Predictive Oncology
(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 June 30,
2021, and provided an update on business activities.
Q2 2021 Highlights:
- Net proceeds of $19.4 million from
registered direct equity offering, contributing to a cash balance
of $44.9 million on June 30, 2021, compared to $3.4 million for the
same period in 2020.
- Total Stockholders’ Equity
increased $50.4 million to $53.1 million as of June 30, 2021,
compared to $2.6 million on December 31, 2020.
- Predictive subsidiary TumorGenesis
partners with Swedish firm Cellevate AB, a collaboration designed
to help give researchers next-generation tools to build treatments
for difficult diseases.
- Subsidiaries TumorGenesis and
Soluble Biotech announce construction of GMP facilities expected to
be completed by year end, allowing an expansion of their unique
services to better meet the needs of their growing customer
bases.
- Introduced Dr. Christina Jenkins,
MD, strategic advisor and venture investor with expertise in
clinical medicine, health systems, and health plans as its newest
board member.
“We are pleased with the progress our business
segments are making as we conclude the first full year of
operations for Soluble Biotech,” commented J. Melville Engle,
Predictive Oncology Chief Executive Officer. “Soluble and
TumorGenesis’ new GMP facilities are slated for completion by the
end of 2021, which we expect will drive revenue growth
opportunities as we meet the needs of researchers who are exploring
ways to use the cancer cell’s own mechanisms to produce a target,
expressed protein or biological target.”
“Predictive Oncology believes the results from
this quarter show growth opportunities in our business segments,
consistent with our goals and business objectives, and with even
greater potential in the future. As we look towards the latter half
of the year, we are confident that we will retain this trajectory
as we invest in our people and our product offerings, supporting
pharmaceutical companies to deliver more targeted approaches to
therapy, increasing our footprint in this space and bringing value
to our shareholders.”
Q2 2021 Financial results
The Company recorded revenue of $350,207 for the
quarter, compared to $182,784 for the same quarter in 2020. G&A
expenses decreased $1.13 million for the three months ended June
30, 2021 compared to 2020.
During the three months ended June 30, 2021,
revenue increased to $350,207, an increase of approximately 92%
from the previous year quarter. This included $34,910 from the
Soluble reportable segment, the largest ever quarter in terms of
revenue for that segment.
The gross profit margin was approximately 59% in
the three ended June 30, 2021 compared to 53% in the prior year.
Gross profit margins increased in the second quarter ofthe current
year as costs were lower.
Operations expense increased by $46,680 to
$567,796 in the three months ended June 30, 2021 compared to 2020,
primarily due to higher costs related to staff and higher AI
computing costs, partially offset by lower consulting expenses.
The Company’s sales and marketing expenses
increased by $26,773 for the quarter to $159,788 compared to the
same period in 2020, a direct result of commission expenditures in
the Skyline Medical business, which itself saw an increase in
revenue of $132,398 over the previous year quarter.
Net cash used in operating activities was
$5,526,978 and $6,721,084 for the six months ended June 30, 2021
and June 30, 2020, respectively. Cash used in operating activities
decreased in the 2021 period primarily because of the decrease in
cash used for working capital and the lower operating costs related
to the Helomics and Skyline business.
Net cash provided by financing activities was
$50,363,456 and $9,874,355 for the six months ended June 30, 2021
and June 30, 2020, respectively. The cash provided in the six
months ended June 30, 2021 was primarily due to proceeds from
issuance of common stock and warrants in six financing transactions
and the exercise of warrants by investors, in addition to proceeds
from the issuance of common stock pursuant to the equity line
agreement, offset by the repayment of outstanding debt, all of
which are discussed in the Company’s 10-Q filing with the
Securities and Exchange Commission.
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)
|
|
June 30,2021 |
|
December 31,2020 |
|
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
44,881,034 |
|
|
|
$ |
|
678,332 |
|
Accounts Receivable |
|
|
196,520 |
|
|
|
|
|
256,878 |
|
Inventories |
|
|
317,826 |
|
|
|
|
|
289,535 |
|
Prepaid Expense and Other
Assets |
|
|
241,799 |
|
|
|
|
|
289,490 |
|
Total Current Assets |
|
|
45,637,179 |
|
|
|
|
|
1,514,235 |
|
|
|
|
|
|
|
|
|
|
Fixed Assets, net |
|
|
3,950,613 |
|
|
|
|
|
3,822,700 |
|
Intangibles, net |
|
|
3,254,838 |
|
|
|
|
|
3,398,101 |
|
Lease Right-of-Use Assets |
|
|
1,131,795 |
|
|
|
|
|
1,395,351 |
|
Other Long-Term Assets |
|
|
124,096 |
|
|
|
|
|
116,257 |
|
Goodwill |
|
|
2,813,792 |
|
|
|
|
|
2,813,792 |
|
Total Assets |
|
$ |
56,912,313 |
|
|
|
|
|
13,060,436 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts Payable |
|
$ |
941,960 |
|
|
|
$ |
|
1,372,070 |
|
Notes Payable – Net of
Discounts of $0 and $244,830 |
|
|
- |
|
|
|
|
|
4,431,925 |
|
Accrued Expenses and other
liabilities |
|
|
1,256,087 |
|
|
|
|
|
2,588,047 |
|
Derivative Liability |
|
|
229,620 |
|
|
|
|
|
294,382 |
|
Deferred Revenue |
|
|
154,345 |
|
|
|
|
|
53,028 |
|
Lease Liability |
|
|
640,353 |
|
|
|
|
|
597,469 |
|
Total Current Liabilities |
|
|
3,222,365 |
|
|
|
|
|
9,336,921 |
|
|
|
|
|
|
|
|
|
|
Lease Liability – Net of
current portion |
|
|
554,716 |
|
|
|
|
|
845,129 |
|
Other long-term
liabilities |
|
|
47,146 |
|
|
|
|
|
235,705 |
|
Total Liabilities |
|
|
3,824,227 |
|
|
|
|
|
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, 65,335,159 and 19,804,787
outstanding |
|
|
653,352 |
|
|
|
|
|
198,048 |
|
Additional paid-in
capital |
|
|
167,279,695 |
|
|
|
|
|
110,826,949 |
|
Accumulated Deficit |
|
|
(114,845,753 |
) |
|
|
|
|
(108,383,108 |
) |
|
|
|
|
|
|
|
|
|
Total Stockholders’
Equity |
|
|
53,088,086 |
|
|
|
|
|
2,642,681 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders’ Equity |
|
$ |
56,912,313 |
|
|
|
|
$ |
13,060,436 |
|
|
|
|
|
|
|
|
|
|
|
|
PREDICTIVE ONCOLOGY
INC.CONDENSED CONSOLIDATED STATEMENTS OF NET
LOSS(Unaudited)
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Revenue |
$ |
350,207 |
|
|
$ |
182,784 |
|
|
$ |
630,524 |
|
|
$ |
477,727 |
|
Cost of
goods sold |
|
142,877 |
|
|
|
85,261 |
|
|
|
240,635 |
|
|
|
177,918 |
|
Gross
profit |
|
207,330 |
|
|
|
97,523 |
|
|
|
389,889 |
|
|
|
299,809 |
|
|
|
|
|
|
|
|
|
General
and administrative expense |
|
2,077,973 |
|
|
|
3,211,817 |
|
|
|
5,348,750 |
|
|
|
6,040,293 |
|
Operations expense |
|
567,796 |
|
|
|
521,116 |
|
|
|
1,142,608 |
|
|
|
1,069,869 |
|
Sales
and marketing expense |
|
159,788 |
|
|
|
133,015 |
|
|
|
274,429 |
|
|
|
397,424 |
|
Total
operating loss |
|
(2,598,227 |
) |
|
|
(3,768,425 |
) |
|
|
(6,375,898 |
) |
|
|
(7,207,777 |
) |
Other
income |
|
57,033 |
|
|
|
52,965 |
|
|
|
85,292 |
|
|
|
52,968 |
|
Other
expense |
|
(1,829 |
) |
|
|
(729,837 |
) |
|
|
(236,801 |
) |
|
|
(1,846,912 |
) |
Gain
(loss) on derivative instruments |
|
(30,909 |
) |
|
|
(422,081 |
) |
|
|
64,762 |
|
|
|
(394,974 |
) |
Gain on
notes receivables associated with asset purchase |
|
- |
|
|
|
1,290,000 |
|
|
|
- |
|
|
|
1,290,000 |
|
Net
loss |
$ |
(2,573,932 |
) |
|
$ |
(3,577,378 |
) |
|
$ |
(6,462,645 |
) |
|
$ |
(8,106,695 |
) |
Net loss
attributable to common shareholders per common shares-basic and
diluted |
$ |
(2,573,932 |
) |
|
$ |
(3,577,378 |
) |
|
$ |
(6,462,645 |
) |
|
$ |
(8,106,695 |
) |
|
|
|
|
|
|
|
|
Loss per
common share basic |
$ |
(0.05 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.15 |
) |
|
$ |
(1.10 |
) |
Loss per
common share diluted |
|
(0.05 |
) |
|
|
(0.36 |
) |
|
|
(0.15 |
) |
|
|
(1.10 |
) |
|
|
|
|
|
|
|
|
Weighted
average shared used in computation - basic |
|
51,581,762 |
|
|
|
9,838,152 |
|
|
|
44,089,157 |
|
|
|
7,362,240 |
|
Weighted
average shared used in computation - diluted |
|
51,581,762 |
|
|
|
9,838,152 |
|
|
|
44,089,157 |
|
|
|
7,362,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations Contact:
Landon Capital Keith Pinder (404)
995-6671kpinder@landoncapital.net
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