Full Press Release Details
iSpecimen Reports First Quarter 2024 Results
May 7, 2024 - 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-month period ended March 31, 2024.
"iSpecimen made tremendous progress during
the first quarter advancing our most promising operational initiative, Next Day Quotes, a program that expedites the biospecimen transaction
process, which has helped elevate our market position and is expected to contribute meaningfully to our growth in 2024 and beyond,"
said Tracy Curley, CEO of iSpecimen. "To transition our suppliers to Next Day Quotes, we have strategically refined our supplier
network, deeply aligning and effectively engaging with our strongest suppliers to maximize their operational capabilities, while terminating
relationships with suppliers unable to support the needs of our expanding customer base."
"In the first quarter of 2024, 40% of all
quotes provided to customers qualified as Next Day Quotes, compared to 34% in the fourth quarter of 2023 and 25% in the third quarter
of 2023. This favorable quarter-over-quarter increase in Next Day Quotes was directly correlated to growth across all of our business
lines. During the first quarter of 2024, 91% of prospective Next Day Quotes dollars converted to purchase orders, compared to 32% in the
fourth quarter of 2023. As we continue to refine and strengthen our supplier network, I am confident transitioning a majority of
our business into Next Day Quotes will result in stronger positioning for iSpecimen and result in greatly improved top- and bottom-line
results over time," concluded Ms. Curley.
First Quarter 2024 Highlights
Recent Corporate Updates
Financial Results for First Quarter 2024
For the quarter ended March 31, 2024, revenue
was approximately $2.29 million, compared to approximately $2.95 million for the quarter ended March 31, 2023. The reduction was
primarily due to a decrease of 3,388 specimens, or approximately 39%, in specimen count, from 8,629 specimens during the quarter ended
March 31, 2023 to 5,241 specimens during the quarter ended March 31, 2024. The effect of the decrease in specimen count was
partially offset by an increase in the average selling price per specimen by approximately $95, or approximately 28%, from $342 in the
first quarter of 2023 to approximately $437 in the first quarter of 2024.
For the quarter ended March 31, 2024, cost
of revenue decreased by approximately $147,000, or approximately 13%, to approximately $1 million, compared to approximately $1.15 million
for the quarter ended March 31, 2023. The decrease in cost of revenue was attributable to a 39% decrease in the number of specimens
accessioned for the current period, compared to the same period in the prior year, partially offset by a $58, or 44%, increase in the
average cost per specimen.
For the quarter ended March 31, 2024, general
and administrative expenses increased by approximately $286,000 or approximately 16%, to approximately $2.10 million, compared to approximately
$1.82 million for the quarter ended March 31, 2023. The increase was attributable to increases in professional fees of approximately
$329,000, taxes and insurance of approximately $267,000, and bad debt expense of approximately $45,000, which were partially offset by
decreases in compensation costs of approximately $250,000, general operating expenses of approximately $78,000, depreciation and amortization
of approximately $23,000, and utilities and facilities expenses of approximately $4,000.
For the quarter ended March 31, 2024, the
net loss was approximately $2.90 million, or ($0.32) per share, compared to a net loss of approximately $2.43 million, or ($0.27) per
share, for the same period the prior quarter.
As of March 31, 2024, cash and cash equivalents,
along with available-for-sale securities, were approximately $2.56 million, compared to approximately $5.01 million as of December 31,
2024, iSpecimen entered into an At the Market Offering Agreement, under which iSpecimen may issue and sell shares of its common
stock from time to time for an aggregate offering price of up to $1.5 million, which shares, when issued, will be registered pursuant
to its shelf registration statement. The Company may seek additional funding through public equity or other sources to fund further capital
investments or for general corporate purposes.
Conference Call and Webcast Information
The Company will host a conference call and audio
webcast on Tuesday, May 7, 2024, at 8:30 a.m. Eastern Time featuring remarks by Tracy Curley, CEO.
| Event: | iSpecimen First Quarter 2024 Results Conference Call |
| Date: | Tuesday, May 7, 2024 |
| Time: | 8:30 a.m. Eastern Time |
| Dial in: | 1-800-717-1738 (U.S. Toll Free) or 1-646-307-1865 (International) |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1666705&tp_key=0ac1c8e17f |
individuals unable to join the conference call, a replay will be available through May 21, 2024, 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: 1170104. An archived version
of the webcast will also be available on iSpecimen's Investor Relations site: https://investors.ispecimen.com/presentations/.
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:
KCSA Strategic Communications
Phil Carlson / Erika Kay
Condensed Balance Sheets
| March 31, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,089,891 | $ | 2,343,666 | ||||
| Available-for-sale securities | 466,493 | 2,661,932 | ||||||
| Accounts receivable - unbilled | 1,978,144 | 2,212,538 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $718,821 and $520,897 at March 31, 2024 and December 31, 2023, respectively | 437,424 | 728,388 | ||||||
| Prepaid expenses and other current assets | 313,999 | 292,079 | ||||||
| Total current assets | 5,285,951 | 8,238,603 | ||||||
| Property and equipment, net | 120,873 | 127,787 | ||||||
| Internally developed software, net | 6,065,770 | 6,323,034 | ||||||
| Other intangible assets, net | 860,366 | 908,255 | ||||||
| Operating lease right-of-use asset | 153,340 | 193,857 | ||||||
| Security deposits | 27,601 | 27,601 | ||||||
| Total assets | $ | 12,513,901 | $ | 15,819,137 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,560,474 | $ | 3,925,438 | ||||
| Accrued expenses | 1,710,815 | 1,540,607 | ||||||
| Operating lease current obligation | 156,703 | 167,114 | ||||||
| Deferred revenue | 272,681 | 415,771 | ||||||
| Total current liabilities | 5,700,673 | 6,048,930 | ||||||
| Operating lease long-term obligation | - | 29,130 | ||||||
| Total liabilities | 5,700,673 | 6,078,060 | ||||||
| Commitments and contingencies (See Note 8) | ||||||||
| Stockholders' equity | ||||||||
| Common stock, $0.0001 par value, 200,000,000 shares authorized, 9,501,112 issued and 9,470,112 outstanding at March 31, 2024 and 9,114,371 issued and 9,083,371 outstanding at December 31, 2023 | 947 | 908 | ||||||
| Additional paid-in capital | 69,079,341 | 69,104,313 | ||||||
| Treasury stock, 31,000 shares at March 31, 2024 and December 31, 2023, at cost | (172 | ) | (172 | ) | ||||
| Accumulated other comprehensive income | 41 | 840 | ||||||
| Accumulated deficit | (62,266,929 | ) | (59,364,812 | ) | ||||
| Total stockholders' equity | 6,813,228 | 9,741,077 | ||||||
| Total liabilities and stockholders' equity | $ | 12,513,901 | $ | 15,819,137 |
Condensed Statements of Operations and Comprehensive
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenue | $ | 2,289,993 | $ | 2,950,197 | ||||
| Operating expenses: | ||||||||
| Cost of revenue | 1,000,006 | 1,146,912 | ||||||
| Technology | 911,967 | 834,407 | ||||||
| Sales and marketing | 665,941 | 962,169 | ||||||
| Supply development | 197,839 | 275,246 | ||||||
| Fulfillment | 410,854 | 455,531 | ||||||
| General and administrative | 2,103,906 | 1,818,355 | ||||||
| Total operating expenses | 5,290,513 | 5,492,620 | ||||||
| Loss from operations | (3,000,520 | ) | (2,542,423 | ) | ||||
| Other income, net | ||||||||
| Interest expense | (4,465 | ) | (3,535 | ) | ||||
| Interest income | 30,498 | 114,263 | ||||||
| Other income (expense), net | 72,370 | (117 | ) | |||||
| Total other income, net | 98,403 | 110,611 | ||||||
| Net loss | $ | (2,902,117 | ) | $ | (2,431,812 | ) | ||
| Other comprehensive income (loss): | ||||||||
| Net loss | $ | (2,902,117 | ) | $ | (2,431,812 | ) | ||
| Unrealized gain (loss) on available-for-sale securities | (799 | ) | 18,843 | |||||
| Total other comprehensive income (loss) | (799 | ) | 18,843 | |||||
| Comprehensive loss | $ | (2,902,916 | ) | $ | (2,412,969 | ) | ||
| Net loss per share - basic and diluted | $ | (0.32 | ) | $ | (0.27 | ) | ||
| Weighted average shares of common stock outstanding - basic and diluted | 9,132,460 | 8,980,898 |