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): May 4, 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 | ||
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| (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) |
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| ¨ | Pre-commencement communications<br> pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ¨ | 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 May 4, 2023, iSpecimen Inc., a Delaware corporation (the “Company”), issued a press release (“Earnings Release”) announcing its financial and operating results for the quarter ended March 31, 2023. 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 quarter ended March 31, 2023 is unaudited. The Company also filed its unaudited financial statements for the quarter ended March 31, 2023 with its Quarterly Report on Form 10-Q on May 4, 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 its most recent 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. |
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The Company also held a conference call and audio webcast at 8:30 a.m. Eastern Time on May 4, 2023 (“Earnings Call”) in which it discussed its first quarter 2023 results. The Company issued a press release on April 20, 2023, providing information on how to access the Earnings Call. A replay of the Earnings Call is available through May 18, 2023, by calling 1-844-512-2921 (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 May 2023 (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 Amendment No. 1 to the Annual Report on Form 10-K/A for the year ended December 31, 2022 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, 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 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, dated May 4, 2023. |
| 99.2 | Investor Presentation, dated May 2023. |
| 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: May 4, 2023
| iSPECIMEN INC. | |
|---|---|
| By: | /s/ Tracy Curley |
| Name: Tracy Curley | |
| Title: Chief Executive Officer |
Exhibit 99.1
iSpecimen ReportsFirst Quarter 2023 Results
- Quarterly Revenue Increased 17% Year-Over-Year-
LEXINGTON, MA, May 4, 2023 – iSpecimen Inc. (Nasdaq:ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers, today reported its financial and operating results for the three-month period ended March 31, 2023.
“I am pleased to report that iSpecimen delivered strong revenue of approximately $3.0 million, a 17% increase year-over-year for the first quarter of 2023, which met our internal expectations and reflects the seasonality of our business,” said Tracy Curley, CEO and CFO. “Earlier this year we presented our 2023 strategic plan, which includes developing several adjacent revenue opportunities, realigning resources in order to address operational inefficiencies and a significant investment in technology to improve our search functionality and user interface, increase automation and enhance matchmaking. We have experienced tremendous progress in these efforts, and the board and leadership team remain confident that iSpecimen is on track to transform the biospecimen supply chain.”
“iSpecimen is working diligently to accelerate life science research and development via its global marketplace platform to seamlessly connect medical researchers with suppliers of biospecimens subjects, specimens and data. In doing so, not only is iSpecimen developing a best-in-class biospecimen commerce solution, it is simultaneously developing several adjacent offerings to increase our revenue opportunities,” concluded Ms. Curley.
Q1 2023 Financial & Operational Highlights
| · | Revenue of $3.0 million, an increase of 17% from<br>$2.5 million in Q1 2022. |
|---|---|
| · | Unique supplier organizations under agreement<br>were 217 as of March 31, 2023, an increase of 6% over Q1 2022. |
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| · | Unique customer organizations who have purchased<br>from iSpecimen totaled 534 as of March 31, 2023, an increase of 22% over Q1 2022. |
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| · | iSpecimen Marketplace had nearly 6,900 registered<br>research and supplier users as of March 31, 2023, up 24% over Q1 2022. |
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Recent Corporate Updates
| · | Solidified senior leadership team with the appointment<br>of Tracy Curley as permanent Chief Executive Officer and Eric Langlois as Chief Revenue Officer in January 2023. |
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| · | Named to Fast Company‘s annual list of<br>the World’s Most Innovative Companies as part of the biotech category for 2023. |
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| · | Launched iSpecimen’s first sequencing project<br>pilot with approximately 300 samples. |
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| · | Brought online one pilot site with an embedded<br>iSpecimen project coordinator, with plans to ramp up to 12 coordinators in the first half of 2023. |
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Financial Results for the First Quarter 2023
Revenue was approximately $3.0 million for the first quarter of 2023, an increase of 17%, compared to approximately $2.5 million for the first quarter of 2022. This improvement was primarily due to a 75% increase in specimen count offset by a 30% decrease in average selling price per specimen.
Cost of revenue was approximately $1.1 million for the first quarter of 2023, compared to approximately $1.2 million for the first quarter of 2022. The decrease was primarily attributable to a 43% decrease in the average cost per specimen, which was partially offset by a 75% increase in the number of specimens accessioned.
General and administrative expenses were approximately $1.8 million for the first quarter or 2023, which was comparable to approximately $1.8 million for the first quarter of 2022.
Net loss was approximately $2.4 million, or $(0.27) per share, for the first quarter of 2023, which was comparable to net loss of approximately $2.4 million, or $(0.27) per share, for the first quarter of 2022.
As of March 31, 2023, iSpecimen had approximately $3.8 million in cash and cash equivalents and approximately $7.2 million in available-for-sale securities, with the sum of both classifications totaling approximately $11 million, compared to cash of approximately $15.3 million as of December 31, 2022. This decrease was primarily the result of increased cash spending for technology of approximately $1.9 million and a slower than planned conversion of accounts receivable to cash of approximately $817,000 during the first quarter of 2023.
For more information on our financial results and other information relating to iSpecimen for the first quarter of 2023, including the Company’s unaudited financial statements for the three-month period ended March 31, 2023, please see the Company’s Report on Form 10-Q for the Quarterly Period ended March 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on its Edgar database on today, May 4, 2023.
Conference Call and Webcast Information
The Company will host a conference call and audio webcast today, May 4, 2023 at 8:30 a.m. Eastern Time featuring remarks by Tracy Curley, CEO.
| Event: | iSpecimen First Quarter 2023 Results Conference Call |
|---|---|
| Date: | Thursday, May 4, 2023 |
| Time: | 8:30 a.m. Eastern Time |
| Live Call: | +1-844-826-3033 (U.S. Toll Free) or +1-412-317-5185 (International) |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1606890&tp_key=bebc46fa79 |
For interested individuals unable to join the conference call, a replay will be available through May 18, 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: 10176984. 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 expected results of its marketplace platform and biospecimen commerce solution, anticipated benefits of adjacent revenue opportunities and the Company’s future financial performance, as well as the risks factors contained in the Company's filings with the SEC, which are available for review at www.sec.gov. Forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company's forward-looking statements occurs, the Company's business, financial condition and operating results may vary materially from those expressed in the Company's forward-looking statements.
Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact:
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 Balance Sheets
| December 31, 2022 | |||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 3,762,654 | $ | 15,308,710 | ||
| Available-for-sale securities | 7,259,482 | — | |||
| Accounts receivable – unbilled | 1,584,440 | 2,327,789 | |||
| Accounts receivable, net of allowance for doubtful accounts of 383,789 and 230,999 at March 31, 2023 and December 31, 2022, respectively | 3,005,832 | 1,597,915 | |||
| Prepaid expenses and other current assets | 312,900 | 300,434 | |||
| Tax credit receivable | 34,669 | 140,873 | |||
| Total current assets | 15,959,977 | 19,675,721 | |||
| Property and equipment, net | 195,293 | 225,852 | |||
| Internally developed software, net | 5,610,007 | 4,503,787 | |||
| Operating lease right-of-use asset | 146,193 | 184,692 | |||
| Security deposits | 27,601 | 27,601 | |||
| Total assets | 21,939,071 | $ | 24,617,653 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | 2,701,235 | $ | 2,459,063 | ||
| Accrued expenses | 908,312 | 1,531,238 | |||
| Operating lease current obligation | 147,375 | 158,451 | |||
| Deferred revenue | 97,655 | 132,335 | |||
| Total current liabilities | 3,854,577 | 4,281,087 | |||
| Operating lease long-term obligation | — | 27,396 | |||
| Total liabilities | 3,854,577 | 4,308,483 | |||
| Commitments and contingencies (See Note 8) | |||||
| Stockholders’ equity | |||||
| Common stock, 0.0001 par value, 200,000,000 shares authorized, 9,053,320 issued, and 9,022,320 outstanding at March 31, 2023 and 8,956,808 issued and 8,925,808 outstanding at December 31, 2022 | 902 | 892 | |||
| Additional paid-in capital | 68,762,057 | 68,573,774 | |||
| Treasury stock, 31,000 shares at March 31, 2023 and December 31, 2022, at cost | (172 | ) | (172 | ) | |
| Accumulated other comprehensive income | 18,843 | — | |||
| Accumulated deficit | (50,697,136 | ) | (48,265,324 | ) | |
| Total stockholders’ equity | 18,084,494 | 20,309,170 | |||
| Total liabilities and stockholders’ equity | 21,939,071 | $ | 24,617,653 |
All values are in US Dollars.
iSpecimen Inc.
Condensed Statements of Operations
| Three Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||
| Revenue | $ | 2,950,197 | $ | 2,518,660 | ||
| Operating expenses: | ||||||
| Cost of revenue | 1,146,912 | 1,165,917 | ||||
| Technology | 834,407 | 527,522 | ||||
| Sales and marketing | 962,169 | 747,432 | ||||
| Supply development | 275,246 | 182,070 | ||||
| Fulfillment | 455,531 | 443,794 | ||||
| General and administrative | 1,818,355 | 1,810,313 | ||||
| Total operating expenses | 5,492,620 | 4,877,048 | ||||
| Loss from operations | (2,542,423 | ) | (2,358,388 | ) | ||
| Other income (expense), net | ||||||
| Interest expense | (3,535 | ) | (38,048 | ) | ||
| Interest income | 114,263 | 12,654 | ||||
| Other income (expense) | (117 | ) | 40 | |||
| Other income (expense), net | 110,611 | (25,354 | ) | |||
| Net loss | $ | (2,431,812 | ) | $ | (2,383,742 | ) |
| Other comprehensive income: | ||||||
| Unrealized gains on available-for-sale securities | $ | 18,843 | $ | — | ||
| Total other comprehensive income | 18,843 | — | ||||
| Comprehensive loss | $ | (2,412,969 | ) | $ | (2,383,742 | ) |
| Net loss per share - basic and diluted | $ | (0.27 | ) | $ | (0.27 | ) |
| Weighted average shares of common stock outstanding - basic and diluted | 8,980,898 | 8,765,437 |
Exhibit 99.2
| May 2023<br>Investor Presentation<br>Transforming<br>Biospecimen<br>Procurement<br>An online marketplace for human biospecimens | |||
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| This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,<br>and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or<br>conditional verbs such as “may,” “will,” “expect,” “intend,” “anticipate,” believe,” “estimate” and “continue” or similar words. You should<br>read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of<br>future results of operations or financial condition or state other forward-looking information. Such statements are only predictions and our<br>actual results may differ materially from those anticipated 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 that we are<br>not able to accurately predict or control. Factors that may cause such differences include, but are not limited to, those discussed under<br>Risk Factors in our filings filed with the Securities and Exchange Commission (the "SEC"), including the uncertainties associated with our<br>lack of profitability, our continued capital needs, our lack of a long operating history, our growth strategy, the uncertain effect of<br>geopolitical developments, our technology development plans, and the regulatory environment in which we operate. We do not assume<br>any obligation to update forward-looking statements as circumstances change.<br>Certain market data information in this presentation is based on management's estimates. We obtained the industry, market and<br>competitive position data used throughout this presentation from internal estimates and research as well as from industry publications<br>and research, surveys and studies conducted by third parties. We believe our estimates to be accurate as of the date of this<br>presentation. However, this information may prove to be inaccurate because of the method by which we obtained some of the data for<br>our estimates or because this information cannot always be verified due to the limits on the availability and reliability of raw data, and the<br>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 offer or<br>invitation for the sale or purchase of securities or to engage in any other transaction with us or our affiliates. The information in this<br>presentation is not targeted at the residents of any particular country or jurisdiction and is not intended for distribution to, or use by, any<br>person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.<br>2<br>Forward-Looking Statements | |||
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| 3<br>1. Early-stage opportunity with a first mover<br>advantage<br>2. Unique two-sided marketplace disrupting the<br>biospecimen procurement process<br>3. Strong revenue growth with a 7-year CAGR of<br>48%<br>4. Growing data asset that’s a key enabler and<br>differentiator<br>Investor Highlights<br> >200<br>Healthcare Provider / Supplier<br>Organizations<br> >500<br>Customer<br>Organizations | |||
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| Our Vision<br>Accelerate scientific<br>discovery via an online<br>marketplace that empowers<br>researchers to instantly<br>search for and gain access to<br>patients, biospecimens, and<br>data across a global network<br>of healthcare providers.<br>4 | |||
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| Human Biospecimens are Essential for Life Science R&D<br>Basic Research<br>Biomarker<br>Identification &<br>Validation<br>Drug Discovery &<br>Development<br>Diagnostics Discovery<br> & Validation<br>Biofluid<br>s<br>Solid Tissue<br>Stem & Immune Cells<br>Plasma, Serum, Urine, Saliva Industr<br>y<br>Academi<br>a<br>Governme<br>nt<br>5<br>Lung, Breast, Colon, Brain<br>Bone Marrow, Blood, Tonsils,<br>Lymph Nodes<br>Patients Applications<br>SUPPLY<br>HEALTHCARE<br>PROVIDERS<br>DEMAND<br>LIFE SCIENCE RESEARCHERS<br>Biospecimens Data Organizations<br>Medical<br>Record | |||
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| 10 - 15% Annual Growth<br>Fueled by precision and regenerative<br>medicine research 2<br>Disconnected<br>Market Participants<br>in Need of a<br>Marketplace Solution<br>With an Inefficient<br>Supply Chain Manual processes plus fragmentation<br>make it ripe for an online marketplace<br>solution<br>Large and Inefficient<br>Biospecimen Market<br>$3 - $4 Billion<br>Worldwide yearly spend on human<br>biospecimen procurement 1<br>6<br>1, 2 “Sources Cited” page 28 | |||
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| Market Inefficiencies<br>PROVIDER RESEARCHER<br>Scientist /<br>Informaticist<br>Procurem<br>ent<br>Legal &<br>Compliance<br>IT /<br>Informaticist<br>Scientist & Informaticist<br>Legal &<br>Compliance<br>IT / Informaticist<br>Researcher &<br>Procurement<br>Legal &<br>Compliance<br>Principal<br>Investigator<br> & Specimen<br>Operations<br>PATIENTS PROVIDERS RESEARCHERS<br>7<br>Difficulties Connecting, Searching, and Compliantly Transacting<br>6-12 months on average to develop relationships, requiring the involvement of many stakeholders 3<br>3 “Sources Cited” page 28 | |||
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| Inefficiencies Lead to Losses<br>Providers miss revenue and<br>research opportunities<br> > 3 Billion<br>clinical specimens are discarded<br>annually worldwide 5<br> > 1 Billion<br>Patient encounters yearly in the U.S. where a<br>specimen could be provided for research 4<br> > 800 Million<br>banked specimens are in biorepository<br>inventories worldwide 6<br>8<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 8<br> “Challenging” and “Inefficient”<br>most common words used to describe biospecimen<br>procurement process by researchers 8<br>10 years ago, 81%<br>of researchers said they limit the scope of their work<br>due to difficulties obtaining biospecimens 7<br>4,5,6,7,8 “Sources Cited” page 28 | |||
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| Full-Service Procurement<br>We Not Only Connect Suppliers and Customers,<br>but Also 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 | |||
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| The iSpecimen Marketplace® Solution<br>10<br>PROVIDER<br>Procurement Principal Investigator /<br>Operations<br>IT / Informaticist<br>PATIENTS<br>Legal &<br>Compliance<br>IT / Informaticist<br>Researcher &<br>Procurement<br>Legal & Compliance<br>Principal<br>Investigator<br> & Specimen<br>Operations<br>Scientist & Informaticist<br>Blood / Pheresis Centers<br>Clinical Labs<br>Biorepositories<br>Pathology Labs<br>RESEARCH<br>PATHWAY<br>CLINICAL<br>PATHWAY<br>Industry<br>Academia<br>Government<br>RESEARCHERS<br>An Online Platform That Instantly Connects Researchers to a Global Network of Patients,<br>Biospecimens, and Data to Accelerate Time to Discovery<br>Saves months in the average biospecimen procurement process<br>PROVIDERS<br>Healthcare<br>Data | |||
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| Advance Discovery<br>Support research mission and advance<br>diagnostic, therapeutic, and vaccine research<br>Increase Revenue<br>Instantly connect to a global network of<br>researchers<br>Ensure Compliance<br>On a platform that protects the privacy and<br>security of patient information<br>Accelerate Research<br>Search for specimens anytime, anywhere,<br>through our easy-to-use online marketplace<br>Save Money<br>Instantly connect to a global network of<br>specimen providers<br>Reduce Risk<br>On a platform that manages contracting<br>and regulatory compliance<br>Providers… Researchers…<br>11<br>Suppliers and Researchers Benefit | |||
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| Growing Supplier Adoption<br>1000+<br>Hospitals<br>Also includes two Healthcare Information Exchanges<br> ▲ 47% CAGR<br> Number of Suppliers<br> (2015 – Q123)<br>WORLDWIDE COVERAGE<br>United States<br>United Kingdom<br>Germany<br>France<br>Ukraine<br>Georgia<br>Bulgaria<br>Russian Federation<br>India<br>Peru<br>Dominican Republic<br>Jamaica<br>Spain<br>Mexico<br>Netherlands<br>Venezuela<br>Turkey<br>Romania<br>Armenia<br>Cumulative Supplier Organizations Under Agreement<br>2015 – Q1 2023<br>Unique Supplier Organizations Provide Access to:<br>000’s<br>Clinics and Practice Groups<br> >55<br>Biorepositories<br> >150<br>Clinical Research Centers<br> >60<br>Clinical and Pathology Labs<br>8<br>Blood Centers<br>12 | |||
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| Cumulative Customer Organizations with<br>Purchases<br>2015 – Q1 2023<br> ▲ 53% CAGR<br> Customers<br> (2015 – Q123)<br>Annual Revenue ($000)<br>2015 – Q1 2023 (Unaudited)<br> ▲ 48% CAGR<br> Revenue<br> (2015 – 2022)<br>Growing Researcher Adoption<br>70% of the Top 20 Pharma Companies and 70% of the Top 20 IVD Companies Worldwide<br>are iSpecimen customers<br><br> >175,000+ Specimens Across >2,400 Projects are iSpecimen customers<br>delivered to our customers<br>13 | |||
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| Cumulative Researcher and Supplier Marketplace Users<br>2015 – Q1 2023<br> ▲ 85% CAGR<br> Registered Users<br> (2015 – Q123)<br>Growing Marketplace Adoption<br>~2,700<br>Unique searches performed by researchers in the iSpecimen Marketplace in 2022<br><br>14<br>Annual Researcher and Supplier Marketplace<br>Logins*<br>2015 – Q1 2023<br> ▲ 42% CAGR<br>Marketplace Logins<br> (2015 – 2022)<br>*Researcher logins grew in 2021 while supplier logins dropped by 9% due to pandemic slowdowns at healthcare provider partners | |||
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| “Utilization of sample data for<br>research and for monetization<br>is the next key value driver for<br>the biobanks.”<br>- Frost & Sullivan, Global Biobanking Market<br>Landscape<br>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 available<br>for future adjacent opportunities<br>such as patient search, clinical<br>trial recruitment, and data<br>licensing.<br>80M+<br>15<br>1.2M+<br>15M+<br>1M+<br>640M<br>+ | |||
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| Statements of Operations<br>16 | |||
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| Balance Sheets<br>17 | |||
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| Fully Diluted Shares of Common Stock Outstanding<br>18 | |||
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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<br>such as CohnReznick where she focused on serving clients in the middle markets. During her time as a partner in public accounting firms, she<br>was responsible for creating and leading teams to provide audit and consulting services to a growing clientele of private and public emerging<br>growth companies primarily in the technology and life sciences industries. Ms. Curley received her Master of Accountancy and Bachelor of<br>Science in Business Administration with a concentration in accounting from Kansas State University. She also attended the United States<br>Military Academy. She is a certified public accountant licensed in the Commonwealth of Massachusetts.<br>Benjamin Bielak | Chief Information Officer<br>Mr. Bielak has been serving as our Chief Information Officer since June 2018. He served as the Chief Information Officer at GNS Healthcare, a<br>leading casual machine learning product and services company, from January 2017 to May 2018 and as Director of Academic Technology at<br>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<br>Center and Senior Manager of Technology at Sapient, a global services company, from December 1997 to July 2005. Mr. Bielak holds a Masters<br>of Business Administration degree from Bentley University, where his studies focused on change management, and a master’s degree from<br>Boston University in computer science.<br>David Wages, M.D., PHD | Chief Medical Officer<br>Mr. Wages has been serving as our Chief Medical Officer since October 2018. Prior to joining iSpecimen, David served as Senior Medical<br>Director at Quintiles, the world’s largest clinical research organization, where he supported both large pharmaceutical companies as well as<br>smaller biotech organizations in a wide variety of clinical oncology programs. David has worked in both start-up biotechs and large pharma.<br>David began his career working on the clinical development of novel drug-device combinations for blood decontamination at Cerus Corporation.<br>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<br>institutional investors on healthcare technology opportunities at Leerink-Swann’s Medacorp, David then moved on to ARIAD Pharmaceuticals<br>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<br>myeloid leukemia drug, Iclusig®. David next joined EMD Serono where he worked on phase I-III trials of immune-agents for oncology. David<br>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<br>a residency at the University of California, San Francisco and a fellowship in hematopathology at Boston’s Beth Israel hospital. 19<br>Management Team<br>9 “Sources Cited” page 28 |
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| 20<br>1. $3B-$4B global biospecimen market growing<br>at 10-15% per year<br>2. Early-stage opportunity with a first mover<br>advantage<br>3. Unique two-sided marketplace disrupting the<br>biospecimen procurement process<br>4. Strong revenue growth with a 7-year CAGR of<br>48%<br>5. Growing data asset that’s a key enabler and<br>differentiator<br>Investor Summary<br> >200<br>Healthcare Provider /<br>Supplier Organizations<br> >450<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 biospecimen<br>revolution | |||
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| Appendix<br>22 | |||
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| PHASE 3<br>Expansion via the Online iSpecimen<br>Marketplace™<br>START UP<br>Company Ideation and<br>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 – 2022<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>500+<br>Customers<br>200+<br>Supplier Agreement<br>80+ Million<br>Specimen Records<br>15+ Million<br> Patient Records<br>74<br>FTEs<br>$20.7M + $21M<br>IPO + Private Placement<br>23<br>Strategic Evolution | |||
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| iSpecimen Marketplace UI/UX<br>Click Search to start searching for<br>specimens<br>24 | |||
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| 2<br>5<br>iSpecimen Marketplace UI/UX Use search bar to quickly find<br>specimens that match search<br>criteria | |||
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| Refine Search Results Using<br>Sliders and Check Boxes<br>iSpecimen Marketplace UI/UX<br>26 | |||
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| View Quote Request and Add More<br>Specimens<br>Request a Quote<br>iSpecimen Marketplace UI/UX<br>27<br>Track and Manage Requests | |||
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| 28<br>Page Note Source Cited<br>7 1 iSpecimen estimates based on In Vitro Diagnostics Market Size, Share & Trends Analysis Report By Product, By Application, By Technology<br>(Immunochemistry, Molecular Diagnostics) By End-use, By Region, And Segment Forecasts, 2021 – 2027. Grandview Research, January 2021; and<br>World Preview 2020,Outlook to 2026. EvaluatePharma, July 2020.<br>7 2 Global Marketing Insights, Precision Medicine Market Size By Technology (Big Data Analytics, Bioinformatics, Gene Sequencing, Drug Discovery,<br>Companion Diagnostics), By Application (Oncology, Immunology, CNS, Respiratory), By End-use (Pharmaceutical Companies, Diagnostic<br>Companies, Healthcare IT companies), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast,<br>2020-2026, Feb. 2020. and<br>Regenerative Medicine Market Size, Share and Industry Analysis by Product (Cell Therapy, Gene Therapy, Tissue Engineering, Platelet Rich<br>Plasma), By Application (Orthopaedics, Wound Care, Oncology), By Distribution Channel (Hospitals, Clinics) & Regional Forecast, 2019 – 2026.<br>Fortune Business Insight, 2019.<br>8 3 Frost & Sullivan, Global Biobanking Market Landscape. May 20, 2020, page 357.<br>9 4 Centers for Disease Control, https://www.cdc.gov/nchs/data/ahcd/namcs_summary/2016_namcs_web_tables.pdf<br>9 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, Global Market<br>Trajectory and Analytics; Global Industry Analysts report, 2020.<br>9 6 iSpecimen estimate based upon Henderson, G.E., Cadigan, R.J., Edwards, T.P. et al. Characterizing biobank organizations in the U.S.: results from a<br>national survey, 2013; and Puchois, Comprehensive Biomarker Discovery and Validation for Clinical Application, 2013.<br>9 7 Holly A. Massett et al. Assessing the need for a standardized cancer HUman Biobank (caHUB): findings from a national survey with cancer<br>researchers; JNCI Monographs, Volume 2011, Issue 42, June 2011.<br>9 8 Specimen Independent Researcher Survey, 2022.<br>19 9 All company names and logos appearing on this page are trademarks™ or registered® trademarks of their respective holders. Use and appearance in<br>this presentation of such trademarks (excluding iSpecimen®) do not imply or assert any form of affiliation with or endorsement by those companies of<br>iSpecimen or the contents of this presentation.<br>Sources Cited | |||
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