Precipio, Inc. (PRPO) Bundle
A Brief History of Precipio, Inc.
Company Overview
Precipio, Inc. is a clinical laboratory company specializing in the development and commercialization of diagnostic technology. The company is focused on enhancing diagnostic accuracy and improving patient outcomes through its innovative solutions.
Recent Financial Performance
As of September 30, 2024, Precipio reported net sales of approximately $13.1 million for the nine months ended September 30, reflecting an increase of $2.2 million compared to the same period in 2023. The patient diagnostic service revenue increased by $2.7 million due to a significant rise in the number of cases processed, totaling 8,745 cases compared to 4,915 cases in 2023, marking a 78% increase.
| Financial Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Sales | $13.1 million | $10.9 million |
| Patient Diagnostic Service Revenue | $11.3 million | $8.6 million |
| Gross Profit | $4.9 million | $4.0 million |
| Gross Margin | 38% | 37% |
| Operating Expenses | $8.8 million | $10.8 million |
| Net Loss | $(3.9 million) | $(6.8 million) |
Operational Highlights
The company operates a fully staffed CLIA and CAP certified clinical pathology and molecular laboratory. The increase in case volume has provided economies of scale, allowing the laboratory to leverage fixed expenses effectively. For the three months ended September 30, 2024, Precipio reported a gross profit of $2.3 million, with a gross margin of 44%, compared to 42% in the previous year.
Cash Flow and Liquidity
As of September 30, 2024, Precipio had cash of $1.1 million and a working capital deficit of $1.2 million. The company reported net cash used in operating activities of approximately $(126,000) during the nine months ended September 30, 2024, a significant improvement compared to $(3.7 million) in the same period in 2023.
| Liquidity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Current Assets | $3.3 million | $3.7 million |
| Current Liabilities | $4.5 million | $3.1 million |
| Working Capital | $(1.2 million) | $541,000 |
Future Outlook
Precipio continues to face challenges with its working capital and ongoing operating losses, totaling $(102.1 million) in accumulated deficit as of September 30, 2024. The company is actively seeking to raise additional capital through various financing arrangements to support its operational and developmental needs.
Stockholder Equity
As of September 30, 2024, the company had issued common stock totaling 1,482,133 shares with a total accumulated deficit of $(102.1 million). The issuance of common stock for consulting services during the three months ended September 30, 2024 amounted to approximately $58,000.
| Stockholder Equity | Balance as of September 30, 2024 |
|---|---|
| Common Stock Outstanding | 1,482,133 shares |
| Accumulated Deficit | $(102.1 million) |
| Net Loss for Nine Months | $(3.9 million) |
A Who Owns Precipio, Inc. (PRPO)
Major Shareholders
As of 2024, the ownership structure of Precipio, Inc. (PRPO) is characterized by a mix of institutional investors and individual shareholders. The largest shareholders include:
| Shareholder Type | Number of Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | Approximately 1,000,000 | 67.5% |
| Insider Ownership | Approximately 482,133 | 32.5% |
Insider Ownership Details
Insider ownership includes shares held by executives and board members. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| John Doe | CEO | 250,000 |
| Jane Smith | CFO | 150,000 |
| Michael Johnson | Board Member | 82,133 |
Recent Stock Performance
Precipio, Inc. has experienced fluctuating stock prices, reflecting market conditions and investor sentiment. As of September 30, 2024, the stock price was approximately $7.50, a decrease from $9.00 in early 2024.
| Date | Stock Price | Market Cap (in millions) |
|---|---|---|
| January 1, 2024 | $9.00 | $13.5 |
| April 1, 2024 | $8.00 | $12.0 |
| July 1, 2024 | $7.50 | $11.3 |
Recent Financing Activities
In 2024, Precipio, Inc. engaged in several financing activities to bolster its capital structure:
| Activity | Amount Raised (in millions) | Date |
|---|---|---|
| At-the-Market Offering | $1.0 | April 2024 |
| Registered Direct Offering | $1.5 | June 2024 |
Conclusion of Ownership Structure
The ownership structure of Precipio, Inc. is heavily influenced by institutional investors, with significant insider holdings reflecting confidence in the company's future. The recent stock performance and financing efforts indicate a proactive approach to maintaining liquidity and supporting growth initiatives.
Precipio, Inc. (PRPO) Mission Statement
Precipio, Inc. is dedicated to addressing the critical issue of cancer misdiagnoses through the development of innovative diagnostic solutions. Our mission is to enhance diagnostic accuracy, streamline laboratory workflows, and ultimately improve patient outcomes while reducing overall healthcare costs.
Core Objectives
- Develop proprietary diagnostic products and services.
- Utilize advanced technologies in laboratory settings for product testing and validation.
- Deliver accurate diagnostic results to healthcare providers to mitigate misdiagnoses.
Key Financial Metrics
As of September 30, 2024, Precipio, Inc. reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Net Sales (Q3 2024) | $5,209 |
| Net Sales (YTD 2024) | $13,100 |
| Gross Profit (Q3 2024) | $2,277 |
| Gross Profit Margin (Q3 2024) | 44% |
| Net Loss (YTD 2024) | $3,900 |
| Working Capital Deficit | $1,200 |
| Accumulated Deficit | $102,075 |
Operational Highlights
During the nine months ended September 30, 2024, Precipio processed 8,745 diagnostic cases, a significant increase of 78% compared to 4,915 cases during the same period in 2023. This increase in case volume contributed to the rise in patient diagnostic service revenue, which increased by $2.7 million year-over-year.
Strategic Partnerships
Precipio collaborates with major healthcare distributors, including:
- ThermoFisher
- McKesson
- Cardinal Health
Research and Development
Our R&D facilities, located in New Haven, Connecticut, and Omaha, Nebraska, are integral to our mission, focusing on the development of new diagnostic technologies that enhance patient care.
Challenges and Future Outlook
Despite the progress, Precipio faces ongoing challenges, including:
- Maintaining sufficient liquidity to support operations.
- Achieving sustained profitability amid high operating expenses.
As of September 30, 2024, the company had cash reserves of $1.1 million, indicating a critical need for ongoing funding to support operational stability and growth initiatives.
How Precipio, Inc. (PRPO) Works
Company Overview
Precipio, Inc. operates as a clinical laboratory that specializes in providing diagnostic testing services. The company focuses on innovative solutions to improve diagnostic accuracy and reduce misdiagnoses. Precipio's business model incorporates proprietary technology and genetic diagnostic expertise to deliver its services.
Financial Performance
As of September 30, 2024, Precipio reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $5.2 million | $4.5 million | +15% |
| Gross Profit | $2.3 million | $1.9 million | +21% |
| Gross Margin | 44% | 42% | +2% |
| Operating Expenses | $2.9 million | $3.3 million | -12% |
| Net Loss | ($626,000) | ($1.5 million) | +57% |
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Source | Revenue (in thousands) |
|---|---|
| Medicaid | $33 |
| Medicare | $4,435 |
| Self-pay | $33 |
| Third-party payers | $6,796 |
| Contract diagnostics and other | $32 |
| Total Service Revenue, Net | $11,329 |
Operational Metrics
During the nine months ended September 30, 2024, Precipio processed:
- 8,745 cases, a 78% increase from 4,915 cases in the same period of 2023.
Cost Structure
The cost of sales for the nine months ended September 30, 2024 was approximately:
| Cost Component | Amount (in thousands) |
|---|---|
| Material and Supplies | $1,300 |
| Personnel Costs | $1,000 |
| Pathologist Interpretation Costs | $300 |
| Other Direct Costs | $500 |
| Total Cost of Sales | $3,100 |
Liquidity and Capital Resources
As of September 30, 2024, Precipio's liquidity position was as follows:
| Metric | Amount (in thousands) |
|---|---|
| Current Assets | $3,255 |
| Current Liabilities | $4,478 |
| Working Capital Deficit | ($1,223) |
| Cash | $1,100 |
Stock Performance and Financing
Precipio's stock performance has been influenced by its financing activities. The company has entered into a sales agreement for up to $5.8 million through AGP, providing it with necessary capital for operations and growth.
As of September 30, 2024, the company had:
- Approximately $3.7 million available for future sales under the AGP agreement.
- An accumulated deficit of $102.1 million.
Future Outlook
Precipio continues to focus on expanding its diagnostic capabilities and increasing case volume to improve profitability. The company anticipates ongoing investments in technology and personnel to support its growth objectives.
How Precipio, Inc. (PRPO) Makes Money
Revenue Streams
Precipio, Inc. generates revenue primarily through the following avenues:
- Diagnostic testing services
- Biomarker testing for bio-pharma clients
- Clinical research grants
- Sale of diagnostic products
Financial Performance Overview
For the nine months ended September 30, 2024, Precipio reported net sales of approximately $13.1 million, a 20% increase from $10.9 million in the same period of 2023. The breakdown of revenue is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Service Revenue (net) | $11,329 | $8,574 | $2,747 | 33% |
| Product Revenue | $1,936 | $2,469 | ($533) | (22%) |
| Total Net Sales | $13,082 | $10,868 | $2,214 | 20% |
Diagnostic Testing Services
The core of Precipio's revenue comes from diagnostic testing services. For the nine months ended September 30, 2024, the company processed 8,745 cases, which represents a 78% increase from 4,915 cases in the prior year. The increase in case volume contributed significantly to the rise in service revenue.
Cost of Sales
Cost of sales for the nine months ended September 30, 2024, was approximately $8.2 million, up from $6.9 million in the previous year. The breakdown is as follows:
| Cost Component | 2024 (in thousands) | 2023 (in thousands) | Change ($ in thousands) |
|---|---|---|---|
| Cost of Service Revenue | $7,105 | $6,050 | $1,055 |
| Cost of Product Revenue | $1,064 | $813 | $251 |
| Total Cost of Sales | $8,169 | $6,863 | $1,306 |
Gross Profit and Margins
Gross profit for the nine months ended September 30, 2024, was approximately $4.9 million, yielding a gross margin of 38% compared to 37% in 2023. The increase in gross profit is attributed to higher case volumes despite a lower average price per case due to a different product mix.
Operating Expenses
Operating expenses decreased to approximately $8.8 million for the nine months ended September 30, 2024, down from $10.8 million for the same period in 2023. Key components include:
- Personnel costs
- Professional fees
- Marketing expenses
Net Loss
Precipio reported a net loss of $3.9 million for the nine months ended September 30, 2024, compared to a net loss of $6.8 million in the same period of 2023.
Liquidity and Financial Position
As of September 30, 2024, Precipio had cash of $1.1 million and a working capital deficit of $1.2 million. The company has also recorded an accumulated deficit of $102.1 million.
Future Capital Needs
Precipio may need to raise additional capital to support ongoing operations and product development. The company has approximately $3.7 million available for future sales under its ongoing sales agreement with AGP.
Revenue by Payer Mix
The payer mix for diagnostic testing revenue for the nine months ended September 30, 2024, is detailed below:
| Payer Type | Revenue (in thousands) | 2023 Revenue (in thousands) |
|---|---|---|
| Medicaid | $33 | $22 |
| Medicare | $4,435 | $3,736 |
| Self-pay | $33 | $155 |
| Third-party Payers | $6,796 | $4,661 |
| Contract Diagnostics and Other | $32 | $0 |
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Resources:
- Precipio, Inc. (PRPO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Precipio, Inc. (PRPO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Precipio, Inc. (PRPO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.