Predictive Oncology Reports Second Quarter 2022 Financial Results
Predictive Oncology Inc. (NASDAQ: POAI) reported Q2 2022 results showcasing a solid financial position with cash and equivalents increasing to $28 million, a 12% rise from the previous quarter. The company recognized $0.4 million in net sales revenue, up 6% year-over-year, with an improved gross profit margin of 64%. However, the company faced a $7.2 million non-cash goodwill impairment. Key developments included the launch of the PeDAL AI product and the appointment of Dr. Julia Kirshner as Chief Scientific Officer, aimed at enhancing product integration and growth opportunities.
- Cash and equivalents increased by 12% to $28 million.
- Net sales revenue rose by 6% year-over-year to $0.4 million.
- Gross profit margin improved to 64%, up from 59%.
- Non-cash goodwill impairment of $7.2 million.
- Net cash used in operating activities increased to $6.4 million.
EAGAN, Minn., Aug. 11, 2022 (GLOBE NEWSWIRE) -- Predictive Oncology Inc. (NASDAQ: POAI) today announced the financial results for its second quarter ended June 30, 2022, which shows a strong balance sheet with a solid cash balance, commensurate equity and no debt. Highlights from the quarter include:
- Commercialization launch of PeDAL, our innovative AI product, and presence at BIO International that included one-on-one partnering meetings with pharmaceutical and biotech companies
- The appointment of Julia Kirshner, Ph.D., as Chief Scientific Officer
- The consolidation and expansion of the research and development arm in Pittsburgh with the move of TumorGenesis to that location
- An increase of cash and equivalents from
$25 million on March 31, 2022, to$28 million at quarter end, which represents a positive change of12%
Q2 2022 financial results
Predictive Oncology’s recognized net sales revenue of
The gross profit margin grew from
Net cash used in operating activities was
General and administrative expenses increased from
Quarterly sales and marketing expenses of the company increased by
Current market conditions, coupled with POAI’s lower quantitative valuation of zPREDICTA, resulted in a
Other developments
First is the strategic move POAI made to further strengthen the company’s scientific and product offerings with the appointment of Dr. Julia Kirshner as Chief Scientific Officer. Dr. Kirshner was elevated from her role as Senior Vice President of Predictive Oncology and President of zPREDICTA (the company she founded and POAI acquired in Q4 2021). Dr. Kirshner will focus on the integration of POAI’s product lines and future development of its scientific programs. She will also be working closely with Dr. Pamela Bush, Senior Vice President of Strategic Sales and Business Development, to identify and meet customer needs and provide expanded solutions along the AI and drug development continuum.
Second is POAI’s decision to streamline the company’s research and development operations, which Dr. Kirshner will oversee. POAI will consolidate its TumorGenesis division by moving this business from Massachusetts to the flagship location in Pittsburgh, PA. By doing this, POAI can better focus on growth opportunities with its artificial intelligence technology and lab functions, while reducing overhead and centralizing scientific operations. This also provides the potential to bring in greater revenue levels as the company explores more expanded offerings for clients in the pharmaceutical and biotech industries.
Additionally, POAI attended the BIO International conference in June, specifically presenting PeDAL and Soluble Biotech. POAI launched the PeDAL platform as part of a comprehensive business development and marketing plan aimed to establish key relationships with targeted pharmaceutical and biotech companies. Soluble Biotech also looked to expand its customer base at the conference with parallel initiatives.
Shareholder earnings call
POAI will conduct a 2Q 2022 shareholder earnings call to take place on Friday, August 12, at 12:00 PM ET. The links to register for the webcast will be available at the links below:
To register and view the webcast, please go to this link: https://edge.media-server.com/mmc/p/it32fi7n.
For Q&A’s, please register here: https://register.vevent.com/register/BI2e83830dc64a4a8c8a33753ecde1ac52
About Predictive Oncology Inc.
Predictive Oncology (NASDAQ: POAI) is a knowledge-driven company, applying artificial intelligence to develop personalized cancer therapies that improve patient outcomes. The company, which offers a suite of solutions for oncology drug development, operates through four segments (Skyline, Helomics, zPREDICTA and Soluble), which covers five subsidiaries: Helomics, zPREDICTA, Soluble Biotech, TumorGenesis and Skyline Medical.
Helomics Holding Corporation is involved in applying artificial intelligence (“AI”) in the Company’s precision medicine business, to offer AI-driven predictive models of tumor drug response to enhance clinical results for patients and to aid diagnostic, biotech and pharmaceutical companies in new personalized diagnostic and drug development. Skyline Medical Inc. (“Skyline Medical”) sells the STREAMWAY System®, a fully automated wall-mounted product, which is utilized to dispose of an unlimited quantity of suction fluid in an operating room setting. It offers continuous performance for medical practitioners by effectively eradicating the healthcare professional’s exposure to potentially infectious liquids gathered during surgical and other medical operations. Soluble Biotech Inc. is involved in research and commercialization focused on protein production, stability studies and solubility improvements. zPREDICTA, Inc. does tumor-specific research using in vitro models for oncology and drug development. TumorGenesis serves as the company’s arm for research and development for zPREDICTA, Soluble and Helomics. This subsidiary is also involved in cellular media kit production which aids cancer cells to grow outside the body of patients while preserving their proteomic and RNA/DNA signatures.
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, changes in management, 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
| June 30, 2022 | December 31, 2021 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and Cash Equivalents | $ | 28,249,452 | $ | 28,202,615 | ||||
| Accounts Receivable | 336,397 | 354,196 | ||||||
| Inventories | 474,616 | 387,684 | ||||||
| Prepaid Expense and Other Assets | 763,053 | 513,778 | ||||||
| Total Current Assets | 29,823,518 | 29,458,273 | ||||||
| Fixed Assets, net | 2,300,327 | 2,511,571 | ||||||
| Intangibles, net | 3,790,637 | 3,962,118 | ||||||
| Lease Right-of-Use Assets | 505,667 | 814,454 | ||||||
| Other Long-Term Assets | 75,618 | 167,065 | ||||||
| Goodwill | - | 6,857,790 | ||||||
| Total Assets | $ | 36,495,767 | 43,771,271 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable | $ | 983,672 | $ | 1,021,774 | ||||
| Accrued Expenses and other liabilities | 856,654 | 1,262,641 | ||||||
| Derivative Liability | 32,318 | 129,480 | ||||||
| Deferred Revenue | 530,797 | 186,951 | ||||||
| Lease Liability | 421,736 | 639,662 | ||||||
| Total Current Liabilities | 2,825,177 | 3,240,508 | ||||||
| Lease Liability – Net of current portion | 113,462 | 239,664 | ||||||
| Other long-term liabilities | 21,731 | 25,415 | ||||||
| Total Liabilities | 2,960,370 | 3,505,587 | ||||||
| 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 shares outstanding | 792 | 792 | ||||||
| Common Stock, $.01 par value, 200,000,000 shares authorized, 78,155,127 and 65,614,597 outstanding | 781,551 | 656,146 | ||||||
| Additional paid-in capital | 174,555,375 | 167,649,028 | ||||||
| Accumulated Deficit | (141,802,321 | ) | (128,040,282 | ) | ||||
| Total Stockholders’ Equity | 33,535,397 | 40,265,684 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 36,495,767 | $ | 43,771,271 | ||||
PREDICTIVE ONCOLOGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Revenue | $ | 371,591 | $ | 350,207 | $ | 686,159 | $ | 630,524 | |||||||
| Cost of goods sold | 134,075 | 142,877 | 243,518 | 240,635 | |||||||||||
| Gross profit | 237,516 | 207,330 | 442,641 | 389,889 | |||||||||||
| General and administrative expense | 2,351,696 | 2,077,973 | 4,775,347 | 5,348,750 | |||||||||||
| Operations expense | 909,113 | 567,796 | 1,800,184 | 1,142,608 | |||||||||||
| Sales and marketing expense | 271,022 | 159,788 | 575,489 | 274,429 | |||||||||||
| Loss on impairment of goodwill | 7,231,093 | - | 7,231,093 | - | |||||||||||
| Total operating loss | (10,525,408 | ) | (2,598,227 | ) | (13,939,472 | ) | (6,375,898 | ) | |||||||
| Other income | 41,047 | 57,033 | 83,477 | 85,292 | |||||||||||
| Other expense | (2,217 | ) | (1,829 | ) | (3,206 | ) | (236,801 | ) | |||||||
| Gain (loss) on derivative instruments | 95,254 | (30,909 | ) | 97,162 | 64,762 | ||||||||||
| Net loss | $ | (10,391,324 | ) | $ | (2,573,932 | ) | $ | (13,762,039 | ) | $ | (6,462,645 | ) | |||
| Net loss attributable to common shareholders per common shares-basic and diluted | $ | (10,391,324 | ) | $ | (2,573,932 | ) | $ | (13,762,039 | ) | $ | (6,462,645 | ) | |||
| Loss per common share basic | $ | (0.15 | ) | $ | (0.05 | ) | $ | (0.20 | ) | $ | (0.15 | ) | |||
| Loss per common share diluted | $ | (0.15 | ) | $ | (0.05 | ) | $ | (0.20 | ) | $ | (0.15 | ) | |||
| Weighted average shared used in computation - basic | 68,896,506 | 51,581,762 | 67,374,250 | 44,089,157 | |||||||||||
| Weighted average shared used in computation - diluted | 68,896,506 | 51,581,762 | 67,374,250 | 44,089,157 | |||||||||||
Media relations contact:
Predictive Oncology
Theresa Ferguson
630-566-2003
tferguson@predictive-oncology.com
Investor relations contact:
Landon Capital
Keith Pinder
(404) 995-6671
kpinder@landoncapital.net
FAQ
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