Predictive Oncology Inc. Q2 FY2023 earnings call

• Continued progress in growing pipeline with biotech, biopharma, and research institutions incorporating AI/ML into drug discovery.
• Highlighted the pedal platform with over 150,000 tumor samples, 200,000 pathology slides, and CLIA-certified AtLab, unique in predicting clinical success early in drug discovery.
• Partnerships including with CRH for genomic-based precision radiation therapy, collaborations with Flu gen on next-gen vaccines, and work with Integra Therapeutics on gene therapies.
• Biologics business providing formulation development and solubility testing, contributing to near-term revenue.
• Additions to Business Advisory Board with Dr. Bernard A. Harris, Jr. and Andrew Einhorn.
• Moved corporate headquarters to Pittsburgh, strengthening AI and clinical operations hub.

In Q2 2023, Predictive Oncology recorded revenue of $490,110, compared to $371,591 in Q2 2022. The gross margin was 67% in Q2 2023, up from 64% in Q2 2022. Operating expenses were just under $1 million in Q2 2023, versus $900,000 in Q2 2022. Cash and cash equivalents at the end of Q2 2023 were $14.8 million, down from $22.1 million as of December 31, 2022. Stockholders' equity stood at $14.7 million as of June 30, 2023, compared to $21.8 million as of December 31, 2022.

• Pamela Bush stated the goal is to achieve breakeven on operations by the end of 2024 or sooner, depending on contract execution and revenue from deals.
• Raymond Vennare emphasized active progress on projects like the CRH partnership, aiming to move it forward quickly.

No specific risks discussed in detail during the Q&A, but forward-looking statements are noted, with actual performance potentially differing due to factors in SEC filings.

Q: Given the company's trajectory and increasing expenses, what's the new timeline to achieve breakeven on operations and at what price are warrants exercisable?

A: Bob Myers mentioned cash burn rate is consistent, aiming to maintain run with revenue from deals. Warrants have a lowest price of $14. Raymond Vennare added they are scrubbing the budget to reduce cash burn while taking advantage of opportunities. Pamela Bush stated goal to breakeven by end of 2024 or sooner depending on contract execution.

Q: Any indication on timeline for breakeven on EPS?

A: Pamela Bush noted it's difficult to give exact date without historical data as the company is new, but goal is by end of 2024 or sooner depending on contract execution and revenue from deals.