8-K
iSpecimen Inc. (ISPC)
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, 2024
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)) |
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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. |
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On March 14, 2024, 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, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The Company also filed its audited financial statements for the fiscal year ended December 31, 2023 with its Annual Report on Form 10-K on March 13, 2024.
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 its 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 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.
| Item 7.01. | Regulation FD Disclosure. |
|---|
The Company also held a conference call and audio webcast at 8:30 a.m. Eastern Time on March 14, 2024 (“Earnings Call”) in which it discussed its fiscal year 2023 results. The Company issued a press release on March 5, 2024, providing information on how to access the Earnings Call. A replay of the Earnings Call is available through March 27, 2024, by calling +1-844-512-2921 (U.S. toll free) or +1-412-317-6671 (for international callers). An archived version of the Earnings Call will also be available on the Company’s Investor Relations site at https://investors.ispecimen.com/presentations/. During the Earnings Call, the Company provided an investor presentation, dated March 2024 (the “Presentation”), which is attached hereto as Exhibit 99.2 and incorporated by reference herein. The Presentation will also be 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 Statements
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 Annual Report on Form 10-K for the year ended December 31, 2023 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, inflation and recession and its impact on the business, Russia’s war with Ukraine and its impact on the operations, 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 on Form 8-K 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 on Form 8-K 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, dated March 14, 2024. |
| --- | --- |
| 99.2 | Investor Presentation, dated March 2024. |
| 104 | Cover Page Interactive Data File |
Portions of this report may constitute “forward-lookingstatements” as defined by federal law. Although the Company believes any such statements are based on reasonable assumptions, thereis no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to materialchanges 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, 2024
| iSPECIMEN INC. | |
|---|---|
| By: | /s/ Tracy Curley |
| Name: Tracy Curley | |
| Title: Chief Executive Officer |
Exhibit 99.1
iSpecimen ReportsFull Year 2023 Results
LEXINGTON, Mass.,March 14 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 twelve-month period ended December 31, 2023.
“Throughout 2023, we advanced our objective to reach profitability, focusing on right-sizing our business and implementing new operational efficiencies,” said Tracy Curley, CEO of iSpecimen. “As we strive to become cash flow positive, we are focusing our efforts on growing topline revenues through our core business segments by capitalizing on our Next Day Quotes program, where we continue to see increased traction. We have also invested in new marketing initiatives and implemented a new sales structure to help drive sales. By focusing on our core operations, iSpecimen is strongly positioned to scale our business in 2024 and beyond.”
“At the end of the third quarter of 2023, we introduced one of our most impactful initiatives to expedite the biospecimen transaction process with a program we call Next Day Quotes, which significantly reduces the amount of time from opportunity to quote and improved our quote to purchase order conversion ratio during the fourth quarter, achieving a 39% increase in quotes converting to purchase orders compared to the average from all prior quarters in 2023.”
“In addition, to maintain our leadership position and to support the evolving needs of our research customers, we are focusing on the quality of our supplier network, even as it means ending certain supplier relationships. In doing so, we believe we can effectively and efficiently provide researchers access to today’s most highly sought after biospecimens in the areas of oncology and neurology, among others.”
“Our team has worked diligently and tirelessly over the past year to lay a solid foundation for our Company. We’ve entered 2024 in a much stronger operational position, and I am confident we can build upon the momentum we have created, further positioning the Company for improved financial results in 2024,” concluded Ms. Curley.
Financial &Operational Highlights
| · | Generated<br> revenue of approximately $1.7 million in December 2023, marking the Company’s<br> strongest sales month to date; |
|---|---|
| · | For<br> the fourth quarter of 2023, iSpecimen experienced an approximately 39% increase in the conversion<br> of quotes to purchase orders, compared to the average from all prior quarters in 2023; |
| · | As<br> of December 31, 2023, we had over 230 unique supplier organizations under contract,<br> as we focused on building the quality of our supplier network over the quantity; |
| · | As<br> of December 31, 2023, we had over 600 unique customer organizations who have purchased<br> from iSpecimen, an increase of over 87 from 513 at the end of 2022; and |
| · | iSpecimen<br> Marketplace had nearly 7,428 registered research and supplier users as of December 31,<br> 2023, up approximately 11% from 6,703 as of December 31, 2022. |
Recent CorporateUpdates
| · | iSpecimen<br> Strengthens Global Oncology Biospecimen Offering |
|---|---|
| · | iSpecimen<br> Expands Proprietary Provider Network to Help Advance Infectious Disease Research |
| · | iSpecimen<br> Launches Next-Day Quote Service for Medical Researchers and Biospecimen Providers |
| --- | --- |
Financial Resultsfor Fiscal Year 2023
For the year ended December 31, 2023, revenue was approximately $9.93 million, compared to approximately $10.40 million for the year ended December 31, 2022. The reduction was primarily due to a decrease of 2,938 specimens, or approximately 11%, in specimen count, from 27,503 specimens during the year ended December 31, 2022 to 24,565 specimens during the year ended December 31, 2023. The effect of the decrease in specimen count was partially offset by a change in specimen mix which caused the average selling price per specimen to increase by approximately $26, or approximately 7%, to approximately $404 per specimen for 2023, compared to approximately $378 per specimen for 2022.
For the year ended December 31, 2023, cost of revenue increased by approximately $63,000, or approximately 1%, to approximately $4.82 million, compared to approximately $4.76 million for the year ended December 31, 2022. Although there was an approximately 11% decrease in the number of specimens accessioned during the year ended December 31, 2023, compared to the same prior year period, the average cost per specimen increased approximately 13% to approximately $196 per specimen for the year ended December 31, 2023, compared to approximately $173 per specimen for the year ended December 31, 2022.
For the year ended December 31, 2023, general and administrative expenses decreased approximately $998,000 or approximately 14%, to approximately $5.94 million, compared to approximately $6.93 million for the year ended December 31, 2022. The decrease was attributable to decreases in severance costs of former executives of approximately $782,000 and compensation costs of approximately $248,000, among other reductions, which were partially offset by increases in bad debt expense of approximately $198,000, depreciation and amortization of approximately $95,000, and taxes and insurance of approximately $11,000.
For the year ended December 31, 2023, the net loss was approximately $11.10 million, or (1.23) per share, compared to a net loss of approximately $10.2 million, or $(1.16) per share, for the same period the prior year.
As of December 31, 2023, cash and cash equivalents were approximately $5.01 million, compared to approximately $15.31 million as of December 31, 2022. For Q1, Q2, Q3 and Q4 the quarterly cash burn was approximately $4.29 million, $2.81 million, $2.55 million and $657,000, respectively, demonstrating the success of implementing new operational efficiencies and cost-cutting initiatives.
On March 5, 2024 we entered into an At the Market Offering Agreement whereby we may issue and sell shares of our common stock from time to time with an aggregate offering price of up to $1.5 million through our shelf registration statement. We may seek additional funding through public equity or other sources to fund further capital investments or for general corporate purposes.
Conference Calland Webcast Information
The Company will host a conference call and audio webcast on Thursday, March 14, 2024 at 8:30 a.m. Eastern Time featuring remarks by Tracy Curley, CEO.
| Event: | iSpecimen Year End 2023 Results Conference Call |
|---|---|
| Date: | Thursday, March 14, 2024 |
| Time: | 8:30 a.m. Eastern Time |
| Dial in: | 1-888-886-7786 (U.S. Toll Free) or 1-416-764-8658 (International) |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1655659&tp_key=8493197d5b |
For interested individuals unable to join the conference call, a replay will be available through March 28, 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: 37478374. 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 releasemay contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21Eof the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or conditional verbssuch 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 futureexpectations and plans, which contain projections of future results of operations or financial condition or state other forward-lookinginformation.
Forward-lookingstatements are predictions, projections and other statements about future events that are based on current expectations and assumptionsand, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from theforward-looking statements in this press release, including but not limited to the risk factors contained in the Company's filings withthe U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. Forward-looking statements speak only asof the date they are made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those eventsor how they may affect the Company. If a change to the events and circumstances reflected in the Company's forward-looking statementsoccurs, the Company's business, financial condition and operating results may vary materially from those expressed in the Company's forward-lookingstatements.
Readers arecautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to updateor revise these forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact:
InvestorContact
KCSA Strategic Communications
Phil Carlson / Erika Kay
iSpecimen@kcsa.com
iSpecimen Inc.
Balance Sheets
| December 31, | |||||
|---|---|---|---|---|---|
| 2022 | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 2,343,666 | $ | 15,308,710 | ||
| Available-for-sale securities | 2,661,932 | — | |||
| Accounts receivable – unbilled | 2,212,538 | 2,327,789 | |||
| Accounts receivable, net of allowance for doubtful accounts of 520,897 and 230,999 at December 31, 2023 and 2022, respectively | 728,388 | 1,597,915 | |||
| Prepaid expenses and other current assets | 292,079 | 300,434 | |||
| Tax credit receivable | — | 140,873 | |||
| Total current assets | 8,238,603 | 19,675,721 | |||
| Property and equipment, net | 127,787 | 225,852 | |||
| Internally developed software, net | 6,323,034 | 4,503,787 | |||
| Other intangible assets, net | 908,255 | — | |||
| Operating lease right-of-use asset | 193,857 | 184,692 | |||
| Security deposits | 27,601 | 27,601 | |||
| Total assets | 15,819,137 | $ | 24,617,653 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | 3,925,438 | $ | 2,459,063 | ||
| Accrued expenses | 1,540,607 | 1,531,238 | |||
| Operating lease current obligation | 167,114 | 158,451 | |||
| Deferred revenue | 415,771 | 132,335 | |||
| Total current liabilities | 6,048,930 | 4,281,087 | |||
| Operating lease long-term obligation | 29,130 | 27,396 | |||
| Total liabilities | 6,078,060 | 4,308,483 | |||
| Commitments and contingencies (See Note 9) | |||||
| Stockholders’ equity | |||||
| Common stock, 0.0001 par value, 200,000,000 shares authorized, 9,114,371 issued, and 9,083,371 outstanding at December 31, 2023 and 8,956,808 issued and 8,925,808 outstanding at December 31, 2022 | 908 | 892 | |||
| Additional paid-in capital | 69,104,313 | 68,573,774 | |||
| Treasury stock, 31,000 shares at December 31, 2023 and 2022, at cost | (172 | ) | (172 | ) | |
| Accumulated other comprehensive income | 840 | — | |||
| Accumulated deficit | (59,364,812 | ) | (48,265,324 | ) | |
| Total stockholders’ equity | 9,741,077 | 20,309,170 | |||
| Total liabilities and stockholders’ equity | 15,819,137 | $ | 24,617,653 |
All values are in US Dollars.
iSpecimen Inc.
Statements ofOperations and Comprehensive Loss
| Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||
| Revenue | $ | 9,928,184 | $ | 10,402,303 | ||
| Operating expenses: | ||||||
| Cost of revenue | 4,820,268 | 4,756,965 | ||||
| Technology | 3,566,917 | 2,656,287 | ||||
| Sales and marketing | 3,955,974 | 3,445,344 | ||||
| Supply development | 1,030,403 | 801,125 | ||||
| Fulfillment | 1,788,879 | 1,995,937 | ||||
| General and administrative | 5,935,092 | 6,932,727 | ||||
| Total operating expenses | 21,097,533 | 20,588,385 | ||||
| Loss from operations | (11,169,349 | ) | (10,186,082 | ) | ||
| Other income (expense), net | ||||||
| Interest expense | (16,001 | ) | (238,963 | ) | ||
| Interest income | 339,750 | 169,345 | ||||
| Interest and penalties on sales tax liability | (214,784 | ) | — | |||
| Other income (expense), net | (39,104 | ) | 9,778 | |||
| Total other income (expense), net | 69,861 | (59,840 | ) | |||
| Net loss | $ | (11,099,488 | ) | $ | (10,245,922 | ) |
| Other comprehensive income: | ||||||
| Net loss | $ | (11,099,488 | ) | $ | (10,245,922 | ) |
| Unrealized gain on available-for-sale securities | 840 | — | ||||
| Total other comprehensive income | 840 | — | ||||
| Comprehensive loss | $ | (11,098,648 | ) | $ | (10,245,922 | ) |
| Net loss per share - basic and diluted | $ | (1.23 | ) | $ | (1.16 | ) |
| Weighted average shares of common stock outstanding - basic and diluted | 9,041,341 | 8,844,307 |
Exhibit 99.2
| March 2024<br>Investor Presentation<br>Nasdaq: ISPC<br>The Online Marketplace for Human<br>Biospecimens<br>Transforming Biospecimen Procurement | |||
|---|---|---|---|
| This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as<br>amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are<br>characterized by future or conditional verbs such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate” and<br> “continue” or similar words. You should read statements that contain these words carefully because they discuss future<br>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<br>in these forward-looking statements.<br>We believe that it is important to communicate future expectations to investors. However, there may be events in the future<br>that we are not able to accurately predict or control. Factors that may cause such differences include, but are not limited to,<br>those discussed under Risk Factors in our filings filed with the Securities and Exchange Commission (the "SEC"), including the<br>uncertainties associated with our lack of profitability, our continued capital needs, our lack of a long operating history, our<br>growth strategy, the uncertain effect of geopolitical developments, our technology development plans, and the regulatory<br>environment in which we operate. We do not assume any obligation to update forward-looking statements as circumstances<br>change.<br>Certain market data information in this presentation is based on management's estimates. We obtained the industry, market<br>and competitive position data used throughout this presentation from internal estimates and research as well as from industry<br>publications and research, surveys and studies conducted by third parties. We believe our estimates to be accurate as of the<br>date of this presentation. However, this information may prove to be inaccurate because of the method by which we obtained<br>some of the data for our estimates or because this information cannot always be verified due to the limits on the availability<br>and reliability of raw data, and the nature of the data gathering process.<br>You may access our SEC filings by visiting the SEC’s website at http://www.sec.gov. This presentation does not constitute an<br>offer or invitation for the sale or purchase of securities or to engage in any other transaction with us or our affiliates. The<br>information in this presentation is not targeted at the residents of any particular country or jurisdiction and is not intended for<br>distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law<br>or regulation.<br>2<br>Forward-Looking Statements | |||
| --- | |||
| Our Vision<br>To transform the<br>biospecimen industry<br>with an online<br>marketplace connecting<br>researchers to patients,<br>biospecimens, and data,<br>through our global<br>network.<br>3 | |||
| --- | |||
| 4<br>1. Similar to Amazon, iSpecimen has developed an<br>online marketplace to seamlessly connect<br>researchers with healthcare providers and supplier<br>organizations<br>2. First mover advantage that addresses an<br>inefficient and fragmented global biospecimen<br>supply chain that is poised to be disrupted by an<br>online solution<br>3. $3B-$4B global biospecimen market growing at<br>10-15% per year 1,2<br>4. Strong revenue growth with an 8-year CAGR of<br>39% fueled by precision and regenerative<br>medicine research<br>5. Plans to enhance existing platform and develop<br>new service offering to increase revenue<br>opportunities<br>Investor Highlights<br> >220<br>Healthcare Provider / Supplier<br>Organizations<br> >600<br>Customer<br>Organizations<br>1,2 “Sources Cited” page 31 | |||
| --- | |||
| Biospecimens are Essential for Life Science R&D<br>Basic Research<br>Biomarker<br>Identification &<br>Validation<br>Drug Discovery &<br>Development<br>Diagnostics<br>Discovery &<br>Validation<br>Biofluids<br>Solid Tissue<br>Stem & Immune Cells<br>Plasma, Serum, Urine, Saliva Industry<br>Academia<br>Government<br>5<br>Lung, Breast, Colon, Brain<br>Bone Marrow, Blood, Tonsils,<br>Lymph Nodes<br>Patients Applications<br>SUPPLY SIDE<br>HEALTHCARE PROVIDERS<br>DEMAND SIDE<br>LIFE SCIENCE RESEARCHERS<br>Biospecimens Data Organizations<br>Medical<br>Record | |||
| --- | |||
| Biospecimen Supply Chain Challenges<br>Providers miss revenue and<br>research opportunities<br> > 3 Billion<br>clinical specimens are discarded<br>annually worldwide 4<br> > 1 Billion<br>Patient encounters yearly in the U.S. where a<br>specimen could be provided for research 3<br> > 800 Million<br>banked specimens are in biorepository<br>inventories worldwide 5<br>6<br>Researchers limit<br>their work<br> … in 2022, 78%<br>of researchers said they find it difficult-to-extremely difficult to find<br>the type and quantity of specimens they need 7<br> “Challenging” and “Inefficient”<br>most common words used to describe biospecimen<br>procurement process by researchers 7<br>10 years ago, 81%<br>of researchers said they limit the scope of their work<br>due to difficulties obtaining biospecimens 6<br>3,4,5,6,7,8 “Sources Cited” page 31 | |||
| --- | |||
| Biospecimen Supply Chain Challenges<br>7<br>-Difficult to Connect, Search and Compliantly Transact<br>-Average time to develop relationships is 6-12 months ᶟ<br>8 “Sources Cited” page 31<br>PROVIDERS CHALLENGE RESEARCHERS | |||
| --- | |||
| The iSpecimen Marketplace® Solution<br>8<br>-iSpecimen Customer Base: 70% of the Top 20 Pharma Companies and IVD Companies Worldwide<br>PROVIDERS SOLUTION RESEARCHERS | |||
| --- | |||
| Full-Service Procurement Offering<br>-Connect Suppliers with Researchers<br>-Manage the Entire Procurement Process<br>SPECIMEN SEARCH & SELECTION<br>SPECIMEN LOGISTICS<br>SPECIMEN MANAGEMENT<br>DATA MANAGEMENT<br>STUDY/ORDER MANAGEMENT<br>SUPPLIER SITE TRAINING<br>COLLECTION KIT BUILDING<br>COMPLIANCE MANAGEMENT<br>STUDY DESIGN & SPECIFICATION<br>CONTRACTING<br>9<br>iSpecimen Services | |||
| --- | |||
| Advance Scientific Discovery<br>Support research mission and advance<br>diagnostic, therapeutic and vaccine research<br>Monetize Banked Biospecimens<br>Instantly connect to a global network of<br>researchers in search for biospecimens<br>Ensure Compliance<br>Protect the privacy and security of patient<br>information<br>Accelerate Research<br>Search for specimens anytime, anywhere,<br>through easy-to-use online marketplace<br>Save Time and Money<br>Instantly connect to global network of<br>specimen providers<br>Reduce Risk<br>Manage contracting and regulatory compliance<br>Providers… Researchers…<br>10<br>iSpecimen Value Proposition | |||
| --- | |||
| 11<br>Agreements with 220+ Supplier<br>Organizations<br> ✔ 1,000+ Hospitals<br> ✔ 1,000s of Clinics and Practice Groups<br> ✔ 150+ Clinical Research Centers<br> ✔ 60+ Clinical and Pathology Labs<br> ✔ 55+ Biorepositories<br> ✔ 8 Blood Centers<br>Growing Researcher Adoption<br> ✔ 600+ Buyside Customers<br> ✔ Work with 70% of Top-20 Pharma and IVD<br>Companies in the World<br> ✔ Cumulatively delivered 175,000+ Specimens<br>Across 2,400+ Projects<br> • 76% CAGR – Registered Users (2015-2023)<br> • 36% CAGR – Marketplace Logins (2015-2023)<br> • Approximately 7,400 Registered Research and<br>Supplier Users as of December 31, 2023<br>Comprehensive Supplier & Researcher Networks<br>Global Footprint<br>United States Dominican Republic<br>United Kingdom Jamaica<br>Germany Spain<br>France Mexico<br>Ukraine Netherlands<br>Georgia Venezuela<br>Bulgaria Turkey<br>Russian Federation Romania<br>India Armenia<br>Peru | |||
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| Strategic Growth Initiatives<br>12 | |||
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| Enhance iSpecimen Marketplace Technology<br>13<br>Increased investment and ongoing advancements of<br>iSpecimen Marketplace technology would enable:<br> ● Improved integration with provider partners (our first patient data<br>electronic record integrations)<br> ● Improved iSpecimen Marketplace search and request capabilities<br> ● Updated back-end architecture to support growth and scale,<br>enhanced security, and us to prepare for a data-as-a-service pilot<br> ● Utilization of insights provided by supplier and researcher<br>interactions to evolve matchmaking capabilities | |||
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| iSpecimen Product Roadmap*<br>Revamp Customer Search<br>Experience, Unify data,<br>and Automate<br>Matchmaking<br>Enhance Supplier Experience<br>though enablement, reporting<br>and workflow. Expand<br>Prospective search capabilities<br>Continue to evolve<br>Efficiencies, Matchmaking<br>and Data.<br>*iSpecimen will continue product evolution supporting<br>constituents on all sides of our Marketplace as investment allows.<br>14 | |||
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| “Utilization of sample data<br>for research and for<br>monetization is the next key<br>value driver for<br>the biobanks.”<br>- Frost & Sullivan, Global Biobanking<br>Market Landscape<br>Capitalize on Growing Data Asset<br>Banked Specimen<br>Records<br>Patient<br>Records<br>Medical Condition<br>Records<br>Clinical<br>Specimen Records<br>Laboratory Test<br>Records<br>Millions of Unique Specimen and<br>Patient Records provide a<br>competitive advantage and<br>differentiator now and<br>available for future adjacent<br>opportunities such as<br>patient search, clinical trial<br>recruitment, and data<br>licensing.<br>80M+<br>15<br>1.2M<br>+<br>15M+<br>1M+<br>640M<br>+ | |||
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| Financial Overview<br>16 | |||
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| $700<br>$1,448<br>$3,067<br>$4,395 $4,298<br>$8,184<br>$11,135<br>$10,402<br>$9,928<br>2015 2016 2017 2018 2019 2020 2021 2022 2023<br>Annual Revenue ($1,000)<br>2015 – 2023<br> ▲ 39% CAGR<br>Revenue (2015 – 2023)<br>Annual Revenue<br>17 | |||
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| Statement of Operations<br>18<br>iSpecimen Inc.<br>Condensed Statement of Operations<br>Year Ended December 31, Three Months Ended December 31,<br>2023 2022<br>Revenue $ 9,928,184 $ 10,402,303<br>Operating expenses:<br>Cost of revenue 4,820,268 4,756,965<br>Technology 3,566,917 2,656,287<br>Sales and marketing 3,955,974 3,445,344<br>Supply development 1,030,403 801,125<br>Fulfillment 1,788,879 1,995,937<br>General and administrative 5,935,092 6,932,727<br>Total operating expenses 21,097,533 20,588,385<br>Loss from operations (11,169,349) (10,186,082)<br>Other income (expense), net<br>Interest expense (16,001) (238,963)<br>Interest income 339,750 169,345<br>Interest and penalties on sales tax liability (214,784) -<br>Other income (expense), net (39,104) 9,778<br>Total other income (expense), net 69,861 (59,840)<br>Net loss $ (11,099,488) $ (10,245,922)<br>Other comprehensive income:<br> Unrealized gain (loss) on available-for-sale securities $ 840 $ -<br> Total other comprehensive income 840 -<br>Comprehensive loss $ (11,098,648) $ (10,245,922)<br>Net loss per share<br>Basic and diluted $ (1.23) $ (1.16)<br>Weighted average common shares outstanding<br>Basic and diluted 9,041,341 8,844,307 | |||
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| Balance Sheet<br>19<br>iSpecimen Inc.<br>Condensed Balance Sheet Information<br>December 31, 2023 December 31, 2022<br>ASSETS<br>Cash $ 2,343,666 $ 15,308,710<br>Investments-short term 2,661,932 -<br>Accounts receivable - unbilled 2,212,538 2,327,789<br>Accounts receivable, net of allowance for doubtful accounts 728,388 1,597,915<br>Prepaid expenses and other current assets 292,079 300,434<br>Tax credit receivable, net of current portion - 140,873<br>Total current assets 8,238,603 19,675,721<br>Property and equipment, net 127,787 225,852<br>Internally developed software, net 6,323,034 4,503,787<br>Other intangible assets, net 908,255 -<br>Operating lease right-of-use asset 193,857 184,692<br>Security deposits 27,601 27,601<br>Total assets $ 15,819,137 $ 24,617,653<br>LIABILITIES AND STOCKHOLDERS’ EQUITY<br>Accounts payable $ 3,925,438 $ 2,459,063<br>Accrued expenses 1,540,607 1,531,238<br>Operating lease - current obligation 167,114 158,451<br>Deferred revenue 415,771 132,335<br>Total current liabilities 6,048,930 4,281,087<br>Operating lease long-term obligation 29,130 27,396<br>Total liabilities $ 6,078,060 $ 4,308,483<br>Common stock $ 908 $ 892<br>Additional paid-in capital 69,104,313 68,573,774<br>Treasury stock (172) (172)<br>Other comprehensive income 840 -<br>Accumulated deficit (59,364,812) (48,265,324)<br>Total stockholders’ equity 9,741,077 20,309,170<br>Total liabilities and stockholders’ equity $ 15,819,137 $ 24,617,653 | |||
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| Common Stock Information<br>20<br>iSpecimen Inc.<br>Fully Diluted Shares Outstanding<br>Diluted Shares of<br>Common Stock<br>Shares outstanding at December 31, 2023 9,083,371<br>Shares issuable upon vesting of RSUs 116,357<br>Shares issuable upon exercise of stock options 296,268<br>Shares issuable upon exercise of warrant to purchase common stock 1,415,000<br>Total diluted shares at December 31, 2023 10,910,996 | |||
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| Tracy Curley | Chief Executive Officer, Chief Financial Officer and Treasurer<br>Ms. Curley brings three decades of experience in public accounting and corporate finance for both publicly traded companies and emerging<br>companies like iSpecimen and joined iSpecimen in August 2020. She came to iSpecimen after over a decade with national accounting firms such as<br>CohnReznick where she focused on serving clients in the middle markets. During her time as a partner in public accounting firms, she was<br>responsible for creating and leading teams to provide audit and consulting services to a growing clientele of private and public emerging growth<br>companies primarily in the technology and life sciences industries. Ms. Curley received her Master of Accountancy and Bachelor of Science in<br>Business Administration with a concentration in accounting from Kansas State University. She also attended the United States Military Academy.<br>She is a certified public accountant licensed in the Commonwealth of Massachusetts.<br>Benjamin Bielak | Chief Information Officer and Secretary<br>Mr. Bielak has been serving as our Chief Information Officer since June 2018. He served as the Chief Information Officer at GNS Healthcare (now<br>Aitia), a leading casual machine learning product and services company, from January 2017 to May 2018 and as Director of Academic Technology<br>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<br>Dovetail Health from November 2006 to April 2014. He previously held roles as Manager of Development and Integration at Boston Medical Center<br>and Senior Manager of Technology at Sapient, a global services company, from December 1997 to July 2005. Mr. Bielak holds a Masters of<br>Business Administration degree from Bentley University, where his studies focused on change management, and a master’s degree from Boston<br>University in computer science.<br>Eric Langlois | Chief Revenue Officer<br>21<br>Management Team<br>9 “Sources Cited” page 31<br>Mr. Langlois has been serving as Chief Revenue Officer since January 2023, prior to which he served as iSpecimen’s SVP of Sales and Business<br>Development since arriving in January of 2016. Prior to joining iSpecimen, Mr. Langlois served as Global Head of Sales for The Reprocell Group<br>helping to integrate sales teams driven by the demands of integrating four portfolio companies with products and services in Cellular<br>Reprogramming, Stem Cells, 3D cell culture, genomics, and biospecimens. Prior to that, he held rapidly increasing positions from Regional Sales<br>Manager to VP of Sales with Genomics Collaborative, SeraCare Life Sciences, SeqWright, and BioServe. Mr. Langlois has amassed 25 years of<br>experience in life science research going from bench laboratory science into business development and executive management. Mr. Langlois<br>holds a BS in Biotechnology/Biochemistry from Worcester Polytechnic Institute. |
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| 2<br>2<br>1. Similar to Amazon, iSpecimen has developed<br>an online marketplace to seamlessly connect<br>researchers with healthcare providers and<br>supplier organizations<br>2. First mover advantage that addresses an<br>inefficient and fragmented global biospecimen<br>supply chain that is poised to be disrupted by<br>an online solution<br>3. $3B-$4B global biospecimen market growing<br>at 10-15% per year<br>4. Strong revenue growth with an 8-year CAGR<br>of 39% fueled by precision and regenerative<br>medicine research<br>5. Plans to enhance existing platform and<br>develop new service offering to increase<br>revenue opportunities<br>Investor Highlights<br> >220<br>Healthcare Provider / Supplier<br>Organizations<br> >600<br>Customer<br>Organizations | |||
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| Sign up for a free iSpecimen Marketplace account at iSpecimen.com<br>Contact us.<br>iSpecimen Inc.<br>450 Bedford Street<br>Lexington, MA 02420<br>investors@ispecimen.com<br>Be a part of the<br>biospecimen<br>revolution | |||
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| Appendix<br>24 | |||
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| PHASE 3<br>Expansion via the Online iSpecimen<br>Marketplace™<br>START UP<br>Company Ideation and Self-Funding<br>PHASE 1<br>Proof of Concept<br>PHASE 2<br>Critical Mass of Suppliers and<br>Early Customer Adoption<br> 🡡<br> 🡡<br>2010 – 2011 2012 – 2013 2014 – 2017 2018 – 2024<br>0<br>Customers<br>1<br>Supplier Agreement<br>0<br>Specimen Records<br>0<br>Patient Records<br>0<br>FTEs<br>$500K<br>Friends and Family Covert. Debt<br>1<br>Customer<br>3<br>Supplier Agreements<br>2+ Million<br>Specimen Records<br>400+ Thousand<br>Patient Records<br>7<br>FTEs<br>$2.5M<br>Series A<br>140+<br>Customers<br>60+<br>Supplier Agreement<br>26+ Million<br>Specimen Records<br>5+ Million<br>Patient Records<br>33<br>FTEs<br>$8M<br>Series B<br>600+<br>Customers<br>220+<br>Supplier Agreement<br>80+ Million<br>Specimen Records<br>15+ Million<br>Patient Records<br>47<br>FTEs<br>$20.7M + $21M<br>IPO + Private Placement<br>25<br>Strategic Evolution | |||
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| iSpecimen Marketplace UI/UX<br>Click Search to start searching for<br>specimens<br>26 | |||
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| 2<br>7<br>iSpecimen Marketplace<br>UI/UX Use search bar to quickly find specimens<br>that match search criteria | |||
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| Refine Search Results Using<br>Sliders and Check Boxes<br>iSpecimen Marketplace UI/UX<br>28 | |||
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| View Quote Request and Add More<br>Specimens<br>Request a Quote<br>iSpecimen Marketplace UI/UX<br>29<br>Track and Manage Requests | |||
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| 30<br>Page Note Source Cited<br>4 1 iSpecimen estimates based on In Vitro Diagnostics Market Size, Share & Trends Analysis Report By Product, By Application, By<br>Technology (Immunochemistry, Molecular Diagnostics) By End-use, By Region, And Segment Forecasts, 2021 – 2027. Grandview<br>Research, January 2021; and World Preview 2020,Outlook to 2026. EvaluatePharma, July 2020.<br>4 2 Global Marketing Insights, Precision Medicine Market Size By Technology (Big Data Analytics, Bioinformatics, Gene Sequencing, Drug<br>Discovery, Companion Diagnostics), By Application (Oncology, Immunology, CNS, Respiratory), By End-use (Pharmaceutical Companies,<br>Diagnostic Companies, Healthcare IT companies), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market<br>Share & Forecast, 2020-2026, Feb. 2020. and<br>Regenerative Medicine Market Size, Share and Industry Analysis by Product (Cell Therapy, Gene Therapy, Tissue Engineering, Platelet<br>Rich Plasma), By Application (Orthopaedics, Wound Care, Oncology), By Distribution Channel (Hospitals, Clinics) & Regional Forecast,<br>2019 – 2026. Fortune Business Insight, 2019.<br>6 3 Frost & Sullivan, Global Biobanking Market Landscape. May 20, 2020, page 357.<br>6 4 Centers for Disease Control, https://www.cdc.gov/nchs/data/ahcd/namcs_summary/2016_namcs_web_tables.pdf<br>6 5 iSpecimen estimates based upon American Association of Clinical Chemistry US lab test data cited at<br>https://www.360dx.com/research-funding/aacc-calls-congress-fund-clinical-lab-training-programs, 2020; and Clinical Lab Services,<br>Global Market Trajectory and Analytics; Global Industry Analysts report, 2020.<br>6 6 iSpecimen estimate based upon Henderson, G.E., Cadigan, R.J., Edwards, T.P. et al. Characterizing biobank organizations in the U.S.:<br>results from a national survey, 2013; and Puchois, Comprehensive Biomarker Discovery and Validation for Clinical Application, 2013.<br>6 7 Holly A. Massett et al. Assessing the need for a standardized cancer HUman Biobank (caHUB): findings from a national survey with<br>cancer researchers; JNCI Monographs, Volume 2011, Issue 42, June 2011.<br>7 8 Specimen Independent Researcher Survey, 2022.<br>22 9 All company names and logos appearing on this page are trademarks™ or registered® trademarks of their respective holders. Use<br>and appearance in this presentation of such trademarks (excluding iSpecimen®) do not imply or assert any form of affiliation with or<br>endorsement by those companies of iSpecimen or the contents of this presentation.<br>Sources Cited | |||
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