Predictive Oncology Reports Financial Results for Quarter Ended March 31, 2021 and Provides Business Update
Predictive Oncology (Nasdaq: POAI) reported a net loss of $0.11 per share for Q1 2021, compared to a loss of $0.93 in Q1 2020. The company recorded revenue of $280,317, down from $294,943 in the prior year. Cash and cash equivalents reached $27.3 million, up from $3.1 million a year earlier, after net proceeds of $35.6 million from equity transactions. Total stockholders' equity increased to $35.5 million. Significant developments include a contract with a major pharmaceutical company for protein formulation and the initiation of a drug repurposing project focused on ovarian cancer.
- Cash and cash equivalents increased significantly to $27.3 million, up from $3.1 million year-over-year.
- Total stockholders' equity rose to $35.5 million from $2.6 million at year-end 2020.
- Successfully signed a contract with a large pharmaceutical company for protein formulation technology.
- Initiated a drug repurposing project that leverages AI for ovarian cancer treatment.
- Q1 2021 revenue of $280,317 represents a decline from $294,943 in Q1 2020.
- Gross profit margin decreased to 65% from 69% year-over-year due to higher costs.
- Increased operational expenses, including $442,301 in G&A expenses attributed to severance and increased audit fees.
- Net cash used in operating activities rose to $3.3 million compared to $2.97 million in Q1 2020.
MINNEAPOLIS, May 12, 2021 (GLOBE NEWSWIRE) -- Predictive Oncology Inc. (Nasdaq: POAI), a knowledge-driven company focused on applying artificial intelligence (“AI”) to personalized medicine and drug discovery, today reported financial results for the quarter ended March 31, 2021 and provided an update on business activities.
Q1 2021 Highlights:
- Net proceeds of
$35.6 million from Private Placement, Registered Direct Offerings, and warrant exercises contributing to a cash and cash equivalents balance of$27.3 million on March 31, 2021 compared to$3.1 million for the same period in 2020. - Total Stockholders’ Equity increased to
$35.5 million from$2.6 million on December 31, 2020. - Strengthened balance sheet by repayment in full of outstanding debt incurred in 2018 through 2020.
- Introduced J. Melville Engle, current chairman of the Board, as the Company’s new Chief Executive Officer.
- Signed contract with a large pharmaceutical company through subsidiary Soluble Biotech, to use Soluble Biotech’s proprietary protein formulation technology to improve the solubility and stability of a protein therapeutic destined for future clinical use.
- Initiated in-house drug repurposing project, focused on ovarian cancer, using subsidiary Helomics’ proprietary AI-driven, patient centric discovery platform (PeDAL™) to rapidly and cost-effectively profile panels of existing drugs against hundreds of patient cell lines, delivering both proof data for the PeDAL approach and valuable IP for the Company.
- Researchers from Helomics completed key sequencing milestones for ovarian cancer to help build AI-driven models of the disease.
J. Melville Engle, the Company’s Chief Executive Officer, remarked, “The combination of equity transactions and retirement of our outstanding debt has brought substantially increased value to our shareholders this quarter, as total Stockholder’s Equity increased by nearly
“Soluble Biotech’s contract with a large pharmaceutical company will allow the use of Soluble’s proprietary protein formulation technology to improve the solubility and stability of a protein therapeutic destined for future clinical use, which may also lead to strategic partnerships for other therapeutics currently being developed by the pharma company.
“Following the integration of Quantitative Medicine’s novel active-learning Computational Research Engine (CoRE™) with Helomics’ proprietary TumorSpace™ knowledgebase of 150,000 tumor drug response profiles and the TruTumor™ patient primary tumor cell line assay, Helomics can now offer a revolutionary new AI-driven patient-centric drug discovery service to pharmaceutical companies which we believe will ultimately translate into lowered costs and enhanced ‘speed-to-patient’ for new therapies. Helomics also completed key sequencing milestones for ovarian cancer to help build AI-driven models of the disease, helping to further extend the Company’s clinical offering as it helps oncologists to individualize patient therapy.
“Subsidiary TumorGenesis’ products aided researchers at a top-tier laboratory in Massachusetts to capture, culture, and identify how ovarian cancer cells ‘break through’ the protective lining in the abdomen, a valuable contribution in the understanding of how these cells migrate outside the abdominal cavity. The results of this research could represent several billion dollars in future revenue for biotech and pharma companies, underscoring the value of TumorGenesis’s services and product lines to our customers.
“We are pleased with the direction the Company and its subsidiaries are moving, as we work to achieve our vision of leveraging our databases and Intellectual Property to fill the unmet market need of pharmaceutical companies to deliver more targeted approaches to therapy, increasing our value to these companies while all working together to improve patient outcomes.”
Q1 2021 Financial results
The Company recorded revenue of
The gross profit margin was approximately
Our (G&A) expenses increased by
Operations expenses increased by
The Company continues to decrease sales and marketing expenses, dropping
Net cash used in operating activities was
Net cash provided by financing activities was
About Predictive Oncology Inc.
Predictive Oncology (NASDAQ: POAI) operates through three segments (Skyline, Helomics and Soluble Biotech), which contain four subsidiaries: Helomics, TumorGenesis, Skyline Medical and Soluble Biotech.
Helomics applies artificial intelligence to its rich data gathered from patient tumors to both personalize cancer therapies for patients and drive the development of new targeted therapies in collaborations with pharmaceutical companies. TumorGenesis Inc. specializes in media that help cancer cells grow and retain their DNA/RNA and proteomic signatures, providing researchers with a tool to expand and study cancer cell types found in tumors of the blood and organ systems of all mammals, including humans. Skyline Medical markets its patented and FDA cleared STREAMWAY System, which automates the collection, measurement and disposal of waste fluid, including blood, irrigation fluid and others, within a medical facility, through both domestic and international divisions. Soluble Biotech is a provider of soluble and stable formulations for proteins including vaccines, antibodies, large and small proteins and protein complexes.
Forward-Looking Statements:
Certain 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, 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
(Unaudited)
| March 31, 2021 | December 31, 2020 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 27,299,407 | $ | 678,332 | ||||
| Accounts Receivable | 264,928 | 256,878 | ||||||
| Inventories | 292,824 | 289,535 | ||||||
| Prepaid Expense and Other Assets | 344,921 | 289,490 | ||||||
| Total Current Assets | 28,202,080 | 1,514,235 | ||||||
| Fixed Assets, net | 3,975,453 | 3,822,700 | ||||||
| Intangibles, net | 3,316,489 | 3,398,101 | ||||||
| Lease Right-of-Use Assets | 1,229,773 | 1,395,351 | ||||||
| Other Long-Term Assets | 116,257 | 116,257 | ||||||
| Goodwill | 2,813,792 | 2,813,792 | ||||||
| Total Assets | $ | 39,653,844 | $ | 13,060,436 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable | $ | 1,027,000 | $ | 1,372,070 | ||||
| Notes Payable – Net of Discounts of | - | 4,431,925 | ||||||
| Accrued Expenses | 1,277,943 | 2,588,047 | ||||||
| Derivative Liability | 198,711 | 294,382 | ||||||
| Deferred Revenue | 154,195 | 53,028 | ||||||
| Lease Liability | 603,054 | 597,469 | ||||||
| Total Current Liabilities | 3,260,903 | 9,336,921 | ||||||
| Lease Liability – Net of current portion | 684,756 | 845,129 | ||||||
| Other long-term liabilities | 163,098 | 235,705 | ||||||
| Total Liabilities | 4,108,757 | 10,417,755 | ||||||
| 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 and 79,246 shares outstanding | 792 | 792 | ||||||
| Common Stock, $.01 par value, 100,000,000 shares authorized, 48,794,320 and 19,401,787 outstanding | 487,944 | 198,048 | ||||||
| Additional paid-in capital | 147,328,172 | 110,826,949 | ||||||
| Accumulated Deficit | (112,271,821 | ) | (108,383,108 | ) | ||||
| Total Stockholders' Equity | 35,545,087 | 2,642,681 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 39,653,844 | $ | 13,060,436 | ||||
PREDICTIVE ONCOLOGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| Revenue | $ | 280,317 | $ | 294,943 | ||||
| Cost of goods sold | 97,758 | 92,657 | ||||||
| Gross margin | 182,559 | 202,286 | ||||||
| General and administrative expense | 3,270,777 | 2,828,476 | ||||||
| Operations expense | 574,812 | 548,753 | ||||||
| Sales and marketing expense | 114,641 | 264,409 | ||||||
| Total operating loss | (3,777,671 | ) | (3,439,352 | ) | ||||
| Other income | 28,259 | 3 | ||||||
| Other expense | (234,972 | ) | (1,117,075 | ) | ||||
| Gain on derivative instruments | 95,671 | 27,107 | ||||||
| Net loss | $ | (3,888,713 | ) | $ | (4,529,317 | ) | ||
| Loss per common share - basic and diluted | $ | (0.11 | ) | $ | (0.93 | ) | ||
| Weighted average shares used in computation - basic and diluted | 36,513,300 | 4,866,328 | ||||||
Investor Relations Contact:
Landon Capital
Keith Pinder
(404) 995-6671
kpinder@landoncapital.net
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