Full Press Release Details
Vermillion Reports Third Quarter 2018 Financial Results
Conference Call scheduled for today, November 8, 2018 at 4:30 p.m. ET
AUSTIN, Texas November 8, 2018 Vermillion, Inc. (NASDAQ: VRML), a bio-analytical solutions company focused on gynecologic disease, today reported its financial results for the third quarter ended September 30, 2018.
We are pleased to report growth in revenues this quarter on both a year over year and a sequential quarter over quarter basis. We invested significantly in our commercial organization this quarter to provide enhanced focus on large practices as we launch our new offerings, stated Valerie Palmieri, President and CEO of Vermillion. We are very pleased with the level of interest in our new offerings, and we believe we have the right commercial team to drive adoption of our three new product offerings, our enhanced reflex offering in OVA1+, our new decentralized platform aimed at large practices and our new ethnic disparity data.
Recent Corporate Developments and Upcoming Milestones
Q3 2018 Financial Results
Conference Call and Webcast
Vermillion's President and CEO, Valerie Palmieri, will host a call today to discuss results followed by a question and answer period at 4:30 p.m. Eastern Time.
Thursday, November 8th @ 4:30pm Eastern Time
Domestic:888-394-8218
International:323-701-0225
Conference ID:6438118
Replays, Available through November 22nd:
Domestic:844-512-2921
International:412-317-6671
About Vermillion, Inc.
Vermillion, Inc. is dedicated to the discovery; development and commercialization of novel high-value diagnostic and bio-analytical solutions that help physicians diagnose, treat and improve gynecologic health outcomes for women. Vermillion, along with its prestigious scientific collaborators, discovers, develops, and delivers innovative diagnostic and technology tools that help women with serious diseases. The company's initial in vitro diagnostic test, OVA1 (MIA), was the first FDA cleared, protein-based In Vitro Diagnostic Multivariate Index Assay, and represented a new class of software-based liquid biopsy in vitro diagnostics. In March 2016, Vermillion received FDA clearance for Overa , a Multivariate Index Assay 2nd Generation (MIA2G) test with significantly improved specificity and ease of use. Vermillion's tests are intended to characterize and stage disease, and to help guide decisions regarding patient treatment, which may include decisions to refer patients to specialists, to perform additional testing, or to assist in monitoring response to therapy.
Forward-Looking Statement
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements. Words such as may, expects, intends, anticipates, believes, estimates, plans, seeks, could, should, continue, will, potential, projects and similar expressions are intended to identify forward-looking statements. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including the risks and uncertainties inherent in Vermillion's business, including those described in the section entitled Risk Factors in Vermillion's Annual Report on Form 10-K for the year ended December 31, 2017 as supplemented by the section entitled Risk Factors in Vermillion's Quarterly Report on Form 10-Q for the quarter ended June 30, 2018.. The events and circumstances reflected in Vermillion's forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Vermillion expressly disclaims any obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this press release, except as required by law.
Investor Relations Contact:
LifeSci Advisors, LLC
Consolidated Balance Sheets
(Amounts in Thousands, Except Share and Par Value Amounts)
| September 30, | December 31, | ||||
| 2018 | 2017 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 11,760 | $ | 5,539 | |
| Accounts receivable, net | 656 | 205 | |||
| Prepaid expenses and other current assets | 242 | 459 | |||
| Inventories | 115 | 102 | |||
| Total current assets | 12,773 | 6,305 | |||
| Property and equipment, net | 701 | 1,181 | |||
| Other assets | - | 11 | |||
| Total assets | $ | 13,474 | $ | 7,497 | |
| Liabilities and Stockholders' Equity | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 495 | $ | 745 | |
| Accrued liabilities | 1,741 | 1,650 | |||
| Short-term debt | 188 | 185 | |||
| Other current liabilities | - | 29 | |||
| Total current liabilities | 2,424 | 2,609 | |||
| Non-current liabilities: | |||||
| Long-term debt | 1,340 | 1,481 | |||
| Total liabilities | 3,764 | 4,090 | |||
| Commitments and contingencies | |||||
| Stockholders' equity: | |||||
| Preferred stock, par value $0.001 per share, 5,000,000 shares authorized at | |||||
| September 30, 2018 and December 31, 2017; none issued and outstanding at | |||||
| September 30, 2018 and December 31, 2017 | - | - | |||
| Common stock, par value $0.001 per share, 150,000,000 shares authorized at | |||||
| September 30, 2018 and December 31, 2017; 75,382,684 and 60,036,017 shares | |||||
| issued and outstanding at September 30, 2018 and December 31, 2017, | |||||
| respectively | 75 | 60 | |||
| Additional paid-in capital | 413,739 | 399,400 | |||
| Accumulated deficit | (404,104) | (396,053) | |||
| Total stockholders' equity | 9,710 | 3,407 | |||
| Total liabilities and stockholders' equity | $ | 13,474 | $ | 7,497 |
Consolidated Statements of Operations
(Amounts in Thousands, Except Share and Per Share Amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||
| Revenue: | |||||||||||
| Product | $ | 739 | $ | 657 | $ | 1,979 | $ | 2,195 | |||
| Service | 35 | 42 | 152 | 128 | |||||||
| Total revenue | 774 | 699 | 2,131 | 2,323 | |||||||
| Cost of revenue: (1) | |||||||||||
| Product | 477 | 495 | 1,538 | 1,345 | |||||||
| Service | 301 | 284 | 851 | 855 | |||||||
| Total cost of revenue | 778 | 779 | 2,389 | 2,200 | |||||||
| Gross profit (loss) | (4) | (80) | (258) | 123 | |||||||
| Operating expenses: | |||||||||||
| Research and development (2) | 129 | 192 | 425 | 685 | |||||||
| Sales and marketing (3) | 1,343 | 1,050 | 4,046 | 3,114 | |||||||
| General and administrative (4) | 1,167 | 1,177 | 3,780 | 3,825 | |||||||
| Total operating expenses | 2,639 | 2,419 | 8,251 | 7,624 | |||||||
| Loss from operations | (2,643) | (2,499) | (8,509) | (7,501) | |||||||
| Interest income (expense), net | (6) | (10) | (25) | (32) | |||||||
| Other income (expense), net | (3) | - | (17) | (9) | |||||||
| Net loss | $ | (2,652) | $ | (2,509) | $ | (8,551) | $ | (7,542) | |||
| Deemed dividend on warrant repricing | - | (942) | - | (942) | |||||||
| Net loss attributable to common stockholders | $ | (2,652) | $ | (3,451) | $ | (8,551) | $ | (8,484) | |||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.04) | $ | (0.06) | $ | (0.13) | $ | (0.15) | |||
| Weighted average common shares used to compute basic and diluted net loss per common share | 75,306,074 | 57,455,786 | 68,288,216 | 55,909,788 | |||||||
| Non-cash stock-based compensation expense included in cost of revenue and operating expenses: | |||||||||||
| (1) Cost of revenue | $ | 35 | $ | 29 | $ | 93 | $ | 108 | |||
| (2) Research and development | 2 | 2 | 4 | 7 | |||||||
| (3) Sales and marketing | 14 | 38 | 85 | 115 | |||||||
| (4) General and administrative | 245 | 257 | 657 | 767 |