Precipio, Inc 10-Q for FY2026 Q1

Precipio, Inc. (PRPO)

10-Q 2026-05-14 For: 2026-03-31

Added on May 15, 2026

About this 10-Q

Precipio, Inc filed this 10-Q on May 14, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $6.71M; up 36.2% from $4.93M a year earlier
Net loss: $1.44M; compared with a net loss of $884K a year earlier
Diluted EPS: -$0.81; compared with -$0.59 a year earlier

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☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2026

	OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _____ to _____


Delaware	91-1789357
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

4 Science Park, New Haven, CT	06511
(Address of principal executive offices)	(Zip Code)

	a
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, $0.01 par value per share	PRPO	The Nasdaq Capital Market

Large accelerated filer	◻	Accelerated filer	◻
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

			Page No.

PART I.	Financial Information		3

Item 1.	Condensed Consolidated Financial Statements		3

	Condensed Consolidated Balance Sheets at March 31, 2026 (unaudited) and December 31, 2025		3

	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025 (unaudited)		4

	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2026 and 2025 (unaudited)		5

	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025 (unaudited)		6

	Notes to Unaudited Condensed Consolidated Financial Statements		8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		28

Item 4.	Controls and Procedures		29

PART II.	Other Information		30

Item 1.	Legal Proceedings		30

Item 1A.	Risk Factors		30

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		30

Item 3.	Defaults Upon Senior Securities		30

Item 4.	Mine Safety Disclosures		31

Item 5.	Other Information		31

Item 6.	Exhibits		32

Signatures			33


	(unaudited)
	March 31, 2026		December 31, 2025
ASSETS
CURRENT ASSETS:
Cash	$	2,604	$	2,651
Accounts receivable (net of allowance for credit losses of $1,295 and $1,045, respectively)		1,988		1,984
Inventories		870		935
Other current assets		470		469
Total current assets		5,932		6,039

PROPERTY AND EQUIPMENT, NET		735		729

OTHER ASSETS:
Finance lease right-of-use assets, net		936		998
Operating lease right-of-use assets, net		2,451		2,565
Intangibles, net		10,682		10,919
Other assets		67		67
Total assets	$	20,803	$	21,317
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt, less debt issuance costs	$	30	$	30
Current maturities of finance lease liabilities		202		209
Current maturities of operating lease liabilities		434		410
Accounts payable		1,363		1,131
Accrued expenses		1,660		1,690
Deferred revenue		121		282
Total current liabilities		3,810		3,752
LONG TERM LIABILITIES:
Long-term debt, less current maturities and debt issuance costs		40		47
Finance lease liabilities, less current maturities		701		751
Operating lease liabilities, less current maturities		2,085		2,206
Total liabilities		6,636		6,756
COMMITMENTS AND CONTINGENCIES (Note 5)
STOCKHOLDERS’ EQUITY:
Preferred stock - $0.01 par value, 15,000,000 shares authorized at March 31, 2026 and December 31, 2025, 47 shares issued and outstanding at March 31, 2026 and December 31, 2025, liquidation preference of $147 at March 31, 2026		—		—
Common stock, $0.01 par value, 150,000,000 shares authorized at March 31, 2026 and December 31, 2025, 1,783,682 and 1,780,899 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively		18		18
Additional paid-in capital		118,395		117,346
Accumulated deficit		(104,246)		(102,803)
Total stockholders’ equity		14,167		14,561
Total liabilities and stockholders’ equity	$	20,803	$	21,317


	Three Months Ended March 31,
	2026			2025
SALES:
Service revenue, net	$	6,302		$	4,257
Product revenue		659			654
Revenue, net of contractual allowances and adjustments		6,961			4,911
Adjustment for allowance for credit losses		(250)			18
Net sales		6,711			4,929
COST OF SALES:
Cost of service revenue		3,705			2,466
Cost of product revenue		281			323
Total cost of sales		3,986			2,789
Gross profit		2,725			2,140
OPERATING EXPENSES:
Operating expenses		4,153			2,999
OPERATING LOSS		(1,428)			(859)
OTHER EXPENSE:
Interest expense, net		(15)			(25)
LOSS BEFORE INCOME TAXES		(1,443)			(884)
INCOME TAX EXPENSE		–			—
NET LOSS	$	(1,443)		$	(884)

Net loss per common share:
BASIC AND DILUTED LOSS PER COMMON SHARE	$	(0.81)		$	(0.59)
BASIC AND DILUTED WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING		1,783,080			1,502,652


		For the Three Months Ended March 31, 2026
		Preferred Stock					Common Stock					Additional
		Outstanding		Par			Outstanding		Par			Paid-in			Accumulated
		Shares		Value			Shares		Value			Capital			Deficit			Total
Balance, January 1, 2026		47		$	—		1,780,899		$	18		$	117,346		$	(102,803)		$	14,561
Net loss		—			—		—			—			—			(1,443)			(1,443)
Proceeds upon issuance of common stock from exercise of stock options		—			—		562			—			3			—			3
Issuance of common stock for Board fees and consulting services		—			—		2,221			—			53			—			53
Stock-based compensation		—			—		—			—			993			—			993
Balance, March 31, 2026		47		$	—		1,783,682		$	18		$	118,395		$	(104,246)		$	14,167


	March 31,
	2026		2025
Stock options	455,666		381,182
Warrants	10,000		444,444
Preferred stock	5,875		5,875
Total	471,541		831,501


	Dollars in Thousands
	March 31, 2026			December 31, 2025
Connecticut Department of Economic and Community Development (DECD)	$	75		$	83
DECD debt issuance costs		(5)			(6)
Total long-term debt		70			77
Current portion of long-term debt		(30)			(30)
Long-term debt, net of current maturities	$	40		$	47


(dollars in thousands)	March 31, 2026		December 31, 2025
Accrued expenses	$	341	$	402
Accrued compensation		1,100		977
Accrued franchise, property and sales and use taxes		200		209
CHC temporary funding assistance		—		83
Accrued interest		19		19
	$	1,660	$	1,690


(dollars in thousands)
Classification on the Consolidated Balance Sheet	March 31, 2026		December 31, 2025
Assets:
Operating lease right-of-use assets, net	$	2,451	$	2,565
Finance lease right-of-use assets, net		936		998
Total lease assets	$	3,387	$	3,563

Liabilities:
Current:
Current maturities of operating lease liabilities	$	434	$	410
Current maturities of finance lease liabilities		202		209
Noncurrent:
Operating lease liabilities, less current maturities		2,085		2,206
Finance lease liabilities, less current maturities		701		751
Total lease liabilities	$	3,422	$	3,576


(dollars in thousands)		Operating Leases		Finance Leases		Total
2026 (remaining)		$	487	$	218	$	705
2027			701		274		975
2028			745		234		979
2029			787		186		973
2030			299		129		428
Thereafter			93		78		171
Total lease obligations			3,112		1,119		4,231
Less: Amount representing interest			(593)		(216)		(809)
Present value of net minimum lease obligations			2,519		903		3,422
Less, current portion			(434)		(202)		(636)
Long term portion		$	2,085	$	701	$	2,786


	March 31,	December 31,
	2026	2025
Weighted-average remaining lease term (years):
Operating leases	4.3	4.6
Finance leases	4.3	4.5
Weighted-average discount rate:
Operating leases	10.00%	10.00%
Finance leases	10.60%	10.70%


				Underlying	Exercise
		Issue Year	Expiration	Shares	Price
Warrants
(1)		2025	February 2027	10,000	$	60.00


		Three Months Ended March 31,
		2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(1,443)		$	(884)

Adjustments to reconcile net loss to net cash flows provided by operating activities:
Depreciation and amortization			281			324
Amortization of operating lease right-of-use asset			115			57
Amortization of finance lease right-of-use asset			61			36
Amortization of deferred financing costs, debt discounts and debt premiums			1			—
Stock-based compensation			993			423
Value of stock issued in payment of Board fees and consulting services			53			65
Provision for credit losses			250			(38)
Derecognition of operating lease right-of-use asset and liability			—			(11)
Changes in operating assets and liabilities:
Accounts receivable			(254)			(139)
Inventories			65			(101)
Other assets			(2)			73
Accounts payable			231			288
Operating lease liabilities			(97)			(54)
Deferred revenue			(161)			57
Accrued expenses			(29)			(140)
Net cash provided by (used in) operating activities			64			(44)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(50)			(138)
Net cash used in investing activities			(50)			(138)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on finance lease obligations			(56)			(33)
Proceeds from exercise of stock options			3			—
Principal payments on long-term debt			(8)			(157)
Net cash flows used in financing activities			(61)			(190)
NET CHANGE IN CASH			(47)			(372)
CASH AT BEGINNING OF PERIOD			2,651			1,389
CASH AT END OF PERIOD		$	2,604		$	1,017


		Number of	Weighted-Average
		Options	Exercise Price
Outstanding at January 1, 2026		359,306	$	7.13
Granted		98,000		23.82
Exercised		(562)		5.62
Forfeited		(1,078)		6.25
Outstanding at March 31, 2026		455,666	$	10.73
Exercisable at March 31, 2026		257,042	$	7.37


		For the Three Months Ended March 31,
(dollars in thousands)		Diagnostic Testing
		2026			2025
Medicaid		$	25		$	5
Medicare			2,950			1,904
Self-pay			5			5
Third party payers			3,267			2,325
Contract diagnostics and other			55			18
Service revenue, net		$	6,302		$	4,257


		For the Three Months Ended March 31,
(dollars in thousands)								Contractual Allowances and						Revenues, net of Contractual
		Gross Revenues						adjustments						Allowances and adjustments
		2026			2025			2026			2025			2026			2025
Medicaid		$	25		$	5		$	—		$	—		$	25		$	5
Medicare			2,950			1,904			—			—			2,950			1,904
Self-pay			5			5			—			—			5			5
Third party payers			11,673			8,138			(8,406)			(5,813)			3,267			2,325
Contract diagnostics and other			55			18			—			—			55			18
			14,708			10,070			(8,406)			(5,813)			6,302			4,257
Product			659			654			—			—			659			654
		$	15,367		$	10,724		$	(8,406)		$	(5,813)		$	6,961		$	4,911


		For the Three Months Ended March 31,
		Revenues, net of
(dollars in thousands)		Contractual Allowances						Allowances for credit
		and adjustments						losses						Total
		2026			2025			2026			2025			2026			2025
Medicaid		$	25		$	5		$	(1)		$	18		$	24		$	23
Medicare			2,950			1,904			(182)			—			2,768			1,904
Self-pay			5			5			—			—			5			5
Third party payers			3,267			2,325			(67)			—			3,200			2,325
Contract diagnostics and other			55			18			—			—			55			18
			6,302			4,257			(250)			18			6,052			4,275
Product			659			654			—			—			659			654
		$	6,961		$	4,911		$	(250)		$	18		$	6,711		$	4,929


	Net sales				Accounts receivable, as of
	Three Months Ended
	March 31,				March 31,		December 31,
	2026		2025		2026		2025

Customer A	27	%	26	%	34	%	34	%
Customer B	*		*		*		12	%
Customer C	*		*		13		10	%

* represents less than 10%



3.1		Third Amended and Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.1 of the Company’s 8-K filed on June 30, 2017).

3.2		Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 of the Company’s Form 8-K filed on June 30, 2017).

31.1		Certification of Principal Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended.

31.2		Certification of Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended.

32.1*		Certification of Principal Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended.

32.2*		Certification of Principal Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended.

101.INS		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File – formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.

	PRECIPIO, INC.

Date: May 14, 2026	By:	/S/ ILAN DANIELI
		Ilan Danieli
		Chief Executive Officer (Principal Executive Officer)


Date: May 14, 2026	By:	/S/ MATTHEW GAGE
		Matthew Gage
		Chief Financial Officer (Principal Financial and Accounting Officer)