Predictive Oncology Reports Year End 2022 Financial Results and Provides Business Update
Predictive Oncology Inc. (Nasdaq: POAI) reported a net loss of $25.7 million on total net revenue of $1.5 million for the year ended December 31, 2022. The company achieved significant milestones, including the successful completion of the Discovery 21 program, which validated its PEDAL™ drug discovery platform. Partnerships with Cancer Research Horizons and Cvergenx were announced to enhance oncology drug development. Financial challenges included an impairment of goodwill totaling $7.2 million. As of December 31, 2022, cash and cash equivalents decreased to $22.1 million from $28.2 million in 2021, reflecting operational losses.
- Partnership with Cancer Research Horizons to develop oncology drugs.
- Successful completion of the Discovery 21 program validating the PEDAL™ platform.
- Established genomic-based approach for precision radiation therapy.
- Net loss increased to $25.7 million from $19.7 million in 2021.
- Impairment of goodwill and intangible assets totaling over $10.5 million.
- Decrease in cash and equivalents to $22.1 million from $28.2 million.
EAGAN, Minn., March 21, 2023 (GLOBE NEWSWIRE) -- Predictive Oncology Inc. (Nasdaq: POAI), a science-driven company leveraging its proprietary artificial intelligence and machine learning capabilities, extensive biorepository of tumor samples, Clinical Laboratory Improvement Amendments (CLIA) laboratory and Good Manufacturing Practices (GMP) facility, to accelerate oncology drug discovery and enable drug development, today reported financial and operating results for the year ended December 31, 2022, and provided a corporate update. The company reported a net loss of
2022 Highlights:
- Successfully completed Discovery 21, establishing proof-of-concept for the PEDAL™ drug discovery platform and validating the Company’s commercial platform.
- Effective March 16, 2023, Predictive Oncology and Cancer Research Horizons, world’s largest private funder of cancer research, have partnered to drive the development of oncology drugs utilizing Predictive Oncology’s PEDAL™ platform that pairs AI with the world’s largest biobank of tumor samples.
- Predictive Oncology and Cvergenx announce partnership to develop the first-ever genomics-based approach to precision radiation therapy and drug discovery using artificial intelligence.
- Launched the Accelerating Compound Exploration (ACE) program to partner with academic and research institutions to advance their drug discovery initiatives.
- Company names seasoned biotechnology and bioinformatics industry veteran Raymond F. Vennare as Chief Executive Officer and Chairman of the Board, effective November 1, 2022.
- Appointed Pamela Bush, Ph.D., MBA, as Chief Business Officer (CBO) to lead the company’s business development, partnering and growth initiatives.
- Engaged LifeSci Advisors, the largest integrated investor relations firm in healthcare and the life sciences with global operations across North America, Europe, and Israel, to raise awareness among all Wall Street constituents, including leading life sciences analysts and institutional investors.
- Engaged DLA Piper, a global law firm with deep expertise in IP, life sciences and artificial intelligence.
- Expanded Board to include two leading business, legal and life sciences experts: David S. Smith J.D., a life sciences and intellectual property attorney and leading authority on the legal issues surrounding the therapeutic use of human tissue and cells and, Matthew Hawryluk, Ph.D./M.B.A., E.V.P. and CBO of Gritsone bio, and former V.P. of Corporate and Business Development for Foundation Medicine
- World-class Scientific Advisory Board (SAB) established to guide the company’s scientific initiatives and growth strategy and announced the appointments of genomics, molecular biology, biochemistry and bioengineering expert Marc Malandro, Ph.D., and machine learning and analytics pioneer Robert F. Murphy, Ph.D.
- Added GMP manufacturing capabilities.
“I assumed the role of Chief Executive Officer of Predictive Oncology because, as a Board member, I was able to see first-hand the untapped potential of the company’s assets, notably its proprietary PEDAL drug discovery engine, which leverages our proprietary artificial intelligence and machine learning capabilities to facilitate more efficient oncologic drug discovery and enable drug development,” said Raymond F. Vennare, Chief Executive Officer and Chairman of Predictive Oncology. “I believe PEDAL, together with our CLIA lab and vast biorepository of tumor samples and extensive library of pathology slides, represent a unique portfolio of tangible assets capable of delivering real value to biopharmaceutical and drug discovery and development companies, while refining and expanding our intellectual property portfolio. We are in the very early stages of tapping the potential of these assets, which we believe will not only benefit our partners and create sustained value for our shareholders but, ultimately, improve and extend the quality of life of cancer patients on a global scale.”
“I am confident that we are making the right decisions for the right reasons, and at the right time, to drive long-term growth for this Company,” Mr. Vennare concluded.
2022 Financial Summary:
- Concluded FY 2022 with
$22.1 million in cash and cash equivalents compared to$28.2 million in the prior year period, and$21.8 million in Stockholders’ Equity compared to$40.3 million in 2021. - Loss per common share for the year ended 2022 decreased to
$0.35 from$0.36 for 2021.
FY 2022 Financial results
The consolidated reportable segments of Predictive Oncology recorded revenue of
Operations expense increased by
Net cash used in operating activities was
Net cash provided by financing activities was
During the year ended December 31, 2022, we recorded an impairment of goodwill of
We incurred net losses of
About Predictive Oncology Inc.
As a science-driven company on the leading edge of oncology drug discovery, Predictive Oncology (NASDAQ: POAI) offers an unrivaled suite of solutions for the biopharma industry. Through the integration of scientific rigor and machine learning, the company has developed the ability to advance molecules into medicine more confidently by introducing human diversity earlier into the discovery process with the pairing of artificial intelligence and the world’s largest privately held biobank of over 150K tumor samples. Predictive Oncology’s solutions additionally include tumor models, biologics development, formulation design, a GMP facility, a CLIA laboratory and substantial scientific domain expertise.
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.
Investor Relations Contact:
Tim McCarthy, CFA
LifeSci Advisors, LLC
tim@lifesciadvisors.com
PREDICTIVE ONCOLOGY INC.
CONSOLIDATED BALANCE SHEETS
| December 31, 2022 | December 31, 2021 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 22,071,523 | $ | 28,202,615 | ||||
| Accounts Receivable | 331,196 | 354,196 | ||||||
| Inventories | 430,493 | 387,684 | ||||||
| Prepaid Expense and Other Assets | 526,801 | 513,778 | ||||||
| Total Current Assets | 23,360,013 | 29,458,273 | ||||||
| Fixed Assets, net | 1,833,255 | 2,511,571 | ||||||
| Intangibles, net | 253,865 | 3,962,118 | ||||||
| Operating Lease Right-of-Use Assets | 211,893 | 814,454 | ||||||
| Other Long-Term Assets | 75,618 | 167,065 | ||||||
| Goodwill | - | 6,857,790 | ||||||
| Total Assets | $ | 25,734,644 | $ | 43,771,271 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable | $ | 943,452 | $ | 1,021,774 | ||||
| Accrued Expenses and other liabilities | 2,229,075 | 1,262,641 | ||||||
| Derivative Liability | 13,833 | 129,480 | ||||||
| Contract Liabilities | 602,073 | 186,951 | ||||||
| Operating Lease Liability – Net of Long-Term Portion | 94,237 | 639,662 | ||||||
| Total Current Liabilities | 3,882,670 | 3,240,508 | ||||||
| Other Long Term Liabilities | - | 25,415 | ||||||
| Operating Lease Liability, long-term portion | 86,082 | 239,664 | ||||||
| Total Liabilities | 3,968,752 | 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 authorized, 79,246 shares outstanding | 792 | 792 | ||||||
| Common Stock, $.01 par value, 200,000,000 authorized, 78,762,701 and 65,614,597 outstanding | 787,627 | 656,146 | ||||||
| Additional Paid-in Capital | 174,755,389 | 167,649,028 | ||||||
| Accumulated Deficit | (153,777,916 | ) | (128,040,282 | ) | ||||
| Total Stockholders' Equity | 21,765,892 | 40,265,684 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 25,734,644 | $ | 43,771,271 | ||||
PREDICTIVE ONCOLOGY INC.
CONSOLIDATED STATEMENTS OF NET LOSS
| Year Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenue | $ | 1,505,459 | $ | 1,420,680 | ||||
| Cost of goods sold | 505,107 | 487,024 | ||||||
| Gross profit | 1,000,352 | 933,656 | ||||||
| General and administrative expense | 11,110,735 | 10,932,125 | ||||||
| Operations expense | 3,798,425 | 2,698,565 | ||||||
| Sales and marketing expense | 1,358,907 | 774,530 | ||||||
| Loss on goodwill impairment | 7,231,093 | 2,813,792 | ||||||
| Loss on impairment intangibles | 3,349,375 | 2,893,548 | ||||||
| Loss on impairment of tangible fixed assets | 185,469 | 1,249,727 | ||||||
| Total operating loss | (26,033,652 | ) | (20,428,631 | ) | ||||
| Other income | 185,646 | 184,528 | ||||||
| Other expense | (5,275 | ) | (239,631 | ) | ||||
| Gain on derivative instruments | 115,647 | 164,902 | ||||||
| Loss before income tax benefit | ) | ) | ||||||
| Income tax benefit | - | (661,658 | ) | |||||
| Net loss | ) | ) | ||||||
| Loss per common share - basic and diluted | $ | (0.35 | ) | $ | (0.35 | ) | ||
| Weighted average shares used in computation - basic and diluted | 72,997,987 | 54,876,044 | ||||||
FAQ
What were Predictive Oncology's financial results for 2022?
What impact did the Discovery 21 program have for POAI?
How much cash did Predictive Oncology have at the end of 2022?
What partnerships did POAI announce recently?
What was the reason for the impairments recorded in 2022?
