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-month period ended March 31, 2022.
“Our team has been working diligently on
expanding the capabilities of the iSpecimen Marketplace® platform,
accelerating the growth and utilization of our global supply chain,
and invigorating revenue growth for long term value. Recently, we
saw the fruits of our labors with the first update to the enhanced
iSpecimen Marketplace® platform, which
delivers incremental, yet foundational, improvements to our
software platform. This includes new data integration capabilities
to further grow and federate our supply chain – such as automated
data ingestion and data harmonization tools,” said Christopher
Ianelli, MD, PhD, CEO and President of iSpecimen. “We expect that
the enhanced iSpecimen Marketplace® platform,
coupled with the investments we’ve made this past quarter to
strengthen and expand our operations and sales teams globally, have
positioned us to even better support our research clients’ needs
for biospecimens going forward."
Dr. Ianelli concluded, “During the first
quarter, iSpecimen demonstrated operational resiliency and
flexibility despite a sudden shut down of our critical supply
network in the Ukraine and Russia. Against the challenging backdrop
of the conflict there, and a testament to the global reach of our
network, we were able to quickly mobilize and transition
biospecimen orders to other suppliers. The effect of this
transition was a delay in the collection of specimens for
approximately $1.0 million in open purchase orders, which had a
corresponding negative impact to revenue in the first quarter. That
said, our ability to shift these orders to other supply partners in
our network highlights the adaptability of iSpecimen’s marketplace
and our ability to address the fragmented global biospecimen
procurement market and overcome supply headwinds. In spite of the
setback this quarter, we remain extremely optimistic about our
ability to gain additional market traction and help advance
critical medical research.”
Q1
2022 Financial &
Operational Highlights
- Revenue was approximately $2.5
million for the first quarter of 2022, compared to approximately
$3.0 million for first quarter of 2021. The reduction in revenue
during the quarter was primarily due to the Russia and Ukraine
conflict that shut down supply sites in those regions and affected
approximately $1.0 million in open purchase orders.
- Revenue mix in Q1 2022 was
comprised of approximately $2.0 million in general specimen revenue
and approximately $0.5 million in COVID-related revenue, or 81% and
19% of revenue, respectively, compared to approximately $2.3
million in general specimen revenue and $0.7 million in
COVID-related revenue, or 77% and 23% of revenue, respectively the
same period a year ago.
- Unique supplier organizations under
agreement were 205 as of March 31, 2022, up from 189 as of March
31, 2021.
- Unique customer organizations who
have purchased from iSpecimen totaled 437 as of March 31, 2022, an
increase of 25% year over year.
- iSpecimen Marketplace had more than
5,600 registered research and supplier users as of March 31, 2022,
up 34% year-over-year.
Recent Corporate Updates
- 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
(“Acutis”), a clinical diagnostics laboratory, to its platform as a
laboratory services provider. Through the Acutis relationship,
iSpecimen will now offer sequencing services to its research
community to help researchers better understand genetic mutations
and their impact on diseases such as COVID-19 and cancer.
- Surpassed 200 healthcare providers
in the iSpecimen Marketplace network. iSpecimen providers consist
of hospitals, clinics, labs, biorepositories, and clinical trial
management organizations dedicated to streamlining biospecimen
procurement.
- Expanded its supplier capabilities
with the addition of a reference lab in New York to support
customers focused on COVID-19 research, including analyzing the
Omicron and Delta variants.
Financial Results for the
First Quarter of
2022
Revenue for the first quarter of 2022 was
approximately $2.5 million, compared to approximately $3.0 million
for the first quarter of 2021. The decrease in revenue was due to
was primarily due to the Russia and Ukraine conflict which shut
down supply sites in those regions and affected approximately $1.0
million in open purchase orders, along with a reduction in sales of
COVID-19 specimens when compared to the prior year.
Cost of revenue was approximately $1.2 million
for the first quarter of 2022, compared to approximately $1.6
million for the first quarter of 2021. The decrease was
attributable both a decrease in the overall number of specimens
that comprised the cost of revenue, along with an 11% decrease in
the average cost per specimen.
General and administrative expenses were
approximately $1.8 million for the first quarter of 2022, compared
to approximately $0.9 million for the first quarter of 2021. The
increase was primarily attributable to increased costs related to
cash compensation, stock compensation, D&O insurance and
operating and maintenance expenses.
Net loss was approximately $2.4 million or
$(0.27) per share for the first quarter 2022, compared to net loss
of approximately $4.0 million or $(4.23) per share for the same
period in 2021.
Cash was approximately $26.1 million as of March
31, 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, Tuesday, May 10th 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 First Quarter 2022
Results Conference Call |
Date: |
Tuesday, May 10, 2022 |
Time: |
8:30 a.m. Eastern Time |
Live
Call: |
+1-800-954-0654 (U.S. Toll
Free) or +1-212-231-2933 (International) |
Webcast: |
https://viavid.webcasts.com/starthere.jsp?ei=1546450&tp_key=be907cc4df |
For interested individuals unable to join the conference call, a
replay will be available through May 24, 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:
22018635. 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
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iSpecimen Inc.BALANCE SHEETS |
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March 31, 2022 |
|
December 31, 2021 |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
|
Cash |
|
$ |
26,099,178 |
|
$ |
27,738,979 |
Accounts receivable - unbilled |
|
|
1,258,515 |
|
|
1,739,020 |
Accounts receivable, net of allowance |
|
|
2,356,688 |
|
|
3,002,442 |
Prepaid expenses and other current assets |
|
|
295,750 |
|
|
327,035 |
Tax credit receivable, net of current portion |
|
|
140,873 |
|
|
140,873 |
Property and equipment, net |
|
|
28,069 |
|
|
32,781 |
Internally developed software, net |
|
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2,783,810 |
|
|
2,710,867 |
Operating lease right-of-use asset |
|
|
296,832 |
|
|
- |
Security deposits |
|
|
27,601 |
|
|
27,601 |
Total Assets |
|
$ |
33,287,316 |
|
$ |
35,719,598 |
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Liabilities |
|
|
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Accounts payable |
|
$ |
281,494 |
|
$ |
832,678 |
Accrued expenses |
|
|
1,039,974 |
|
|
1,009,803 |
Accrued interest |
|
|
8,167 |
|
|
8,167 |
Operating lease current obligation |
|
|
150,007 |
|
|
- |
Deferred revenue |
|
|
567,321 |
|
|
654,746 |
Operating lease long-term obligation |
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|
147,375 |
|
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- |
Term loan, net of debt discount |
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3,425,664 |
|
|
3,422,616 |
Total Liabilities |
|
|
5,620,002 |
|
|
5,928,010 |
Total Stockholders’ Equity |
|
|
27,667,314 |
|
|
29,791,588 |
Total Liabilities and Stockholders’ Equity |
|
$ |
33,287,316 |
|
$ |
35,719,598 |
|
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iSpecimen
Inc.STATEMENTS OF OPERATIONS |
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Three Months
Ended March 31, |
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2022 |
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2021 |
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Revenue |
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$ |
2,518,660 |
|
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$ |
2,963,807 |
|
Operating expenses: |
|
|
|
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Cost of revenue |
|
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1,165,917 |
|
|
|
1,623,651 |
|
Technology |
|
|
527,522 |
|
|
|
409,951 |
|
Sales and marketing |
|
|
747,432 |
|
|
|
529,387 |
|
Supply development |
|
|
182,070 |
|
|
|
111,576 |
|
Fulfillment |
|
|
443,794 |
|
|
|
269,096 |
|
General and administrative |
|
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1,810,313 |
|
|
|
962,790 |
|
Total Operating Expenses |
|
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4,877,048 |
|
|
|
3,906,451 |
|
Loss
from Operations |
|
|
(2,358,388 |
) |
|
|
(942,644 |
) |
Other income (expense), net: |
|
|
|
|
Interest expense |
|
|
(38,048 |
) |
|
|
(853,147 |
) |
Interest income |
|
|
12,654 |
|
|
|
47 |
|
Other expense, net |
|
|
40 |
|
|
|
(3,732 |
) |
Loss on extinguishment of bridge notes and bridge notes, related
parties |
|
|
— |
|
|
|
(2,750,171 |
) |
Gain on extinguishment of note payable |
|
|
— |
|
|
|
788,156 |
|
Change in fair value of derivative liability on convertible
notes |
|
|
— |
|
|
|
(154,000 |
) |
Change in fair value of derivative liability on bridge notes and
bridge notes, related parties |
|
|
— |
|
|
|
(48,000 |
) |
Other expense, net |
|
|
(25,354 |
) |
|
|
(3,020,847 |
) |
Net
loss |
|
$ |
(2,383,742 |
) |
|
$ |
(3,963,491 |
) |
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