Interpace Biosciences, Inc. (“Interpace” or the “Company”) (OTCQX:
IDXG) today announced financial results for the fiscal quarter
ended September 30, 2021 and provided a business and financial
update.
“2021 has been a dynamic and meaningful year in
the evolution of Interpace,” said Thomas Burnell, President and
CEO. “Without the hard work, dedication and commitment of our
nearly 140 employees, the loyalty of our customers and the patients
they serve, and the support of our investors and financial
partners, our Company would not be where it is today.”
“We are incredibly excited to partner with
Comerica Bank and BroadOak Capital during this transformative
period for Interpace Biosciences. The $7.5 million credit facility
with Comerica provides the Company with working capital flexibility
for our fourth quarter and onward into Fiscal 2022. The term loan
with BroadOak allowed us to repay the bridge loan generously
provided by our private equity partners, Ampersand Capital and 1315
Capital, to meet our financing needs earlier this year,” continued
Mr. Burnell.
“In addition, I am pleased to announce that the
Company has executed a non-binding Term Sheet with 3K Limited
Partnership to enter into a standby purchase agreement whereby 3K
will backstop an approximate $30 million Rights Offering by the
Company. We believe this Rights Offering will be a cost-effective
method to raise capital while allowing existing shareholders to
maintain their proportional ownership in the Company and will be
the catalyst driving both internal and external growth as it is our
goal to achieve an annualized run rate of $100 million in revenue
in 2023,” stated Mr. Burnell.
“We are extremely pleased with the performance
of our diagnostic services through the third quarter of 2021.
Overall, we experienced significant revenue and gross profit growth
while reducing operating expenses as a percentage of revenue,”
stated Tom Freeburg, CFO of Interpace. “We focused on and
significantly improved our billing and cash collection processes
over the last twelve months. This focus resulted in record cash
collections for the second consecutive quarter and allowed us to
repay our 2020 COVID Medicare advance months ahead of schedule.
While our pharma services volume experienced a decline, we believe
the investments made earlier this year in our North Carolina lab
will result in improved operating results going into 2022,”
continued Mr. Freeburg.
Third Quarter and Year to Date 2021
Financial Performance
For the Third Quarter of 2021 as Compared to the
Third Quarter of 2020
|
● |
Net Revenue was $9.5 million, an increase of 15% versus the prior
year quarter. The increase in Net Revenue was driven by increased
reimbursement rates and clinical services volume, partially offset
by a decrease in pharma services revenue. |
|
|
|
|
● |
Gross Profit percentage was 38%, compared to 37% for the prior
year, a 100 basis-point improvement year over year. The Gross
Profit improvement can be attributed to the increased reimbursement
rates as well as a greater mix of proprietary molecular tests. |
|
|
|
|
● |
Loss from Continuing Operations was $(3.5) million vs $(6.2)
million in the prior year quarter. Net loss was $(3.6) million
compared to $(6.2) million in the prior year quarter. |
|
● |
Adjusted EBITDA was $(1.8) million as compared to $(2.9) million
for the prior year. The improvement is primarily attributable to
the $2.7 million lower Loss from Continuing Operations, partially
offset by a tax provision and lower non-recurring transition and
legal expenses. |
|
|
|
|
● |
For the second consecutive quarter, cash collections outpaced
revenue, totaling $10.4 million. Days Sales Outstanding (DSO) has
decreased 48% year over year, to 59 days. |
For the Nine Months Ended September 30, 2021 as
Compared to the Nine Months Ended September 30, 2020
|
● |
Net Revenue was $30.5 million for the first nine months of 2021, a
34% improvement over the prior year period, which was significantly
impacted by the Coronavirus pandemic. The increase in Net Revenue
was driven by increased reimbursement rates and clinical services
volume, partially offset by a decrease in pharma services
revenue. |
|
● |
Gross Profit percentage was 44% compared to 33% for the first nine
months of 2020, driven by higher volume and improvements in
reimbursement rates as well as a change in the gross profit
mix. |
|
|
|
|
● |
Loss from Continuing Operations was $(11.0) million vs $(18.1)
million in the prior year period, an improvement of $7.1
million. |
|
|
|
|
● |
Adjusted EBITDA was $(3.0) million vs $(11.3) million in the prior
year period. The improvement is primarily attributable to the $7.1
million lower Loss from Continuing Operations and $1.7 million
increase in Transition expenses, both in the current period. The
Transition expenses are related to the Rutherford, NJ lab closing
and subsequent move to North Carolina, as well as other cost saving
initiatives, primarily reductions in headcount, all of which are
considered non-recurring in nature. Adjusted EBITDA was $(7.7)
million in the Fiscal 2019 period. |
|
|
|
|
● |
December 31, 2020 cash balance was $2.8 million, net of restricted
cash. September 30, 2021 cash balance was $3.2 million, net of
restricted cash. |
Recent Highlights
|
● |
In October 2021, we announced the company has entered into a $7.5
Million revolving credit facility with Comerica Bank (the “Bank”).
The facility matures on September 30, 2023 and allows for advances
based on 80% of eligible accounts receivable plus an applicable
non-formula amount consisting of $2 million of additional
availability at close, stepping down $250,000 per quarter beginning
with the quarter ended June 30, 2022. |
|
|
|
|
● |
In October 2021, we announced that on September 14, 2021, the
United States Patent and Trademark Office granted us a Patent (U.S.
PTO Number 11,118,231 B2) for the use of microRNAs for
distinguishing benign from malignant thyroid neoplasms. This patent
covers the underlying technology of our ThyraMIR® microRNA
Classifier. |
|
|
|
|
● |
In October 2021, we announced that on October 12, 2021, the United
States Patent and Trademark Office granted us a US Patent
(11,143,657) titled: Topographic genotyping for determining the
diagnosis, malignant potential, and biologic behavior of pancreatic
cysts and related conditions. The patent covers the underlying
technology used in PancraGEN®, our flagship product for risk
stratification of Pancreatic cysts. |
|
● |
In November 2021, we announced that we entered into a new $8
million term loan with BroadOak Fund V, L.P. The proceeds of the
BroadOak Loan were used to repay principal and interest on the $7.5
million short-term promissory notes due to the Company’s two
private equity stockholders, Ampersand 2018 Limited Partnership and
1315 Capital II, L.P. The BroadOak Loan was designed to extend the
Company’s debt structure and increase operating flexibility. In
combination with the recently announced $7.5 million revolving
credit facility with Comerica Bank, the Company believes it has
significantly improved its liquidity without equity dilution to
shareholders. |
|
|
|
|
● |
During the third quarter, the Company expanded commercial payor
coverage of its proprietary Thyroid tests adding five new
in-network contracts, as well as renegotiating two other contracts.
With the contracts added earlier in the year, Interpace now has
contracts with 54 commercial payors. |
|
|
|
Rights Offering
The Company intends to file a Registration
Statement on Form S-1 with the Securities and Exchange Commission
with respect to the Rights Offering. The proposed Rights Offering
is subject to market and other conditions, including the
effectiveness of the Registration Statement when filed. This
announcement is being made pursuant to, and in accordance with,
Rule 135 under the Securities Act of 1933, as amended (the
“Securities Act”), and shall not constitute an offer to sell, or
the solicitation of an offer to buy, any securities. Any offers,
solicitations or offers to buy, or any sales of securities will be
made in accordance with the registration requirements of the
Securities Act.
About Interpace Biosciences
Interpace Biosciences is an emerging leader in
enabling personalized medicine, offering specialized services along
the therapeutic value chain from early diagnosis and prognostic
planning to targeted therapeutic applications.
Clinical services, through Interpace
Diagnostics, provides clinically useful molecular diagnostic tests,
bioinformatics and pathology services for evaluating risk of cancer
by leveraging the latest technology in personalized medicine for
improved patient diagnosis and management. Interpace has five
commercialized molecular tests and one test in a clinical
evaluation program (CEP): PancraGEN® for the diagnosis and
prognosis of pancreatic cancer from pancreatic cysts; PanDNA, a
“molecular only” version of PancraGEN® that provides physicians a
snapshot of a limited number of factors; ThyGeNEXT® for the
diagnosis of thyroid cancer from thyroid nodules utilizing a next
generation sequencing assay; ThyraMIR® for the diagnosis of thyroid
cancer from thyroid nodules utilizing a proprietary gene expression
assay; and RespriDX® that differentiates lung cancer of primary
versus metastatic origin. In addition, BarreGEN®, a molecular based
assay that helps resolve the risk of progression of Barrett’s
Esophagus to esophageal cancer, is currently in a clinical
evaluation program (CEP) whereby we gather information from
physicians using BarreGEN® to assist us in gathering clinical
evidence relative to the safety and performance of the test and
also providing data that will potentially support payer
reimbursement.
Pharma services, through Interpace Pharma
Solutions, provides pharmacogenomics testing, genotyping,
biorepository and other customized services to the pharmaceutical
and biotech industries. Pharma services also advances personalized
medicine by partnering with pharmaceutical, academic, and
technology leaders to effectively integrate pharmacogenomics into
their drug development and clinical trial programs with the goals
of delivering safer, more effective drugs to market more quickly,
while also improving patient care.
For more information, please visit Interpace
Biosciences’ website at www.interpace.com.
Forward-looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934 and the
Private Securities Litigation Reform Act of 1995, relating to the
Company’s future financial and operating performance. The Company
has attempted to identify forward looking statements by terminology
including “believes,” “estimates,” “anticipates,” “expects,”
“plans,” “projects,” “intends,” “potential,” “may,” “could,”
“might,” “will,” “should,” “approximately” or other words that
convey uncertainty of future events or outcomes to identify these
forward-looking statements. These statements are based on current
expectations, assumptions and uncertainties involving judgments
about, among other things, future economic, competitive and market
conditions and future business decisions, all of which are
difficult or impossible to predict accurately and many of which are
beyond the Company’s control. These statements also involve known
and unknown risks, uncertainties and other factors that may cause
the Company’s actual results to be materially different from those
expressed or implied by any forward-looking statements including,
but not limited to, the adverse impact of the COVID-19 pandemic on
the Company’s operations and revenues, the possibility that the
Company’s estimates of future revenue, cash flows and adjusted
EBITDA may prove to be materially inaccurate, the Company’s history
of operating losses, the Company’s ability to adequately finance
its business, the Company’s ability to repay borrowings under its
$7.5M credit facility with Comerica Bank and its $8M term loan with
BroadOak, the Company’s dependence on sales and reimbursements from
its clinical services, the Company’s ability to retain or secure
reimbursement including its reliance on third parties to process
and transmit claims to payers and the adverse impact of any delay,
data loss, or other disruption in processing or transmitting such
claims, and the Company’s revenue recognition being based in part
on estimates for future collections which estimates may prove to be
incorrect. Additionally, all forward-looking statements are subject
to the “Risk Factors” detailed from time to time in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2020, as amended, , Current Reports on Form 8-K and Quarterly
Reports on Form 10-Q filed with the Securities and Exchange
Commission. Because of these and other risks, uncertainties and
assumptions, undue reliance should not be placed on these
forward-looking statements. In addition, these statements speak
only as of the date of this press release and, except as may be
required by law, the Company undertakes no obligation to revise or
update publicly any forward-looking statements for any reason.
Contacts:
Investor RelationsInterpace Biosciences,
Inc.(855)-776-6419Info@Interpace.com
INTERPACE BIOSCIENCES,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited, in thousands, except per
share data)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, net |
|
$ |
9,472 |
|
|
$ |
8,248 |
|
|
$ |
30,461 |
|
|
$ |
22,752 |
|
Cost of revenue |
|
|
5,848 |
|
|
|
5,194 |
|
|
|
16,965 |
|
|
|
15,156 |
|
Gross Profit |
|
|
3,624 |
|
|
|
3,054 |
|
|
|
13,496 |
|
|
|
7,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
2,456 |
|
|
|
2,699 |
|
|
|
7,585 |
|
|
|
6,776 |
|
Research and development |
|
|
416 |
|
|
|
763 |
|
|
|
1,475 |
|
|
|
2,123 |
|
General and
administrative |
|
|
3,278 |
|
|
|
3,795 |
|
|
|
9,582 |
|
|
|
12,683 |
|
Transition expenses |
|
|
363 |
|
|
|
687 |
|
|
|
2,474 |
|
|
|
798 |
|
Gain on DiamiR
transaction |
|
|
- |
|
|
|
- |
|
|
|
(235 |
) |
|
|
- |
|
Acquisition amortization
expense |
|
|
1,112 |
|
|
|
1,115 |
|
|
|
3,336 |
|
|
|
3,346 |
|
Total operating expenses |
|
|
7,625 |
|
|
|
9,059 |
|
|
|
24,217 |
|
|
|
25,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(4,001 |
) |
|
|
(6,005 |
) |
|
|
(10,721 |
) |
|
|
(18,130 |
) |
Interest accretion
expense |
|
|
(106 |
) |
|
|
(138 |
) |
|
|
(375 |
) |
|
|
(414 |
) |
Related party interest |
|
|
(151 |
) |
|
|
- |
|
|
|
(372 |
) |
|
|
- |
|
Other income (expense),
net |
|
|
45 |
|
|
|
(12 |
) |
|
|
(255 |
) |
|
|
473 |
|
Loss from continuing operations before tax |
|
|
(4,213 |
) |
|
|
(6,155 |
) |
|
|
(11,723 |
) |
|
|
(18,071 |
) |
(Benefit) provision for income
taxes |
|
|
(714 |
) |
|
|
14 |
|
|
|
(684 |
) |
|
|
43 |
|
Loss from continuing operations |
|
|
(3,499 |
) |
|
|
(6,169 |
) |
|
|
(11,039 |
) |
|
|
(18,114 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax |
|
|
(62 |
) |
|
|
(65 |
) |
|
|
(175 |
) |
|
|
(194 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(3,561 |
) |
|
|
(6,234 |
) |
|
|
(11,214 |
) |
|
|
(18,308 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less adjustment for preferred
stock deemed dividend |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,033 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders |
|
$ |
(3,561 |
) |
|
$ |
(6,234 |
) |
|
$ |
(11,214 |
) |
|
$ |
(21,341 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per
share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations |
|
$ |
(0.84 |
) |
|
$ |
(1.53 |
) |
|
$ |
(2.68 |
) |
|
$ |
(5.25 |
) |
From discontinued operations |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
(0.05 |
) |
Net loss per basic share of common stock |
|
$ |
(0.85 |
) |
|
$ |
(1.54 |
) |
|
$ |
(2.72 |
) |
|
$ |
(5.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares and common share equivalents outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
4,165 |
|
|
|
4,038 |
|
|
|
4,119 |
|
|
|
4,025 |
|
Diluted |
|
|
4,165 |
|
|
|
4,038 |
|
|
|
4,119 |
|
|
|
4,025 |
|
Selected
Balance Sheet Data |
($ in
thousands) |
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
|
December 31, |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
(Unaudited) |
|
|
|
|
|
Cash, cash equivalents and restricted cash |
|
$ |
3,430 |
|
|
$ |
3,372 |
|
|
|
|
|
|
|
|
|
|
Total
current assets |
|
|
13,083 |
|
|
|
14,122 |
|
Total
current liabilities |
|
|
22,836 |
|
|
|
18,233 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
40,307 |
|
|
|
45,681 |
|
Total
liabilities |
|
|
32,419 |
|
|
|
28,228 |
|
Total
stockholders' deficit |
|
|
(38,648 |
) |
|
|
(29,083 |
) |
Selected Cash Flow Data
(Unaudited)
($ in thousands)
|
|
For the Nine Months Ended |
|
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
Net loss |
|
$ |
(11,214 |
) |
|
$ |
(18,308 |
) |
|
|
|
|
|
|
|
|
|
Net cash used in operating
activities |
|
$ |
(7,501 |
) |
|
$ |
(12,395 |
) |
Net cash used in investing
activities |
|
|
(153 |
) |
|
|
(1,275 |
) |
Net cash provided by financing
activities |
|
|
7,712 |
|
|
|
16,657 |
|
Change in cash, cash
equivalents and restricted cash |
|
|
58 |
|
|
|
2,987 |
|
Cash, cash equivalents and
restricted cash – beginning |
|
|
3,372 |
|
|
|
2,321 |
|
Cash, cash equivalents and
restricted cash – ending |
|
$ |
3,430 |
|
|
$ |
5,308 |
|
Reconciliation of Adjusted EBITDA
(Unaudited)($ in thousands)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Loss from continuing
operations (GAAP Basis) |
|
$ |
(3,499 |
) |
|
$ |
(6,169 |
) |
|
$ |
(11,039 |
) |
|
$ |
(18,114 |
) |
Bad debt (recovery)
expense |
|
|
- |
|
|
|
- |
|
|
|
(140 |
) |
|
|
250 |
|
Receipt of HHS stimulus
grant |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(650 |
) |
Transition expenses |
|
|
363 |
|
|
|
687 |
|
|
|
2,474 |
|
|
|
798 |
|
Legal and professional
services |
|
|
- |
|
|
|
495 |
|
|
|
- |
|
|
|
495 |
|
Depreciation and
amortization |
|
|
1,407 |
|
|
|
1,394 |
|
|
|
4,350 |
|
|
|
4,102 |
|
Stock-based compensation |
|
|
477 |
|
|
|
563 |
|
|
|
1,314 |
|
|
|
1,381 |
|
Taxes |
|
|
(714 |
) |
|
|
14 |
|
|
|
(684 |
) |
|
|
43 |
|
Financing interest and related
costs |
|
|
174 |
|
|
|
- |
|
|
|
482 |
|
|
|
- |
|
Interest accretion
expense |
|
|
106 |
|
|
|
138 |
|
|
|
375 |
|
|
|
414 |
|
Gain on DiamiR
transaction |
|
|
- |
|
|
|
- |
|
|
|
(235 |
) |
|
|
- |
|
Mark to market on warrant
liability |
|
|
(71 |
) |
|
|
(13 |
) |
|
|
137 |
|
|
|
(62 |
) |
Change in fair value of
contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
(57 |
) |
|
|
- |
|
Adjusted EBITDA |
|
$ |
(1,757 |
) |
|
$ |
(2,891 |
) |
|
$ |
(3,023 |
) |
|
$ |
(11,343 |
) |
Non-GAAP Financial Measures
In addition to the United States generally
accepted accounting principles, or GAAP, results provided
throughout this document, we have provided certain non-GAAP
financial measures to help evaluate the results of our performance.
We believe that these non-GAAP financial measures, when presented
in conjunction with comparable GAAP financial measures, are useful
to both management and investors in analyzing our ongoing business
and operating performance. We believe that providing the non-GAAP
information to investors, in addition to the GAAP presentation,
allows investors to view our financial results in the way that
management views financial results.
In this document, we discuss Adjusted EBITDA, a
non-GAAP financial measure. Adjusted EBITDA is a metric used by
management to measure cash flow of the ongoing business. Adjusted
EBITDA is defined as income or loss from continuing operations,
plus depreciation and amortization, acquisition related expenses,
transition expenses, non-cash stock based compensation and ESPP
plans, interest and taxes, and other non-cash expenses including
asset impairment costs, bad debt expense, receipt of stimulus
grants, loss on extinguishment of debt, goodwill impairment and
change in fair value of contingent consideration, and warrant
liability. The table above includes a reconciliation of this
non-GAAP financial measure to the most directly comparable GAAP
financial measure.
Interpace Biosciences (NASDAQ:IDXG)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Interpace Biosciences (NASDAQ:IDXG)
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De Jun 2023 a Jun 2024