- Q4 highlights include $15 million equity line, CancerQuest 2020 initiative
- POAI revenues for FY 2019 total $1.4 million, primarily driven through sale of proprietary STREAMWAY units
- Predictive Oncology will continue to be pioneer in fields of biomarker discovery, precision therapies
Predictive Oncology Inc. (NASDAQ: POAI), a knowledge-driven company focused on applying its cutting-edge technology to cancer research, released its financial report for fiscal year 2019, ending December 31, 2019. The report also identified fourth-quarter highlights for the company (http://nnw.fm/5uhu6).
Noting that 2019 “was not without its challenges for the entire healthcare technology industry,” POAI CFO Bob Myers observed that Predictive Oncology “continued to execute on our business model, making a synergistic acquisition and shoring up our balance sheet via a new $15 million equity line from Oasis Capital. Our STREAMWAY(TM) line has maintained strong disposable product sales and we continue to sell the STREAMWAY System.”
In its announcement, POIA outlined several key milestones reached by the company during the fourth quarter, including securing a $15 million equity line with Oasis Capital and launching its CancerQuest 2020 initiative with ovarian cancer as the initial target. Other highlights include subsidiary Helomics sequencing tumor cases in partnership with UPMC Magee Women’s Hospital and subsidiary Skyline Medical completing its largest STREAMWAY System order to a single hospital in company history.
Regarding the company’s financial numbers, the report noted revenues for FY 2019 were $1.4 million, steady year over year when compared to FY 2018, which was also $1.4 million. Revenues were primarily driven through the sale of Predictive Oncology’s proprietary STREAMWAY units, with 43 units sold in 2019. The company reported that gross margins remained strong, declining slightly to 62% in 2019 from 71% in 2018; much of that decline was tied to the increase in costs following the consolidation of the Helomics acquisition in April 2019.
The growing company’s report detailed losses consistent with a company investing in its long-term future. Net losses for 2019 totaled $19.7 million versus $10.1 million in 2018. General and administrative expenses rose an estimated 111% to nearly $9.8 million in 2019 as a result of extraneous expenses and initial costs related to the Helomics merger. Operational expenses also rose to $3 million, compared to $1.8 million in 2018. Net loss in 2019 reflected impairment charges of $8.1 million on goodwill related to the Helomics merger and $800,000 on intangibles.
In addition, Predictive Oncology saw a gain of $6.1 million as a result of the revaluation of the equity method investment recorded following the initial 25% purchase of Helomics and after the merger and consolidation of Helomics. Predictive Oncology also incurred additional expenses of $4 million in 2019, primarily due to an increase in interest expense, payment penalties, amortization of original issue discounts and a loss on debt extinguishment related to notes payable.
“We continue to be very excited about the revenue and monetization prospects for our precision medicine business, which will allow us to be at the forefront of developing the artificial Intelligence (AI)-driven predictive models of cancer, as well as our revolutionary STREAMWAY clinical waste disposal products,” said POAI director and CEO Dr. Carl Schwartz. “We will continue to execute upon our comprehensive strategy to deliver long-term profitable growth and innovation while concentrating our efforts and resources on our recently acquired Helomics business.
“Building on the successes in 2019, we have recently announced the launch of our CancerQuest 2020 initiative, and we expect Helomics’ first AI-driven predictive model of ovarian cancer to be ready for initial commercialization in revenue generating projects with Pharma in Q2-2020,” he continued. “Furthermore, we have signed a letter of intent to acquire Quantitative Medicine, a biomedical analytics and computational biology company with a unique machine learning (ML) framework that will be integrated in with our Helomics business. Against this backdrop, we believe that Predictive Oncology will be a leader in the application of AI and ML to both the use of and search for new precision therapies.”
POAI is bringing precision medicine, or tailored medical treatment using the individual characteristics of each patient, to the treatment of cancer. Through the company’s Helomics division, the company leverages its unique, clinically validated patient derived (PDx) smart tumor profiling platform to provide oncologists with a road map to help individualize therapy. In addition, the company is leveraging artificial intelligence and its proprietary database of over 150,000 cancer cases tumors to build AI-driven models of tumor drug repose to improve outcomes for the patients of today and tomorrow.
For more information, visit the company’s website at www.Predictive-Oncology.com
NOTE TO INVESTORS: The latest news and updates relating to POAI are available in the company’s newsroom at http://nnw.fm/POAI
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