Earnings call transcript Q3 2022

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Predictive Oncology Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

would turn I to conference time, Ms. this like the to over At Ferguson. Theresa Ma'am, please begin.

Theresa Ferguson

welcome, you everyone. and you, Thank Thank for in. dialing

our pleased about share are who building, introduce Raymond to here He new and to Vennare. today, Officer, Chief biotech And going on vision Predictive his and Chief background We how will is hear Executive Bob Pamela those Bush, will leading sales our Oncology. especially from update an marketing. be we launching you will to to will Then for companies Financial us in shape insights share then financials. his Myers, about and give Dr. Officer, our

So we being appreciate here. you

in statements to seeks, not performance words of from similar anticipated forward-looking you. results the expressions U.S. the variations Securities current such guarantees intended identify based these risks and actual subject our management. assumptions statements I Words such are statements. The materially our differ statements. and industry, public and These Thank plans, the read about within management's quickly, estimates, the Securities that on meaning described made forward-looking filings with of to of belief our real the about this forward-looking Reform Company's reflected estimates will certain risks forward-looking may are Exchange and be as XXXX. Commission. includes results anticipates, The intends, Act and management's of forward-looking and Private uncertainties, future and forward-looking believes, statements Note are projections in And recorded Litigation such our expects, are statement. call by will expectations, including

Vennare. Raymond welcome now I

Raymond Vennare

those pleasure who asked everyone phone, be those who – a here signed really ask questions. and on Good or to afternoon, subscribed ladies to gentlemen, up have today. everyone, It's to the and

important go to where and company company. think we with what I can think to came know I the you how I the I it's for and see

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spent I all markets the in the year technology retirement, announcement as asked Mel's the about have the in for end, [indiscernible] the CEO. So a they and retirement as application. deeply And which into was of to a I the company step or ultimately, digging after of

the So should not brought that the fill to member. provide first a strategic some It Board at was know is this for was in a I seat thing to company. that a you reaction It really was wasn't direction with all. just knee-jerk

I became and to I Board a member in Before step after Board CEO. member, was the became I then as asked

assets to company. now, focus most important on because I've do the I'm believe the committing And company, right of company. believe it's I I in growth We market the the believe it. it. and to I to We I that I challenge, and in tell believe in in that we a gladly. the myself in focus. that accepted I the committing leverage opportunities difficult challenging, is know it the think, believe I'm the you all it's we will time and What's and myself opportunity, I it how market focus I of the on people,

the of one you a tell did will we forensic what that first have. to I I analysis things so do of was And

in investors of thing spent the who the found first because was, value valuable brought been the terms that really, that's think of should the technologies, It's of a the been a I that's process, people platforms, in created in being well I what in that the of is long fascinating it's And the terms understand but table. company to been been terms invested process. money have very this is has been

realized positioning that in the been company would be possible of adoption experimental company the to without be them, and to recognized have – in the people to few going the certainly be none the None anymore. in hasn't of while this way, been market what and not marketplace. of minutes of of So it this yet, is will not in technologies core Pamela we speak the a have, who has the quality into investment that's is doing been adopted is by not terms R&D. made This what the

the And is background. by launching are technology. way, commercial my a We that,

Commercializing technologies father, a has – many have all grandfather my novel in primarily and for my biotechnology, been my marketplace, brother me, This, specifically, and in and commercializing commitment cancer. for oncology. the identifying, launching personal years, in died mother, to my

or families or families, lot want it. they probably are with with like a have of process move And a on literally whose I therapeutics, now that. people medical I to deal agreed could many I why there the dealing personal whatever that this and to also many with take ago position call me, some right it's as way commitment the of do do to to will discovery to years people is for of it because So because, contribute of find this devices, forward this pivoted this to are diagnostics, dealt

personal a So commitment that my as I what to can on a I part difference. to take do make

been didn't market but in realized underappreciated Maybe understand have, doesn't the So they've of it, technologies I that because underappreciated. because underutilized, of have. process because what the frankly, and what the in underutilized the we have really sorry, the we the that evaluating certainly content I'm company, – was underappreciated assets we been, recognize

One have, about lot that we we the of talk the things intelligence. a artificial

and if you held for artificial we you the quite of property is. is the core it's control what right phone intelligence the capacity and biorepository probably you've technology of because you, sample and intellectual only and know so recognize, us is now the on is is privately of own I'm the But capacity the what reason PeDAL in while, the that largest relevant a technology following sure world. tumor All been many

type. done tissue is indications, database of [indiscernible] that's human is Every done And research tumor-specific, specifically, they samples. our the access tumor tumor to biomedical have because meaning

I that it One when what speak was value two ask in in financials. or I of what's I'll the to I viewed board, our our is of the actually customers to on the the to but let future direction company value ways. and balance different respect the started to biobank? can be I the of the handled answer I began Bob So is just value on And really value valuation. joined, what's company? least our to how at sheet and talk the And that the is valuation, it's can't the relevant the with to about when the biobank to how when questions like, simple

have $XXX value understand I'm I'm company that not is way questions. of in in we is will a we What past, be be And tomorrow, been I alone drive us an that any there's into but at has that has it, million. these the didn't that that of utilize have I'll to in we marketplace the the to $XXX we the to you end Q&A asset possible have the didn't use the all to happy going million. biobank in it underappreciated because at because order leverage tell of of not to suggesting been But and answer and saying it. is excess that not

differentiate with which technology, tissue PeDAL to is say, companies And the we the our samples, is are with going is in is our tumor us the in. access speaking in paired of have combination what repository whom what the the that marketplace. should are that artificial in unique marketplace. the that is the I we makes samples, what bio And to interested intelligence, So us

us, you not what role might has going they be actually a accepted or I'm now, on things from away the tell happened hasn't this I walk to will make but me, to mean, and that here we I I have, past, again, And change on in difference.

we I'm I make or past, So has has forward company. that sure full move responsibility and to can what not assuming grow the or that will in happened leverage but the

ask acquisition, hinted biobank So that those PeDAL companies and for that the three customers to for the of technology maybe really five, days. four, Pamela us now because XX I'll ours a or are already I've whom differentiator is to this integration or with through me penetrate out us Bob of the sets include clarify for the full

that. XX in major to access the I'm companies, access going we it is address to our of pharmaceutical But it? top have companies base we sure, we No. so customer through point. And a customer the to Pamela, have base, So Have very will acquisitions. that already that be the focus, biopharmacy penetrated world, and

do of I context, part formulations. for now for the just facility, facility, the service a that should company. we Manufacturing say And line have Practices also of GMP is So Good

not this I'd maybe all this heard have I'm are saying before. consolidating, you So may or sure for first know maybe we you the that you're time, not, be

So business. the were within we're the the the doing segments refreshing all we're by not service of the we're that integrating brand at business into what And company. rebranding company, the line in

entire know. in So front service to marketplace we this highly discovery have our and the that what that value takes a to long proprietary continuum drug all and our a time, platform, novel the find it's go process, differentiation is the along driving into leave explain primarily you development, most is we continuum it's expertise But long the along Pamela Biopharma, because we of development. a regulated. to which and on and provide discovery can the and drug of I'll have, molecules is distinctive now very That as the just that our services marketplace drug deeply. context in business in those drug domain end to is

The formulation are of applied along differently. fall and continuum cells modeling just XD that large

into the I that the talk this, you is we CLIA the Predictive laboratory. laboratory now Oncology’s, expertise while as consolidated to may about segments – disappear, So CLIA domain want understand

to And have that so – we're because facility. able a do we do and GMP

from GMP making testing, and the making to we inroads do that. preclinical the moment, to to we're to clinical exactly testing discovery are So testing within environment. we At And can move inroads.

We have the capacity to do that.

so and – by also but this to my is, an who you reinforce have have involved myself what vision my are people company. been lost, The a commitment fact extremely and I introducing gets of want have know ability because what for that simply important. And this am, the to I myself the the sense I'm sometimes in many commitment, the I absolute quality of to I important. that, are are of investor is, The the The this people are important. years. people the integrity, in confidence people in

I Board level, Advisory on mention to will although is of that, of key the in the also Operandi company with part strategy, surround the cannot Modus Scientific now, level, them the right say this Board my thought I leaders industry. part at

been already have announced. Some

we by skate will C-level executives use parenting can not telling we who what that to but going people the to you view where puck metaphor, be. credible industry we I say, us move be Some the hockey go, the soon in the us by But is go. to as To direction where need announced. need these in to

to industry to the doors surrogate is company of the part done open better to through the before, strategy that frankly. so that's advisers, leadership our going Pamela. And fall provide to we for or really worse, haven't in to And here external quite

transition perfect So a this is to Pamela.

me may, as Business is forgive MDA, I'm PhD company. those science for this who our of people That's Vice who those is know, or of quality so But you a to redundant, is when about in different Strategic science. of than Pamela may not talking business for of President but And Development science. do and for of understands I Sales don't, Pamela may you who the being for you company, the please different. very the of the completely know The Pamela, know, Senior you business want

in process. at business in-license she lead the she term and science strategic Eli came Oncology, she development was of to was to license sheets company. assets. Predictive benchmarking at Lilly between negotiator assumptions Before pharmacogenomics oncology the and contracts she Lilly at not finance and liaison for But the And company began company and

So before did became not responsibilities it the with identified, be at to But multiple R&D modeling but for within the understands to for actually is that and it. with for to and it controllership of Director she how forward she what she is business only areas science. the business Finance, business planning was the she needs Lilly. the move what led of of $X.X forecasting functional forward Development Corporate science, of Manager across billion and move Business in Lilly, She the

that well most. that in and biopharmaceutical So listen understands to opportunities do and we listening when to the the be the who in while as way it very is may understands pains we're adjust And companies to in to get growing into. market Pamela you inside-out. you're better shifts Pamela, or in industry need may than was someone there business, to that marketplace changes who one from She the the trying what

So heavy us the some join I'd ask please with obligation, for call, in Pamela, perspective put really to you and all. that, things

Pamela Bush

and Thank last that time and good at to company with an the good some Raymond, that I very the we and the Absolutely. quarter. last insight we of advances you shared you, afternoon to made everybody have the share update morning, since opportunity much the appreciate on call.

products at But and before a little about value have want of share steps a with Oncology. couple bit and Predictive we you with a little services those – bit about updates, the we forward a I more, more bit not backwards move the of the little that take

the drug value that is truly we the a you, bringing presenting lot we're of oncology to time opportunity speak who company – me, since had the to what with the the months stakeholders And regarding in last and there were different had industry, few the to questions that were working are last excuse shareholders brought of company. the privilege up biopharmaceutical In the we've that discovery. of biopharmaceutical

through of So that I time your want you biopharma. that, walk looks to take like to a couple of for minutes what

have developing of So issues biopharmaceutical that math, of let's companies a forth XX lot a the oncology development is go pre-human. to in and X make are that clinical commercial there's statistics, be say ease of but to in brought development one for years And it been that be discovery. put compounds actually is So clinic drugs at in spent have a lot product, the of clinic. actually that drug right? of money all in This to the good out is that investment a with drug into clinical move the of we into into trials. And sort commitment a compound the of really those

to right about of hopes X of With XX or XX, of commercial success. with the those X out now, that track record making actually of a

seen the of human the this translated in are that driving – that success clinic of one preclinical the to are the results. results necessarily not So issues is in lack studies is

we couple of are There that? driving at address those be are a Predictive underlying to Oncology. might what looking So issues that

complex architecture tumor a one than three-dimensional, more architecture is is and cell. The of just the that includes tumor and first

heterogeneity, that human And stages. diversity. evaluated cancer, in that second this called uniqueness, the brings heterogeneity. complex, one, has is even is And own tumor cancer, is fact which their particular pancreatic in breast tumor cancer characteristics, so more of each own This and population, kind the being on, a own their not their person is preclinical each the diversity

clinic it tumor been looking to So necessarily on a translate may put particular dozen the see in that in in a put once how evaluated you're depending those people, seen on the if have tumor, a you stage, works drug a preclinical, human and the the do you in to were XXX when results results of clinic. behaves, the people, couple it not drug that

human Raymond have in this be preclinical drug So samples, compounds pressure we used mentioned as samples, can to rich earlier, tumor of a evaluate setting. that tumor

XX, stage – trial you being what tumors back the back on trial, So depends clinical you picture, a clinic, not, trial, would test you're imagine end an the Phase happen eight, are give end small able considered treat if in the XX, that or the whether from a only to not additional time, when sample to of the is trial, in take on those travel to clinical six and compound drug of oncology the you at that this a a compound it compounds of the – was paint are are and trial, cancer. patients and into that the to years to preclinical successful III but clinical an at XXX the went dozen, a

able an only have response of samples or that how those there to compounds being cancer that if in would tumors against majority another not those that not was laboratory, platform, compound maybe the against have the trials? treating those better in a of behave the those the you imagine clinical patients would would And test So that been were whether in actually see had better all or in selected a compound would in-silico worked all from at have in would the tissue XXX patients. people

the response to might is succeed tumor to in be test response setting, would are compounds is PeDAL informative human collection being, provides to value at stage, to company. the ability go would a Not more after. what studied. sample, a it which And biopharmaceutical to and tumor that like for move able and the the test best be be would that a is being a of strategy to human are particular a would preclinical results as biopharmaceutical the in that stage companies. what indications more platform be but to campaigns those a what to sample the what – doing might actual of affordable in is tumor It a that it than drug, So from to likely that the preclinical look bringing only information also ideally, a are drug tumor compounds clinical the

goes multitude truly should to outcomes a is in drug better development make it's and way that decision currently disrupt So into a seen oncology a tested been opportunity higher an bringing would we bringing to the trials it setting, when clinical success be done that clinic. the information pressure future of that a in to that of only and informed once more drug likelihood a preclinical have individuals, have by being that

I answer that So have it but be take moment step back you happy we I is to paint picture would the to science, a understanding have may the questions to Oncology. of that at any you because Predictive just think around to critical to value wanted I and what

are As Raymond tumor other the can that biopharmaceutical be no said, doing for companies there that research collections held of sample to in that exist, privately oncology. this advance used are kind research

So is guys the we platform I are hope done going this that believe development as is now as forward. way able oncology that you that drug excited disrupt to

that that said, with I call our it have we shareholders that out reach to we with campaigns at through have last potential different clients. had So the to shared been working

on that different contract acquire on approaches based conferences plan although – We have lead be partnering we continue back attended to developed I'm nurture names that track marketing we through has and we or what been and the put through timelines, not to that to that able the the At same different that continues in past. And the leads additional have time, continue together. have with be shared continues that advance been give to have. to we

the four we relationships XX contracts As with biopharmaceutical already and Raymond mentioned, companies. also have of top

which are we of the already biopharmaceutical the at nurture continuing look cross-sell last companies, different to at with Predictive opportunity us have those are give companies revenue you by we Oncology. we the those as that to working relationships four to If reported, products

we it development. for So as is formulation whether as large molecule have it is well whether solutions the platform, XD technology, the PeDAL that tumor the

what bit there future the quite we to excited So holds. a going technology, about stop I time of that going are the explaining in I I'm because know back took but

We have of momentum the started selling.

is the in of that what excited We are going the is year, that completely now And be something in as those There now incredibly well to is building. remainder the XXXX. as we momentum are outcome of relationships stopped. about pushing are

on your Bob? for answering So Bob, with I that I have. to that, it to pass look you time questions and any thank you will and forward

Bob Myers

Pamela. you, Thank

into a quick out just the of I'd ask First, be that and to a make question. like to how figure I shareholders been number to get announcement. a trying have know able conference to

Theresa, you mute. yours personal? a go Predictive that our under to Ferguson. or Tweet Theresa, under Theresa If is name you're by on

Theresa Ferguson

Yes, apologies. My link under Predictive it Yes. is Oncology the register. to

Bob Myers

for now, to that your it do If that procedure enable questions mind. you to will way, another if might done dial it follow you able hadn't you the be to be on in

patent the let successful you that of repair So go specifically, here. and they've and it we'll of into to them And succeed, me to discuss before and and and my our both trying what course company, take and and companies The and look we drugs much, identifying aspect side on it. a clinicals advantage time that, the other pharmaceutical in backside having process into help us, as mean to might the this terms revenue much life? of financials Pamela, years pharma more – when investors to what the both been said before then said with in of in does a going financial the to to go in just doing way this, on for shift the I maybe to a that paradigm you missed unless then

Pamela Bush

was Bob, a me? that for question

Bob Myers

better. do Yes, might doing sorry. I'm thought could I but be you it I it,

Pamela Bush

right. All Okay.

what is what might you? financials look those the regarding that like, or So numbers

Bob Myers

Yes.

and our which financial company make financial of and going ultimately money our pharma, is the it of the well-being well. means In to terms do science affect more of how well-being investors our will will

Pamela Bush

right. that. did address touch on to I Okay. this. Absolutely. All And Happy not

trying to what and we of paint a had of us when company I when – partners going was to look they with I to increase into as success is the is what you, as move clinical to going shared development, like Phase the is I/II for is trial other oncology, they compound a looking into committing committing to clinical company funds that being committed start the a they're and then those clinical clinic, for to further to pharmaceutical probability when have that there's different a is the advance studies. indications. that funds then able do a So a happen of picture with – funds molecule are are And

success a have that trials has that a to every that expenditure move company For company pharmaceutical the in reduces clinical that failed. forward, trial have a in would would

ball So is not cell the take is are work compound going is increase to going to going the this that be going is perfect. likelihood is to the be successful. not pharma, to not, to that or this going This ones but which magic

is means nine not – make commercial that to XX%. I going out As clinic is XX the sorry, mentioned that easier that into out a clinic on number I'm compounds, into for other out earlier, do go it the clinic compounds, make of the that into that it the let's the there say go setting to it That make of side. are math, and XX%

that there nine So at fail. trials I/II actually least are Phase

triple in a of that one What right, company? does look it able So make that if what five that to success, we are double one pharmaceutical to probability compounds in companies amount? what we're sorry, like five happens to to – if savings able commercial,

means trial compound how sure, in head. that to start have I have in the much you that clinical not When time is your likely that I'm doing start to going that additional Phase indication whether II knowing how or a trial compound more math, be company is cost, can because not that commit every not. succeed to thinking blindly the a cost those cost, to Phase You pharmaceutical and trials much a Phase a you going does III that trial ones a successful, maybe into, about

to probability successful. decision pharma will increasing best said, be for I that are determine we're We're what compound the into. a indications the providing as So to the tool go

that that trials for does or pharmaceutical provides more early additional invest to additional trial company is is done drug the it need either which not it discovery in to other because – a be aspects it they every to pursue, as all that determination a to to company. a So for to need not funds indications of invest which in educated or

So there that in PeDAL biopharmaceutical drug partner a for each are will provides going the platform working program value that to great they process the to follow be development is in. that we

that critical With respect maybe to not are for be programs teams what we with that are to the are these that going that be to to to going is to moved collaborations. which able Predictive provide realize, the be be them to to information going be Oncology to to determine compounds in development. should in that transactional is to able campaigns going multi-month to we're opportunities value These with begin to going going that are we be are going the be be pilot doing with working

you Bob, like is there anything add? me to would else that

Bob Myers

companies into going that going can of is are compounds right that clinicals going to to know to companies going are drug that they have essentially by a with drug time, system. through that XX% save the No, drug money, companies our succeeding save means drugs great. the going chance life a without where was where generic. that And of means they the to this will it solely patent other have on additional sell funds extend those back patent that on the that have there's end. to companies And the What side they life drug are

very, of that PeDAL, we those program what a do and customers, then ways to we partners And our are very generate revenue. through can success it make makes make there of that through more do accurate. off we this attractive of to this, the it accelerate where number doing by that's So to revenue And their our to drugs.

that So thank great across, explanation. Pamela, think and I was really for to important you, that get

this we So and financials, into the questions. go to we can need then turn over to

a of brief So since you earnings we'll the little Q already. make seen this kind call have of all probably bit discussion financial a

are great still we one, in position. sitting a cash Number

have our million $XX We in account.

is still equity position Our solid $XX million. at

no there have no We this payable, have, other but We is accounts of accruals do and absolutely company. course, debt. normal whatsoever debt in

So we're solid. very

coming are As to are and that is see media million our And questions our value I about that a and biobank. value I believe, sheet. essential of show $XXX about understand we in are that this does balance some Raymond, mentioned, not through our talking there

and purchased the to back accounting method occurred when Skyline the goes that Precision time days Helomics and Therapeutics. to acquisition Helomics. And that that rules at And purchased [indiscernible] in back then that from

So money us for were to value that sold, starting figure down and only to it would be then the of But the interested realize is value to do company. to the for with that ever revenue was as means what money and if road company be company in that produce an some also value a asset that's that long-term we're we kind over on our this dealing would us. the opportunity the to for

very the to I it's it's we that So but sheet, balance what that's on valued why have. asset explain something helps hope not a very,

those our happy I'll of we a go the on to than time going lot to I spent am other questions, any not revenue but be through of items. more talking. answer

for So going you turn please. to operator, I'm to over answers, this and questions

Operator

open. from your of Mr. first Michael or comes question is Our Instructions] from line Inc. Broadbent Group the comment Bedrock [Operator Broadbent, line

Michael Broadbent

real I Bob, conference being the there And What about in compliance last hoarse is compliance? if new reverse I question avoid asked to going I my company a from is the call, again voice avoid quick, wanted company's period. the apologize, reverse guys. And But sick. split? happens Hey where money, that company's into an to the case ask split. six-month plan the is What any the to to offering plan way reverse split? the does is need worst get still after

Bob Myers

you're that? Raymond, answering with me okay

Raymond Vennare

mute. Yes, sorry, I I'm Absolutely. sorry. Bob. was on Absolutely,

Bob Myers

We the problem. it do all time. No

the attractive It's the have. stock valid, believe our have items is raise high and to And that platform market the was own. let avoid it. then our tough say to Michael, and that our we and reverse for that will value that on We me we question. are do feel to market desire, our the is that customers fully And other foremost, PeDAL a we So thanks it populous, demonstrate a we the the to first split. its to that going are stock cross-selling to the intention that

you extension of As know, XXX NASDAQ. we received an yesterday days from

show be So compliant What to you aware that stopping that's we're to validity able in We're we XX not, concerned the want are deals. that days be This the that our and we to month-by-month for market to and that with fourth to a And we're to come by continue get But mark the feeling to we third rise we listing. good will our progress the good before long bad again. And have to We cycle. itself quarter. something to a go a to you be pharmaceutical indicate for stock there. or showing or and in consecutive recognize not is make be in value. revenue want have May is through builds. making is not further. But are going And show customer. clear to the we necessarily a product stock the It need you industry. $X that to that sales X going quarter the the a should of deals people

because not would as go had it year the takes a As we far do do as stock we with that. do raise if time, the in a middle was would no, if we to responding. not closer get we the But and towards drastically split reverse that of

and in with million $XX warrants be are can our We within of are position, that about sitting that structure capital exercised $X.XX we have roughly already $X.XX. and cash the very strong $X.XX, between a somewhere price

us dilution. there's I be the cools our it Michael, or to you to to growing to if So own. And additional in hope no need answers on question. that bring try raise this, and additional stock do your keep additionally, cash able will

Michael Broadbent

position. know POAI least me is It at an after options, reassuring split killer, completely does. know good knowing and has a follow-up. usually that that one the it's is the And company can reassuring because that that we're I've that. to avoid I got to to It offering in is appreciate reverse

a in can [indiscernible] I as an asset a sheet on added value even leveraged. I the fair biobank appraised my question, asset Can my of the that estate, at balance be when when get I to be usually value industry appraisal to an books that go follow-up so to it property The done at value? have refinance market either to the could to or in market or so real not take market, be get they with a determine it

Raymond Vennare

right. All

yes So of taking are and what we doing Right is now, is the value the answer no. this.

for do other companies in the for companies would And do and of the that and so And the can insure this science it. have underwriters the the we validifies XX-plus to world that couple of we that have bank – that data with say companies, revenue protected – us value the cost replace life data would do it? next have? met value with that particular bank we it is deal and the doing a to procedure, What of would insuring how and what is certainly biobank it we we are, would that lost we're today? the within information How value insurance to the Now we going company we weeks, asset. probably the much we commercialization replace if not get that years, what it? How the for years the to path and say, a and asset

when books a some or it happens it statements, in do to no, really put In can't That way the the of only able incorporate acquire financial you company. into terms on that. we being

our it of able put back been looked And if of you So at million, pay to were been amount XXXX, was have money in and $XXX have didn't and would bringing Helomics revenue, even that this for we normal can the million, worth course something gee, the it's during they increased it and acquisition in insert just by not and example, commercialized business. would is price. that goodwill biobank that, we said if in $XXX we on value that the But books.

Michael Broadbent

Okay. Thank you, Bob.

Bob Myers

Yes.

Operator

[Operator Instructions]

Raymond Vennare

and if that please it Oncology ability, and have look to add going call enable the Predictive that, don't get to Howard, on I'm the possibility. at you again, enter will tweet you phone to through

Operator

you. Thank

question or next the now your is comes line open. Mr. comment Our from line of Antonioni]. [Robert Antonioni,

Unidentified Analyst

Hello.

Raymond Vennare

Hello.

Unidentified Analyst

you Can Hello. hear me?

Raymond Vennare

Yes.

Unidentified Analyst

all, and talked about last question about this was you zPREDICTA. during first around My yes, Ray. of very much for is welcome, call, something call, So specifically that we our thank and hosting

realization on During of was call there last that And revenue the over books was a fairly or the sort last that discussion at time, write-down contracts. quarter, around there of revenue goodwill significant. some was

sort of talk I and acquisition? appropriate it pace that wonder the could rate revenue forward? value going Or to at feel zPREDICTA. that around the if you. for thoughts Is So generating value the to the you just going and overall was just be of zPREDICTA is any you Thank

Bob Myers

Raymond, it. could question, goodwill of enhance you the that to part I the probably And want other answer aspect. may

Raymond Vennare

it either part the address of Pamela handle of the other it, services. in me. question than of that, mainly will that maybe fits because terms goodwill preceded continuum But way, it Yes, directly. should we in to it you where answer better But

Bob Myers

All right.

you and analytically need or check a that flags always where have have make why goodwill there write-off on not So on of company, goodwill. you the that of you empirically impairment let impair determination to separation sure an the stand with from a both impairment. had When make me the understands whether And that to to quarterly determine a to and get number you revenue start we are everybody for basis the goodwill. acquire raised,

us, is of our of the company zPREDICTA, came the it's remove the by terrible if us calculate [$X it. was revenue that below products is our was paid The when impair. the occurred. that you that value not was The stock the this much one million, you was value, but acquire, had that And the we that's we you value that and beneath value so fact And so company's what made what stock to the to the stock hurt against flag unfortunately then $XX decreased impaired low, we million] have fact across in that not against market. forecast, what the unfortunately,

far with want moving us, As Pamela, value to point? brings what it do the up that ahead zPREDICTA and as from you pick of

Pamela Bush

take that. Absolutely. I can

you so thank much for the So question, Robert.

type the on only we models. the biopharmaceutical companies, development from that major that of tumor with Not contracts working a also are XD we the of have So internally have models. we couple from on there's value do of things acquisition working been but came the additional the established

So R&D that we is plan have an put out.

development. that customers already We these of And started to ahead them to have that couple have of we a are offer have. the current we

customers In cross-sell addition, as an the have PeDAL formulation I existing models and provide solutions. as services us we mentioned, the as partnerships for well the to platform, for open that door also XD like

product leveraging, existing of from absolutely that that customers line. is we pipeline have but are also coming out the not the we that So acquisition, that R&D only

Raymond Vennare

Thank you, Pamela.

Bob Myers

If I may add one…

Raymond Vennare

I'm sorry, Bob.

Bob Myers

No, it's fine.

Raymond Vennare

of through zPREDICTA. three to color top So customers talk who in XX is about that, were bit When or true we to global is would came acquisition which zPREDICTA say of that value the commentary biopharma of I a add the little having access. the four

dragging going into and So as here. existing clubbing modeling I upsell Pamela ability the to not client real an an that check, that within not base what it's are. a easier going this more have whom probably as XD provided everyone we're base cross-sell provide said, whom past. have to the we to may the opportunity now to certainly services, providing in you're the fold, than that, our to knows are easier than think upsell it's existing customer That's out customer new writing to them we and on and do call a service incrementally within And a basically

about the tangible be I the And want these clear kinds being of companies. to to and the there will tangible these was things. benefit The entree customer benefit be are intangible to But base. within actually in [indiscernible] benefits intangible

So I just put that in to wanted perspective.

Bob Myers

are There these like customers. But to doing to prevents name of limitations so. some able connected are possible us Thank add contractually we be you, everything the that to we that customers. Raymond. have doing with from And I'd

to could their I work, and And And have customers. do we with go we we that various you and discussing you contract, can are name utilize it the going how amend know We levels. where depends name. successful and yes, our verbal just whether to at how it agreement depends in use says, a whether that's let and on are can think on we actually least these

to as So we about and concerns bring you as your we that quickly understand to endeavor will it, knowing possible.

To of recognition, now, revenue $XXX,XXX unrecognized revenue with answer part of we terms and revenue. other of are right the sitting question in the

by the next longer sheet, zPREDICTA on liabilities. and if And course accounting been it's this you look client. the over projects called from quarter. are hopefully, of that be under not so deferred no the revenue. are It's it's contract have that will completed, accepted is quarter, rules If us in changed balance be recognized, the signed These and by to amount

and okay, a not our So, unfortunately, just the saying, delivering we matter work, way did these it's contracts of deliverable.

way to we that off, money. they the we recognize of to contracted, it Now meets pay they sign rest have make works and revenue their satisfaction we revenue the and us take then that have sure the deliverable the to they the

that's are those are And still have that finished. on. just we There others worked that being

good put for ongoing of value revenue. is And along other with selling under products. that of a a still as we number Bush have So something One umbrella, Predictive it's products going has in the her we Dr. us zPREDICTA are terms cross Oncology to

Unidentified Analyst

very move queue. in you Thank will Okay. the much. back I

Bob Myers

you. Thank

Operator

Robert Antonioni. you. [Operator Mr. follow-up We from question Thank a Instructions] have

Your line is sir. open now

Unidentified Analyst

Great. Thank you very much.

you level the level contracts interest, of there's certain GMP up was on we was there lining GMP about share completed. to recently And in", within think engagement, comment question. are to how cetera. status receiving the clients lab. follow-up a recently number Wondering of again, call, Last be can update of and the activity there from last of were that made or kind I to sort "get a et just – if a Just completed of just labs generating any close

Raymond Vennare

I'll that, I take guess.

follow-up Alabama site the BioEurope. have progressing are who made we has runs an calls back connections off, first and Larry very Lucas from So number He has in meetings of enormous well. and occurred. just got

[indiscernible]. from up on International following And our have and do we customers offers we still are in negotiations ongoing BIO do the earlier to conference year. out We have

know what Now if But from you I companies. NDAs, that our get a clear What about thing, go and And and detailed kind with an have or also into why this, NDA? through have to do you sales, tell by can end of because door are can open hiding all be we keep what especially with nondisclosure you you them a this discussion, want now about customer. you our of it, is we it, the protected you the and to to is say, we're they or nondisclosure about being connect can the ability behind not people need that process speak them form. of of door. NDAs going is any without these In the have other talking opening can't before to is about you, form you the

time expense And an to opportunity company forward in an on and legal what NDA side, us, an is. with moving to they have with that's and talking put interest they which If to this provide usually involves help an the sign us allowing and and us offer. ahead us, them

the open amount them. of going into can means to they're worked say that we weeks, doesn't immediately there, are important NDAs I'm say, not active have in revenue. as I offered is it in all They're very to we out that. out That's Larry We contracts them door get we or do, accepted being whether not Pamela. with and prepared with It occur. because are discussions. necessarily all these But that going to means So mean have these turn

we'll wait as quickly hopefully as So and we generate can. those see and

has an is lab opening to succeeded to to XX we through to succeed. work that with he it's is in additional work. due, bringing with people and hand-in-hand working generate customers, Phase And but lab ability the in labs, us and I Bear GMP GMP time is have drug our again, increase what consultant mind doing, our processing are and revenue with in excellent that

Unidentified Analyst

you. Thank

Operator

showing turn Thank conference the additional queue. no any like the I'd you. I'm to questions [Operator remarks. in to Instructions] closing over management for back

Bob Myers

take do want to that? Raymond, you

Raymond Vennare

the is able am the all the have this Well, only I but what I'm to my I'm since said at Sure. not to this all, first terms to happen. particularly with I had [indiscernible] is by what I in because magician. I what call not for of it's we of over first the this which least of opportunity we last been years. beginning investments power years directly, are, and made Predictive clearly I that Oncology I've X.X to that's technology you who And to the think particularly, a note who have developed know is join way, a those and important of of will who industry. speak return you the at in the grateful over however struggled. make of much been know I'm the have to we I clairvoyant, been

we you using progress in we performing, what's internally of with. we And the with everyone We which say basically our control of all I'm I made of for cannot the need organization, marketplace. fan that are the this an not the all realities face particular, have those can committed me, face of significant the to control of that excuse have not out in that of control, think but in we internally, is COVID as which realized to I what has interrelated control in that, and not been a assure market. is I in volatility of deal the market all can and honesty, that, and

I all grateful now this show us up that. this your you, we without can can of cannot But it's is company, grateful. There not for be I'm you reasons. for discuss opportunities support continued all say to of very that are And the would what I'm to with that because we possible. do obvious

say is circumspect. highly regulated we're highly are regulated, can't We and a what can public in industry. we And a company

absolute that say not an with there possible was So forward. can have has platform technology. been do have a about We now before. spoken leverage certainty, We a is before, validated frankly, a never recognized never I that before, path asset we do that have in can been way that

this and all personally, raise personal will and the have restore that and say you, this company Dr. it. last this made have the of happen credibility the XX will years, years. done founded McDonald been x founder for have to people business time. I business will – I you of of That tell you investors commitment but that has the the everything Laboratory where do long you, of the We goes to talked the back So segments, CLIA rather. you years, that the is biobank company, actually I a in having business not to but mean, original Helomics, diligence that this due honor my where I biobank XX to to before going about expectations on possible not of happen business, [indiscernible] XX resides the met over years. the number this Sean I

significance So of of that marketplace. technology the company and that I know the biobank it in that the entire and trajectory and

and together than artificial a resides this entire of circumstance else history to biorepository of know Pamela in the opportunity the anything I intelligence more So that convergence that that is the access, which to past. moving the mean, mean, refreshed. frankly, But things in and worked at realized When new. what say and we forward. new. newly least focus control. those that on we And I new, have need are I is or I I

not This know this the in a also does and process. that meticulous overnight. we're happen We industry, long, regulated, is biopharmaceutical

with be will that those know of whom but very we with the also everyone and that disposal the those the comfortable mechanisms I at working. the what to So and want inherent be are workflows industry are we're doing, fact we we to companies

We fit their workflow. workflow have the to into work, change going us. They're not for to their

it that of for of years. is change technologies. for I as them in desperate There's The have things difference beginning, when comfortable advancing effort drug, for that it. of the care been they've a terms with way to mechanism a discovery like action change said very novel telling for different So used to people because many eager of and drug I It's they to launching they're you that lot you're here of it, doing drug they're development. a takes get standard sort at am the

desperately is one lives. certainty thing and on of It's with in with I say in are the primary working, It's the industry cancer The the people who with we're can and care. company, These which this saving about focus this absolute on we're that with are is saving need lives. team, focused patients that on. the

are that process to invisible, thread that And to because never goes But can ways development we and are We expedite be transparent throughout in hope been this we it it. we critical an going have before. anonymous, possible advance my discovery can process. that that is

us I So for you you long appreciate it. sticking I with you and I as thank for with as that, all. thank have, all

Operator

participating This concludes for program. you thank gentlemen, the and Ladies today's conference. in

Everyone, now a have may day. wonderful disconnect. You

Predictive Oncology (POAI) 11 Nov 222022 Q3 Earnings call transcript