iSpecimen Reports Third Quarter 2024 Results
Rhea-AI Summary
iSpecimen reported Q3 2024 financial results with revenue of $2.66M, down from $2.78M in Q3 2023. The company implemented strategic changes including a 1-for-20 reverse stock split to maintain Nasdaq listing and secured a $1M loan facility. Through their Supplier Refresh program, they reduced suppliers from 232 to 75 key partners. Cost-cutting initiatives, including headquarters relocation and headcount reduction, are expected to yield $750,000 in annual savings, with additional Q4 measures projected to save $2.35M annually. Q3 net loss improved to $1.44M compared to $2.11M in Q3 2023.
Positive
- Net loss improved from $2.11M in Q3 2023 to $1.44M in Q3 2024
- Nine-month revenue increased 6% to $7.82M from $7.35M YoY
- Specimen count increased 58% to 8,461 in Q3 2024
- Cost reduction initiatives expected to save $3.1M annually
- Successfully secured $1M loan facility and completed $5M public offering
Negative
- Q3 revenue declined to $2.66M from $2.78M YoY
- Average selling price per specimen decreased 39% in Q3 2024
- Cost of revenue increased by $162,000 in Q3 2024
- Cash position decreased to $1.75M from $5M at end of 2023
- Required 1-for-20 reverse stock split to maintain Nasdaq listing
News Market Reaction – ISPC
On the day this news was published, ISPC gained 11.26%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
LEXINGTON, Mass., Nov. 07, 2024 (GLOBE NEWSWIRE) -- iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers, today reported its financial and operating results for the three and nine month periods ended September 30, 2024.
"The third quarter was a period of continued strategic transformation for iSpecimen, primarily driven by several key initiatives," said Tracy Curley, CEO of iSpecimen. "First, we completed a 1-for-20 reverse stock split which helped the Company maintain its Nasdaq listing. Additionally, we secured a
"I am particularly pleased with the progress and success of our Supplier Refresh program, which is aimed at streamlining our network and focusing on our most productive relationships. In doing so, we have strategically reduced our supplier base this year by 157 suppliers to 75 key suppliers, with an additional 13 new prospects currently in our pipeline. This focused approach has significantly improved the quality and efficiency of our supplier network, while reducing administrative overhead. Combined with our Next Day Quotes program, these initiatives continue to accelerate our sales velocity and enhance conversion rates. These operational improvements, combined with our cost optimization efforts in the third quarter, which included relocating our headquarters and reducing our headcount, are expected to yield over
Third Quarter and Nine Month 2024 Highlights
- iSpecimen secured a
$1,000,000 loan, which included an additional$1,000,000 revolving credit line tied to a future$5,000,000 public offering; - During the first nine months of 2024, iSpecimen terminated 157 suppliers, ending the third quarter with 107 suppliers, 75 of which are considered key suppliers;
- iSpecimen appointed three new outside directors; Richard Paolone, Avtar Dhaliwal and board chair Katie Field;
Subsequent Events
- On October 1, 2024, iSpecimen received a notification from Nasdaq stating that the Company had regained compliance with Listing Rule 5559(a)(2) based on the Company maintaining a closing bid price of our common stock was
$1.00 per share or greater for 11 consecutive business days. - On October 31, 2024, iSpecimen announced the closing of a
$5,000,000 public offering of the Company’s common stock and pre-funded warrants. - During the 4th quarter, through November 2024, the Company has continued its cost-cutting efforts that are expected to result in an additional estimated
$2,350,000 in annual savings for the Company.
Financial Results for the Three and Nine Months Ended September 30, 2024
For the three months ended September 30, 2023, iSpecimen had revenue of approximately
For the nine months ended September 30, 2024, revenue increased by approximately
For the three months ended September 30, 2024, cost of revenue increased by approximately
For the nine month period ended September 30, 2024, cost of revenue increased by approximately
For the three month period ended September 30, 2024, general and administrative expenses decreased by approximately
For the nine months ended September 30, 2024, general and administrative expenses decreased approximately
For the third quarter ended September 30, 2024, net loss was approximately
As of September 30, 2024, cash and cash equivalents, as well as available for sale securities, were approximately
About iSpecimen
iSpecimen (Nasdaq: ISPC) offers an online marketplace for human biospecimens, connecting 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, 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," "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 risk factors contained in the Company's filings with the U.S. 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 does 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
Phil Carlson
iSpecimen@kcsa.com
iSpecimen Inc.
Condensed Balance Sheets
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,751,854 | $ | 2,343,666 | ||||
| Available-for-sale securities | — | 2,661,932 | ||||||
| Accounts receivable – unbilled | 1,654,019 | 2,212,538 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of | 974,383 | 728,388 | ||||||
| Prepaid expenses and other current assets | 277,579 | 292,079 | ||||||
| Total current assets | 4,657,835 | 8,238,603 | ||||||
| Property and equipment, net | 102,803 | 127,787 | ||||||
| Internally developed software, net | 5,357,188 | 6,323,034 | ||||||
| Other intangible assets, net | 764,589 | 908,255 | ||||||
| Operating lease right-of-use asset | 342,107 | 193,857 | ||||||
| Security deposits | 39,701 | 27,601 | ||||||
| Total assets | $ | 11,264,223 | $ | 15,819,137 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,055,332 | $ | 3,925,438 | ||||
| Accrued expenses | 1,022,373 | 1,540,607 | ||||||
| Senior note payable, net of debt discount | 864,425 | — | ||||||
| Operating lease current obligation | 42,513 | 167,114 | ||||||
| Deferred revenue | 283,571 | 415,771 | ||||||
| Total current liabilities | 6,268,214 | 6,048,930 | ||||||
| Operating lease long-term obligation | 281,437 | 29,130 | ||||||
| Total liabilities | 6,549,651 | 6,078,060 | ||||||
| Commitments and contingencies (See Note 9) | ||||||||
| Stockholders’ equity | ||||||||
| Common stock, | 83 | 45 | ||||||
| Additional paid-in capital | 70,530,467 | 69,105,176 | ||||||
| Treasury stock, 1,550 shares, at cost | (172 | ) | (172 | ) | ||||
| Accumulated other comprehensive income | — | 840 | ||||||
| Accumulated deficit | (65,815,806 | ) | (59,364,812 | ) | ||||
| Total stockholders’ equity | 4,714,572 | 9,741,077 | ||||||
| Total liabilities and stockholders’ equity | $ | 11,264,223 | $ | 15,819,137 | ||||
iSpecimen Inc.
Condensed Statements of Operations and Comprehensive Loss
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 2,661,936 | $ | 2,777,751 | $ | 7,815,608 | $ | 7,353,090 | ||||||||
| Operating expenses: | ||||||||||||||||
| Cost of revenue | 1,554,159 | 1,392,534 | 3,978,557 | 3,393,079 | ||||||||||||
| Technology | 754,730 | 921,580 | 2,578,624 | 2,599,086 | ||||||||||||
| Sales and marketing | 631,625 | 897,433 | 2,380,515 | 2,972,757 | ||||||||||||
| Supply development | 84,972 | 186,176 | 420,322 | 801,038 | ||||||||||||
| Fulfillment | 449,142 | 471,735 | 1,293,185 | 1,363,427 | ||||||||||||
| General and administrative | 892,712 | 1,102,373 | 4,051,994 | 4,522,028 | ||||||||||||
| Total operating expenses | 4,367,340 | 4,971,831 | 14,703,197 | 15,651,415 | ||||||||||||
| Loss from operations | (1,705,404 | ) | (2,194,080 | ) | (6,887,589 | ) | (8,298,325 | ) | ||||||||
| Other income, net | ||||||||||||||||
| Interest expense | (7,364 | ) | (4,465 | ) | (16,303 | ) | (11,535 | ) | ||||||||
| Interest income | 1,235 | 67,362 | 40,896 | 292,506 | ||||||||||||
| Other income (expense), net | 271,680 | 20,082 | 412,002 | (9,173 | ) | |||||||||||
| Total other income, net | 265,551 | 82,979 | 436,595 | 271,798 | ||||||||||||
| Net loss | $ | (1,439,853 | ) | $ | (2,111,101 | ) | $ | (6,450,994 | ) | $ | (8,026,527 | ) | ||||
| Other comprehensive income (loss): | ||||||||||||||||
| Net loss | $ | (1,439,853 | ) | $ | (2,111,101 | ) | $ | (6,450,994 | ) | $ | (8,026,527 | ) | ||||
| Unrealized gain (loss) on available-for-sale securities | — | (47 | ) | (840 | ) | 641 | ||||||||||
| Total other comprehensive income (loss) | — | (47 | ) | (840 | ) | 641 | ||||||||||
| Comprehensive loss | $ | (1,439,853 | ) | $ | (2,111,148 | ) | $ | (6,451,834 | ) | $ | (8,025,886 | ) | ||||
| Net loss per share - basic and diluted | $ | (2.10 | ) | $ | (4.66 | ) | $ | (11.30 | ) | $ | (17.78 | ) | ||||
| Weighted average shares of common stock outstanding - basic and diluted | 687,141 | 453,267 | 570,693 | 451,487 | ||||||||||||
FAQ
What was iSpecimen's (ISPC) revenue in Q3 2024?
How much cost savings does ISPC expect from their 2024 initiatives?
What was ISPC's net loss per share in Q3 2024?
How many suppliers does ISPC have after their Supplier Refresh program in 2024?
