iSpecimen Reports Second Quarter 2023 Financial and Operating Results
- Revenue decreased by 31% in Q2 2023 compared to Q2 2022.
- Unique supplier organizations increased by 7.5% in Q2 2023.
- Unique customer organizations increased by 22% in Q2 2023.
- Registered research and supplier users increased by 24% in Q2 2023.
- None.
LEXINGTON, Mass., Aug. 02, 2023 (GLOBE NEWSWIRE) -- iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers, today reported its financial and operating results for the three and six month periods ended June 30, 2023.
“In the second quarter we focused our efforts on advancing key revenue enhancement opportunities that are complementary to our core business, including sequencing, embedded coordinators and a reboot of our remnant line of business, as well as integrating new technologies to the iSpecimen Marketplace to enhance our capabilities and meet increasing demand from our customers,” said Tracy Curley, iSpecimen’s CEO. “As we aim to create the most expansive global biospecimen supply chain technology platform and marketplace, we are efficiently connecting researchers with healthcare providers and meeting the specific needs of the evolving life science industry.”
“While we pride ourselves on our ability to offer, what we believe to be, the most advanced solution for biospecimen procurement, our financial results this quarter fell below expectations. A reduction in purchase order requests, due to an industry-wide slowdown in funding to our life science research customer base, contributed to lower quarterly revenues. However, our ability to pivot to launch several new initiatives during the quarter to reinstate our expected levels of order fulfillment is proving successful as we have witnessed an increase in the level of our backlog at the close of the second quarter. Given the increase in backlog, we believe the decrease in revenue for the second quarter of 2023 represents a temporary downturn in our business. We have taken the required actions to address the industry-wide issues impacting our regular course of business and we believe we are on track to produce stronger results for the third quarter of 2023 and beyond.”
“Additionally, the implementation of our technology rollouts supports our core business and revenue enhancement opportunities. We have completed our pilot run for our sequencing project and are in the process of placing embedded project coordinators at supplier sites to expedite processing. As we continue to roll out these new growth initiatives and more rapidly process orders from our growing supplier and customer base, we expect to build both our top and bottom-line results,” concluded Curley.
Q2 2023 Financial Results & Recent Operational Highlights
- Revenue of
$1.63 million for the three month period and$4.6 million for the six month period of 2023 compared to$2.34 million for the three month period and$4.9 million for the six month period of 2022. - Unique supplier organizations under agreement were 230 as of June 30, 2023, an increase of
7.5% over Q2 2022, added 13 new biospecimen suppliers to iSpecimen’s proprietary network in the first half of 2023. - Unique customer organizations who have purchased from iSpecimen, totaled 534 in Q2 2023, an increase of
22% over Q2 2022. - iSpecimen Marketplace had nearly 6,900 registered research and supplier users in Q2 2023, up
24% over Q2 2022.
Q2 2023 Corporate Events
- CEO Tracy Curley presented at the Aegis Virtual Conference April 24, 2023.
- CEO Tracy Curley participated in a fireside chat at the Healthcare IT Virtual Conference hosted by Maxim Group and M-Vest June 1, 2023.
Financial Results for the Three and Six Month Periods Ended June 30, 2023
Revenue was approximately
During the six-month period ended June 30, 2023, we reported revenue of approximately
Cost of revenue decreased by approximately
Cost of revenue for the six-month period ended June 30, 2023, was approximately
General and administrative expenses for the three months ended June 30, 2023, increased by
Net loss was approximately
As of June 30, 2023, iSpecimen had approximately
For more information on our financial results and other information relating to iSpecimen for the second quarter of 2023, including the Company’s unaudited financial statements for the three-month period ended June 30, 2023, please see the Company’s Report on Form 10-Q for the Quarterly Period ended June 30, 2023, which will be filed with the Securities and Exchange Commission (“SEC”) on its Edgar database on today, August 2, 2023.
Conference Call and Webcast Information
The Company will host a conference call and audio webcast today, August 2, 2023 at 8:30 a.m. Eastern Time featuring remarks by Tracy Curley, CEO.
Event: | iSpecimen Second Quarter 2023 Results Conference Call |
Date: | Wednesday, August 2, 2023 |
Time: | 8:30 a.m. Eastern Time |
Live Call: | +1-844-826-3035 (U.S. Toll Free) or +1-412-317-5195 (International) |
Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1621940&tp_key=e0a2fff245 |
For interested individuals unable to join the conference call, a replay will be available through August 16, 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: 10180082. 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 risk factors contained in the Company's filings with the SEC, 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 does 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 Contact
KCSA Strategic Communications
Phil Carlson / Erika Kay
iSpecimen@kcsa.com
Media Contacts
KCSA Strategic Communications
Raquel Cona / Shana Marino
iSpecimen@kcsa.com
iSpecimen Inc. Condensed Balance Sheets | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
ASSETS | (Unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,004,500 | $ | 15,308,710 | ||||
Available-for-sale securities | 6,209,491 | — | ||||||
Accounts receivable – unbilled | 1,098,356 | 2,327,789 | ||||||
Accounts receivable, net of allowance for doubtful accounts of | 1,458,845 | 1,597,915 | ||||||
Prepaid expenses and other current assets | 187,769 | 300,434 | ||||||
Tax credit receivable | 12,332 | 140,873 | ||||||
Total current assets | 10,971,293 | 19,675,721 | ||||||
Property and equipment, net | 163,871 | 225,852 | ||||||
Internally developed software, net | 6,300,465 | 4,503,787 | ||||||
Operating lease right-of-use asset | 107,115 | 184,692 | ||||||
Security deposits | 27,601 | 27,601 | ||||||
Total assets | $ | 17,570,345 | $ | 24,617,653 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,779,920 | $ | 2,459,063 | ||||
Accrued expenses | 882,274 | 1,531,238 | ||||||
Operating lease current obligation | 107,975 | 158,451 | ||||||
Deferred revenue | 89,601 | 132,335 | ||||||
Total current liabilities | 2,859,770 | 4,281,087 | ||||||
Operating lease long-term obligation | — | 27,396 | ||||||
Total liabilities | 2,859,770 | 4,308,483 | ||||||
Commitments and contingencies (See Note 8) | ||||||||
Stockholders’ equity | ||||||||
Common stock, | 906 | 892 | ||||||
Additional paid-in capital | 68,889,903 | 68,573,774 | ||||||
Treasury stock, 31,000 shares at June 30, 2023 and December 31, 2022, at cost | (172 | ) | (172 | ) | ||||
Accumulated other comprehensive income | 688 | — | ||||||
Accumulated deficit | (54,180,750 | ) | (48,265,324 | ) | ||||
Total stockholders’ equity | 14,710,575 | 20,309,170 | ||||||
Total liabilities and stockholders’ equity | $ | 17,570,345 | $ | 24,617,653 |
See accompanying notes to these unaudited condensed financial statements.
iSpecimen Inc. Condensed Statements of Operations and Comprehensive Loss (Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 1,625,140 | $ | 2,338,688 | $ | 4,575,339 | $ | 4,857,348 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue | 853,633 | 999,743 | 2,000,545 | 2,165,659 | ||||||||||||
Technology | 843,099 | 635,650 | 1,677,506 | 1,163,173 | ||||||||||||
Sales and marketing | 977,748 | 950,563 | 2,025,346 | 1,697,994 | ||||||||||||
Supply development | 291,360 | 242,380 | 614,862 | 424,450 | ||||||||||||
Fulfillment | 462,672 | 519,994 | 891,692 | 963,788 | ||||||||||||
General and administrative | 1,758,451 | 1,575,365 | 3,469,633 | 3,385,679 | ||||||||||||
Total operating expenses | 5,186,963 | 4,923,695 | 10,679,584 | 9,800,743 | ||||||||||||
Loss from operations | (3,561,823 | ) | (2,585,007 | ) | (6,104,245 | ) | (4,943,395 | ) | ||||||||
Other income (expense), net | ||||||||||||||||
Interest expense | (3,535 | ) | (42,273 | ) | (7,070 | ) | (80,321 | ) | ||||||||
Interest income | 110,882 | 13,881 | 225,144 | 26,535 | ||||||||||||
Other income (expense), net | (29,138 | ) | 6,590 | (29,255 | ) | 6,630 | ||||||||||
Total other income (expense), net | 78,209 | (21,802 | ) | 188,819 | (47,156 | ) | ||||||||||
Net loss | $ | (3,483,614 | ) | $ | (2,606,809 | ) | $ | (5,915,426 | ) | $ | (4,990,551 | ) | ||||
Other comprehensive income: | ||||||||||||||||
Net loss | $ | (3,483,614 | ) | $ | (2,606,809 | ) | $ | (5,915,426 | ) | $ | (4,990,551 | ) | ||||
Unrealized gain (loss) on available-for-sale securities | (18,155 | ) | — | 688 | — | |||||||||||
Total other comprehensive income | (18,155 | ) | — | 688 | — | |||||||||||
Comprehensive loss | $ | (3,501,769 | ) | $ | (2,606,809 | ) | $ | (5,914,738 | ) | $ | (4,990,551 | ) | ||||
Net loss per share - basic and diluted | $ | (0.39 | ) | $ | (0.30 | ) | $ | (0.66 | ) | $ | (0.57 | ) | ||||
Weighted average shares of common stock outstanding - basic and diluted | 9,033,868 | 8,821,698 | 9,011,644 | 8,793,723 |
See accompanying notes to these unaudited condensed financial statements.
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