iSpecimen Reports Full Year 2022 Results
iSpecimen reported record quarterly revenue of $3.2 million for Q4 2022, up 28% year-over-year. The company attributed this growth to operational improvements implemented after an in-depth review of its operations.
For the full year 2022, total revenue was approximately $10.4 million, down from $11.1 million in 2021, primarily due to a decrease in COVID-related revenue. Despite a lower cost of revenue, iSpecimen faced increased general and administrative expenses, leading to a net loss of approximately $10.2 million.
The company plans significant investments in technology and strategic initiatives to enhance revenue in 2023.
- Record quarterly revenue of $3.2 million for Q4 2022, a 28% increase year-over-year.
- Increase in unique customer organizations by 24%, with a total of 513 customers as of December 31, 2022.
- New initiatives aimed at improving supplier utilization and enhancing revenue opportunities.
- Plans for record investment in technology to support growth initiatives.
- Full-year revenue decreased to approximately $10.4 million from $11.1 million in 2021, due to reduced COVID revenue.
- Net loss widened to approximately $10.2 million for 2022, compared to $9.0 million in 2021.
- Increase in general and administrative expenses from $5.6 million in 2021 to $6.9 million in 2022.
- Reported Record Quarterly Revenue of
LEXINGTON, Mass., March 14, 2023 (GLOBE NEWSWIRE) -- 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
“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
Cost of revenue was approximately
General and administrative expenses were approximately
Net loss was approximately
Cash was approximately
*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 iSpecimen
iSpecimen (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 Statements
This 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 Information
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. 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 Contact
KCSA Strategic Communications
Allison Soss
iSpecimen@kcsa.com
Media Contacts
KCSA Strategic Communications
Raquel Cona / Shana Marino
iSpecimen@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 | 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, | 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 | ||||||
FAQ
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