Precision Therapeutics Inc. (NASDAQ:AIPT) (“Precision” or “the
Company”), a company focused on applying artificial intelligence to
personalized medicine and drug discovery, announced today financial
results for the three months ended March 31, 2018 and provided a
business update.
Highlights of the first quarter of 2018 and recent weeks
include:
• Changed corporate name from Skyline Medical to Precision
Therapeutics and changed its NASDAQ Capital Market ticker symbol
from 'SKLN' to ‘AIPT'
• Signed an LOI to increase the Company’s equity stake in
Helomics Corporation® from 25% to 100%
• Precision Therapeutics, Helomics Corporation and GLG
Pharma formed a partnership to use their combined technologies to
bring personalized medicines and testing to ovarian and breast
cancer patients
• Formed TumorGenesis Inc. subsidiary to develop the next
generation of patient derived tumor models for precision cancer
therapy and drug development, with a focus on Multiple Myeloma,
Triple-Negative Breast cancer (TNBC) and Ovarian cancers
- Appointed Mark Collins as President of TumorGenesis
- Secured license agreements with SyntArray LLC, 48Hour Discovery
and CellBridge Incorporated to advance this strategy
- Engaged Richard Gabriel as a consultant to lead the external
business development strategy for TumorGenesis
• Raised $3.0 million in net proceeds in a public offering
and the over-allotment option exercise by the underwriter
• Appointed Deloitte & Touche LLP as Precision
Therapeutics' independent auditors
Highlights from Skyline Medical, a
division of Precision Therapeutics
• Sold 16 STREAMWAY® Systems in the first three months of
2018, compared with three STREAMWAY Systems in Q1 2017, bringing
the total number of STREAMWAY Systems sold to 123
• Expanded sales team with the appointment of Kevin
Hungerford as Global Vice President of Sales and Marketing for
Skyline Medical
• Opened new European headquarters in Belgium and appointed
Jean-Paul Rasschaert as Vice President of International Sales
Management Commentary
Dr. Carl Schwartz, Chief Executive Officer of Precision
Therapeutics, commented, “The first quarter of 2018 was a
transitional time for Precision Therapeutics as we made rapid
progress repositioning the Company as a leader in precision
oncology through the formation of our TumorGenesis subsidiary and
our 25% investment in Helomics Corporation. Subsequent to the
quarter end, we were pleased to sign an LOI to purchase the
remaining 75% of Helomics. This transaction, when completed, will
cement our competitive edge in this market by giving us complete
ownership of Helomics’ one-of-a-kind tumor data bank which has been
developed over 15 years of clinical testing. This data contains the
drug response profiles of over 149,000 patient tumors. We believe
this data has the potential to revolutionize the effectiveness of
clinical trials, and are excited by the opportunity to monetize
this asset to grow revenues at Precision Therapeutics.
“To complement and enhance this offering in the precision
oncology space, we formed TumorGenesis to pioneer a powerful, new
approach to growing tumors in the laboratory. This approach will
‘fool’ the cancer cells into thinking they are still in the
patient’s body and is expected to provide a more relevant patient
tumor model for the testing of drugs for personalized therapy and
for the development of new drugs. Together, Helomics’ dataset and
TumorGenesis’ tumor model will offer the most advanced technologies
on the market to advance the clinical testing of new personalized
cancer therapies. This is truly a unique offering, combining
artificial intelligence with personalized oncology, and we have put
together a formidable team of scientists to drive these efforts,”
continued Dr. Schwartz. “Our Skyline Medical division is going from
strength to strength, as evidenced by the record 16 STREAMWAY
Systems sold this quarter. This very strong sales growth was the
result of our expanded U.S.-based sales force, which led to an
increase in sales to both existing customers and new customers.
During the quarter, we opened our new European Headquarters and are
pleased with their progress educating the market about the benefits
of the STREAMWAY System. Europe is a major untapped market and we
anticipate meaningful growth in this market in the second half of
2018 as our sales and marketing initiatives gain traction,”
concluded Dr. Schwartz.
Financial Results
Revenue for the three months ended March 31, 2018 was $411,593,
compared with $175,166 for the three months ended March 31,
2017. Revenue was derived from the sales of sixteen STREAMWAY
Systems and the sale of STREAMWAY disposable products during the
first quarter of 2018.
Gross profit for the three months ended March 31, 2018 was
$294,250 or 71.5% of revenue, compared with $138,174 or 78.9% of
revenue for the same period in 2017.
Total operating expenses for the three months ended March 31,
2018 were $2.1 million, compared with $1.5 million for the three
months ended March 31, 2017. The increase was primarily the
result of higher sales and marketing costs associated with the
expansion of our sales force.
Net loss available to common shareholders for the three months
ended March 31, 2018 was $1.8 million or $0.15 per share.
This compares with a net loss available to common shareholders for
the three months ended March 31, 2017 of $1.3 million or $0.21 per
share.
The Company had cash, cash equivalents and marketable securities
of $2.2 million as of March 31, 2018, compared with $766,189 as of
December 31, 2017. The increase in cash was the result of a
public offering and the over-allotment option exercise by the
underwriter that generated $3.0 million in net proceeds.
Conference Call and Webcast
Management will also hold a conference call to discuss the
financial results and provide a general business update. The
conference call is scheduled to begin at 4:30 p.m. Eastern Time. A
webcast of the event will be available on the Investors section of
the Company’s website at www.skylinemedical.com.
To access the conference call, U.S.-based listeners should dial
+1 (800) 263 0877 and international listeners should dial +1 (646)
828-8143. All listeners should provide the following passcode:
9762238.
A dial-in replay of the call will also be available to those
interested until May 29, 2018. To access the replay, dial +1
(844) 512-2921 (United States) or +1 (412) 317-6671 (International)
and enter replay pin number: 9762238.
To be added to the Precision Therapeutics’ database, please
email Info@MoneyInfo-llc.com with your email address. This is
solely for the use of Precision Therapeutics and will not be sold
or distributed to third parties.
About Precision Therapeutics Inc.
Precision Therapeutics (NASDAQ:AIPT) operates in two
business areas: first, applying artificial intelligence to
personalized medicine and drug discovery to provide personalized
medicine solutions for clients in the pharmaceutical, diagnostic,
and biotech industries, and second, production of
the FDA-approved STREAMWAY® System for automated,
direct-to-drain medical fluid disposal.
Precision Therapeutics' CRO services business is committed
to improving the effectiveness of cancer therapy using the power of
artificial intelligence (AI) applied to rich data diseases
databases. This business has launched with Precision
Therapeutics' investment in Helomics Corporation, a
precision diagnostic company and integrated clinical contract
research organization whose mission is to improve patient care by
partnering with pharmaceutical, diagnostic, and academic
organizations to bring innovative clinical products and
technologies to the marketplace. In addition to its
proprietary precision diagnostics for oncology, Helomics offers
boutique CRO services that leverage our patient-derived tumor
models, coupled to a wide range of multi-omics assays (genomics,
proteomics and biochemical), and a proprietary bioinformatics
platform (D-CHIP) to provide a tailored solution to our client's
specific needs. Helomics is 25% owned by Precision
Therapeutics. Helomics® is headquartered in Pittsburgh,
Pennsylvania where the company maintains state-of-the-art,
CLIA-certified, clinical and research laboratories. For more
information, please visit www.Helomics.com.
Precision Therapeutics has also announced the formation of a
subsidiary, TumorGenesis to pursue a new rapid approach to growing
tumors in the laboratory, which essentially “fools” the cancer
cells into thinking they are still growing inside the patient.
Precision Therapeutics and Helomics have also announced a
proposed joint venture with GLG Pharma focused on using
their combined technologies to bring personalized medicines and
testing to ovarian and breast cancer patients, especially those who
present with ascites fluid (over one-third of patients). The growth
strategy in this business includes securing new partnerships and
considering acquisitions in the precision medicine space.
Sold through the Skyline Medical business of Precision
Therapeutics, The STREAMWAY System virtually eliminates staff
exposure to blood, irrigation fluid and other potentially
infectious fluids found in the healthcare environment. Antiquated
manual fluid handling methods that require hand carrying and
emptying filled fluid canisters present an exposure risk and
potential liability. Skyline Medical's STREAMWAY System fully
automates the collection, measurement, and disposal of waste fluids
and is designed to: 1) reduce overhead costs to hospitals and
surgical centers; 2) improve compliance with OSHA and
other regulatory agency safety guidelines; 3) improve efficiency in
the operating room, and radiology and endoscopy departments,
thereby leading to greater profitability; and 4) provide greater
environmental stewardship by helping to eliminate the approximately
50 million potentially disease-infected canisters that go into
landfills each year in the U.S. For additional information,
please visit http://www.precisiontherapeutics.com/.
Forward-looking Statements
Certain of the matters discussed in this announcement contain
forward-looking statements that involve material risks to and
uncertainties in the Company's business that may cause actual
results to differ materially from those anticipated by the
statements made herein. Such risks and uncertainties include (1)
risks related to the proposed merger, including the fact that we
may not complete the merger; we do not have complete information
about Helomics, including audited financial statements; the
combined company will not be able to continue operating without
additional financing; possible failure to realize anticipated
benefits of the merger; costs associated with the merger may be
higher than expected; the merger may result in disruption of the
Company’s and Helomics’ existing businesses, distraction of
management and diversion of resources; delay in completion of the
merger may significantly reduce the expected benefits; and the
market price of the Company’s common stock may decline as a result
of the merger; (2) risks related to our partnerships with other
companies, including the need to negotiate the definitive
agreements; possible failure to realize anticipated benefits of
these partnerships; and costs of providing funding to our partner
companies, which may never be repaid or provide anticipated
returns; and (3) other risks and uncertainties relating to the
Company that include, among other things, current negative
operating cash flows and a need for additional funding to finance
our operating plan; the terms of any further financing, which may
be highly dilutive and may include onerous terms; unexpected costs
and operating deficits, and lower than expected sales and
revenues; sales cycles that can be longer than expected,
resulting in delays in projected sales or failure to make such
sales; uncertain willingness and ability of customers to adopt new
technologies and other factors that may affect further market
acceptance, if our product is not accepted by our potential
customers, it is unlikely that we will ever become profitable;
adverse economic conditions; adverse results of any legal
proceedings; the volatility of our operating results and financial
condition; inability to attract or retain qualified senior
management personnel, including sales and marketing personnel; our
ability to establish and maintain the proprietary nature of our
technology through the patent process, as well as our ability to
possibly license from others patents and patent applications
necessary to develop products; the Company's ability to implement
its long range business plan for various applications of its
technology; the Company's ability to enter into agreements with any
necessary marketing and/or distribution partners and with any
strategic or joint venture partners; the impact of competition, the
obtaining and maintenance of any necessary regulatory clearances
applicable to applications of the Company's technology; and
management of growth and other risks and uncertainties that may be
detailed from time to time in the Company's reports filed with
the Securities and Exchange Commission, which are available
for review at www.sec.gov. This is not a solicitation to
buy or sell securities and does not purport to be an analysis of
the Company's financial position. See the Company's most recent
Annual Report on Form 10-K, and subsequent reports and other
filings at www.sec.gov.
Contacts:Investor RelationsKCSA Strategic
CommunicationsElizabeth Barker(212) 896-1203ebarker@kcsa.com
MONEYINFO, LLCCharles
Moskowitz617-827-1296info@moneyinfo-llc.com
|
|
STATEMENT OF OPERATIONS |
|
|
Three Months Ended March 31, |
|
2018 |
|
|
2017 |
|
|
$ |
|
|
$ |
|
Revenue |
411,593 |
|
|
175,166 |
|
|
|
|
|
Cost of goods sold |
117,343 |
|
|
36,992 |
|
|
|
|
|
Gross margin |
294,250 |
|
|
138,174 |
|
|
|
|
|
General and
administrative expense |
1,216,144 |
|
|
1,132,073 |
|
|
|
|
|
Operations expense |
287,590 |
|
|
200,494 |
|
|
|
|
|
Sales and marketing
expense |
550,538 |
|
|
147,454 |
|
|
|
|
|
Interest expense |
- |
|
|
- |
|
|
|
|
|
Total Expense |
2,054,272 |
|
|
1,480,021 |
|
|
|
|
|
|
Net loss available to
common shareholders |
(1,760,022 |
) |
|
(1,341,847 |
) |
|
|
|
|
Other
comprehensive gain |
|
|
|
Unrealized gain from
marketable securities |
- |
|
|
- |
|
|
|
|
|
|
|
|
$ |
|
|
$ |
|
Comprehensive
(loss) |
(1,760,022 |
) |
|
(1,341,847 |
) |
|
|
|
|
|
|
|
$ |
|
|
$ |
|
Loss per common share -
basic and diluted |
(0.15 |
) |
|
(0.21 |
) |
|
|
|
|
Weighted average shares
used in computation - basic and diluted |
11,383,217 |
|
|
6,450,967 |
|
|
BALANCE SHEET |
|
|
|
|
|
FOR THE YEARS ENDED, |
|
|
|
|
|
March 31,2018 |
|
December31, 2017 |
. |
Current Assets: |
|
|
|
|
$ |
|
|
$ |
|
Cash and cash
equivalents |
2,232,803 |
|
|
766,189 |
|
Certificates of
deposit |
- |
|
|
244,971 |
|
Accounts
Receivable |
241,764 |
|
|
137,499 |
|
Notes Receivable |
167,512 |
|
|
667,512 |
|
Inventories |
272,556 |
|
|
265,045 |
|
Prepaid Expense and
other assets |
208,305 |
|
|
289,966 |
|
Total Current
Assets |
3,122,940 |
|
|
2,371,182 |
|
|
|
|
|
Notes Receivable |
1,112,524 |
|
|
1,070,000 |
|
Investment in
Subsidiary |
1,542,250 |
|
|
- |
|
Fixed Assets, net |
106,009 |
|
|
87,716 |
|
Intangibles, net |
115,714 |
|
|
95,356 |
|
|
|
|
|
|
$ |
|
|
$ |
|
Total Assets |
5,999,437 |
|
|
3,624,254 |
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
Current
Liabilities: |
|
|
|
|
$ |
|
|
$ |
|
Accounts Payable |
186,309 |
|
|
140,462 |
|
Accrued Expenses |
558,439 |
|
|
785,215 |
|
Deferred Revenue |
38,856 |
|
|
6,663 |
|
Total Current
Liabilities |
783,604 |
|
|
932,340 |
|
|
|
|
|
Total Liabilities |
783,604 |
|
|
932,340 |
|
Commitments and
Contingencies |
- |
|
|
- |
|
Stockholders
Equity |
|
|
|
Series B Convertible
Preferred Stock, $.01 par value, 20,000,000 authorized, 79,246 and
79,246 outstanding |
792 |
|
|
792 |
|
Series C Convertible
Preferred Stock, $.01 par value, 20,000,000 authorized, 0 and
647,819 outstanding |
- |
|
|
6,479 |
|
Common Stock, $.01 par
value, 50,000,000 authorized, 11,804,073 and 6,943,283
outstanding |
118,040 |
|
|
69,432 |
|
Additional paid-in
capital |
61,622,067 |
|
|
57,380,256 |
|
Accumulated
Deficit |
(56,525,066 |
) |
|
(54,765,045 |
) |
Accumulated Other
Comprehensive income |
- |
|
|
- |
|
Total Stockholders'
Equity |
5,215,833 |
|
|
2,691,914 |
|
|
|
|
|
|
$ |
|
|
$ |
|
Total Liabilities and
Stockholders' Equity |
5,999,437 |
|
|
3,624,254 |
|
Precision Therapeutics Inc. (NASDAQ:AIPT)
Historical Stock Chart
From Apr 2024 to May 2024
Precision Therapeutics Inc. (NASDAQ:AIPT)
Historical Stock Chart
From May 2023 to May 2024