8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 10, 2022

PSYCHEMEDICS CORPORATION

(Exact Name of Registrant as Specified in its Charter)

(978) 206-8220

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former name or former address, 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 (see General Instructions A.2. below):

Securities registered pursuant to Section 12(b) of the Act:

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 ☐

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 7.01 Regulation FD Disclosure.

Psychemedics Corporation (the “Company”) has attached hereto as Exhibit 99.1 a copy of presentation materials concerning its business that it intends to use in connection with meetings with investors and other interested parties and in connection with presentations and speeches to various audiences.

Limitation on Incorporation by Reference. The information furnished in this Item 7.01, including the presentation attached hereto as Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Cautionary Note Regarding Forward-Looking Statements. Except for historical information contained in the presentation attached as an exhibit hereto, the presentation contains forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary notes in the presentation regarding these forward-looking statements.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

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.

Exhibit 99.1

1 0 - March - 2022

Safe Harbor Statement This presentation contains forward - looking information that involves risks and uncertainties, including statements about the Company’s prospects, the Company’s financial performance, targets, goals, and metrics, participation in multiple ma rke ts, its technology and research and development efforts, the benefits of the Company’s business model (including its margins and customer relationships), the Company’s business opportunities and competitive advantages, the Company’s growth potential and strategies for growth, and statements about customer and industry demand. Investors are cautioned that such forward - looking statements are not guarantees of future performance and involve risks and uncertainties, including without limitation risks associated with economic conditions that affect the Company and its customers, the ability of the Company to obtain new customers, the ability of the Company to retain customers, the ability of the Company to maintain and grow its current margin s, the Company’s ability to adapt to changing market needs and other factors as well as other risks and uncertainties that are detailed in the documents filed by the Company with the SEC. Accordingly, actual results may differ materially. The risks and uncertainties included above are not exhaustive. Readers are referred to the documents filed by the Company with the SEC, specifically the last reports on Forms 10 - K and 10 - Q. The forward - looking statements contained herein speak only of the Company’s expectations as of the date of this presentation. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.

Founded in 1986, Psychemedics is the world’s largest provider of hair analysis drug testing, using a best - in - class analysis to test for drugs of abuse • Re - invented the drug testing industry with patented technology that extracts virtually 100% of the drug held in hair to be analyzed and quantified • All screens are FDA - cleared • Offer customers in - depth analysis and unmatched insights, having conducted millions of tests over the Company’s 30+ year history • Established market position with several growth opportunities • Stable and diversified client base of 4,000+ customers across a wide variety of industries • Strong financial profile Highly Validated and Accredited Psychemedics Overview

Key Investment Highlights The Pioneer and Industry Leader with Opportunities for Growth World’s largest provider of hair testing, re - inventing the industry, providing superior in - depth analysis and unmatched insights for clients, while expanding into new market segments and additional tests Stable and Profitable Financial Performance with Opportunities for Growth 25+ years of strong profitability, expanding margins, and tangible shareholder returns with 94 consecutive quarters of divide nd payments (1) Compelling Value Proposition and Customer ROI Lowest Cost - Per - User Identified and 6x - 10x better detection than urine and 2x - 3x better than other hair tests, preventing losses of $7,000 - $25,000 per drug abusing employee Positive, Lasting Impact on Local Communities Beyond the Workplace Drug free workplaces reduce the risk of addiction and drug use at home, minimizing familial mistreatment, reckless behavior, and the financial and emotional hardships on families Marquee Customer Base with Strong Retention 93% retention across 4,000+ customers representing global leaders and Fortune 500 companies that comprise a wide range of industries, including trucking, oil and gas, manufacturing, education, and law enforcement 1) PMD suspended dividend in 2020 due to initial impact from COVID - 19 but has rebounded financially with realigned cost structure, return to profitability in Q1 2021, and dividend payment in Q4 2021. Unique and Patented Technology Platform For Scientific Analysis of Hair Current application is testing for drugs of abuse using the technology to release virtually 100% of the drugs from the hair. Sup ported by ten patents fundamental to effective hair testing and is the only lab with FDA clearance for all hair testing assays. Platfor m i s extensible beyond testing for drugs of abuse to other applications Changing Market Dynamics Increasingly Favor Psychemedics Hair Testing Over Urine Viability of urine testing is significantly diminished as the legislative landscape has changed, and user behaviors and drug tre nds evolved, again validating hair testing as the most effective and cost - effective alternative

SAN FRANCISCO, May 31, 2021 /PRNewswire/ -- The global drug testing market size is expected to reach USD 11.7 billion by 2028, according to a report by Grand View Research, Inc. It is expected to expand at a CAGR of 4.9% from 2021 to 2028 Urine and Saliva are the least effective matrices at detecting drugs of abuse While the majority of employers use urine: • The most dangerous drugs that are rapidly increasing in usage: Opioids including fentanyl, Cocaine, Amphetamines and Benzodiazepines are virtually invisible to a urine test • With marijuana increasingly accepted and often legal, the cost effectiveness of urinalysis approaches zero Psychemedics delivers: Superior Science / Superior Results • 6 - 10X higher detection (including marijuana) than urinalysis or fluids tests • 2 - 5X higher positive rates than other hair tests Changing Market Dynamics Increasingly Favor Psychemedics Hair Testing

Compelling Value Proposition backed by Psychemedics patented technology Drug Use in the Workplace is Costly • Drug use in the workplace costs employers approximately $120bn annually in lost productivity (1) • Drug abusers perform at 67% of their potential - 1/3 less productive (2) and are 2x - 5x more likely to be absent (3) • Account for 40% of all workplace theft (4) Prevents User Deception • Hair testing is not susceptible to tactics commonly used to deceive urine tests • Hair products or adulterants are not effective in manipulating test results Substantial Cost Reduction • A drug abuser costs their employer an average of $7k - $25k per year (2) • 5x more likely to file worker's comp (2) • Have 300% higher medical costs (2) • Cause 50% of all workplace accidents (4) Significant Customer ROI • Psychemedics’ Cost - Per - User Identified is significantly lower at $600 vs. Other hair labs at $1,000 and urine labs at $1,500 • Urine tests may have lower up - front costs but are far less effective, and rapidly declining in viability • Psychemedics’ tests have 6x - 10x better detection rates than urine and 2x - 3x better detection rates than other hair tests 1) National Drug Intelligence Center. National Threat Assessment: the Economic Impact of Illicit Drug Use on American Society. M ay 2011. 2) 'Working Partners', National Conference Proceedings Report: sponsored by U.S. Dept. of Labor, the SBA, and the Office of Nati ona l Drug Control Policy. 3) National Safety Council as cited by EHS Today, December 12, 2017. 4) The Economic Impact of Illicit Drug Use on American Society. US Department of Justice. April 2011. All Hair Testing is NOT the Same

Marquee Customer Base Proprietary hair analysis technology is trusted by a wide, diverse range of the worlds most recognized corporate clients, plus schools, law enforcement and parents Blue Chip Customer Base • Psychemedics’ technology is used by the world’s most recognized brands across a broad range of industries • Psychemedics also serves Federal Reserve Banks, leading private and public schools and several government and medical research programs • 93% client retention over the last 5 years • Very low customer concentration Psychemedics provides hair drug testing to thousands of clients in a wide range of industries

Unique Technology: All Hair Testing is NOT the Same The Company utilizes its proprietary drug extraction method followed by a unique enzyme immunoassay (EIA) to identify drug us e i n hair $600 $1,000 $1,500 Psychemedics Other Hair Testing Urine Testing 90 Days 90 Days 1 - 3 Days for most drugs Only lab with FDA 510(k) clearance for ALL hair testing assay screens Some All Fundamental and unique patent for effective hair testing Enables ~100% drug released and measured 10 total patents In - house, custom designed screening assays Weak Weak Multi - Bath, 4 - hour process Virtually eliminates external contamination Minutes Risk of external contamination remains N/A 6x - 10x better detection than urine Cannot be manipulated Requires significantly smaller hair samples 2x - 3x better detection than urine Baseline Higher Lower Lower Other Hair Urinalysis Patents / Design Wash Procedure ROI 1) Cost - Per - User Identified = TOTAL TESTING COST divided by NUMBER OF USERS IDENTIFIED by the test. Cost - Per - User Identified (1) Accuracy Window of Detection

Superior Deterrence Declining positive rates over time Superior Detection Identifies more users of more drugs Our Superior Detection Of All Drugs Is Our Powerful Deterrent To Usage Superior Protection Detects more of the most dangerous drugs Urine 10.7% 1.07% 10X DOT Urine A large trucking firm identified 900 drug users who would have slipped by the DOT urine test . Psychemedics identifies 6 x - 10 x the drug users as a urine test Psychemedics delivers a higher overall positive rate and also finds more of all drug classes . Especially significant is its vast superiority in detecting the most dangerous workplace drugs As drug users learn a Psychemedics hair test is required they tend to change behaviors or find companies that use other testing methods . A falling positive rate over time is the evidence Source: KLLM Transportation

Positive, Lasting Social Impact There is a growing crisis in the workplace as employee drug abuse is accelerating and causing loss of productivity and increa sed injuries. Reducing these financial and human costs requires unparalleled drug testing accuracy and deterrence that only Psychemedics can provide Source: Office of National Drug Control Policy; National Center for Drug Abuse Statistics; Addiction Center. Impact on the Community • Drug - free workplaces reduce drug abuse and reckless behavior in the home • Children are at a reduced risk for mistreatment • Lessens financial and emotional hardships for individuals and families coping with family members on drugs Impact on Addiction and Opioids • Addiction impacts 2mm+ Americans, with an annual economic impact of ~$80bn • An urgent public health threat: fentanyl - based counterfeit pills flooding the U.S. • In 2020, synthetic opioids, such as fentanyl, caused over 57,000 deaths, a 58% increase from 2019 and a majority of total drug deaths in the United States • Psychemedics delivers the only FDA - cleared hair test for fentanyl Importance of a Drug - Free Workplaces • Psychemedics is committed to creating a safe, healthy workplace • A safe, healthy workplace has a ripple effect back into communities and families • In 2021, 35.5mm (67%) of current illicit drug users were employed full or part time; our clients identify them and do not make these very risky hires