Precision Therapeutics Reports First Quarter 2018 Financial Results
Precision Therapeutics Inc.
May. 15, 2018
MINNEAPOLIS, May 15, 2018 (GLOBE NEWSWIRE) -- Precision Therapeutics Inc. (NASDAQ:AIPT) (“Precision” or “the Company”), a company focused on applying artificial intelligence to personalized medicine and drug discovery, announced today financial results for the three months ended March 31, 2018 and provided a business update.
Highlights of the first quarter of 2018 and recent weeks include:
• Changed corporate name from Skyline Medical to Precision Therapeutics and changed its NASDAQ Capital Market ticker symbol from 'SKLN' to ‘AIPT'
• Signed an LOI to increase the Company’s equity stake in Helomics Corporation® from 25% to 100%
• Precision Therapeutics, Helomics Corporation and GLG Pharma formed a partnership to use their combined technologies to bring personalized medicines and testing to ovarian and breast cancer patients
• Formed TumorGenesis Inc. subsidiary to develop the next generation of patient derived tumor models for precision cancer therapy and drug development, with a focus on Multiple Myeloma, Triple-Negative Breast cancer (TNBC) and Ovarian cancers
o Appointed Mark Collins as President of TumorGenesis o Secured license agreements with SyntArray LLC, 48Hour Discovery and CellBridge Incorporated to advance this strategy o Engaged Richard Gabriel as a consultant to lead the external business development strategy for TumorGenesis
• Raised $3.0 million in net proceeds in a public offering and the over-allotment option exercise by the underwriter
• Appointed Deloitte & Touche LLP as Precision Therapeutics' independent auditors
Highlights from Skyline Medical, a division of Precision Therapeutics
• Sold 16 STREAMWAY® Systems in the first three months of 2018, compared with three STREAMWAY Systems in Q1 2017, bringing the total number of STREAMWAY Systems sold to 123
• Expanded sales team with the appointment of Kevin Hungerford as Global Vice President of Sales and Marketing for Skyline Medical
• Opened new European headquarters in Belgium and appointed Jean-Paul Rasschaert as Vice President of International Sales
Dr. Carl Schwartz, Chief Executive Officer of Precision Therapeutics, commented, “The first quarter of 2018 was a transitional time for Precision Therapeutics as we made rapid progress repositioning the Company as a leader in precision oncology through the formation of our TumorGenesis subsidiary and our 25% investment in Helomics Corporation. Subsequent to the quarter end, we were pleased to sign an LOI to purchase the remaining 75% of Helomics. This transaction, when completed, will cement our competitive edge in this market by giving us complete ownership of Helomics’ one-of-a-kind tumor data bank which has been developed over 15 years of clinical testing. This data contains the drug response profiles of over 149,000 patient tumors. We believe this data has the potential to revolutionize the effectiveness of clinical trials, and are excited by the opportunity to monetize this asset to grow revenues at Precision Therapeutics.
“To complement and enhance this offering in the precision oncology space, we formed TumorGenesis to pioneer a powerful, new approach to growing tumors in the laboratory. This approach will ‘fool’ the cancer cells into thinking they are still in the patient’s body and is expected to provide a more relevant patient tumor model for the testing of drugs for personalized therapy and for the development of new drugs. Together, Helomics’ dataset and TumorGenesis’ tumor model will offer the most advanced technologies on the market to advance the clinical testing of new personalized cancer therapies. This is truly a unique offering, combining artificial intelligence with personalized oncology, and we have put together a formidable team of scientists to drive these efforts,” continued Dr. Schwartz. “Our Skyline Medical division is going from strength to strength, as evidenced by the record 16 STREAMWAY Systems sold this quarter. This very strong sales growth was the result of our expanded U.S.-based sales force, which led to an increase in sales to both existing customers and new customers. During the quarter, we opened our new European Headquarters and are pleased with their progress educating the market about the benefits of the STREAMWAY System. Europe is a major untapped market and we anticipate meaningful growth in this market in the second half of 2018 as our sales and marketing initiatives gain traction,” concluded Dr. Schwartz.
Revenue for the three months ended March 31, 2018 was $411,593, compared with $175,166 for the three months ended March 31, 2017. Revenue was derived from the sales of sixteen STREAMWAY Systems and the sale of STREAMWAY disposable products during the first quarter of 2018.
Gross profit for the three months ended March 31, 2018 was $294,250 or 71.5% of revenue, compared with $138,174 or 78.9% of revenue for the same period in 2017.
Total operating expenses for the three months ended March 31, 2018 were $2.1 million, compared with $1.5 million for the three months ended March 31, 2017. The increase was primarily the result of higher sales and marketing costs associated with the expansion of our sales force.
Net loss available to common shareholders for the three months ended March 31, 2018 was $1.8 million or $0.15 per share. This compares with a net loss available to common shareholders for the three months ended March 31, 2017 of $1.3 million or $0.21 per share.
The Company had cash, cash equivalents and marketable securities of $2.2 million as of March 31, 2018, compared with $766,189 as of December 31, 2017. The increase in cash was the result of a public offering and the over-allotment option exercise by the underwriter that generated $3.0 million in net proceeds.
Conference Call and Webcast
Management will also hold a conference call to discuss the financial results and provide a general business update. The conference call is scheduled to begin at 4:30 p.m. Eastern Time. A webcast of the event will be available on the Investors section of the Company’s website at www.skylinemedical.com.
To access the conference call, U.S.-based listeners should dial +1 (800) 263 0877 and international listeners should dial +1 (646) 828-8143. All listeners should provide the following passcode: 9762238.
A dial-in replay of the call will also be available to those interested until May 29, 2018. To access the replay, dial +1 (844) 512-2921 (United States) or +1 (412) 317-6671 (International) and enter replay pin number: 9762238.
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About Precision Therapeutics Inc.
Precision Therapeutics (NASDAQ:AIPT) operates in two business areas: first, applying artificial intelligence to personalized medicine and drug discovery to provide personalized medicine solutions for clients in the pharmaceutical, diagnostic, and biotech industries, and second, production of the FDA-approved STREAMWAY® System for automated, direct-to-drain medical fluid disposal.
Precision Therapeutics' CRO services business is committed to improving the effectiveness of cancer therapy using the power of artificial intelligence (AI) applied to rich data diseases databases. This business has launched with Precision Therapeutics' investment in Helomics Corporation, a precision diagnostic company and integrated clinical contract research organization whose mission is to improve patient care by partnering with pharmaceutical, diagnostic, and academic organizations to bring innovative clinical products and technologies to the marketplace. In addition to its proprietary precision diagnostics for oncology, Helomics offers boutique CRO services that leverage our patient-derived tumor models, coupled to a wide range of multi-omics assays (genomics, proteomics and biochemical), and a proprietary bioinformatics platform (D-CHIP) to provide a tailored solution to our client's specific needs. Helomics is 25% owned by Precision Therapeutics. Helomics® is headquartered in Pittsburgh, Pennsylvania where the company maintains state-of-the-art, CLIA-certified, clinical and research laboratories. For more information, please visit www.Helomics.com.
Precision Therapeutics has also announced the formation of a subsidiary, TumorGenesis to pursue a new rapid approach to growing tumors in the laboratory, which essentially “fools” the cancer cells into thinking they are still growing inside the patient. Precision Therapeutics and Helomics have also announced a proposed joint venture with GLG Pharma focused on using their combined technologies to bring personalized medicines and testing to ovarian and breast cancer patients, especially those who present with ascites fluid (over one-third of patients). The growth strategy in this business includes securing new partnerships and considering acquisitions in the precision medicine space.
Sold through the Skyline Medical business of Precision Therapeutics, The STREAMWAY System virtually eliminates staff exposure to blood, irrigation fluid and other potentially infectious fluids found in the healthcare environment. Antiquated manual fluid handling methods that require hand carrying and emptying filled fluid canisters present an exposure risk and potential liability. Skyline Medical's STREAMWAY System fully automates the collection, measurement, and disposal of waste fluids and is designed to: 1) reduce overhead costs to hospitals and surgical centers; 2) improve compliance with OSHA and other regulatory agency safety guidelines; 3) improve efficiency in the operating room, and radiology and endoscopy departments, thereby leading to greater profitability; and 4) provide greater environmental stewardship by helping to eliminate the approximately 50 million potentially disease-infected canisters that go into landfills each year in the U.S. For additional information, please visit http://www.precisiontherapeutics.com/.
Certain of the matters discussed in this announcement contain forward-looking statements that involve material risks to and uncertainties in the Company's business that may cause actual results to differ materially from those anticipated by the statements made herein. Such risks and uncertainties include (1) risks related to the proposed merger, including the fact that we may not complete the merger; we do not have complete information about Helomics, including audited financial statements; the combined company will not be able to continue operating without additional financing; possible failure to realize anticipated benefits of the merger; costs associated with the merger may be higher than expected; the merger may result in disruption of the Company’s and Helomics’ existing businesses, distraction of management and diversion of resources; delay in completion of the merger may significantly reduce the expected benefits; and the market price of the Company’s common stock may decline as a result of the merger; (2) risks related to our partnerships with other companies, including the need to negotiate the definitive agreements; possible failure to realize anticipated benefits of these partnerships; and costs of providing funding to our partner companies, which may never be repaid or provide anticipated returns; and (3) other risks and uncertainties relating to the Company that include, among other things, current negative operating cash flows and a need for additional funding to finance our operating plan; the terms of any further financing, which may be highly dilutive and may include onerous terms; unexpected costs and operating deficits, and lower than expected sales and revenues; sales cycles that can be longer than expected, resulting in delays in projected sales or failure to make such sales; uncertain willingness and ability of customers to adopt new technologies and other factors that may affect further market acceptance, if our product is not accepted by our potential customers, it is unlikely that we will ever become profitable; adverse economic conditions; adverse results of any legal proceedings; the volatility of our operating results and financial condition; inability to attract or retain qualified senior management personnel, including sales and marketing personnel; our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; the Company's ability to implement its long range business plan for various applications of its technology; the Company's ability to enter into agreements with any necessary marketing and/or distribution partners and with any strategic or joint venture partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of the Company's technology; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, which are available for review at www.sec.gov. This is not a solicitation to buy or sell securities and does not purport to be an analysis of the Company's financial position. See the Company's most recent Annual Report on Form 10-K, and subsequent reports and other filings at www.sec.gov.
Contacts:Investor RelationsKCSA Strategic CommunicationsElizabeth Barker(212) 896-1203 email@example.com
MONEYINFO, LLCCharles Moskowitz617-827-1296 firstname.lastname@example.org
STATEMENT OF OPERATIONS --------------------------------------------------------------- -------------------------- Three Months Ended March 31, --------------------------------------------------------------- -------------------------- 2018 2017 ---------- - ---------- - $ $ Revenue 411,593 175,166 Cost of goods sold 117,343 36,992 Gross margin 294,250 138,174 General and administrative expense 1,216,144 1,132,073 Operations expense 287,590 200,494 Sales and marketing expense 550,538 147,454 Interest expense - - Total Expense 2,054,272 1,480,021 ---------- - ---------- - Net loss available to common shareholders (1,760,022 ) (1,341,847 ) Other comprehensive gain Unrealized gain from marketable securities - - ---------- - ---------- - $ $ Comprehensive (loss) (1,760,022 ) (1,341,847 ) ---------- - ---------- - $ $ Loss per common share - basic and diluted (0.15 ) (0.21 ) Weighted average shares used in computation - basic and diluted 11,383,217 6,450,967
BALANCE SHEET FOR THE YEARS ENDED, March 31, December 2018 31, 2017 ------------- ------------- . Current Assets: $ $ Cash and cash equivalents 2,232,803 766,189 Certificates of deposit - 244,971 Accounts Receivable 241,764 137,499 Notes Receivable 167,512 667,512 Inventories 272,556 265,045 Prepaid Expense and other assets 208,305 289,966 Total Current Assets 3,122,940 2,371,182 ----------- - ----------- - Notes Receivable 1,112,524 1,070,000 Investment in Subsidiary 1,542,250 - Fixed Assets, net 106,009 87,716 Intangibles, net 115,714 95,356 $ $ Total Assets 5,999,437 3,624,254 ----------- - ----------- - LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: $ $ Accounts Payable 186,309 140,462 Accrued Expenses 558,439 785,215 Deferred Revenue 38,856 6,663 Total Current Liabilities 783,604 932,340 ----------- - ----------- - Total Liabilities 783,604 932,340 ----------- - ----------- - Commitments and Contingencies - - Stockholders Equity Series B Convertible Preferred Stock, $.01 par value, 20,000,000 authorized, 792 792 79,246 and 79,246 outstanding Series C Convertible Preferred Stock, $.01 par value, 20,000,000 authorized, 0 - 6,479 and 647,819 outstanding Common Stock, $.01 par value, 50,000,000 authorized, 11,804,073 and 6,943,283 118,040 69,432 outstanding Additional paid-in capital 61,622,067 57,380,256 Accumulated Deficit (56,525,066 ) (54,765,045 ) Accumulated Other Comprehensive income - - Total Stockholders' Equity 5,215,833 2,691,914 ------------- ------------- $ $ Total Liabilities and Stockholders' Equity 5,999,437 3,624,254 ----------- - ----------- -