Predictive Oncology Reports Third Quarter Financial Results
Predictive Oncology (NASDAQ: POAI) reported a 45% revenue growth for Q3 2022, totaling $455,827, compared to $313,663 in Q3 2021, along with an improved gross profit margin of 76%, up from 65% year-over-year. The company appointed Raymond F. Vennare as CEO and Chairman, signaling a leadership shift. Operating cash flow increased by 8% year-over-year, but net loss for the first nine months of 2022 grew to $17,821,524 due to a substantial goodwill impairment. The company ended the quarter with $25,393,738 in cash.
- 45% revenue growth in Q3 2022, totaling $455,827.
- Gross profit margin increased to 76% from 65% year-over-year.
- Reduction in R&D expenses by 50% to $116,763 due to lab consolidation.
- Net loss for nine months increased to $17,821,524 from $11,900,662.
- 87% decrease in net cash provided by financing activities, down to $6,739,031.
EAGAN, Minn., Nov. 10, 2022 (GLOBE NEWSWIRE) -- Predictive Oncology Inc. (NASDAQ: POAI) today announced the financial results for its third quarter ended September 30, 2022, which continue to reflect revenue growth and increased gross profit margin as compared to prior year periods. Highlights from the quarter include:
- Raymond F. Vennare, has been appointed as Chief Executive Officer and Chairman of the Board. An accomplished executive with more than three decades of experience, Mr. Vennare has a long history of building, launching and leading biotech companies.
- Predictive Oncology continues to gain traction with potential partners with its breakthrough solution at a pivotal time in drug discovery that enables pharmaceutical and biotech companies to expedite drug development and speed time to market.
- The company is leveraging its novel platform technology that has the power to impact a billion-dollar biopharmaceutical landscape in a way that has never been done before. Pairing the largest privately held biobank of more than 150,000 tumor samples with artificial intelligence, Predictive Oncology is able to help drug developers make higher confidence predictions of which molecules will (and won’t ) be successful and ultimately leads to greater chances of commercial success.
- Other developments include the announcement that the company’s GMP lab is available for business which opens the opportunity to help clients move from pre-clinical drug development to the investigational new drug (IND) qualification, including phase 1 clinical trials.
- The appointment of key team members including strategic advisor Dr. Kamal Egodage who brings over 25 years of experience and has supported over 75 pharmaceutical products to market, as well as the board appointment of Mr. David Smith, a life sciences and intellectual property attorney and leading authority on the legal issues surrounding the therapeutic use of human tissue and cells.
Q3 2022 Financial results
The consolidated reportable segments of Predictive Oncology’s recognized revenue is
Helomics reported an improvement in its net losses primarily due to a decrease in impairment charges in 2022.
The gross profit margin has grown during the quarter ended September 30, 2022 to
Research and development costs reduced to
General and administrative expenses increased to
Operations expenses have increased to
Net cash used in operating activities was
The quarterly sales and marketing expenses have increased to
The company incurred a net loss of
About Predictive Oncology Inc.
Predictive Oncology (NASDAQ: POAI) is a science-driven company focused on applying artificial intelligence (AI) to develop optimal cancer therapies, which can lead to more effective treatments and improved patient outcomes. Through AI, Predictive Oncology uses a biobank of 150,000+ cancer tumors, categorized by patient type, against drug compounds to help the drug discovery process and increase the probability of success. The company offers a suite of solutions for oncology drug development from early discovery to clinical trials.
Forward-Looking Statement:
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
September 30, 2022 | December 31, 2021 | ||||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | $ | 25,393,738 | $ | 28,202,615 | |||
Accounts Receivable | 324,708 | 354,196 | |||||
Inventories | 493,722 | 387,684 | |||||
Prepaid Expense and Other Assets | 645,153 | 513,778 | |||||
Total Current Assets | 26,857,321 | 29,458,273 | |||||
Fixed Assets, net | 2,202,102 | 2,511,571 | |||||
Intangibles, net | 3,701,603 | 3,962,118 | |||||
Lease Right-of-Use Assets | 329,565 | 814,454 | |||||
Other Long-Term Assets | 75,618 | 167,065 | |||||
Goodwill | - | 6,857,790 | |||||
Total Assets | $ | 33,166,209 | 43,771,271 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts Payable | $ | 917,271 | $ | 1,021,774 | |||
Accrued Expenses and other liabilities | 1,813,580 | 1,262,641 | |||||
Derivative Liability | 22,099 | 129,480 | |||||
Contract Liabilities | 495,365 | 186,951 | |||||
Lease Liability | 219,763 | 639,662 | |||||
Total Current Liabilities | 3,468,078 | 3,240,508 | |||||
Lease Liability – Net of current portion | 5,483 | 239,664 | |||||
Other long-term liabilities | 99,770 | 25,415 | |||||
Total Liabilities | 3,573,331 | 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, 78,407,473 and 65,614,597 outstanding | 784,074 | 656,146 | |||||
Additional paid-in capital | 174,669,817 | 167,649,028 | |||||
Accumulated Deficit | (145,861,805 | ) | (128,040,282 | ) | |||
Total Stockholders’ Equity | 29,592,878 | 40,265,684 | |||||
Total Liabilities and Stockholders’ Equity | $ | 33,166,209 | $ | 43,771,271 | |||
PREDICTIVE ONCOLOGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenue | $ | 455,827 | $ | 313,663 | $ | 1,141,986 | $ | 944,187 | |||||||
Cost of goods sold | 108,151 | 110,165 | 351,669 | 350,800 | |||||||||||
Gross profit | 347,676 | 203,498 | 790,317 | 593,387 | |||||||||||
General and administrative expense | 3,287,918 | 2,061,458 | 8,063,265 | 7,410,208 | |||||||||||
Operations expense | 857,130 | 648,935 | 2,657,314 | 1,791,543 | |||||||||||
Sales and marketing expense | 333,377 | 172,869 | 908,867 | 447,298 | |||||||||||
Loss on goodwill impairment | - | 2,813,792 | 7,231,093 | 2,813,792 | |||||||||||
Total operating loss | (4,130,749 | ) | (5,493,556 | ) | (18,070,222 | ) | (11,869,454 | ) | |||||||
Other income | 63,047 | 58,830 | 146,524 | 144,122 | |||||||||||
Other expense | (2,001 | ) | (7,413 | ) | (5,207 | ) | (244,214 | ) | |||||||
Gain (loss) on derivative instruments | 10,219 | 4,122 | 107,381 | 68,884 | |||||||||||
Net loss | $ | (4,059,484 | ) | $ | (5,438,017 | ) | $ | (17,821,524 | ) | $ | (11,900,662 | ) | |||
Net loss attributable to common shareholders per common shares-basic and diluted | $ | (4,059,484 | ) | $ | (5,438,017 | ) | $ | (17,821,524 | ) | $ | (11,900,662 | ) | |||
Loss per common share basic and diluted | $ | (0.05 | ) | $ | (0.08 | ) | $ | (0.25 | ) | $ | (0.23 | ) | |||
Weighted average shared used in computation – basic and diluted | 78,383,878 | 65,406,312 | 71,084,454 | 51,272,960 | |||||||||||
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
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