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EAGAN, Minn., Nov. 10, 2021 (GLOBE NEWSWIRE) -- Results from the third quarter show strong potential for future growth, said Predictive Oncology (Nasdaq: POAI) today, announcing financial results for the quarter ended September 30, 2021. All three of Predictive Oncology’s reportable segments recognized revenue for the quarter, and the loss per common share was reduced to $0.08, compared to $0.46 for the same period in 2020.
The knowledge-driven company, which is applying artificial intelligence (“AI”) to personalized medicine and drug discovery, also provided an update on its business activities. Highlights from the quarter include:
Net increase in cash and equivalents amounting to $41 million in the nine months ended September 30, 2021, compared to $2.3 million for the same period in 2020.
No outstanding debt.
Subsidiary Helomics used data from 100,000 Genomes Project to better predict ovarian cancer outcomes.
Introduced Raymond F. Vennare, accomplished senior executive, board director and biotechnology entrepreneur as newest member of the Board of Directors.
“We are looking forward to the outcome of our Discovery 21 program, which we believe will realize our goal of providing pharmaceutical companies with a quicker, less costly means to drug discovery,” said J. Melville Engle, the Company’s Chairman and Chief Executive Officer. “We expect our CoRE™ platform to disrupt pharma, with our AI technology leading to new discoveries that will drive steady growth in our business segments.”
Q3 2021 Financial results
The Company recorded revenue of $313,663 for the quarter, compared to $480,757 for the same quarter in 2020. The difference was largely due to fewer STREAMWAY System units being sold in its Skyline Medical business, the segment that typically generates most of the Company’s current revenue.
G&A expenses decreased $165,176 for the three months ended September 30, 2021, compared to 2020, and $856,719 for the nine months ended September 30, 2021, compared to 2020.
The gross profit margin was approximately 65% and 63% in the three and nine months ended September 30, 2021, respectively, roughly equivalent to the prior year.
Operations expense increased by $80,169 to $648,935 in the three months ended September 30, 2021 compared to 2020, primarily due to higher staff and AI computing costs. These were partially offset by lower consulting expenses.
Net cash used in operating activities was $8,464,821 and $9,953,785 for the nine months ended September 30, 2021 and September 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.
The Company’s quarterly sales and marketing expenses increased by $51,355 for the quarter to $172,869 compared to the same period in 2020. This was a direct result of increased advertising and promotion including website development, market research and trade shows, offset by lower commissions expenditures in the Skyline Medical business.
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.
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
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Lease Right-of-Use Assets
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LIABILITIES AND STOCKHOLDERS’ EQUITY
Notes Payable – Net of Discounts of $0 and $244,830
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Lease Liability – Net of current portion
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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
Common Stock, $.01 par value, 200,000,000 and 100,000,000 shares authorized, 65,457,484 and 19,804,787 outstanding
Additional paid-in capital
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PREDICTIVE ONCOLOGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS
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Nine Months Ended
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Loss per common share basic and diluted
Weighted average shared used in computation - basic
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