Precipio, Inc. Q2 FY2024 earnings call

• Pathology division: Reached breakeven in Q2, and in Q3-to-date is exceeding the breakeven target. It acts as a cost-neutral rapid R&D facility to develop products while remaining profitable and generating cash. • Product division: Two of three large HemeScreen customers have gone live, with volume growing and panels being added; expecting Q4 revenue boost from these customers; third customer in progress with operational issues being worked on; small and mid-sized customers are adding recurring revenue. • Distributors: Worked with distributors to revamp relations, and in Q2 saw better customer targeting, more introductions to decision makers, and progress in bringing customers onboard. • Cash position: Had an increase in cash by approximately $300,000 in Q2; dealing with aftermath of Change Healthcare hack but moving towards returning to stable billing collection. • FDA process: Submitted required materials for pre-submission meeting, meeting scheduled for later this year; view FDA approval as a competitive advantage that will help gain market share and credibility. • Share price: Stabilized around $5 to $6 range; low revenue multiple due to market skepticism about performance, revenue growth, cash needs, and belief in need for further capital raising; plan to improve IR strategy once goals are achieved by year-end to boost stock price.

Pathology division: Reached breakeven in Q2 and exceeded breakeven target in Q3-to-date. It serves as a cost-neutral rapid R&D facility. Product division: Progress towards breakeven; two of three large customers for HemeScreen program have gone live, growing volume and adding panels; third customer in progress with operational issues; small- and mid-sized customers contributing to recurring revenue. Revenue from Q2 was $4.4 million, annualized run rate ~$17.5 million.

• Pathology division is exceeding breakeven target in Q3-to-date. • Product division expects Q4 revenue increase from two live HemeScreen customers; working to onboard third customer. • Plan to scale business via distributors and revamp IR strategy after achieving profitability by year-end to drive growth and improve stock valuation.

• Aftermath of Change Healthcare hack, including delayed payments; • Operational issues with third HemeScreen customer before going live; • Market skepticism regarding performance, revenue growth, and cash needs, leading to belief in potential need for capital raising; • Regulatory and competitive risks related to FDA process and competitors.

Q: [Operator introduces the call and hands over to CEO] A: Ilan Danieli thanks participants, discusses company progress in pathology and product divisions, distributor efforts, cash position, FDA process, and share price performance