iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen”
or the “Company”), an online marketplace for human
biospecimens, today reported its financial results for the three
and twelve-month periods ended December 31, 2021.
“iSpecimen achieved significant milestones in 2021. During the
year, we successfully closed our IPO and began trading on the
NASDAQ, raised $21 million in a private placement to advance the
development of our Marketplace platform and expanded our supplier
network,” said Christopher Ianelli, MD, PhD, CEO and President of
iSpecimen. “Collectively, these milestones and accomplishments will
help iSpecimen advance its efforts to address the highly fragmented
global biospecimen procurement challenge, as well as strategically
position the Company for further growth.”
Dr. Ianelli added, “Throughout 2022, we expect to further
develop the iSpecimen Marketplace platform by expanding our
supplier network, investing in technology and datasets, and
assessing opportunities to alleviate supply constraints. At the
same time, we are prepared to pursue accretive growth
opportunities.”
FY 2021 Financial & Operational
Highlights
- Revenue increased 36% to $11.1 million for the FY 2021,
compared to $8.2 million for FY 2020.
- FY 2021 revenue mix comprised of $8.0 million of non-COVID-19
related revenue, or 72% of revenue, and $3.1 million of COVID-19
related revenue, or 28% of revenue, compared to the same period a
year ago with a revenue mix of 57% of non-COVID-19 related revenue
and 43% of COVID-19 related revenue
- Unique supplier organizations under agreement were 200 as of
December 31, 2021, an increase from 181 as of December 31,
2020.
- Unique customer organizations with purchases totaled 415 as of
December 31, 2021, an increase of 26% from 330 at the end of
2020.
- iSpecimen Marketplace had more than 5,000 registered research
and supplier users as of December 31, 2021, up 33%
year-over-year.
Recent Corporate Updates
- Contracted by U.S. Government and private researchers to supply
critical human biospecimens to support new advanced research on
COVID-19 seeking insights on its transmissibility, variants,
outcomes, and testing validity among multiple population
segments.
- Raised $21 million in a private placement in December 2021. The
Company is well positioned to accelerate growth through both
organic and inorganic growth strategies.
- Expanded supplier network of human biospecimens to help advance
research in neurological disorders. iSpecimen has added more than a
dozen sample providers to its network of suppliers that provide
access to banked or custom collections of biospecimens such as
cerebrospinal fluid, other biofluids, or cells to help advance CNS
research.
- Expanded its global provider network footprint, with roughly
25% of new suppliers added in 2021 coming from outside the United
States.
- Enhanced COVID-19 research with the addition of a reference lab
in New York to provide sequenced specimens to detect variants. The
expansion of its supplier capabilities support commercial and
government customers focused on COVID-19 research, including
analyzing the Omicron and Delta variants.
Financial Results for the Full Year 2021
Revenue for the full year 2021 increased 36% to $11.1 million,
compared to $8.2 million during the full year 2020. The increase in
revenue was primarily attributable to the success of our maturing
sales team. For the full year 2021, non-COVID-19 related revenue
was approximately $8.0 million, or 72% of revenue, compared to
approximately $4.7 million, or 57% of our revenue for the
comparable 2020 period. For the full year 2021, COVID-19 related
revenue was approximately $3.1 million, or 28% of revenue, compared
to approximately $3.5 million, or 43% of our revenue for the
comparable period in 2020.
Cost of revenue was $5.2 million for the full year 2021,
compared to $3.6 million for the full year 2020. This was
attributable to a 56% increase in the average cost per specimen
offset by a 6% decrease in the number of specimens accessioned
during the same current twelve-month period over the same prior
year period.
General and administrative expenses were $5.6 million, compared
to $2.4 million during the same period last year. The increase in
costs were primarily attributable to becoming a public company,
including director and officer insurance, as well as increased
costs in all other general and administrative areas such as human
resources, outsourced information technology and software licenses,
loss on sale of accounts receivable and allowance for doubtful
accounts.
Net loss was approximately $9.0 million for the full year 2021,
compared to net loss of over $4.7 million for the same period in
2020.
Cash was approximately $27.7 million as of December 31,
2021.
* The financial information presented in this press release is
based on preliminary unaudited financial statements prepared by
management, for the year ended December 31, 2021, and is fully
qualified by the section in this press release entitled ‘Disclaimer
Regarding Financial Information.'
Conference Call and Webcast Information
The Company will host a conference call and audio webcast today,
Thursday, February 17th 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 Full Year 2021
Results Conference Call |
|
|
Date: |
Thursday, February 17,
2022 |
|
|
Time: |
8:30 a.m. Eastern Time |
|
|
Live
Call: |
+1-877-425-9470 (U.S. Toll
Free) or + 1-201-389-0878 (International) |
|
|
Webcast: |
https://viavid.webcasts.com/starthere.jsp?ei=1526504&tp_key=09d0a0a925 |
For interested individuals unable to join the conference call, a
replay will be available through March 3, 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:
13726694. An archived version of the webcast will also be available
on iSpecimen’s Investor Relations site:
https://ispecimen.irpass.com/.
About iSpecimeniSpecimen offers an online
marketplace for human biospecimens, connecting life 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 about
iSpecimen, 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.
Disclaimer Regarding Financial InformationThe
financial information presented in this press release is based on
preliminary, unaudited financial statements prepared by management,
for the year ended December 31, 2021. Accordingly, such financial
information may be subject to change. All information contained in
this press release will be qualified with reference to the audited
financial results for the year ended December 31, 2021, which will
be released on or before March 31, 2022, and will be posted on
www.sec.gov. While the Company does not expect there to be any
material changes to the financial information provided in this
press release, any variation between the Company’s actual results
and the preliminary financial information set forth herein may be
material.
For further information, please contact:
Investor ContactKCSA Strategic
CommunicationsAllison SossiSpecimen@kcsa.com
Media ContactKCSA Strategic
CommunicationsCaitlin Kasunich / Raquel ConaiSpecimen@kcsa.com
|
iSpecimen Inc. |
|
BALANCE SHEETS |
|
|
December 31, 2021 |
December 31, 2020 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash |
$ |
27,738,979 |
|
$ |
695,909 |
|
|
Accounts receivable - unbilled |
|
1,739,020 |
|
|
652,761 |
|
|
Accounts receivable, net of allowance for doubtful accounts of
$269,170 and $108,096 at December 31, 2021 and December 31, 2020,
respectively |
|
3,002,442 |
|
|
1,526,392 |
|
|
Prepaid expenses and other current assets |
|
327,035 |
|
|
417,929 |
|
|
Tax credit receivable, current portion |
|
140,873 |
|
|
179,376 |
|
|
Total current assets |
|
32,948,349 |
|
|
3,472,367 |
|
|
Property and equipment, net |
|
32,781 |
|
|
75,589 |
|
|
Internally developed software, net |
|
2,710,867 |
|
|
2,634,139 |
|
|
Security deposits |
|
27,601 |
|
|
27,601 |
|
|
Total assets |
$ |
35,719,598 |
|
$ |
6,209,696 |
|
|
|
|
|
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS'
EQUITY (DEFICIT) |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
832,678 |
|
$ |
1,792,432 |
|
|
Accrued expenses |
|
1,009,803 |
|
|
810,910 |
|
|
Accrued interest |
|
8,167 |
|
|
3,696,944 |
|
|
Convertible notes payable, related parties, net of unamortized debt
discount and debt issuance costs |
|
- |
|
|
5,490,811 |
|
|
Derivative liability for embedded conversion features on
convertible notes payable |
|
- |
|
|
2,373,000 |
|
|
Bridge notes payable, net of debt issuance costs |
|
- |
|
|
4,589,228 |
|
|
Bridge notes payable, related parties |
|
- |
|
|
1,905,000 |
|
|
Note payable, current portion |
|
- |
|
|
604,109 |
|
|
Deferred revenue |
|
654,746 |
|
|
873,254 |
|
|
Total current liabilities |
|
2,505,394 |
|
|
22,135,688 |
|
|
Note payable, net of current portion |
|
- |
|
|
178,899 |
|
|
Term loan |
|
3,422,616 |
|
|
- |
|
|
Total liabilities |
|
5,928,010 |
|
|
22,314,587 |
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Series B convertible preferred stock, $0.0001 par value, 3,200,000
shares authorized, 0 and 572,465 shares issued and outstanding at
December 31, 2021 and December 31, 2020, respectively |
|
- |
|
|
7,999,997 |
|
|
Series A-1 convertible preferred stock, $0.0001 par value, 556,550
shares authorized, 0 and 100,365 issued and outstanding at December
31, 2021 and December 31, 2020, respectively |
|
- |
|
|
561,041 |
|
|
Series A convertible preferred stock, $0.0001 par value, 3,427,871
shares authorized, 0 and 618,182 issued and outstanding at December
31, 2021 and December 31, 2020, respectively |
|
- |
|
|
2,612,038 |
|
|
Total convertible preferred stock |
|
- |
|
|
11,173,076 |
|
|
|
|
|
|
Stockholders' equity (deficit) |
|
|
|
Common stock, $0.0001 par value, 200,000,000 shares authorized,
8,764,479 issued, and 8,733,479 outstanding at December 31, 2021,
and 16,000,000 shares authorized, 967,213 issued and 936,213
outstanding at December 31, 2020 |
|
873 |
|
|
94 |
|
|
Additional paid-in capital |
|
67,810,289 |
|
|
1,779,698 |
|
|
Treasury stock, 31,000 shares at December 31, 2021 and December 31,
2020, at cost |
|
(172 |
) |
|
(172 |
) |
|
Accumulated deficit |
|
(38,019,402 |
) |
|
(29,057,587 |
) |
|
Total stockholders' equity (deficit) |
|
29,791,588 |
|
|
(27,277,967 |
) |
|
Total liabilities, convertible preferred stock and stockholders'
equity (deficit) |
$ |
35,719,598 |
|
$ |
6,209,696 |
|
iSpecimen Inc. |
STATEMENTS OF OPERATIONS |
|
|
|
Year ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
(Unaudited) |
|
|
|
|
|
|
Revenue |
$ |
11,135,303 |
|
|
$ |
8,184,106 |
|
Operating expenses: |
|
|
|
Cost of revenue |
|
5,249,013 |
|
|
|
3,585,477 |
|
Technology |
|
1,837,882 |
|
|
|
1,465,348 |
|
Sales and marketing |
|
2,422,743 |
|
|
|
1,783,563 |
|
Supply development |
|
573,913 |
|
|
|
497,182 |
|
Fulfillment |
|
1,363,522 |
|
|
|
859,643 |
|
General and administrative |
|
5,613,476 |
|
|
|
2,399,273 |
|
Total operating expenses |
|
17,060,549 |
|
|
|
10,590,486 |
|
|
|
|
|
Loss from operations |
|
(5,925,246 |
) |
|
|
(2,406,380 |
) |
Other expense, net |
|
|
|
Interest expense |
|
(2,102,681 |
) |
|
|
(2,096,795 |
) |
Change in fair value of derivative liability on convertible
notes |
|
(271,000 |
) |
|
|
(159,000 |
) |
Change in fair value of derivative liability on bridge notes and
bridge notes, related parties |
|
1,582,700 |
|
|
|
- |
|
Gain (loss) on extinguishment of bridge notes and bridge notes,
related parties |
|
(2,740,425 |
) |
|
|
- |
|
Loss on extinguishment of convertible notes and convertible notes,
related parties |
|
(260,185 |
) |
|
|
- |
|
Gain on extinguishment of note payable |
|
788,156 |
|
|
|
- |
|
Other income |
|
- |
|
|
|
9,654 |
|
Other expense, net |
|
(44,531 |
) |
|
|
- |
|
Interest income |
|
11,397 |
|
|
|
437 |
|
Other expense, net |
|
(3,036,569 |
) |
|
|
(2,245,704 |
) |
|
|
|
|
Net loss before benefit from income taxes |
|
(8,961,815 |
) |
|
|
(4,652,084 |
) |
Benefit from income taxes |
|
- |
|
|
|
- |
|
|
|
|
|
Net Loss |
$ |
(8,961,815 |
) |
|
$ |
(4,652,084 |
) |
|
|
|
|
Net loss per share |
|
|
|
Basic and diluted |
$ |
(2.09 |
) |
|
$ |
(4.97 |
) |
|
|
|
|
Weighted average common shares outstanding |
|
|
|
Basic and diluted |
|
4,287,424 |
|
|
|
936,213 |
|
|
|
|
|
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