Predictive Oncology Inc. (NASDAQ: POAI) today announced the
financial results for its second quarter ended June 30, 2022, which
shows a strong balance sheet with a solid cash balance,
commensurate equity and no debt. Highlights from the quarter
include:
- Commercialization launch of PeDAL, our innovative AI product,
and presence at BIO International that included one-on-one
partnering meetings with pharmaceutical and biotech companies
- The appointment of Julia Kirshner, Ph.D., as Chief Scientific
Officer
- The consolidation and expansion of the research and development
arm in Pittsburgh with the move of TumorGenesis to that
location
- An increase of cash and equivalents from $25 million on March
31, 2022, to $28 million at quarter end, which represents a
positive change of 12%
Q2 2022 financial resultsPredictive Oncology’s
recognized net sales revenue of $0.4 million for the quarter was an
increase of 6% from the comparative three-month period in 2021. The
positive change was mainly due to zPREDICTA recognizing sales of
$0.1 million.
The gross profit margin grew from 59% in the second quarter of
2021 to 64% for the comparable quarter of 2022. The increase is
directly attributable to zPREDICTA with strong margins.
Net cash used in operating activities was $6.4 million and $5.5
million for the six months ended June 30, 2022, and June 30, 2021,
respectively, primarily because of the increase in operating costs
associated with zPREDICTA and POAI’s PeDAL commercial strategy.
General and administrative expenses increased from $2.1 million
in the quarter ended June 30, 2021, to $2.4 million for the
corresponding quarter in 2022. Operations expenses increased from
$0.6 million in the quarter ended June 30, 2021 to $0.9 million in
the quarter ended June 30, 2022, primarily due to higher staffing
at zPREDICTA. This was partially offset by the timing of research
and development expenses and lower consulting expenses.
Quarterly sales and marketing expenses of the company increased
by $0.1 million for the quarter ended June 30, 2022, to $0.3
million, as compared to the corresponding period in 2021, due to
staff-related expenses and the implementation of advertising and
marketing initiatives.
Current market conditions, coupled with POAI’s lower
quantitative valuation of zPREDICTA, resulted in a $7.2 million
(non-cash) goodwill impairment in the quarter. zPREDICTA is
anticipating stronger business growth in the second half of the
year with current and potential customers of its validated models
for multiple myeloma (existing), breast cancer (new) and pancreatic
cancer (new), as well as the development of new therapies in
immuno-oncology.
Other developmentsFirst is the strategic move
POAI made to further strengthen the company’s scientific and
product offerings with the appointment of Dr. Julia Kirshner as
Chief Scientific Officer. Dr. Kirshner was elevated from her role
as Senior Vice President of Predictive Oncology and President of
zPREDICTA (the company she founded and POAI acquired in Q4 2021).
Dr. Kirshner will focus on the integration of POAI’s product lines
and future development of its scientific programs. She will also be
working closely with Dr. Pamela Bush, Senior Vice President of
Strategic Sales and Business Development, to identify and meet
customer needs and provide expanded solutions along the AI and drug
development continuum.
Second is POAI’s decision to streamline the company’s research
and development operations, which Dr. Kirshner will oversee. POAI
will consolidate its TumorGenesis division by moving this business
from Massachusetts to the flagship location in Pittsburgh, PA. By
doing this, POAI can better focus on growth opportunities with its
artificial intelligence technology and lab functions, while
reducing overhead and centralizing scientific operations. This also
provides the potential to bring in greater revenue levels as the
company explores more expanded offerings for clients in the
pharmaceutical and biotech industries.
Additionally, POAI attended the BIO International conference in
June, specifically presenting PeDAL and Soluble Biotech. POAI
launched the PeDAL platform as part of a comprehensive business
development and marketing plan aimed to establish key relationships
with targeted pharmaceutical and biotech companies. Soluble Biotech
also looked to expand its customer base at the conference with
parallel initiatives.
Shareholder earnings callPOAI will conduct a 2Q
2022 shareholder earnings call to take place on Friday, August 12,
at 12:00 PM ET. The links to register for the webcast will be
available at the links below:To register and view the webcast,
please go to this link:
https://edge.media-server.com/mmc/p/it32fi7n. For Q&A’s, please
register here:
https://register.vevent.com/register/BI2e83830dc64a4a8c8a33753ecde1ac52
About Predictive Oncology Inc.Predictive
Oncology (NASDAQ: POAI) is a knowledge-driven company, applying
artificial intelligence to develop personalized cancer therapies
that improve patient outcomes. The company, which offers a
suite of solutions for oncology drug development, operates through
four segments (Skyline, Helomics, zPREDICTA and Soluble), which
covers five subsidiaries: Helomics, zPREDICTA, Soluble Biotech,
TumorGenesis and Skyline Medical.
Helomics Holding Corporation is involved in applying artificial
intelligence (“AI”) in the Company’s precision medicine business,
to offer AI-driven predictive models of tumor drug response to
enhance clinical results for patients and to aid diagnostic,
biotech and pharmaceutical companies in new personalized diagnostic
and drug development. Skyline Medical Inc. (“Skyline Medical”)
sells the STREAMWAY System®, a fully automated wall-mounted
product, which is utilized to dispose of an unlimited quantity of
suction fluid in an operating room setting. It offers continuous
performance for medical practitioners by effectively eradicating
the healthcare professional’s exposure to potentially infectious
liquids gathered during surgical and other medical operations.
Soluble Biotech Inc. is involved in research and commercialization
focused on protein production, stability studies and solubility
improvements. zPREDICTA, Inc. does tumor-specific research using in
vitro models for oncology and drug development. TumorGenesis serves
as the company’s arm for research and development for zPREDICTA,
Soluble and Helomics. This subsidiary is also involved in cellular
media kit production which aids cancer cells to grow outside the
body of patients while preserving their proteomic and RNA/DNA
signatures.
Forward-Looking StatementsCertain 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,
changes in management, 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
|
|
June
30, 2022 |
|
December 31, 2021 |
|
|
|
(unaudited) |
|
(audited) |
|
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and Cash Equivalents |
|
$ |
28,249,452 |
|
|
$ |
28,202,615 |
|
Accounts Receivable |
|
|
336,397 |
|
|
|
354,196 |
|
Inventories |
|
|
474,616 |
|
|
|
387,684 |
|
Prepaid Expense and Other
Assets |
|
|
763,053 |
|
|
|
513,778 |
|
Total Current Assets |
|
|
29,823,518 |
|
|
|
29,458,273 |
|
|
|
|
|
|
|
|
|
Fixed Assets, net |
|
|
2,300,327 |
|
|
|
2,511,571 |
|
Intangibles, net |
|
|
3,790,637 |
|
|
|
3,962,118 |
|
Lease Right-of-Use Assets |
|
|
505,667 |
|
|
|
814,454 |
|
Other Long-Term Assets |
|
|
75,618 |
|
|
|
167,065 |
|
Goodwill |
|
|
- |
|
|
|
6,857,790 |
|
Total Assets |
|
$ |
36,495,767 |
|
|
|
43,771,271 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts Payable |
|
$ |
983,672 |
|
|
$ |
1,021,774 |
|
Accrued Expenses and other
liabilities |
|
|
856,654 |
|
|
|
1,262,641 |
|
Derivative Liability |
|
|
32,318 |
|
|
|
129,480 |
|
Deferred Revenue |
|
|
530,797 |
|
|
|
186,951 |
|
Lease Liability |
|
|
421,736 |
|
|
|
639,662 |
|
Total Current Liabilities |
|
|
2,825,177 |
|
|
|
3,240,508 |
|
|
|
|
|
|
|
|
|
Lease Liability – Net of
current portion |
|
|
113,462 |
|
|
|
239,664 |
|
Other long-term
liabilities |
|
|
21,731 |
|
|
|
25,415 |
|
Total Liabilities |
|
|
2,960,370 |
|
|
|
3,505,587 |
|
|
|
|
|
|
|
|
|
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 shares
outstanding |
|
|
792 |
|
|
|
792 |
|
Common Stock, $.01 par value,
200,000,000 shares authorized, 78,155,127 and 65,614,597
outstanding |
|
|
781,551 |
|
|
|
656,146 |
|
Additional paid-in
capital |
|
|
174,555,375 |
|
|
|
167,649,028 |
|
Accumulated Deficit |
|
|
(141,802,321 |
) |
|
|
(128,040,282 |
) |
Total Stockholders’
Equity |
|
|
33,535,397 |
|
|
|
40,265,684 |
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders’ Equity |
|
$ |
36,495,767 |
|
|
$ |
43,771,271 |
|
|
|
|
|
|
|
|
|
|
PREDICTIVE ONCOLOGY INC.CONDENSED CONSOLIDATED STATEMENTS OF NET
LOSS(Unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
371,591 |
|
|
$ |
350,207 |
|
|
$ |
686,159 |
|
|
$ |
630,524 |
|
Cost of goods sold |
|
134,075 |
|
|
|
142,877 |
|
|
|
243,518 |
|
|
|
240,635 |
|
Gross profit |
|
237,516 |
|
|
|
207,330 |
|
|
|
442,641 |
|
|
|
389,889 |
|
|
|
|
|
|
|
|
|
General and administrative
expense |
|
2,351,696 |
|
|
|
2,077,973 |
|
|
|
4,775,347 |
|
|
|
5,348,750 |
|
Operations expense |
|
909,113 |
|
|
|
567,796 |
|
|
|
1,800,184 |
|
|
|
1,142,608 |
|
Sales and marketing
expense |
|
271,022 |
|
|
|
159,788 |
|
|
|
575,489 |
|
|
|
274,429 |
|
Loss on impairment of
goodwill |
|
7,231,093 |
|
|
|
- |
|
|
|
7,231,093 |
|
|
|
- |
|
Total operating loss |
|
(10,525,408 |
) |
|
|
(2,598,227 |
) |
|
|
(13,939,472 |
) |
|
|
(6,375,898 |
) |
Other income |
|
41,047 |
|
|
|
57,033 |
|
|
|
83,477 |
|
|
|
85,292 |
|
Other expense |
|
(2,217 |
) |
|
|
(1,829 |
) |
|
|
(3,206 |
) |
|
|
(236,801 |
) |
Gain (loss) on derivative
instruments |
|
95,254 |
|
|
|
(30,909 |
) |
|
|
97,162 |
|
|
|
64,762 |
|
Net loss |
$ |
(10,391,324 |
) |
|
$ |
(2,573,932 |
) |
|
$ |
(13,762,039 |
) |
|
$ |
(6,462,645 |
) |
Net loss attributable to
common shareholders per common shares-basic and diluted |
$ |
(10,391,324 |
) |
|
$ |
(2,573,932 |
) |
|
$ |
(13,762,039 |
) |
|
$ |
(6,462,645 |
) |
|
|
|
|
|
|
|
|
Loss per common share
basic |
$ |
(0.15 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.15 |
) |
Loss per common share
diluted |
$ |
(0.15 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
Weighted average shared used
in computation - basic |
|
68,896,506 |
|
|
|
51,581,762 |
|
|
|
67,374,250 |
|
|
|
44,089,157 |
|
Weighted average shared used
in computation - diluted |
|
68,896,506 |
|
|
|
51,581,762 |
|
|
|
67,374,250 |
|
|
|
44,089,157 |
|
|
|
|
|
|
|
|
|
Media relations contact:Predictive OncologyTheresa
Ferguson630-566-2003tferguson@predictive-oncology.com
Investor relations contact: Landon Capital Keith Pinder (404)
995-6671kpinder@landoncapital.net
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