EAGAN, Minn., May 12, 2022 (GLOBE NEWSWIRE) — The financial results from the first quarter we believe depicts a solid potential for growth in the upcoming period, in accordance with the report by Predictive Oncology Inc. (NASDAQ: POAI) today, disclosing the results for the quarter ended March 31, 2022. The consolidated results of Predictive Oncology’s reportable segments included recognized revenue of $314,568 for the quarter.
The artificial intelligence (AI) and data-driven discovery services entity also reported an update on its business operations. Highlights from the quarter included:
- Discovery 21 and PeDAL® platform validated as Predictive Oncology moves ahead with commercialization.
- Cash and equivalents were $25 million as of March 31, 2022.
- The company has not reported any long-term debt obligations in its capital structure.
- Predictive Oncology’s reported loss per common share was reduced to $0.05, as compared to $0.11 for the comparable period in 2021.
“We are extremely excited that our technology provides a significant competitive advantage to our business offerings. Our CRO services business applies PeDAL to address a range of needs from discovery through clinical and translational research, to clinical trials and diagnostic development and validation. We believe this market segment has significant growth potential for Predictive Oncology and we believe we are differentiated from traditional CRO’s and other Artificial Intelligence companies through this unique asset,” said J. Melville Engle, the Company’s Chairman and Chief Executive Officer.
Q1 2022 Financial results
Predictive Oncology reported consolidated revenue of $314,568 for the quarter, as compared to $280,317 for the same quarter in 2021. The positive change was mainly due to an increase of 6% in the Skyline segment (STREAMWAY® System product sales) and initial revenue from the zPREDICTA segment.
The new zPREDICTA segment has an encouraging sales pipeline, including additional revenue from current transactions that are expected to be recognized in the next several quarters.
General and administrative expenses decreased from $3.3 million on March 31, 2021, to $2.4 million in on March 31, 2022. This represents a positive change between quarters resulting from decreased retirement, legal and other professional expenses.
The gross profit margin remained steady at approximately 65% for March 31, 2022, and March 2021, respectively.
Operations expense increased by $316,259 to $891,071 in the three months ended March 31, 2022, as compared to the comparable quarter of 2021, mainly due to higher costs related to staff from our zPREDICTA division acquired in late 2021.
Net cash used in operating activities was $3,093,696 and $3,322,091 for the three months ended March 31, 2022, and March 31, 2021, respectively. Cash used in operating activities decreased in March 2022 as compared to the comparable period of 2021, because of the decrease in cash used for working capital and lower operating costs.
The quarterly sales and marketing expenses of the company have increased by $189,826 for the quarter to $304,467, as compared to the comparable period in 2021. This increment was principally a direct result of the strategic decision to focus on the company’s commercialization efforts in 2022, which will be largely focused on the Helomics and zPREDICTA products. These factors increased the company’s expenses for corporate development, sales staff, marketing and public relations.
About Predictive Oncology Inc.
Predictive Oncology (NASDAQ: POAI) operates through four segments (Skyline, Helomics, zPREDICTA and Soluble), which covers five subsidiaries: Helomics, TumorGenesis, Skyline Medical, zPREDICTA and Soluble Biotech.
TumorGenesis is the company’s arm for research and development for zPREDICTA, Soluble Biotech and Helomics. This subsidiary is also involved in media which aid cancer cells grow outside the body of patients and preserve their proteomic and RNA/DNA signatures. 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 industries in the new personalized diagnostics and drugs development. Skyline Medical Inc. (“Skyline Medical”), the STREAMWAY System is a fully automated wall-mounted system, which is utilized to dispose of an unlimited quantity of suction fluid offering continuous performance for medical practitioners while effectively eradicating healthcare professional’s exposure to potentially infectious liquids gathered during surgical and other medical operations. Soluble Biotech Inc. is involved in research focused on protein production, stability studies and solubility improvements. zPREDICTA, Inc carries out tumor-specific research using vitro models for oncology and drug development.
This press release comprises of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “seeks,” variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). The Company’s actual results may differ materially from the anticipated results reflected in these forward-looking statements.
PREDICTIVE ONCOLOGY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|December 31, 2021|
|Cash and Cash Equivalents||$||25,115,561||$||28,202,615|
|Prepaid Expense and Other Assets||408,102||513,778|
|Total Current Assets||26,244,309||29,458,273|
|Fixed Assets, net||2,335,692||2,511,571|
|Lease Right-of-Use Assets||651,921||814,454|
|Other Long-Term Assets||75,618||167,065|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accrued Expenses and other liabilities||695,416||1,262,641|
|Total Current Liabilities||2,681,250||3,240,508|
|Lease Liability – Net of current portion||133,926||239,664|
|Other long-term liabilities||63,098||25,415|
|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, $.01 par value, 200,000,000 shares authorized, 65,906,465 and 65,614,597 outstanding||659,065||656,146|
|Additional paid-in capital||167,931,634||167,649,028|
|Total Stockholders’ Equity||37,180,494||40,265,684|
|Total Liabilities and Stockholders’ Equity||$||40,058,768||$||43,771,271|
PREDICTIVE ONCOLOGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS
|Three Months Ended
|Cost of goods sold||109,443||97,758|
|General and administrative expense||2,423,651||3,270,777|
|Sales and marketing expense||304,467||114,641|
|Total operating loss||(3,414,064||)||(3,777,671||)|
|Gain on derivative instruments||1,908||95,671|
|Loss per common share – basic and diluted||$||(0.05||)||$||(0.11||)|
|Weighted average shares used in computation – basic and diluted||65,835,080||36,513,300|
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