Significant Accounting Policies [Text Block] | NOTE 1 Nature of Operations and Continuance of Operations Predictive Oncology Inc. (the “Company”) was originally incorporated on April 23, 2002 August 6, 2013, December 16, 2013, August 31, 2015, February 1, 2018, February 1, 2018. February 2, 2018. June 10, 2019, June 13, 2019. The Company is a healthcare company that provides personalized medicine solutions and medical devices in two 1 2 In addition, the Company's wholly owned subsidiary, TumorGenesis Inc. (“TumorGenesis”), is developing the next generation, patient-derived tumor models for precision cancer therapy and drug development. TumorGenesis is presented as part of the condensed consolidated financial statements and is included in corporate in the Company's segment reporting. During the first 2018, 25% April 4, 2019, 75% The Company had cash and cash equivalents of $27,299,407 March 31, 2021. March 31, 2021, no October 2019, $15,000,000 three March 31, 2021, $9,789,419 In January February 2021, $31,077,231 March 1, 2021, $5,906,802 September 2018, September 2019, February 2020 2021 The Company believes that its existing capital resources will be sufficient to support its operating plan at least through June 30, 2022. may twelve Coronavirus Outbreak In March 2020, 19 not 19 19 2020 may 2020. fourth 2020, 19 may Interim Financial Statements The Company has prepared the condensed consolidated financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim condensed consolidated financial statements. These interim condensed consolidated financial statements reflect all adjustments consisting of normal recurring accruals, which in the opinion of management, are necessary to present fairly the Company's position, the results of its operations, and its cash flows for the interim periods. These interim condensed consolidated financial statements reflect all intercompany eliminations. These interim condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and the notes thereto contained in the Annual Report on Form 10 March 15, 2021. may not Accounting Policies and Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and during the reporting period. Actual results could materially differ from those estimates. Reclassifications Certain reclassifications have been made to the prior years' condensed consolidated financial statements to conform to the current year presentation. The reclassifications had no Cash and cash equivalents The Company considers all highly liquid instruments with maturities when purchased of three no Receivables Receivables are reported at the amount the Company expects to collect on balances outstanding. The Company provides for probable uncollectible amounts through charges to earnings and credits to the valuation allowance based on management's assessment of the status of individual accounts. Amounts recorded in accounts receivable on the condensed consolidated balance sheet include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. An allowance for doubtful accounts is maintained to provide for the estimated amount of receivables that will not 30 30 not $0 March 31, 2021 December 31, 2020. Fair Value Measurements As outlined in Accounting Standards Codification (“ASC”) 820, Fair Value Measurement 820 three Level 1 Level 2 Level 3 no The Company uses observable market data, when available, in making fair value measurements. Fair value measurements are classified according to the lowest level input that is significant to the valuation. The fair value of the Company's investment securities, which consist of cash and cash equivalents, was determined based on Level 1 3 Note 7 Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first first Fixed Assets Fixed assets are stated at cost less accumulated depreciation. Depreciation of fixed assets is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows: Years Computers, software and office equipment 3 - 10 Leasehold improvements (1) 2 - 5 Manufacturing tooling 3 - 7 Laboratory equipment 4 - 6 Demo equipment 3 ( 1 Leasehold improvements are amortized over the shorter of the useful life or the remaining lease term. Upon retirement or sale of fixed assets, the cost and related accumulated depreciation or amortization are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations expense as incurred. Long-lived Assets Finite-lived intangible assets consist of patents and trademarks, licensing fees, developed technology, and customer relationships, and are amortized over their estimated useful life. Accumulated amortization is included in intangibles, net in the accompanying condensed consolidated balance sheets. The Company reviews finite-lived identifiable intangible assets for impairment in accordance with ASC 360, Property, Plant and Equipment may not may not not The Company concluded there was no December 31, 2020. September 30, 2020. The Company concluded there was no December 31, 2020. 360. March 31, 2021, no Goodwill In accordance with ASC 350, Intangibles – Goodwill and Other not December 31, may not To determine whether goodwill is impaired, annually or more frequently if needed, the Company performs a multi-step impairment test. The Company first not may first 2017 04, Simplifying the Test for Goodwill Impairment 3 1 The Company recognized loss on impairment goodwill during the year ended December 31, 2020 $12,876,498. March 31, 2021, no not The Company will continue to monitor its reporting units to determine whether events and circumstances warrant further interim impairment testing. Impairment of goodwill is not no not Leases – ROU assets represent our right to use an underlying asset for the duration of the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Recognition on the commencement date is based on the present value of lease payments over the lease term using an incremental borrowing rate. Leases with a term of 12 not The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component for all asset classes. Leases are accounted for at a portfolio level when similar in nature with identical or nearly identical provisions and similar effective dates and lease terms. Revenue Recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales taxes are imposed on the Company's sales to nonexempt customers. The Company collects the taxes from the customers and remits the entire amounts to the governmental authorities. Sales taxes are excluded from revenue and expenses. Revenue from Product Sales The Company has medical device revenue consisting primarily of sales of the STREAMWAY System, as well as sales of the proprietary cleaning fluid and filters for use with the STREAMWAY System. This revenue stream is reported within both the domestic and international revenue segments. The Company sells its medical device products directly to hospitals and other medical facilities using employed sales representatives and independent contractors. Purchase orders, which are governed by sales agreements in all cases, state the final terms for unit price, quantity, shipping, and payment terms. The unit price is considered the observable stand-alone selling price for the arrangements. The Company sales agreement, and Terms and Conditions, is a dually executed contract providing explicit criteria supporting the sale of the STREAMWAY System. The Company considers the combination of a purchase order and acceptance of its Terms and Conditions to be a customer's contract in all cases. Product sales for medical devices consist of a single performance obligation that the Company satisfies at a point in time. The Company recognizes product revenue when the following events have occurred: ( 1 2 3 4 may, may 30 60 Customers may one one one All amounts billed to a customer in a sales transaction for medical devices related to shipping and handling, if any, represent revenues earned for the goods provided, and these amounts have been included in revenue. Costs related to such shipping and handling billing are classified as cost of goods sold. This revenue stream is reported under the Skyline reportable segment. Revenue from Clinical Testing The Precision Oncology Insights are clinic diagnostic testing comprised of the Company's Tumor Drug Response Testing (formerly ChemoFx) and Genomic Profiling (formerly BioSpeciFx) tests. The Tumor Drug Response test determines how a patient's tumor specimen reacts to a panel of various chemotherapy drugs, while the Genomic Profiling test evaluates the expression of a particular gene related to a patient's tumor specimen. Revenues are recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The estimated uncollectible amounts are generally considered implicit price concessions that are a reduction in revenue. Helomics payment terms vary by the agreements reached with insurance carriers and Medicare. The Company's performance obligations are satisfied at one For service revenues, the Company estimates the transaction price which is the amount of consideration it expects to be entitled to receive in exchange for providing services based on its historical collection experience using a portfolio approach as a practical expedient to account for patient contracts as collective groups rather than individually. The Company monitors its estimates of transaction price to depict conditions that exist at each reporting date. If the Company subsequently determines that it will collect less consideration than it originally estimated for a contract with a patient, it will account for the change as a decrease to the estimate of the transaction price, provided that such downward adjustment does not The Company recognizes revenue from these patients when contracts as defined in ASC 606, Revenue from Contracts with Customers 30 CRO Revenue Contract revenues are generally derived from studies conducted with biopharmaceutical and pharmaceutical companies. The specific methodology for revenue recognition is determined on a case-by-case basis according to the facts and circumstances applicable to a given contract. The Company typically uses an input method that recognizes revenue based on the Company's efforts to satisfy the performance obligation relative to the total expected inputs to the satisfaction of that performance obligation. For contracts with multiple performance obligations, the Company allocates the contract's transaction price to each performance obligation on the basis of the standalone-selling price of each distinct good or service in the contract. Advance payments received in excess of revenues recognized are classified as deferred revenue until such time as the revenue recognition criteria have been met. Payment terms are net 30 Variable Consideration The Company records revenue from distributors and direct end customers in an amount that reflects the transaction price it expects to be entitled to after transferring control of those goods or services. The Company's current contracts do not Warranty The Company generally provides one no not Contract Balances The Company records a receivable when it has an unconditional right to receive consideration after the performance obligations are satisfied. Accounts receivable totaled $264,928 $256,878 March 31, 2021 December 31, 2020, The Company's deferred revenues related primarily to maintenance plans of $154,195 $53,028 March 31, 2021 December 31, 2020, Practical Expedients The Company has elected the practical expedient not Valuation and accounting for stock options and warrants The Company determines the grant date fair value of options and warrants using a Black-Scholes option valuation model based upon assumptions regarding risk-free interest rate, expected dividend rate, volatility, and estimated term. The fair value of each option and warrant grant is estimated on the grant date using the Black-Scholes option valuation model with the following assumptions: For the three months ended March 31, 2021 2020 Stock Options Expected dividend yield 0.0% 0.0% Expected stock price volatility 84.8% 82.6% Risk-free interest rate 0.93% - 1.45% 0.70% - 1.57% Expected life (in years) 10 10 Warrants Expected dividend yield 0.0% 0.0% Expected stock price volatility 84.8% 82.6% Risk-free interest rate 0.42% - 0.69% 0.54% - 0.79% Expected life (in years) 5 - 5 .5 2 - 5.5 Research and Development Research and development costs are charged to operations as incurred. Research and development costs were $93,629 $129,341 three March 31, 2021 2020, Other Expense Other expense consisted primarily of interest expense, payment premium, amortization of original issue discounts, and loss on debt extinguishment associated to the Company's notes payable. Offering Costs Costs incurred which are direct and incremental to an offering of the Company's securities are deferred and charged against the proceeds of the offering unless such costs are deemed to be insignificant in which case they are expensed as incurred. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes 740” 740, There is no 100% The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not no Under Internal Revenue Code Section 382, may not not 382 may Tax years subsequent to 2017 Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company places its cash and cash equivalents with high credit quality financial institutions and, by policy, generally limits the amount of credit exposure to any one not Risks and Uncertainties The Company is subject to risks common to companies in the medical device and biopharmaceutical industries, including, but not Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (the “FASB”). Recently issued ASUs not not no In June 2016, 2016 13, not 12b 2 1934, January 1, 2023. Recent Developments On March 19, 2021, 71, October 2016 January 2020. Dr. Carl Schwartz retired through his resignation as the Chief Executive Officer of the Company effective on March 19, 2021. 100,000 April 1, 2021. Effective April 21, 2021, 2021 5,000 2012 The Company has evaluated all of its activities and concluded that no Note 11 |