8-K
iSpecimen Inc. (ISPC)
View as plain text
UNITED STATES
SECURITIES AND EXCHANGECOMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Dateof earliest event reported): March 14, 2023
iSpecimen
Inc.
(Exact name of registrantas specified in its charter)
| Delaware | 001-40501 | 27-0480143 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 450 Bedford Street Lexington , MA 02420 | ||
| --- | ||
| (Address of principal executive offices, including zip code) |
Registrant’s telephone
number, including area code: (781
) 301-6700
Not Applicable
(Former name or formeraddress, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications<br> pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant<br> to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement communications<br> pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement communications<br> pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.0001 per share | ISPC | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On March 14, 2023, iSpecimen Inc., a Delaware corporation (the “Company”), issued a press release (“Earnings Release”) announcing its financial and operating results for the fiscal year ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this Current Report. You are advised that financial information in the Earnings Release for the fiscal year ended December 31, 2022, reflects unaudited results for the applicable period. The Company’s financial statements for the fiscal year ended December 31, 2022, may be subject to adjustments between the date of the Earnings Release and the completion of the audit, and the financial information in the Company’s audited financial statements, when available, may differ from the information provided in the Earnings Release for that period. The Company intends to file its audited financial statements for the fiscal year ended December 31, 2022 with its 2022 Annual Report on Form 10-K on or before March 21, 2023.
The Earnings Release contains certain statements and information that speak to the Company’s expectations or predictions of the future. These statements and information may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such forward-looking statements are subject to risks and uncertainties, many of which are beyond the Company’s control, which could cause the Company’s actual results to differ materially from those expressed in or implied by these statements. Please see the Company’s disclosures regarding risk factors and forward-looking statements in its filings with the Securities and Exchange Commission (the “SEC”) (including Current Reports on Form 8-K, Quarterly Reports on Form 10-Q, and Annual Report on Form 10-K) for a discussion of the known material factors that could cause the Company’s actual results to differ materially from those indicated or implied by such forward-looking statements.
The information in this Item 2.02 and Exhibit 99.1 attached hereto will not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section, nor will it be incorporated by reference in any filing under the Securities Act, or the Exchange Act, except as expressly set forth by specific reference in such filing.
| Item 7.01. | Regulation FD Disclosure. |
|---|
The Company held a conference call on March 14, 2023 (“Earnings Call”) in which it discussed its fiscal year 2022 results. During the Earnings Call, the Company provided an investor presentation, dated March 2023 (the “Presentation”), which is attached hereto as Exhibit 99.2 and incorporated by reference herein. The Presentation has also been posted on the Company’s website and can be accessed at https://investors.ispecimen.com/. The Company expressly disclaims any obligation to update the Presentation or any other information posted on or available through its website, and cautions that the information set forth therein is only accurate as of the date indicated on such materials. The inclusion of any data or statements in the Presentation (or available on or through the Company’s website) does not signify that such information is considered material.
The information in this Item 7.01 and Exhibit 99.2 attached hereto will not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor will it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
Forward-Looking Statement
This Current Report on Form 8-K may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. 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. Such statements are only predictions and the Company’s actual results may differ materially from those anticipated in these forward-looking statements.
There may be events in the future that the Company is not able to accurately predict or control. Factors that may cause such differences include, but are not limited to, those discussed under risk factors in the Company’s registration statement and other filings filed with the SEC, including the uncertainties associated with the Company’s lack of profitability, its continued capital needs, its lack of a long operating history, its growth strategy, the COVID-19 pandemic and its continued impact on the business, its technology development plans, and the regulatory environment in which it operates. Forward-looking statements speak only as of the date they are made. The Company does not assume any obligation to update forward-looking statements as circumstances change. The Company gives no assurance that it will achieve its expectations.
You may access the Company’s SEC filings by visiting SEC’s website at http://www.sec.gov. This Current Report does not constitute an offer or invitation for the sale or purchase of securities or to engage in any other transaction with the Company or its affiliates. The information in this Current Report is not targeted at the residents of any particular country or jurisdiction and is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.
| Item 9.01. | Financial Statements and Exhibits. |
|---|---|
| (d) | Exhibits. |
| --- | --- |
| 99.1 | Press Release,<br> dated March 14, 2023. |
| --- | --- |
| 99.2 | Investor Presentation,<br> dated March 2023. |
| 104 | Cover Page Interactive<br> Data File |
Portions of this report mayconstitute “forward-looking statements” as defined by federal law. Although the Company believes any such statements are basedon reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issuesthat could lead to material changes in the Company’s performance is contained in the Company’s filings with the SEC.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: March 14, 2023
| iSPECIMEN INC. | |
|---|---|
| By: | /s/ Tracy Curley |
| Name: Tracy Curley | |
| Title: Chief Executive Officer |
Exhibit 99.1
iSpecimen ReportsFull Year 2022 Results
- Reported RecordQuarterly Revenue of $3.2 Million, Up 28% Year-Over-Year -
LEXINGTON, MA, March 14, 2023– iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists in need of biospecimens for medical research with a network of healthcare specimen providers, today reported its financial and operating results for the twelve-month period ended December 31, 2022.
“At the beginning of the fourth quarter of 2022, I stepped into the role of interim CEO, and together with the Board, undertook an in depth review of iSpecimen’s operations. Based on our initial findings, the team quickly implemented several improvements that we believe contributed to our record revenue of $3.2 million for the fourth quarter of 2022, up 28% year-over-year,” said Tracy Curley, CEO and CFO. “Throughout the remainder of the quarter and into 2023, we continued with our strategic corporate review, in which we discovered a significant imbalance within our supplier network, specifically, high levels of utilization across a small subsection of suppliers. Today, I am pleased to report that with several initiatives underway by our site development department, we are gaining a much better understanding of our suppliers and their capabilities. Armed with this information, I am confident that during 2023 we will be able to materially increase our supplier utilization rates, which will allow us to increase fulfullment and ultimately result in increased revenue opportunities in 2023 and beyond.”
“In 2023 we plan to have a record level of investment in our technology, demonstrating continued commitment to our vision of our online marketplace to be transformational in our industry. Additionally, we are excited by the progress of several revenue enhancement projects, in areas that include sequencing, remnants and normal blood, as well as new initiatives with suppliers to facilitate improved coordination and utilization. We will continue to invest where necessary throughout 2023 to accelerate these revenue growth initiatives. We look forward to keeping the investment community apprised as we continue to improve our operations,” concluded Ms. Curley.
Financial &Operational Highlights
| · | Revenue<br> increased 28% to $3.2 million for Q4 2022, compared to $2.5 million for Q4 2021. |
|---|---|
| · | Unique<br> supplier organizations under agreement were 217 as of December 31, 2022. |
| · | Unique<br> customer organizations who have purchased from iSpecimen totaled 513 as of December 31,<br> 2022, an increase of 24% from 415 at the end of 2021. |
| · | iSpecimen<br> Marketplace had nearly 6,703 registered research and supplier users as of December 31,<br> 2022, up 29% over Q4 2021. |
Recent CorporateUpdates
| · | Launched<br> the new self-service Open Feasibilities Dashboard on iSpecimen Marketplace®, allowing<br> supplier partners to review potential future research projects at any time and initiate their<br> interest by submitting a proposal |
|---|---|
| · | Appointed<br> Joseph J. Basile to Board of Directors. Mr. Basile is a sought-after strategic advisor,<br> an accomplished business leader, a skilled negotiator, a trained mediator and a recognized<br> expert in M&A, restructuring and governance. |
| · | Named<br> Tracy Curley as permanent Chief Executive Officer. Ms. Curley was previously appointed<br> Interim CEO in September 2022. |
| · | Appointed<br> Eric Langlois as Chief Revenue Officer. Mr. Langlois will manage a restructured commercial<br> team aimed at executing on Company initiatives. |
| · | Added<br> and onboarded seven new biospecimen providers to the iSpecimen Marketplace®, for both<br> banked and prospectively collected specimens. These new suppliers will allow iSpecimen to<br> improve global access to vital biospecimens and data needed to help advance research in oncology,<br> autoimmune diseases, infectious diseases, cardiovascular diseases and more. |
|---|---|
| · | Named<br>to Fast Company‘s annual list of the World’s Most Innovative Companies as part of the biotech category for 2023. |
Financial Resultsfor the Full Year 2022
Revenue for the full year 2022 was approximately $10.4 million, compared to approximately $11.1 million for the full year 2021. The reduction in revenue year-to-year was primarily due to a decrease in COVID revenue, which was partiall offset by an increase in non-COVID revenue.
Cost of revenue was approximately $4.8 million for the full year 2022, compared to approximately $5.2 million for the full year 2021. The decrease was primarily attributable to the 31% decrease in average cost per specimen from $252 for the year ended December 31, 2021 to $173 for the year ended December 31, 2022.
General and administrative expenses were approximately $6.9 million for the full year 2022, compared to approximately $5.6 million for the full year 2021. The increase was primarily attributable to increases in executive severance costs, payroll and related expenses, taxes and insurance, software and subscriptions costs, utilities and facilities expenses, marketing and advertising costs, other general expenses, offset by decreases in bad debt and depreciation and amortization expenses.
Net loss was approximately $10.2 million, or $(1.16) per share, for the full year 2022, compared to net loss of approximately $9.0 million, or $(2.09) per share, for the full year 2021.
Cash was approximately $15.3 million as of December 31, 2022, compared to approximately $27.7 million as of December 31, 2021. Average cash burn per quarter for 2022 was $2.2 million, excluding a loan repayment of $3.5 million.
*The financial information presented in this press release is based on preliminary unaudited financial statements prepared by management, for the year ended December 31, 2022, and is fully qualified by the section in this press release entitled ‘Disclaimer Regarding Financial Information.’
Conference Calland Webcast Information
The Company will host a conference call and audio webcast today, March 14, 2023 at 8:30 a.m. Eastern Time featuring remarks by Tracy Curley, CEO.
| Event: | iSpecimen<br> Full Year 2022 Results Conference Call |
|---|---|
| Date: | Tuesday,<br> March 14, 2023 |
| Time: | 8:30<br> a.m. Eastern Time |
| Live Call: | +1-844-826-3033<br> (U.S. Toll Free) or +1-412-317-5185 (International) |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1597531&tp_key=8e160f088e |
For interested individuals unable to join the conference call, a replay will be available through March 28, 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: 10175632. An archived version of the webcast will also be available on iSpecimen’s Investor Relations site: https://investors.ispecimen.com/presentations/.
About iSpecimen
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 risks factors contained in the Company's filings with the 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 do not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Disclaimer Regarding Financial Information
The financial information presented in this press release is based on preliminary, unaudited financial statements prepared by management, for the year ended December 31, 2022. Accordingly, such financial information may be subject to change. All information contained in this press release will be qualified with reference to the audited financial results for the year ended December 31, 2022, which will be released on or before March 21, 2023, and will be posted on www.sec.gov. While the Company does not expect there to be any material changes to the financial information provided in this press release, any variation between the Company’s actual results and the preliminary financial information set forth herein may be material.
For further information, please contact:
Investor Contact
KCSA Strategic Communications
Allison Soss
iSpecimen@kcsa.com
Media Contacts
KCSA Strategic Communications
Raquel Cona / Shana Marino
iSpecimen@kcsa.com
iSpecimen Inc.
Condensed BalanceSheets
| December 31, | |||||
|---|---|---|---|---|---|
| 2021 | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash | 15,308,710 | $ | 27,738,979 | ||
| Accounts receivable - unbilled | 2,327,789 | 1,739,020 | |||
| Accounts receivable, net of allowance for doubtful accounts of 230,999 and 269,170 at December 31, 2022 and 2021, respectively | 1,597,915 | 3,002,442 | |||
| Prepaid expenses and other current assets | 300,434 | 327,035 | |||
| Tax credit receivable, current portion | 140,873 | 140,873 | |||
| Total current assets | 19,675,721 | 32,948,349 | |||
| Property and equipment, net | 225,852 | 32,781 | |||
| Internally developed software, net | 4,503,787 | 2,710,867 | |||
| Operating lease right-of-use asset | 184,692 | — | |||
| Security deposits | 27,601 | 27,601 | |||
| Total assets | 24,617,653 | $ | 35,719,598 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | 2,459,063 | $ | 832,678 | ||
| Accrued expenses | 1,531,238 | 1,009,803 | |||
| Accrued interest | — | 8,167 | |||
| Operating lease - current obligation | 158,451 | — | |||
| Deferred revenue | 132,335 | 654,746 | |||
| Total current liabilities | 4,281,087 | 2,505,394 | |||
| Operating lease long - term obligation | 27,396 | — | |||
| Term loan | — | 3,422,616 | |||
| Total liabilities | 4,308,483 | 5,928,010 | |||
| Commitments and contingencies (See Note 8) | |||||
| Stockholders’ equity | |||||
| Common stock, 0.0001 par value, 200,000,000 shares authorized, 8,956,808 issued and 8,925,808 outstanding at December 31, 2022, and 8,764,479 issued and 8,733,479 outstanding at December 31, 2021 | 892 | 873 | |||
| Additional paid-in capital | 68,573,774 | 67,810,289 | |||
| Treasury stock, 31,000 shares at December 31, 2022 and 2021, at cost | (172 | ) | (172 | ) | |
| Accumulated deficit | (48,265,324 | ) | (38,019,402 | ) | |
| Total stockholders’ equity | 20,309,170 | 29,791,588 | |||
| Total liabilities and stockholders’ equity | 24,617,653 | $ | 35,719,598 |
All values are in US Dollars.
iSpecimen Inc.
Condensed Statementsof Operations
| Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| Unaudited | ||||||
| Revenue | $ | 10,402,303 | $ | 11,135,303 | ||
| Operating expenses: | ||||||
| Cost of revenue | 4,756,965 | 5,249,013 | ||||
| Technology | 2,656,287 | 1,837,882 | ||||
| Sales and marketing | 3,445,344 | 2,422,743 | ||||
| Supply development | 801,125 | 573,913 | ||||
| Fulfillment | 1,995,937 | 1,363,522 | ||||
| General and administrative | 6,932,727 | 5,613,476 | ||||
| Total operating expenses | 20,588,385 | 17,060,549 | ||||
| Loss from operations | (10,186,082 | ) | (5,925,246 | ) | ||
| Other expense, net | ||||||
| Interest expense | (238,963 | ) | (2,102,681 | ) | ||
| Change in fair value of derivative liability on convertible notes | — | (271,000 | ) | |||
| Change in fair value of derivative liability on bridge notes and bridge notes, related parties | — | 1,582,700 | ||||
| Loss on extinguishment of bridge notes and bridge notes, related parties | — | (2,740,425 | ) | |||
| Loss on extinguishment of convertible notes and convertible notes, related parties | — | (260,185 | ) | |||
| Gain on extinguishment of note payable | — | 788,156 | ||||
| Other income (expense), net | 9,778 | (44,531 | ) | |||
| Interest income | 169,345 | 11,397 | ||||
| Total other expense, net | (59,840 | ) | (3,036,569 | ) | ||
| Net loss | $ | (10,245,922 | ) | $ | (8,961,815 | ) |
| Net loss per share - basic and diluted | $ | (1.16 | ) | $ | (2.09 | ) |
| Weighted average shares of common stock outstanding - basic and diluted | 8,844,307 | 4,287,424 |
Exhibit 99.2
CONNECT. INNOVATE. March 2023 Investor Presentation TRANSFORMING BIOSPECIMEN PROCUREMENT An online marketplace for human biospecimens
This presentation may contain forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E 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 . Such statements are only predictions and our actual results may differ materially from those anticipated in these forward - looking statements . We believe that it is important to communicate future expectations to investors . However, there may be events in the future that we are not able to accurately predict or control . Factors that may cause such differences include, but are not limited to, those discussed under Risk Factors in our registration statement and other filings filed with the Securities and Exchange Commission (the "SEC"), including the uncertainties associated with our lack of profitability, our continued capital needs, our lack of a long operating history, our growth strategy, the COVID - 19 pandemic and its continued impact on the business, the uncertain effect of geopolitical developments, our technology development plans, and the regulatory environment in which we operate . We do not assume any obligation to update forward - looking statements as circumstances change . Certain market data information in this presentation is based on management's estimates . We obtained the industry, market and competitive position data used throughout this presentation from internal estimates and research as well as from industry publications and research, surveys and studies conducted by third parties . We believe our estimates to be accurate as of the date of this presentation . However, this information may prove to be inaccurate because of the method by which we obtained some of the data for our estimates or because this information cannot always be verified due to the limits on the availability and reliability of raw data, and the nature of the data gathering process . You may access our SEC filings by visiting the SEC’s website at http : //www . sec . gov . This presentation does not constitute an offer or invitation for the sale or purchase of securities or to engage in any other transaction with us or our affiliates . The information in this presentation is not targeted at the residents of any particular country or jurisdiction and is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation . Forward - Looking Statements 2 SM0
Investor Highlights 3 >200 Healthcare Provider / Supplier Organizations >450 Customer Organizations 1. Early - stage opportunity with a first mover advantage 2. Unique two - sided marketplace disrupting the biospecimen procurement process 3. Strong revenue growth with a 7 - year CAGR of 48% 4. Growing data asset that’s a key enabler and differentiator
Accelerate scientific discovery via an online marketplace that empowers researchers to instantly search for and gain access to patients, biospecimens, and data across a global network of healthcare providers Our Vision 4
Human Biospecimens are Essential for Life Science R&D Basic Research Biomarker Identification & Validation Drug Discovery & Development Diagnostics Discovery & Validation Biofluids Solid Tissue Stem & Immune Cells Plasma, Serum, Urine, Saliva Industry Academia Government 5 Lung, Breast, Colon, Brain Bone Marrow, Blood, Tonsils, Lymph Nodes Applications Patients SUPPLY HEALTHCARE PROVIDERS DEMAND LIFE SCIENCE RESEARCHERS Biospecimens Data Organizations Medical Record
10 - 15% Annual Growth Fueled by precision and regenerative medicine research 2 Disconnected Market Participants in Need of a Marketplace Solution With an Inefficient Supply Chain Manual processes plus fragmentation make it ripe for an online marketplace solution Large and Inefficient Biospecimen Market $3 - $4 Billion Worldwide yearly spend on human biospecimen procurement 1 6 1, 2 “Sources Cited” page 28 SM0
Market Inefficiencies PROVIDER RESEARCHER Scientist / Informaticist Procurem ent Legal & Compliance IT / Informaticist Scientist & Informaticist Legal & Compliance IT / Informaticist Researcher & Procurement Legal & Compliance Principal Investigator & Specimen Operations PATIENTS PROVIDERS RESEARCHERS 7 Difficulties Connecting, Searching, and Compliantly Transacting 6 - 12 months on average to develop relationships, requiring the involvement of many stakeholders 3 3 “Sources Cited” page 28
Inefficiencies Lead to Losses Providers miss revenue and research opportunities > 3 Billion clinical specimens are discarded annually worldwide 5 > 1 Billion Patient encounters yearly in the U.S. where a specimen could be provided for research 4 > 800 Million banked specimens are in biorepository inventories worldwide 6 8 Researchers limit their work … in 2022, 78% of researchers said they find it difficult - to - extremely difficult to find the type and quantity of specimens they need 8 “Challenging” and “Inefficient” most common words used to describe biospecimen procurement process by researchers 8 10 years ago, 81% of researchers said they limit the scope of their work due to difficulties obtaining biospecimens 7 4,5,6,7,8 “Sources Cited” page 28
The iSpecimen Marketplace ® Solution 9 PROVIDER Procurement Principal Investigator / Operations IT / Informaticist PATIENTS Legal & Compliance IT / Informaticist Researcher & Procurement Legal & Compliance Principal Investigator & Specimen Operations Scientist & Informaticist Blood / Pheresi s Centers Clinical Labs Biorepositories Pathology Labs RESEARCH PATHWAY CLINICAL PATHWAY Industry Academia Government RESEARCHERS An Online Platform That Instantly Connects Researchers to a Global Network of Patients, Biospecimens, and Data to Accelerate Time to Discovery Saves months in the average biospecimen procurement process PROVIDERS Healthcare Data
Full - Service Procurement We Not Only Connect Suppliers and Customers, but Also Manage the Entire Procurement Process SPECIMEN SEARCH & SELECTION SPECIMEN LOGISTICS SPECIMEN MANAGEMENT DATA MANAGEMENT STUDY/ORDER MANAGEMENT SUPPLIER SITE TRAINING COLLECTION KIT BUILDING COMPLIANCE MANAGEMENT STUDY DESIGN & SPECIFICATION CONTRACTING 10
Suppliers and Researchers Benefit Advance Discovery Suppor t research mission and advance diagnostic, therapeutic, and vaccine research Increase Revenue Instantly connect to a global network of researchers Ensure Compliance On a platform that protects the privacy and security of patient information Accelerate Research Search for specimens anytime, anywhere, through our easy - to - use online marketplace Save Money Instantly connect to a global network of specimen providers Reduce Risk On a platform that manages contracting and regulatory compliance Providers… Researchers… 11
13 34 66 102 147 181 200 217 2015 2016 2017 2018 2019 2020 2021 2022 Growing Supplier Adoption 1000+ Hospitals Also includes two Healthcare Information Exchanges 50% CAGR Number of Suppliers (2015 – 2022) WORLDWIDE COVERAGE United States United Kingdom Germany France Ukraine Georgia Bulgaria Russian Federation India Peru Dominican Republic Jamaica Spain Mexico Netherlands Venezuela Turkey Romania Armenia Cumulative Supplier Organizations Under Agreement 2015 – 2022 Unique Supplier Organizations Provide Access to: 000’s Clinics and Practice Groups >55 Biorepositories >150 Clinical Research Centers >60 Clinical and Pathology Labs 8 Blood Centers 12
$700 $1,448 $3,067 $4,395 $4,298 $8,184 $11,135 $10,402 2015 2016 2017 2018 2019 2020 2021 2022 Cumulative Customer Organizations with Purchases 2015 – 2022 55% CAGR Customers (2015 – 2022) Annual Revenue ($000) - Unaudited 2015 – 2022 48% CAGR Revenue (2015 – 2022) Growing Researcher Adoption 70% of the Top 20 Pharma Companies and 70% of the Top 20 IVD Companies Worldwide are iSpecimen customers are iSpecimen customers >175,000+ Specimens Across >2,400 Projects delivered to our customers 13 24 69 135 172 230 330 415 513 2015 2016 2017 2018 2019 2020 2021 2022
80 118 668 1,587 2,681 3,871 5,218 6,703 2015 2016 2017 2018 2019 2020 2021 2022 Cumulative Researcher and Supplier Marketplace Users 2015 – 2022 88% CAGR Registered Users (2015 – 2022) Growing Marketplace Adoption ~2,700 Unique searches performed by researchers in the iSpecimen Marketplace in 2022 14 Annual Researcher and Supplier Marketplace Logins* 2015 – 2022 42% CAGR Marketplace Logins (2015 – 2022) 2,214 7,237 9,518 16,962 21,009 27,221 24,847 26,258 2015 2016 2017 2018 2019 2020 2021 2022 *Researcher logins grew in 2021 while supplier logins dropped by 9% due to pandemic slowdowns at healthcare provider partners
“Utilization of sample data for research and for monetization is the next key value driver for the biobanks.” - Frost & Sullivan, Global Biobanking Market Landscape Growing Data Asset Banked Specimen Records Patient Records Medical Condition Records Clinical Specimen Records Laboratory Test Records Millions of Unique Specimen and Patient Records provide a competitive advantage and differentiator now and available for future adjacent opportunities such as patient search, clinical trial recruitment, and data licensing. 80M+ 15 1.2M+ 15 M+ 1M+ 640M+
Statements of Operations 16 iSpecimen Inc. Condensed Statement of Operations Years Ended December 31, 2022 (Unaudited) 2021 Revenue $ 10,402,303 $ 11,135,303 Operating expenses: Cost of revenue 4,756,965 5,249,013 Technology 2,656,287 1,837,882 Sales and marketing 3,445,344 2,422,743 Supply development 801,125 573,913 Fulfillment 1,995,937 1,363,522 General and administrative 6,932,727 5,613,476 Total operating expenses 20,588,385 17,060,549 Loss from operations (10,186,082) (5,925,246) Other expense, net Interest expense (238,963) (2,102,681) Change in fair value of derivative liability on convertible notes — (271,000) Change in fair value of derivative liability on bridge notes and bridge notes, related parties — 1,582,700 Loss on extinguishment of bridge notes and bridge notes, related parties — (2,740,425) Loss on extinguishment of convertible notes and convertible notes, related parties — (260,185) Gain on extinguishment of note payable — 788,156 Other income (expense), net 9,778 (44,531) Interest income 169,345 11,397 Total other expense, net (59,840) (3,036,569) Net loss $ (10,245,922) $ (8,961,815) Non - COVID - 19 Revenue (2021 vs. 2022) 12/31/2021 12/31/2022 $8.0M $9.5M 19% SM0
Balance Sheets 17 iSpecimen Inc. Condensed Balance Sheet Years Ended December 31, 2022 (Unaudited) 2021 Assets Cash $ 15,308,710 $ 27,738,979 Accounts receivable - unbilled 2,327,789 1,739,020 Accounts receivable, net of allowance for doubtful accounts of $230,999 and $269,170 at December 31, 2022 and 2021, respectively 1,597,915 3,002,442 Prepaid expenses and other current assets 300,434 327,035 Tax credit receivable, current portion 140,873 140,873 Property and equipment, net 225,852 32,781 Internally developed software, net 4,503,787 2,710,867 Operating lease right-of-use asset 184,692 — Security deposits 27,601 27,601 Total Assets $ 24,617,653 $ 35,719,598 Liabilities Accounts payable $ 2,459,063 $ 832,678 Accrued expenses 1,531,238 1,009,803 Accrued interest — 8,167 Operating lease - current obligation 158,451 — Deferred revenue 132,335 654,746 Operating lease long - term obligation 27,396 — Term loan — 3,422,616 Total Liabilities 4,308,483 5,928,010 Total Stockholders’ Equity 20,309,170 29,791,588 Total Liabilities and Stockholders’ Equity $ 24,617,653 $ 35,719,598
Fully Diluted Shares of Common Stock Outstanding 18 Diluted Shares of Common Stock Shares outstanding at December 31, 2022 8,925,808 Shares issuable upon vesting of restricted stock units 267,505 Shares issuable upon exercise of stock options 297,559 Shares issuable upon exercise of warrant to purchase common stock 1,415,000 Total diluted shares at December 31, 2022 10,905,872
Tracy Curley | Chief Executive Officer, Chief Financial Officer and Treasurer Ms . Curley brings three decades of experience in public accounting and corporate finance for both publicly traded companies and emerging companies like iSpecimen and joined iSpecimen in August 2020 . She came to iSpecimen after over a decade with national accounting firms such as CohnReznick where she focused on serving clients in the middle markets . During her time as a partner in public accounting firms, she was responsible for creating and leading teams to provide audit and consulting services to a growing clientele of private and public emerging growth companies primarily in the technology and life sciences industries . Ms . Curley received her Master of Accountancy and Bachelor of Science in Business Administration with a concentration in accounting from Kansas State University . She also attended the United States Military Academy . She is a certified public accountant licensed in the Commonwealth of Massachusetts . Benjamin Bielak | Chief Information Officer Mr . Bielak has been serving as our Chief Information Officer since June 2018 . He served as the Chief Information Officer at GNS Healthcare, a leading casual machine learning product and services company, from January 2017 to May 2018 and as Director of Academic Technology at Harvard University, from February 2015 to January 2017 . Prior to his work at GNS and Harvard, Mr . Bielak was the Chief Information Officer at Dovetail Health from November 2006 to April 2014 . He previously held roles as Manager of Development and Integration at Boston Medical Center and Senior Manager of Technology at Sapient, a global services company, from December 1997 to July 2005 . Mr . Bielak holds a Masters of Business Administration degree from Bentley University, where his studies focused on change management, and a master’s degree from Boston University in computer science . David Wages, M . D . , PHD | Chief Medical Officer Mr . Wages has been serving as our Chief Medical Officer since October 2018 . Prior to joining iSpecimen , David served as Senior Medical Director at Quintiles, the world’s largest clinical research organization, where he supported both large pharmaceutical companies as well as smaller biotech organizations in a wide variety of clinical oncology programs . David has worked in both start - up biotechs and large pharma . David began his career working on the clinical development of novel drug - device combinations for blood decontamination at Cerus Corporation . He then worked on clinical trials at Wyeth that led to the development of Xyntha ®, a drug used to treat hemophilia . After a brief stint assisting institutional investors on healthcare technology opportunities at Leerink - Swann’s Medacorp , David then moved on to ARIAD Pharmaceuticals where he turned to cancer research, working on ARIAD’s mTOR inhibitor for solid tumors as well as initiating ARIAD’s phase I trial for chronic myeloid leukemia drug, Iclusig ® . David next joined EMD Serono where he worked on phase I - III trials of immune - agents for oncology . David holds an MD and PhD from the University of Virginia School of Medicine where he focused on the basic science of oncology . He then completed a residency at the University of California, San Francisco and a fellowship in hematopathology at Boston’s Beth Israel hospital . Management Team 19
Investor Summary 20 >200 Healthcare Provider / Supplier Organizations >450 Customer Organizations 1. $3B - $4B global biospecimen market growing at 10 - 15% per year 2. Early - stage opportunity with a first mover advantage 3. Unique two - sided marketplace disrupting the biospecimen procurement process 4. Strong revenue growth with a 7 - year CAGR of 48% 5. Growing data asset that’s a key enabler and differentiator
CONNECT. INNOVATE. Sign up for a free iSpecimen Marketplace account at www.ispecimen.com CONTACT US iSpecimen Inc. 450 Bedford Street Lexington, MA 02420 investors@ispecimen.com ispecimen.com
Appendix 22
Strategic Evolution PHASE 3 Expansion via the Online iSpecimen Marketplace Ƞ START UP Company Ideation and Self - Funding PHASE 1 Proof of Concept PHASE 2 Critical Mass of Suppliers and Early Customer Adoption 2010 – 2011 2012 – 2013 2014 – 2017 2018 – 2022 0 Customers 1 Supplier Agreement 0 Specimen Records 0 Patient Records 0 FTEs $500K Friends and Family Covert. Debt 1 Customer 3 Supplier Agreements 2+ Million Specimen Records 400+ Thousand Patient Records 7 FTEs $2.5M Series A 140+ Customers 60+ Supplier Agreement 26+ Million Specimen Records 5+ Million Patient Records 33 FTEs $8M Series B 500+ Customers 200+ Supplier Agreement 80+ Million Specimen Records 15+ Million Patient Records 75 FTEs $20.7M + $21M IPO + Private Placement 23
iSpecimen Marketplace UI/UX Click Search to start searching for specimens 24
25 iSpecimen Marketplace UI/UX Use search bar to quickly find specimens that match search criteria
Refine Search Results Using Sliders and Check Boxes iSpecimen Marketplace UI/UX 26
View Quote Request and Add More Specimens Request a Quote iSpecimen Marketplace UI/UX 27 Track and Manage Requests
28 Page Note Source Cited 7 1 iSpecimen estimates based on In Vitro Diagnostics Market Size, Share & Trends Analysis Report By Product, By Application, By Technology (Immunochemistry, Molecular Diagnostics) By End - use, By Region, And Segment Forecasts, 2021 – 2027. Grandview Research, January 2021; and World Preview 2020,Outlook to 2026. EvaluatePharma, July 2020. 7 2 Global Marketing Insights, Precision Medicine Market Size By Technology (Big Data Analytics, Bioinformatics, Gene Sequencing, Drug Discovery, Companion Diagnostics), By Application (Oncology, Immunology, CNS, Respiratory), By End - use (Pharmaceutical Companies, Diagnostic Companies, Healthcare IT companies), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 - 2026, Feb. 2020. and Regenerative Medicine Market Size, Share and Industry Analysis by Product (Cell Therapy, Gene Therapy, Tissue Engineering, Platelet Rich Plasma), By Application (Orthopaedics, Wound Care, Oncology), By Distribution Channel (Hospitals, Clinics) & Re gio nal Forecast, 2019 – 2026. Fortune Business Insight, 2019. 8 3 Frost & Sullivan, Global Biobanking Market Landscape. May 20, 2020, page 357 . 9 4 Centers for Disease Control, https://www.cdc.gov/nchs/data/ahcd/namcs_summary/2016_namcs_web_tables.pdf 9 5 iSpecimen estimates based upon American Association of Clinical Chemistry US lab test data cited at https://www.360dx.com/research - funding/aacc - calls - congress - fund - clinical - lab - training - programs, 2020; and Clinical Lab Services, Global Market Trajectory and Analytics; Global Industry Analysts report, 2020. 9 6 iSpecimen estimate based upon Henderson, G.E., Cadigan, R.J., Edwards, T.P. et al. Characterizing biobank organizations in th e U .S.: results from a national survey, 2013; and Puchois, Comprehensive Biomarker Discovery and Validation for Clinical Application, 2013. 9 7 Holly A. Massett et al. Assessing the need for a standardized cancer HUman Biobank (caHUB): findings from a national survey w ith cancer researchers; JNCI Monographs, Volume 2011, Issue 42, June 2011. 9 8 Specimen Independent Researcher Survey, 2022. Sources Cited
