iSpecimen Reports Second Quarter 2023 Financial and Operating Results

iSpecimen Reports Second Quarter 2023 Financial

and Operating Results

LEXINGTON, Mass., August 2, 2023 -

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 six month periods ended June 30, 2023.

"In the second quarter we focused our efforts

on advancing key revenue enhancement opportunities that are complementary to our core business, including sequencing, embedded coordinators

and a reboot of our remnant line of business, as well as integrating new technologies to the iSpecimen Marketplace to enhance our capabilities

and meet increasing demand from our customers," said Tracy Curley, iSpecimen's CEO. "As we aim to create the most expansive

global biospecimen supply chain technology platform and marketplace, we are efficiently connecting researchers with healthcare providers

and meeting the specific needs of the evolving life science industry."

"While we pride ourselves on our ability

to offer, what we believe to be, the most advanced solution for biospecimen procurement, our financial results this quarter fell below

expectations. A reduction in purchase order requests, due to an industry-wide slowdown in funding to our life science research customer

base, contributed to lower quarterly revenues. However, our ability to pivot to launch several new initiatives

during the quarter to reinstate our expected levels of order fulfillment is proving successful as we have witnessed an increase in the

level of our backlog at the close of the second quarter. Given the increase in backlog, we believe the decrease in revenue for the second

quarter of 2023 represents a temporary downturn in our business. We have taken the required actions to address the industry-wide issues

impacting our regular course of business and we believe we are on track to produce stronger results for the third quarter of 2023 and

"Additionally, the implementation of our

technology rollouts supports our core business and revenue enhancement opportunities. We have completed our pilot run for our sequencing

project and are in the process of placing embedded project coordinators at supplier sites to expedite processing. As we continue to roll

out these new growth initiatives and more rapidly process orders from our growing supplier and customer base, we expect to build both

our top and bottom-line results," concluded Curley.

Q2 2023 Financial Results & Recent

Operational Highlights

Q2 2023 Corporate Events

Financial Results for the Three and Six Month

Periods Ended June 30, 2023

Revenue was approximately $1.63 million for the

second quarter of 2023, a decrease of 31%, compared to approximately $2.34 million for the second quarter of 2022. The reduction in revenue

was primarily due to a decrease of 2,322, or 33%, in specimen count from 7,004 specimens in the three months ended June 30, 2022

to 4,682 specimens in the three months ended June 30, 2023. The effect of the decrease in specimen count was offset by a change in

the specimen mix which caused the average selling price per specimen to increase by $13, or 4%, from approximately $334 in the three months

ended June 30, 2022 to $347 in the three months ended June 30, 2023.

six-month period ended June 30, 2023, we reported revenue of approximately $4.6 million, compared to approximately $4.9 million during

the same period last year. The decrease in revenue for the six-month period ended June 30, 2023, was attributable to a decrease in

average selling price per specimen of $64, or 16%, from approximately $407 in the six months ended June 30, 2022 to $343 in the six

months ended June 30, 2023. The decrease in average selling price per specimen was offset by an increase of 1,383, or 12%, in specimen

count from 11,928 specimens in the six months ended June 30, 2022 to 13,311 specimens in the six months ended June 30, 2023.

Cost of revenue decreased by approximately $146,000,

or 15%, from approximately $1.0 million in the second quarter of 2022 to approximately $854,000 for the second quarter of 2023, which

was attributable to a 33% decrease in the number of specimens accessioned for the current period compared to the same period in the prior

year, offset by a $40, or 28%, increase in the average cost per specimen.

Cost of revenue for the six-month period ended

June 30, 2023, was approximately $2 million compared to approximately $2.2 million for the same period in 2022, a decrease of 8%.

The six-month period decrease was attributable to a 17% decrease in the average cost per specimen impacted by the specimen mix, offset

by a 12% increase in the number of specimens accessioned during the six months ended June 30, 2023, over the same period in the prior

General and administrative expenses for the three

months ended June 30, 2023, increased by $183,000, to approximately $1.8 million or 12%, compared to approximately $1.6 million for

the same period in the prior year. For the six-month period ended June 30, 2023, general and administrative expenses increased by

$100,000, to approximately $3.5 million or 3%, compared to approximately $3.4 million during the same period in the prior year.

Net loss was approximately $3.5 million, or $(0.39)

per share, for the second quarter of 2023, compared to a net loss of approximately $2.6 million, or $(0.30) per share, for the second

quarter of 2022. Net loss was approximately $5.9 million, or $(0.66) per share, for the first six months of 2023, compared to a net loss

of approximately $5.0 million, or $(0.57) per share, for the first six months of 2022.

As of June 30, 2023, iSpecimen had approximately

$2.0 million in cash and cash equivalents and approximately $6.2 million in available-for-sale securities, with the sum of both classifications

totaling approximately $8.2 million, compared to cash of approximately $15.3 million as of December 31, 2022. This decrease was primarily

the result of an increased spend for operating expenses of approximately $4.7 million and investments in technology of approximately $2.7

million offset by increased conversions of accounts receivable to cash of approximately $300,000 during the first half of 2023.

For more information on our financial results

and other information relating to iSpecimen for the second quarter of 2023, including the Company's unaudited financial statements

for the three-month period ended June 30, 2023, please see the Company's Report on Form 10-Q for the Quarterly Period

ended June 30, 2023, which will be filed with the Securities and Exchange Commission ("SEC") on its Edgar database on

today, August 2, 2023.

Conference Call and Webcast Information

The Company will host a conference call and audio webcast today, August 2,

2023 at 8:30 a.m. Eastern Time featuring remarks by Tracy Curley, CEO.

For interested individuals unable to join the conference call, a replay

will be available through August 16, 2023, 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: 10180082. An archived version of the webcast will also be available on

iSpecimen's Investor Relations site: https://investors.ispecimen.com/presentations/.

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" and "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 SEC, 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