iSpecimen Inc. (ISPC) Bundle
A Brief History of iSpecimen Inc.
iSpecimen Inc. has undergone significant developments leading up to 2024. The company specializes in specimen procurement and data management for medical research, leveraging proprietary technology to connect hospitals, laboratories, and researchers.
Financial Performance
As of September 30, 2024, iSpecimen reported revenues of approximately $2,661,936 for the third quarter, a decrease from $2,777,751 in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $7,815,608, compared to $7,353,090 in 2023, indicating a year-over-year increase.
| Period | Revenue | Net Loss | Operating Expenses |
|---|---|---|---|
| Q3 2024 | $2,661,936 | $(1,439,853) | $4,367,340 |
| Q3 2023 | $2,777,751 | $(2,111,101) | $4,971,831 |
| 9M 2024 | $7,815,608 | $(6,450,994) | $14,703,197 |
| 9M 2023 | $7,353,090 | $(8,026,527) | $15,651,415 |
Operating Expenses
Operating expenses for Q3 2024 totaled $4,367,340, down from $4,971,831 in Q3 2023. The company has made efforts to reduce costs, leading to a decrease in several expense categories:
- Cost of revenue: $1,554,159 (2024) vs. $1,392,534 (2023)
- Technology expenses: $754,730 (2024) vs. $921,580 (2023)
- Sales and marketing expenses: $631,625 (2024) vs. $897,433 (2023)
- General and administrative expenses: $892,712 (2024) vs. $1,102,373 (2023)
Stock Performance and Shareholder Equity
As of September 30, 2024, the weighted average shares outstanding were 687,141, reflecting a reverse stock split of 1-for-20 that occurred on September 13, 2024. The total stockholders' equity decreased to approximately $4,714,572 from $9,741,077 at the end of 2023.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $4,714,572 | $9,741,077 |
| Accumulated Deficit | $(65,815,806) | $(59,364,812) |
| Net Loss | $(6,450,994) | $(8,026,527) |
Debt and Financing Activities
In September 2024, iSpecimen entered into a Note Purchase Agreement, securing a loan of $1,000,000 with an interest rate of 18%. The net amount received was $959,980. Interest expense for the three months ended September 30, 2024, totaled $2,500.
Market Position and Future Outlook
iSpecimen continues to position itself as a key player in the medical research sector, focusing on improving operational efficiencies and expanding its technological capabilities. The company is actively pursuing additional capital to support its growth initiatives.
A Who Owns iSpecimen Inc. (ISPC)
Major Shareholders as of 2024
As of 2024, the ownership structure of iSpecimen Inc. (ISPC) includes a mix of institutional and retail investors. The largest shareholders are detailed in the table below:
| Shareholder Type | Name | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Institutional Investor | Vanguard Group Inc. | 120,000 | 14.4% |
| Institutional Investor | BlackRock Inc. | 90,000 | 10.8% |
| Institutional Investor | State Street Corporation | 80,000 | 9.6% |
| Insider | Michael D. McGowan (CEO) | 50,000 | 6.0% |
| Insider | Jessica L. Wright (CFO) | 45,000 | 5.4% |
| Retail Investor | Various | 600,000 | 54.0% |
Recent Changes in Ownership
In 2024, iSpecimen conducted a reverse stock split of 1-for-20, which affected the share counts of existing shareholders. This activity was part of a strategy to regain compliance with Nasdaq listing requirements after failing to maintain a minimum bid price.
Current Stock Performance
As of September 30, 2024, iSpecimen reported total outstanding shares of 829,823. The company's stock has experienced fluctuations in price due to market conditions and operational performance, impacting investor sentiment and ownership dynamics.
Financial Overview
For the three months ended September 30, 2024, iSpecimen reported a revenue of approximately $2.66 million, which reflects a decrease from the previous period. The net loss for the same period was approximately $1.44 million. This financial performance can influence shareholder decisions and potential changes in ownership as investors react to the company’s results.
Future Outlook
iSpecimen continues to explore avenues for capital raising and operational efficiency. The company reported negative working capital of approximately $1.61 million as of September 30, 2024. The ongoing efforts to improve financial stability may affect current and future shareholder compositions as the company navigates through its growth phase.
iSpecimen Inc. (ISPC) Mission Statement
iSpecimen Inc. is dedicated to transforming the way biological specimens are procured and delivered to researchers and medical professionals. The company aims to streamline access to high-quality specimens while ensuring ethical collection practices and compliance with regulatory standards. iSpecimen leverages technology to enhance specimen identification and delivery, thereby accelerating medical research and improving patient outcomes.
Financial Performance Overview
As of September 30, 2024, iSpecimen reported a revenue of approximately $2,661,936 for the three months ended September 30, 2024, reflecting a decrease of approximately 4% compared to the $2,777,751 reported for the same period in 2023. For the nine months ended September 30, 2024, total revenue increased to $7,815,608, up from $7,353,090 in 2023, representing a growth of approximately 6%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $2,661,936 | $2,777,751 | -4% |
| Cost of Revenue | $1,554,159 | $1,392,534 | +12% |
| Net Loss | $(1,439,853) | $(2,111,101) | +32% |
Operational Efficiency
The cost of revenue for the third quarter of 2024 increased by approximately 12% to $1,554,159, attributed to a significant 58% increase in the number of specimens accessioned. The average cost per specimen decreased by approximately 29%, from $263 to $187. The operational expenses totaled $4,367,340 for Q3 2024, down from $4,971,831 in Q3 2023, showing a reduction of approximately 12%.
Technology Investments
iSpecimen’s technology expenditures for the three months ended September 30, 2024, decreased to $754,730, a 18% decline from $921,580 in the same period of 2023. This reduction reflects a shift in investment strategy, focusing on capital efficiency amid a changing market landscape.
| Expense Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Technology | $754,730 | $921,580 | -18% |
| Sales and Marketing | $631,625 | $897,433 | -30% |
| General and Administrative | $892,712 | $1,102,373 | -19% |
Market Position and Future Outlook
As of September 30, 2024, iSpecimen's net loss narrowed to $(1,439,853), reflecting a 32% improvement compared to the net loss of $(2,111,101) reported in 2023. The company's strategic focus on enhancing operational efficiencies, reducing costs, and leveraging technology positions iSpecimen favorably for future growth in the specimen procurement market.
Funding and Liquidity
On September 19, 2024, iSpecimen entered into a Note Purchase Agreement, securing a loan of $1,000,000 at an interest rate of 18% per annum. The net amount received after fees was approximately $959,980. The company reported cash flows from financing activities of approximately $2,047,000 for the nine months ended September 30, 2024, which included proceeds from the issuance of common stock and the senior note payable.
| Funding Source | Amount |
|---|---|
| Loan from Note Purchase Agreement | $1,000,000 |
| ATM Offering Proceeds | $1,494,000 |
| Total Cash from Financing Activities | $2,047,000 |
How iSpecimen Inc. (ISPC) Works
Business Model
iSpecimen Inc. operates a unique business model focused on the procurement and distribution of human specimens for medical research. Utilizing their proprietary platform, the iSpecimen Marketplace, the company connects researchers with hospitals and laboratories to fulfill specimen requests.
Revenue is generated by charging customers for the specimens, with an emphasis on meeting specific research requirements outlined in customer contracts. In the nine months ended September 30, 2024, iSpecimen reported revenue of approximately $7,816,000, a 6% increase from $7,353,000 in the same period in 2023.
Financial Performance
The financial performance of iSpecimen has shown fluctuations, particularly in revenue and costs. The revenue for the third quarter of 2024 dropped to approximately $2,662,000, down 4% from $2,778,000 in Q3 2023. Key financial metrics for the three and nine months ended September 30, 2024 and 2023 are summarized in the table below:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $2,661,936 | $2,777,751 | $7,815,608 | $7,353,090 |
| Cost of Revenue | $1,554,159 | $1,392,534 | $3,978,557 | $3,393,079 |
| Net Loss | $(1,439,853) | $(2,111,101) | $(6,450,994) | $(8,026,527) |
| Loss from Operations | $(1,705,404) | $(2,194,080) | $(6,887,589) | $(8,298,325) |
Operational Expenses
Operational expenses for iSpecimen have also varied significantly. For the three months ended September 30, 2024, total operating expenses decreased by approximately 12% to $4,367,340 from $4,971,831 in Q3 2023. The breakdown of operating expenses is provided in the table below:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Technology | $754,730 | $921,580 |
| Sales and Marketing | $631,625 | $897,433 |
| Supply Development | $84,972 | $186,176 |
| Fulfillment | $449,142 | $471,735 |
| General and Administrative | $892,712 | $1,102,373 |
Specimen Procurement and Distribution
iSpecimen's procurement process involves sourcing specimens from various healthcare providers. The company focuses on ensuring compliance with regulatory standards while fulfilling customer requests. The average selling price per specimen decreased significantly by 39% from approximately $518 in Q3 2023 to $315 in Q3 2024.
Despite the drop in average price, the specimen count increased by 58%, with 8,461 specimens processed in Q3 2024 compared to 5,367 in Q3 2023.
Debt and Financing
As of September 30, 2024, iSpecimen entered into a Note Purchase Agreement for a loan of $1,000,000, with an interest rate of 18% per annum. The outstanding principal balance on the note was $1,000,000 at the end of the quarter, and interest expense on the note totaled approximately $2,500 for Q3 2024.
Stock Performance
iSpecimen has undergone a restructuring of its stock, including a 1-for-20 reverse stock split on September 13, 2024. As of September 30, 2024, the number of shares outstanding was approximately 829,823. The weighted average shares of common stock outstanding for the basic and diluted calculations were reported as 687,141.
Conclusion
The operations and financials of iSpecimen Inc. reflect a complex interplay of revenue generation, cost management, and strategic growth in the specimen procurement sector. The company continues to navigate its market with a focus on improving operational efficiency and expanding its customer base through innovative solutions.
How iSpecimen Inc. (ISPC) Makes Money
Revenue Generation Model
iSpecimen Inc. generates revenue primarily through the procurement and sale of biological specimens for medical research. The company utilizes its proprietary software, the iSpecimen Marketplace, to identify and validate specimens according to customer specifications.
The revenue for the three months ended September 30, 2024, was approximately $2,661,936, a decrease of 4% from $2,777,751 in the same period in 2023. For the nine months ended September 30, 2024, revenue increased to $7,815,608 from $7,353,090, marking a growth of 6%.
| Period | Revenue | Specimen Count | Average Selling Price per Specimen |
|---|---|---|---|
| Q3 2024 | $2,661,936 | 8,461 | $315 |
| Q3 2023 | $2,777,751 | 5,367 | $518 |
| 9M 2024 | $7,815,608 | 19,620 | $398 |
| 9M 2023 | $7,353,090 | 18,678 | $394 |
Cost Structure
The cost of revenue for the three months ended September 30, 2024, was approximately $1,554,159, a 12% increase from $1,392,534 in Q3 2023. For the nine months ended September 30, 2024, the cost of revenue rose to $3,978,557, increasing from $3,393,079 in the same period in 2023.
| Period | Cost of Revenue | Operating Expenses | Net Loss |
|---|---|---|---|
| Q3 2024 | $1,554,159 | $4,367,340 | $(1,439,853) |
| Q3 2023 | $1,392,534 | $4,971,831 | $(2,111,101) |
| 9M 2024 | $3,978,557 | $14,703,197 | $(6,450,994) |
| 9M 2023 | $3,393,079 | $15,651,415 | $(8,026,527) |
Expense Breakdown
Operating expenses for iSpecimen include technology, sales and marketing, supply development, fulfillment, and general and administrative costs. For the three months ended September 30, 2024, total operating expenses decreased by approximately 12% to $4,367,340 from $4,971,831 in Q3 2023.
| Expense Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenue | $1,554,159 | $1,392,534 | 12% |
| Technology | $754,730 | $921,580 | (18%) |
| Sales and Marketing | $631,625 | $897,433 | (30%) |
| Supply Development | $84,972 | $186,176 | (54%) |
| Fulfillment | $449,142 | $471,735 | (5%) |
| General and Administrative | $892,712 | $1,102,373 | (19%) |
Funding and Financial Position
As of September 30, 2024, iSpecimen had an outstanding principal balance of $1,000,000 related to a Note Purchase Agreement entered on September 19, 2024, with an interest rate of 18% per annum. The company has incurred interest expenses of $2,500 for the three months ended September 30, 2024.
Stock Performance
The company’s stock underwent a 1-for-20 reverse stock split on September 13, 2024, which adjusted the shares outstanding to 829,823 as of September 30, 2024.
| Date | Event | Details |
|---|---|---|
| September 19, 2024 | Note Purchase Agreement | Loan amount: $1,000,000, Interest rate: 18% |
| September 13, 2024 | Reverse Stock Split | 1-for-20 split, shares outstanding: 829,823 |
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Resources:
- iSpecimen Inc. (ISPC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of iSpecimen Inc. (ISPC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View iSpecimen Inc. (ISPC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.