iSpecimen Reports Third Quarter 2021 Financial Results
11/04/2021 - 07:00 AM
LEXINGTON, Mass. , Nov. 4, 2021 /PRNewswire/ -- iSpecimen Inc. ("iSpecimen" or the "Company") , an online marketplace for human biospecimens, today reported its financial results for the three and nine-month periods ended September 30, 2021 .
"In the third quarter of 2021, we continued to achieve strong growth in our core biospecimen business, while simultaneously expanding our market penetration through increased sales and marketing initiatives," said Christopher Ianelli , MD, PhD, CEO and President of iSpecimen. "These efforts contributed to nine-month 2021 revenue results that have already surpassed our full-year revenue for 2020. At the same time, we increased our number of supplier organizations under agreement to nearly 200 while growing our registered users on the iSpecimen Marketplace."
Dr. Ianelli added, "iSpecimen continues to execute its strategic initiatives to broaden our service offerings and expand our number of supplier organizations under agreement to grow our procurement reach and data assets. At the same time, we are assessing potential investments that can further enhance our technology and expand our capabilities. We believe these efforts will allow us to increase our value proposition for users and suppliers, increase our sales momentum and drive long-term revenue growth and shareholder value."
Q3 2021 Financial & Operational Highlights
Revenue increased 21% to $2.7 million $2.3 million Revenue increased 57% to $8.6 million $5.5 million Unique supplier organizations under agreement were 197 as of September 30, 2021 , up from 190 organizations at the end of the second quarter of 2021. Unique customer organizations with purchases totaled 398 as of September 30, 2021 , an increase from 378 as of June 30, 2021 . iSpecimen Marketplace had approximately 4,900 registered research and supplier users as of September 30, 2021 , up 30% year-over-year. As of September 30, 2021 , iSpecimen received $12.8 million 30% year-over-year. Recent Corporate Updates
Launched an Enhanced Custom Biofluids Collection Service to offer U.S. researchers and life sciences organizations a new rapid delivery option. The new offering significantly improves specimen availability for organizations involved in cancer research and development including basic research, the development of new treatments, such as molecular and genomic-targeted therapies and immunotherapies, and the development of new diagnostic tests, including liquid biopsies. Expanded network with a new wave of suppliers to offer increasingly comprehensive selections of annotated cancer tissue, biofluids, and cells through iSpecimen Marketplace. In addition, launched a partnership with a new European healthcare organization offering 17 forms of biofluids, solid tissue, and stem and immune cells from cancer patients, as well as healthy controls. The specimens represent more than 30 categories of cancer. Enhanced global biospecimen supplier network to offer increasingly comprehensive selections of whole blood, plasma and other biofluids to help accelerate the development of liquid biopsies. In connection with the development of liquid biopsies, iSpecimen is working closely with another U.S.-based organization with numerous blood donation centers across the country and access to tens of thousands of donors registered to provide blood for research. Joined the Russell Microcap® Index in late September, as part of the 2021 Russell indexes reconstitution. Membership in the Russell Microcap® Index, which remains in place for one year, means automatic inclusion in the appropriate growth and value style indexes. Appointed Erik Uribe as Director of Global Implementations. Uribe joined from Discovery Life Sciences, where he led all global system implementation projects. Uribe will be responsible for advancing the development of the iSpecimen Marketplace™ and tightening its integration with customer and supplier workflows and systems to ensure a continuously streamlined experience Financial Results for the Third Quarter of 2021
Revenue for the third quarter of 2021 increased 21% to $2.7 million $2.3 million 34% of total revenue, compared to 63% for the third quarter of 2020. COVID-19 related revenue is expected to continue to decline, while being replaced by increased demand for specimens in non-COVID-19 research areas.
Cost of revenue was $0.9 million 14% increase in the average cost per specimen impacted by the specimen mix, offset by a decrease of 12% in the number of specimens accessioned for the current period compared to the same period in 2020.
General and administrative expenses were $1.7 million $0.8 million
Net loss was approximately $1.1 million $1.2 million
Cash was approximately $9.8 million September 30, 2021 .
Conference Call and Webcast Information
The Company will host a conference call and audio webcast today, Thursday, November 4 th at 8:30 a.m. Eastern Time featuring remarks by Christopher Ianelli , MD, PhD, CEO and President, Tracy Curley , CFO, and Jill Mullan , COO.
For interested individuals unable to join the conference call, a replay will be available through November 18, 2021 , at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 10016869. An archived version of the webcast will also be available on iSpecimen's Investor Relations site: https://ispecimen.irpass.com/ .
About iSpecimen iSpecimen offers an online marketplace for human biospecimens, connecting life scientists in commercial and non-profit organizations with healthcare providers that have access to patients and specimens needed for medical discovery. Proprietary, cloud-based technology enables scientists to intuitively search for specimens and patients across a federated partner network of hospitals, labs, biobanks, blood centers, and other healthcare organizations. For more information about iSpecimen, please visit www.ispecimen.com .
Forward Looking Statements This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or conditional verbs such as "may," "will," "expect," "intend," "anticipate," believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.
Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the risks factors contained in the Company's filings with the Securities and Exchange Commission, which are available for review at www.sec.gov . Forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company's forward-looking statements occurs, the Company's business, financial condition and operating results may vary materially from those expressed in the Company's forward-looking statements.
Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact:
Investor Contact KCSA Strategic Communications Scott Eckstein iSpecimen@kcsa.com
Media Contact Kaitlynn Cooney kcooney@brodeur.com
iSpecimen Inc.
CONDENSED BALANCE SHEETS
September 30, 2021
December 31, 2020
ASSETS
Current assets:
Cash
$ 9,790,732
$ 695,909
Accounts receivable - unbilled
1,750,744
652,761
Accounts receivable, net of allowance for doubtful accounts of $141,952
2,718,682
1,526,392
Inventory
-
-
Prepaid expenses and other current assets
459,321
417,929
Tax credit receivable, current portion
179,376
179,376
Total current assets
14,898,855
3,472,367
Property and equipment, net
$ 44,749
75,589
Internally developed software, net
$ 2,650,867
2,634,139
Tax credit receivable, net of current portion
-
-
Security deposits
$ 27,601
27,601
Total assets
$ 17,622,072
$ 6,209,696
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$ 351,424
$ 1,792,432
Accrued expenses
1,025,136
810,910
Accrued interest
7,510
3,696,944
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs
-
5,490,811
Derivative liability for embedded conversion features on convertible notes payable
-
2,373,000
Bridge notes payable, net of debt issuance costs
-
4,589,228
Bridge notes payable, related parties
-
1,905,000
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties
-
-
Note payable, non-current portion
-
Note payable, current portion
-
604,109
Deferred revenue
718,723
873,254
Total current liabilities
2,102,793
22,135,688
Note payable, net of current portion
-
178,899
Term loan
3,428,380
-
Total liabilities
5,531,173
22,314,587
Commitments and contingencies
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized,
-
7,999,997
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized,
-
561,041
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized,
-
2,612,038
Total convertible preferred stock
-
11,173,076
Stockholders' equity (deficit)
Common stock, $0.0001 par value, 200,000,000 shares authorized, 6,996,758 issued,
697
94
Additional paid-in capital
48,059,389
1,779,698
Treasury stock, 31,000 shares at September 30, 2021 and December 31, 2020, at cost
(172)
(172)
Accumulated deficit
(35,969,015)
(29,057,587)
Total stockholders' equity (deficit)
12,090,899
(27,277,967)
Total liabilities, convertible preferred stock and stockholders' equity (deficit)
$ 17,622,072
$ 6,209,696
iSpecimen Inc.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended September 30,
Nine months ended September 30,
2021
2020
2021
2020
Revenue
$ 2,718,534
$ 2,250,147
$ 8,586,217
$ 5,466,375
Operating expenses:
Cost of revenue
913,833
903,862
4,026,680
2,032,111
Technology
543,581
413,381
1,315,331
1,131,695
Sales and marketing
513,107
506,641
1,690,085
1,305,897
Supply development
171,595
133,007
383,864
395,200
Fulfillment
399,145
241,785
955,516
642,140
General and administrative
1,636,346
774,550
4,144,989
1,431,262
Total operating expenses
4,177,607
2,973,226
12,516,465
6,938,305
Loss from operations
(1,459,073)
(723,079)
(3,930,248)
(1,471,930)
Other expense, net
Interest expense
(75,922)
(469,477)
(2,062,548)
(1,517,697)
Change in fair value of derivative liability on convertible notes
-
(54,000)
(271,000)
(76,000)
Change in fair value of derivative liability on bridge notes and bridge notes, related parties
-
-
1,582,700
-
Gain (loss) on extinguishment of bridge notes and bridge notes, related parties
-
-
(2,740,425)
-
Loss on extinguishment of convertible notes and convertible notes, related parties
-
-
(260,185)
-
Gain on extinguishment of note payable
-
-
788,156
-
Other expense, net
(21,687)
-
(21,756)
6,691
Interest income
3,659
87
3,878
396
Other expense, net
(93,950)
(523,390)
(2,981,180)
(1,586,610)
Income (loss) before benefit from income taxes
(1,553,023)
(1,246,469)
(6,911,428)
(3,058,540)
Benefit from income taxes
-
-
-
-
Net income (loss)
$(1,553,023)
$(1,246,469)
$(6,911,428)
$(3,058,540)
Net income (loss) per share
Basic and diluted
$ (0.22)
$ (1.33)
$ (2.17)
$ (3.27)
Weighted average common shares outstanding
Basic and diluted
6,960,330
936,213
3,190,060
936,213
iSpecimen Inc.
CONDENSED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
(Unaudited)
Series B Convertible Preferred Stock
Series A-1 Convertible Preferred Stock
Series A Convertible Preferred Stock
Common Stock
Treasury Stock
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Additional Paid-In Capital
Accumulated Deficit
Total Stockholders' Equity (Deficit)
Balance at December 31, 2020
572,465
$7,999,997
100,365
$561,041
618,182
$2,612,038
936,213
$ 94
31,000
$ (172)
$ 1,779,698
$ (29,057,587)
$ (27,277,967)
Share-based compensation expense
-
-
-
-
-
-
-
-
-
-
22,036
-
22,036
Net loss
-
-
-
-
-
-
-
-
-
-
-
(3,963,491)
(3,963,491)
Balance at March 31, 2021 (unaudited)
572,465
$7,999,997
100,365
$561,041
618,182
$2,612,038
936,213
$ 94
31,000
$ (172)
$ 1,801,734
$ (33,021,078)
$ (31,219,422)
Conversion of redeemable convertible preferred stock into common stock
(572,465)
(7,999,997)
(100,365)
(561,041)
(618,182)
(2,612,038)
1,291,012
129
-
-
11,172,947
-
11,173,076
Conversion of principal and accrued interest of convertible notes and bridge notes into
-
-
-
-
-
-
2,049,043
205
-
-
16,392,139
16,392,344
Issuance of common stock in connection with public offering
-
-
-
-
-
-
2,250,000
225
-
-
17,999,775
-
18,000,000
Offering costs in connection with public offering
-
-
-
-
-
-
-
-
-
-
-2,339,816
-
(2,339,816)
Issuance of common stock through exercise of stock options
-
-
-
-
-
-
39,461
4
-
-
39,629
-
39,633
Share-based compensation expense
-
-
-
-
-
-
-
-
-
-
28,374
-
28,374
Net loss
-
-
-
-
-
-
-
-
-
-
-
(1,394,914)
(1,394,914)
Balance at June 30, 2021 (unaudited)
-
$ -
-
$ -
-
$ -
6,565,729
$ 657
31,000
$ (172)
$ 45,094,782
$ (34,415,992)
$ 10,679,275
Issuance of common stock in connection with public offering over-allotment option exercise
-
-
-
-
-
-
337,500
34
-
-
2,497,467
-
2,497,501
Issuance of commoon stock in exchange for services
-
-
-
-
-
-
2,000
-
-
-
12,500
-
12,500
Issuance of common stock through exercise of stock options
-
-
-
-
-
-
4,761
-
-
-
4,761
-
4,761
Issuance of common stock through exercise of warrants
-
-
-
-
-
-
17,889
2
-
-
990
-
992
Vesting of restricted stock units
-
-
-
-
-
-
37,879
4
(4)
-
Share-based compensation expense
-
-
-
-
-
-
-
-
-
-
399,821
-
399,821
Issuance of warrants in connection with debt
-
-
-
-
-
-
-
-
-
-
49,072
-
49,072
Net loss
-
-
-
-
-
-
-
-
-
-
-
(1,553,023)
(1,553,023)
Balance at September 30, 2021 (unaudited)
-
$ -
-
$ -
-
$ -
6,965,758
$ 697
31,000
$ (172)
$ 48,059,389
$ (35,969,015)
$ 12,090,899
Series B Convertible Preferred Stock
Series A-1 Convertible Preferred Stock
Series A Convertible Preferred Stock
Common Stock
Treasury Stock
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Additional Paid-In Capital
Accumulated Deficit
Total Stockholders' Deficit
Balance at December 31, 2019
572,465
$7,999,997
100,365
$561,041
618,182
$2,612,038
936,213
$ 94
31,000
$ (172)
$ 1,686,832
$ (24,405,503)
(22,718,749)
Share-based compensation expense
-
-
-
-
-
-
-
-
-
-
22,045
-
22,045
Net loss
-
-
-
-
-
-
-
-
-
-
-
(1,637,979)
(1,637,979)
Balance at March 31, 2020 (unaudited)
572,465
$7,999,997
100,365
$561,041
618,182
$2,612,038
936,213
$ 94
31,000
$ (172)
$ 1,708,877
$ (26,043,482)
$ (24,334,683)
Share-based compensation expense
-
-
-
-
-
-
-
-
-
-
29,287
-
29,287
Net loss
-
-
-
-
-
-
-
-
-
-
-
(174,092)
(174,092)
Balance at June 30, 2020 (unaudited)
572,465
$7,999,997
100,365
$561,041
618,182
$2,612,038
936,213
$ 94
31,000
$ (172)
$ 1,738,164
$ (26,217,574)
$ (24,479,488)
Share-based compensation expense
29,266
29,266
Net loss
(1,246,469)
(1,246,469)
Balance at September 30, 2020 (unaudited)
572,465
7,999,997
100,365
561,041
618,182
2,612,038
936,213
94
31,000
(172)
1,767,430
(27,464,043)
(25,696,691)
iSpecimen Inc.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended September 30,
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$ (6,911,428)
$(3,058,540)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation
450,231
80,598
Common shares issued in exchange for services
12,500
-
Amortization of internally developed software
714,444
599,425
Depreciation of property and equipment
33,390
33,563
Bad debt expense
33,856
-
Amortization of debt issuance costs on note payable
3,277
-
Amortization of discount and debt issuance costs on convertible notes
1,088
141,628
Amortization of discount on bridge notes
869,600
-
Change in fair value of derivative liabilities
(1,311,700)
76,000
Loss on extinguishment on bridge notes
2,740,425
-
Loss on extinguishment of convertible notes
260,185
-
Gain on extinguishment on note payable
(788,156)
-
Change in operating assets and liabilities:
Accounts receivable
(1,226,146)
(924,827)
Accounts receivable - unbilled
(1,097,983)
130,813
Inventory
-
-
Prepaid expenses and other current assets
(41,392)
(6,970)
Tax credit receivable
-
104,624
Accounts payable
(1,441,008)
474,263
Accrued expenses
214,226
129,644
Accrued interest
(1,709,575)
1,374,139
Deferred revenue
(154,531)
581,912
Net cash used in operating activities
(9,348,697)
(263,728)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(2,550)
(1,006)
Capitalization of internally developed software
(731,172)
(864,921)
Net cash used in investing activities
(733,722)
(865,927)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of bridge notes payable
500,000
1,250,000
Proceeds from issuance of note payable
3,500,000
783,008
Proceeds from exercise of stock options
44,390
-
Proceeds from exercise of warrants
992
-
Proceeds from issuance of over-allotment shares of common stock ,
2,497,501
-
Proceeds from issuance of common stock in connection with public offering
18,000,000
-
Payment of debt issuance costs in connection with note payable
(25,825)
-
Payment of offering costs in connection with the issuance of common
(2,339,816)
-
Payment of principal to bridge note holders
(3,000,000)
-
Net cash provided by financing activities
19,177,242
2,033,008
Net increase in cash
9,094,823
903,353
Cash at beginning of period
695,909
53,893
Cash at end of period
$ 9,790,732
$ 957,246
Supplemental disclosure of cash flow information:
Cash paid for interest
$ 2,824,032
$ -
Income taxes paid
$ -
$ -
Supplemental disclosure of non-cash investing and financing activities:
Conversion of redeemable convertible preferred stock into common stock
$11,173,076
$ -
Conversion of convertible notes and accrued interest into common stock
$ 6,748,729
$ -
Conversion of bridge notes and accrued interest into common stock
$ 4,717,646
$ -
Issuance of common stock warrants as offering costs in connection
$ 374,400
$ -
Issuance of common stock warrants in connection with Term Loan
$ 49,072
$ -
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SOURCE iSpecimen Inc.
