Predictive Oncology Reports Year-End 2024 Financial Results and Provides Corporate Update

Company continues to progress toward the signing of a definitive merger agreement with Renovaro

PITTSBURGH, April 01, 2025 (GLOBE NEWSWIRE) -- Predictive Oncology (Nasdaq: POAI), a science-driven company leveraging its proprietary artificial intelligence and machine learning capabilities, extensive biorepository of tumor samples, and CLIA laboratory, to accelerate oncologic drug discovery and enable drug development, today reported financial and operating results for the quarter ended December 31, 2024, and provided a corporate update. The Company reported a loss from continuing operations of approximately $10.8 million on total revenue of $1.6 million for the year ended December 31, 2024.

On January 6, 2025, Predictive Oncology announced that it has entered into an agreement to merge with Renovaro, Inc. On March 3, Renovaro announced that it has advanced the first tranche of financing to Predictive to initiate the integration of AI/ML platform technologies, core laboratory capabilities and business development efforts in Europe and the United States. The companies continue to work towards the completion of due diligence and the finalization of a definitive merger agreement.

Q4 2024 and Recent Highlights:

   -- Announced an agreement to merge with Renovaro, Inc., and announced the 
      receipt of the first tranche of financing from Renovaro to initiate the 
      integration of AI/ML platform technologies, core laboratory capabilities, 
      and business development functions in Europe and the United States. 
 
          -- Companies anticipate the signing of a definitive merger agreement 
             imminently following the successful completion of due diligence. 
 
   -- Completed the sale of assets related to its wholly owned subsidiary, 
      Skyline Medical Inc., to DeRoyal Industries, a global manufacturer and 
      supplier of medical products. 
 
          -- Transaction sharpens Predictive's focus on its core AI/ML 
             capabilities and significantly reduces the Company's ongoing 
             expense run rate. 
 
   -- Announced that, using publicly available datasets on drugs that have 
      either been abandoned or discontinued by large pharmaceutical companies, 
      Predictive has developed a registry of promising candidates that can 
      potentially be repurposed for additional or alternative indications. 
 
   -- Partnered with Switzerland-based Tecan Group Ltd. to expand 
      high-throughput drug screening to include human tumor spheroids using 
      automated imaging and 3D analysis. 
 
          -- Positive results from an ongoing study in collaboration with Tecan 
             were presented at the 2025 Society for Laboratory Automation and 
             Screening (SLAS) International Conference & Exhibition, which was 
             held January 25-29, 2025, in San Diego, CA. 
 
   -- Announced the planned European launch of its validated flagship live cell 
      ChemoFx$(R)$ drug response assay in Europe and expanded availability in the 
      United States. 
 
          -- The ChemoFx(R) treatment selection marker and tumor profiling 
             assay will initially focus on ovarian and other gynecological 
             cancers and may include testing of other major tumor types of 
             interest over time. 
 
   -- Received more than $3.0 million in combined gross proceeds during the 
      first three months of 2025 from the sale to DeRoyal and issuance of 
      common stock pursuant to warrant exercises, a registered direct offering 
      and the first tranche of financing from Renovaro. 

"During the fourth quarter and subsequent period, we took tangible steps to sharpen our focus on our core AI/ML-based drug and biomarker discovery capabilities while implementing efficiencies across the organization to maximize long-term shareholder value," stated Raymond Vennare, Chairman and Chief Executive Officer of Predictive Oncology. "Of note, our pending merger with Renovaro, if completed, will create a new AI/ML drug discovery company with unique advantages in the marketplace and the potential to meaningfully improve outcomes for cancer patients through earlier diagnosis, discovery of novel diagnostic and prognostic biomarkers, and the development of tailored therapies. With Renovaro, we have a unique opportunity to bring new hope to patients suffering from a range of difficult-to-treat cancers, and we continue to work tirelessly toward the executive of a definitive merger agreement with that goal in mind."

FY 2024 Financial Summary:

   -- Concluded the fourth quarter of 2024 with $734,673 in cash and cash 
      equivalents, compared to $8.7 million as of December 31, 2023, and 
      $(202,610) in Stockholder's Deficit, compared to $8.3 million of 
      Stockholders' Equity as of December 31, 2023. 
 
   -- Basic and diluted net loss per common share from continuing operations 
      for the year ended December 31, 2024, decreased approximately 33% to 
      $1.99, as compared to $2.99 for the year ended December 31, 2023. 

FY 2024 Financial Results:

   -- The company recorded revenue of $1,623,817 in 2024, compared to 
      $1,627,697 in 2023. Revenues for the years ended December 31, 2024, and 
      December 31, 2023, were primarily derived from its Eagan operating 
      segment. The Eagan operating segment contributed $1,539,005 and 
      $1,135,101 for the years ended December 31, 2024, and December 31, 2023, 
      respectively, while the Pittsburgh operating segment contributed $84,812 
      and $492,596, respectively. 
 
   -- Cost of sales was $826,137 and $609,212 for the years ended December 31, 
      2024, and December 31, 2023, respectively. Cost of sales increased 
      primarily due to costs associated with Eagan operating segment, including 
      increased volume of STREAMWAY systems sold and increased direct labor 
      costs. 
 
   -- General and administrative expenses decreased by $961,025 to $7,419,892 
      in 2024 from $8,380,917 in 2023. The decrease was primarily due to 
      decreases in employee-related expenses, including approximately $527,000 
      less in severance expense and lower costs associated with lower 
      headcount. Additional decreases included lower legal fees and investor 
      relations. These decreases were offset by higher professional fees, 
      including consultants supporting our management team, and audit fees. 
 
   -- Operations expenses decreased by $417,120 to $2,851,045 in 2024 compared 
      to $3,268,165 in 2023. The decrease in operations expenses in 2024 was 
      primarily due to lower employee-related expenses associated with lower 
      headcount, decreased cloud computing expenses, and lower research and 
      development expenses. 
 
   -- Sales and marketing expenses decreased by $20,926 to $1,466,213 in 2024 
      compared to $1,487,139 in 2023. The decrease in 2024 was primarily due to 
      decreased staff-related expenses resulting from headcount reductions and 
      revisions to employee sales commission structure, offset by increased 
      severance related to the separation of a former executive. 
 
   -- Net cash used in operating activities of continuing operations was 
      $10,974,568 in 2024, compared to $11,784,070 in 2023. Cash used in 
      operating activities of continuing operations decreased in 2024 primarily 
      due to lower cash operating losses, partially offset by increases in cash 
      used in working capital. Changes in cash used in working capital included 
      increases in accounts receivable and decreases in accounts payable, 
      offset by a decrease in prepaid expenses and other assets. The increase 
      in accounts receivable was primarily due to timing of sales of STREAMWAY 
      systems near year end where payment was collected after year end. 

Forward-Looking Statements:

Certain matters discussed in this release contain forward-looking statements. These forward-looking statements reflect our current expectations and projections about future events and are subject to substantial risks, uncertainties and assumptions about our operations and the investments we make. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue and financial performance, projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "would," "target" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors including, among other things, the risks related to the success of our collaboration arrangements, commercialization activities and product sales levels by our collaboration partners, and other factors discussed under the heading "Risk Factors" in our filings with the SEC. Except as expressly required by law, the Company disclaims any intent or obligation to update these forward-looking statements.

Investor Relations Contact:

Michael Moyer

LifeSci Advisors, LLC

mmoyer@lifesciadvisors.com

 
 
                      PREDICTIVE ONCOLOGY INC. 
                    CONSOLIDATED BALANCE SHEETS 
 
                                     December 31,     December 31, 
                                         2024             2023 
                                    --------------  ---------------- 
ASSETS 
Current assets: 
Cash and cash equivalents           $     734,673   $   8,728,660 
Accounts receivable, net                  745,566         277,641 
Inventories                               385,728         480,803 
Prepaid expense and other assets          306,301         512,078 
Current assets of discontinued 
 operations                                53,649          79,249 
                                     ------------    ------------ 
Total current assets                    2,225,918      10,078,431 
 
Property and equipment, net               369,470         491,214 
Intangibles, net                          210,113         241,339 
Lease right-of-use assets               2,064,507       2,598,091 
Other long-term assets                    102,509         105,509 
Non-current assets of discontinued 
 operations                                     -         902,665 
                                     ------------    ------------ 
Total assets                        $   4,972,517   $  14,417,249 
                                     ============    ============ 
 
  LIABILITIES AND STOCKHOLDERS' 
        (DEFICIT) EQUITY 
Current liabilities: 
Accounts payable                    $   1,142,919   $   1,334,064 
Note payable                                    -         150,408 
Accrued expenses and other 
 liabilities                            1,407,987       1,542,948 
Derivative liability                            -           1,376 
Contract liabilities                      304,985         302,499 
Lease liability                           572,739         444,897 
Current liabilities of 
 discontinued operations                  164,771         174,839 
                                     ------------    ------------ 
Total current liabilities               3,593,401       3,951,031 
 
Other long-term liabilities                23,487           5,459 
Lease liability -- net of current 
 portion                                1,558,239       2,130,977 
Non-current liabilities of 
 discontinued operations                        -          58,002 
                                     ------------    ------------ 
Total liabilities                       5,175,127       6,145,469 
                                     ------------    ------------ 
 
Stockholders' (deficit) equity: 
Preferred stock, 20,000,000 
shares authorized inclusive of 
designated below 
Series B Convertible Preferred 
 Stock, $.01 par value, 2,300,000 
 shares authorized, 79,246 shares 
 outstanding as of December 31, 
 2024, and December 31, 2023                  792             792 
Common stock, $.01 par value, 
 200,000,000 shares authorized, 
 6,666,993 and 4,062,853 shares 
 outstanding as of December 31, 
 2024, and December 31, 2023, 
 respectively                              66,670          40,629 
Additional paid-in capital            180,156,199     175,992,242 
Accumulated deficit                  (180,426,271)   (167,761,883) 
                                     ------------    ------------ 
Total stockholders' (deficit) 
 equity                                  (202,610)      8,271,780 
                                     ------------    ------------ 
 
Total liabilities and 
 stockholders' (deficit) equity     $   4,972,517   $  14,417,249 
                                     ============    ============ 
 
 
                       PREDICTIVE ONCOLOGY INC. 
                 CONSOLIDATED STATEMENTS OF NET LOSS 
 
                                           Year Ended December 31, 
                                            2024           2023 
                                         -----------    ----------- 
Revenue                                 $  1,623,817   $  1,627,697 
Cost of sales                                826,137        609,212 
                                         -----------    ----------- 
Gross profit                                 797,680      1,018,485 
 
Operating expenses: 
      General and administrative 
       expense                             7,419,892      8,380,917 
      Operations expense                   2,851,045      3,268,165 
      Sales and marketing expense          1,466,213      1,487,139 
Total operating expenses                  11,737,150     13,136,221 
                                         -----------    ----------- 
Total operating (loss)                   (10,939,470)   (12,117,736) 
Other income                                  89,367        152,685 
Other expense                                (11,478)       (64,967) 
Gain on derivative instruments                 1,376         12,457 
                                         -----------    ----------- 
Loss from continuing operations          (10,860,205)   (12,017,561) 
Loss from discontinued operations         (1,804,183)    (1,966,406) 
                                         -----------    ----------- 
Net (loss)                              $(12,664,388)  $(13,983,967) 
                                         ===========    =========== 
 
Loss per common share, basic and 
diluted: 
      Loss from continuing operations          (1.99)         (2.99) 
      Loss from discontinued 
       operations                              (0.33)         (0.49) 
                                         -----------    ----------- 
Net (loss) per common share, basic and 
 diluted                                $      (2.32)  $      (3.48) 
                                         ===========    =========== 
 
Weighted average shares used in 
 computation -- basic and diluted          5,453,632      4,014,848 
 
 

This press release was published by a CLEAR(R) Verified individual.

(END) Dow Jones Newswires

April 01, 2025 07:00 ET (11:00 GMT)