |
|
(960,508 |
) |
|
|
- |
|
|
|
(960,508 |
) |
|
|
- |
|
Net loss attributable
to common shareholders |
|
(1,412,902 |
) |
|
|
(2,543,670 |
) |
|
|
(3,172,924 |
) |
|
|
(3,885,517 |
) |
|
|
|
|
|
|
|
|
Comprehensive loss |
$ |
(2,373,410 |
) |
|
$ |
(2,543,670 |
) |
|
$ |
(4,133,432 |
) |
|
$ |
(3,885,517 |
) |
|
|
|
|
|
|
|
|
Loss per common share -
basic and diluted |
$ |
(0.20 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.62 |
) |
|
|
|
|
|
|
|
|
Weighted average shares
used in computation - basic and diluted |
|
11,878,490 |
|
|
|
6,167,689 |
|
|
|
11,632,221 |
|
|
|
6,308,554 |
|
Precision Therapeutics Inc. (NASDAQ:AIPT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Precision Therapeutics Inc. (NASDAQ:AIPT)
Historical Stock Chart
From Sep 2023 to Sep 2024