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 twelve-month period ended
December 31, 2022.
“At the beginning of the fourth quarter of 2022,
I stepped into the role of interim CEO, and together with the
Board, undertook an in depth review of iSpecimen’s operations.
Based on our initial findings, the team quickly implemented several
improvements that we believe contributed to our record revenue of
$3.2 million for the fourth quarter of 2022, up 28%
year-over-year,” said Tracy Curley, CEO and CFO. “Throughout the
remainder of the quarter and into 2023, we continued with our
strategic corporate review, in which we discovered a significant
imbalance within our supplier network, specifically, high levels of
utilization across a small subsection of suppliers. Today, I am
pleased to report that with several initiatives underway by our
site development department, we are gaining a much better
understanding of our suppliers and their capabilities. Armed with
this information, I am confident that during 2023 we will be able
to materially increase our supplier utilization rates, which will
allow us to increase fulfillment and ultimately result in increased
revenue opportunities in 2023 and beyond.”
“In 2023 we plan to have a record level of
investment in our technology, demonstrating continued commitment to
our vision of our online marketplace to be transformational in our
industry. Additionally, we are excited by the progress of several
revenue enhancement projects, in areas that include sequencing,
remnants and normal blood, as well as new initiatives with
suppliers to facilitate improved coordination and utilization. We
will continue to invest where necessary throughout 2023 to
accelerate these revenue growth initiatives. We look forward to
keeping the investment community apprised as we continue to improve
our operations,” concluded Ms. Curley.
Financial & Operational
Highlights
- Revenue increased 28% to $3.2
million for Q4 2022, compared to $2.5 million for Q4 2021.
- Unique supplier organizations under
agreement were 217 as of December 31, 2022.
- Unique customer organizations who
have purchased from iSpecimen totaled 513 as of December 31, 2022,
an increase of 24% from 415 at the end of 2021.
- iSpecimen Marketplace had nearly
6,703 registered research and supplier users as of December 31,
2022, up 29% over Q4 2021.
Recent Corporate Updates
- Launched the new self-service Open
Feasibilities Dashboard on iSpecimen Marketplace®, allowing
supplier partners to review potential future research projects at
any time and initiate their interest by submitting a proposal.
- Appointed Joseph J. Basile to Board
of Directors. Mr. Basile is a sought-after strategic advisor, an
accomplished business leader, a skilled negotiator, a trained
mediator and a recognized expert in M&A, restructuring and
governance.
- Named Tracy Curley as permanent
Chief Executive Officer. Ms. Curley was previously appointed
Interim CEO in September 2022.
- Appointed Eric Langlois as Chief
Revenue Officer. Mr. Langlois will manage a restructured commercial
team aimed at executing on Company initiatives.
- Added and onboarded seven new
biospecimen providers to the iSpecimen Marketplace®, for both
banked and prospectively collected specimens. These new suppliers
will allow iSpecimen to improve global access to vital biospecimens
and data needed to help advance research in oncology, autoimmune
diseases, infectious diseases, cardiovascular diseases and
more.
- Named to Fast Company‘s annual list
of the World’s Most Innovative Companies as part of the biotech
category for 2023.
Financial Results for the Full Year
2022
Revenue for the full year 2022 was approximately
$10.4 million, compared to approximately $11.1 million for the full
year 2021. The reduction in revenue year-to-year was primarily due
to a decrease in COVID revenue, which was partially offset by an
increase in non-COVID revenue.
Cost of revenue was approximately $4.8 million
for the full year 2022, compared to approximately $5.2 million for
the full year 2021. The decrease was primarily attributable to the
31% decrease in average cost per specimen from $252 for the year
ended December 31, 2021 to $173 for the year ended December 31,
2022.
General and administrative expenses were
approximately $6.9 million for the full year 2022, compared to
approximately $5.6 million for the full year 2021. The increase was
primarily attributable to increases in executive severance costs,
payroll and related expenses, taxes and insurance, software and
subscriptions costs, utilities and facilities expenses, marketing
and advertising costs, other general expenses, offset by decreases
in bad debt and depreciation and amortization expenses.
Net loss was approximately $10.2 million, or
$(1.16) per share, for the full year 2022, compared to net loss of
approximately $9.0 million, or $(2.09) per share, for the full year
2021.
Cash was approximately $15.3 million as of
December 31, 2022, compared to approximately $27.7 million as of
December 31, 2021. Average cash burn per quarter for 2022 was $2.2
million, excluding a loan repayment of $3.5 million.
*The financial information presented in this
press release is based on preliminary unaudited financial
statements prepared by management, for the year ended December 31,
2022, 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,
March 14, 2023 at 8:30 a.m. Eastern Time featuring remarks by Tracy
Curley, CEO.
|
Event: |
iSpecimen Full Year 2022 Results Conference Call |
| Date: |
Tuesday, March 14, 2023 |
| Time: |
8:30 a.m. Eastern Time |
| Live
Call: |
+1-844-826-3033 (U.S. Toll
Free) or +1-412-317-5185 (International) |
| Webcast: |
https://viavid.webcasts.com/starthere.jsp?ei=1597531&tp_key=8e160f088e |
| |
|
For interested individuals unable to join the conference call, a
replay will be available through March 28, 2023, 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:
10175632. An archived version of the webcast will also be available
on iSpecimen’s Investor Relations
site: https://investors.ispecimen.com/presentations/.
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.
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, 2022. 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, 2022, which will
be released on or before March 21, 2023, 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 ContactsKCSA Strategic
CommunicationsRaquel Cona / Shana MarinoiSpecimen@kcsa.com
iSpecimen Inc.Condensed
Balance Sheets
| |
|
December 31, |
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
Unaudited |
|
|
|
|
ASSETS |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
Cash |
|
$ |
15,308,710 |
|
|
$ |
27,738,979 |
|
|
Accounts receivable - unbilled |
|
|
2,327,789 |
|
|
|
1,739,020 |
|
|
Accounts receivable, net of allowance for doubtful accounts of
$230,999 and $269,170 at December 31, 2022 and 2021,
respectively |
|
|
1,597,915 |
|
|
|
3,002,442 |
|
|
Prepaid expenses and other current assets |
|
|
300,434 |
|
|
|
327,035 |
|
|
Tax credit receivable, current portion |
|
|
140,873 |
|
|
|
140,873 |
|
|
Total current assets |
|
|
19,675,721 |
|
|
|
32,948,349 |
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
225,852 |
|
|
|
32,781 |
|
|
Internally developed software, net |
|
|
4,503,787 |
|
|
|
2,710,867 |
|
|
Operating lease right-of-use asset |
|
|
184,692 |
|
|
|
— |
|
|
Security deposits |
|
|
27,601 |
|
|
|
27,601 |
|
|
Total assets |
|
$ |
24,617,653 |
|
|
$ |
35,719,598 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,459,063 |
|
|
$ |
832,678 |
|
|
Accrued expenses |
|
|
1,531,238 |
|
|
|
1,009,803 |
|
|
Accrued interest |
|
|
— |
|
|
|
8,167 |
|
|
Operating lease - current obligation |
|
|
158,451 |
|
|
|
— |
|
|
Deferred revenue |
|
|
132,335 |
|
|
|
654,746 |
|
|
Total current liabilities |
|
|
4,281,087 |
|
|
|
2,505,394 |
|
|
|
|
|
|
|
|
|
|
|
| Operating lease long - term
obligation |
|
|
27,396 |
|
|
|
— |
|
| Term loan |
|
|
— |
|
|
|
3,422,616 |
|
|
Total liabilities |
|
|
4,308,483 |
|
|
|
5,928,010 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (See Note 8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ equity |
|
|
|
|
|
|
|
Common stock, $0.0001 par value, 200,000,000 shares authorized,
8,956,808 issued and 8,925,808 outstanding at December 31,
2022, and 8,764,479 issued and 8,733,479 outstanding at
December 31, 2021 |
|
|
892 |
|
|
|
873 |
|
|
Additional paid-in capital |
|
|
68,573,774 |
|
|
|
67,810,289 |
|
|
Treasury stock, 31,000 shares at December 31, 2022 and
2021, at cost |
|
|
(172 |
) |
|
|
(172 |
) |
|
Accumulated deficit |
|
|
(48,265,324 |
) |
|
|
(38,019,402 |
) |
|
Total stockholders’ equity |
|
|
20,309,170 |
|
|
|
29,791,588 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
24,617,653 |
|
|
$ |
35,719,598 |
|
|
|
|
|
|
|
|
|
|
|
iSpecimen Inc.Condensed Statements of
Operations
| |
|
Years Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
10,402,303 |
|
|
$ |
11,135,303 |
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue |
|
|
4,756,965 |
|
|
|
5,249,013 |
|
|
Technology |
|
|
2,656,287 |
|
|
|
1,837,882 |
|
|
Sales and marketing |
|
|
3,445,344 |
|
|
|
2,422,743 |
|
|
Supply development |
|
|
801,125 |
|
|
|
573,913 |
|
|
Fulfillment |
|
|
1,995,937 |
|
|
|
1,363,522 |
|
|
General and administrative |
|
|
6,932,727 |
|
|
|
5,613,476 |
|
|
Total operating expenses |
|
|
20,588,385 |
|
|
|
17,060,549 |
|
|
|
|
|
|
|
|
|
| Loss from operations |
|
|
(10,186,082 |
) |
|
|
(5,925,246 |
) |
|
|
|
|
|
|
|
|
| Other expense, net |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Interest expense |
|
|
(238,963 |
) |
|
|
(2,102,681 |
) |
|
Change in fair value of derivative liability on convertible
notes |
|
|
— |
|
|
|
(271,000 |
) |
|
Change in fair value of derivative liability on bridge notes and
bridge notes, related parties |
|
|
— |
|
|
|
1,582,700 |
|
|
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 (expense), net |
|
|
9,778 |
|
|
|
(44,531 |
) |
|
Interest income |
|
|
169,345 |
|
|
|
11,397 |
|
| Total other expense, net |
|
|
(59,840 |
) |
|
|
(3,036,569 |
) |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(10,245,922 |
) |
|
$ |
(8,961,815 |
) |
|
|
|
|
|
|
|
|
| Net loss per share - basic and
diluted |
|
$ |
(1.16 |
) |
|
$ |
(2.09 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock outstanding - basic and
diluted |
|
|
8,844,307 |
|
|
|
4,287,424 |
|
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