Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and thank you for standing by. Welcome to the Predictive Oncology, Inc. Q4 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. Instructions]. [Operator that being advised conference today’s be recorded. is Please

Ferguson, to conference Theresa over I Oncology. Senior would your the like now Ms. Predictive for Ms. And to hand speaker of Marketing go please ahead. Director Ferguson, today,

Theresa Ferguson

will Vennare, for Officer, Officer and about you will the and give updates you’re Chairman everyone latest Bob from hear Raymond in. going They of Thank you. to about you then our overview dialing Financial our Welcome first thank Myers our share Chief our Chief an Board, Executive financials.

Chief Pamela Bush, Officer, Dr. and Finally, Raymond Bob the our Business portion. will Q&A join during

uncertainties projected in Certain assumptions future and operations target investments projections discussed words. operations, contain forward-looking call plans statements future facts about reflect expect, not expressions we forward-looking financial revenue current the statements other the in make. although of this position, may, and historical matters believe, regarding risks, future statements. strategy, of about intended to identifying These financial our are statements subject future forward-looking than and call contain included are statements events our and expectations and All similar statements, our all are substantial would, statements. plan, these anticipate, The costs, intend, forward-looking objectives estimate, words prospects, and management forward-looking identify performance, and to

obligation by that these Company of heading the forward-looking as our any by the forward-looking required law, result variety in with differ statements contemplated discussed a update among or factors disclaims including, SEC. Our filings from statements. actual other materially the Except Factors” intent performance future a of things, expressly to “Risk may the under as factors

we to with and that, and Raymond are on him you for Vennare us the with line. Thank going bearing we’ll get welcome now

Operator

Raymond now is me, to please. moment able present. Pardon One Vennare,

Raymond Vennare

very you much. Thank

this good and glitch the apologize everyone. I here little So delay. morning, slight for for

all -- look look any questions call. time the Thank that participate in forward your at to presentation. you you all answering to forward our the have we I for taking of to end

think Investors. it’s months me on basically I not that, November, effort And to what the company the important to the completely for assets. company in several I Letter there joined the reiterate has to with everyone to it’s I bit not if a So, that is been a March consolidate since that before and X in rebrand shared reposition concerted

our As and Oncology applying accelerate science driven right, driven Predictive machine capabilities company, drug a proprietary a intelligence development. drug as enable science learning to artificial company discovery,

that’s that drug is discovery drug extremely it we to which -- are, because a the are do, which we the and continual customer-based it’s development. the what is and drug phrase who important -- discovery we and we it’s -- in So play they entire appeal, the market

for you our but platform slides, than platform, the samples platform, more So company, core the only than as that of pathology course, of not includes, XXX,XXX and in differentiators know, the XXX,XXX tumor access of assets are us own all XXX,XXX to our I’m PEDAL they are sorry, of key -- which both marketplace. more biorepository

As more hearing we possibly will you coming the weeks about and that letter, reevaluating the I our mentioned or are quarter. property portfolio expanding that briefly, next completely in and be although also in intellectual also in

platform how of it’s is had to we are that clear through that venue I that town innovative halls opportunity email, with to we our phone, I Literally, calls, an to how I’ve and one conference think should by is. of speak point the unclear investors hundreds me some either also thing distinct shareholders. out; could, this literally and is any

intelligence but simply not They’re created equal. obvious, So, not to all are same. be platforms artificial not the

to the biobank, CLIA itself laboratory platform quite actually own in-silico because an but access our ability only do in wet scientific in not our and own to those learning, Our to analyses experiments unique, the validate the of our platform but lab. is to machine

learning makes So, intelligence the heterogeneous samples what intelligence And It’s that to at point into in utilizing which artificial lab themselves, is disposal. we the unique. machine the the us not wet and is that algorithms the approach have it’s the the -- to us the access comprehensive apart. marketplace. intelligence, our an unique that that And incorporating that’s tumor completely AI, is artificial sets an

that I and for that really intelligence Predictive some -- to provide the intelligence is this It’s our context, many proposition that So, information application intelligence in for the -- not marketplace. that the widget is derived important -- actionable is as that that artificial of it’s this do are distinguishes what think and by ubiquitous allows us. a our as it’s Oncology, people artificial the us emphasize the differentiate engine me because it’s value science-based by it’s our to we again, we and seen for

discovery cancer as U.K., company the just private by I funder of we largest moved And R&D the signed just research we launch, to and commercialization that few the mean which world. cancer research and development in is as Predictive refer of is last with months, -- PEDAL I the Cancer said, world, commercialization Oncology’s it in in that So, Horizons. Cancer announced Research partnered drug platform. of the have product launch we have the funder validation, We to private the from and Research largest what

By drug and oncology this of our of not in of platform discovery the to access discovery drug and we we also The credibility, to platform, PEDAL drugs development PEDAL incorporating is drive gain by process. gain the many Predictive world. Oncology’s drug companies platform, development our visibility the which collaboration purpose the only into CRH

is cannot platform entree into are drug discovery or be can our most that world, So, funnel what fact become incorporating which even we for this they for accomplishment that a companies that significant biopharmaceutical -- us CRH through mid-cap in these the significance contract is underestimated. every of to The companies. major a major the company through access have and we they the

a to We approach using entered company and PEDAL the the Cvergenx, effort also to our platform Cancer Moffitt also cancer. of in used with right Cvergenx Phase prospective the develop therapy first Inc. genomics precision being agreement Center triple discovery, is is now drug radiation the clinical where a spin-out breast announced II genomics-based that precision had into platform Cvergenx for negative trial

is the development that drug. is for drug discovery clinical FDA are are anything there everyone in three that approval necessary One things development a significant. that So, platform trial, used and Cvergenx which in knows in the as drug is being for of -- in statement

ever that, first precision radiation it’s therapy. is genomics approach the to second The

has ask clinical monitor collaboration, and discuss anyone our in the So to that doing drug happy for leverage platform also been discovery, certainly served patients with will terms but other I’m receiving are radiation there third to that. utilities going last utilized this vendors application the free other screen to platform is radiation years. we the questions And grossly And that thing novel of do after on development, under work be which also the At XX drug to for to later. in ability going Cvergenx terms focus drive the oncology, And to to least of which therapy. feel this again is than that. wants can is that

suggests, as future internally importantly, proactively Accelerating think do terms at the partner which to least exactly Oncology with called in identifying the drug what ACE, discovery by research and accelerate institutions Predictive Compound name of least in opportunities, importantly, Exploration own the and participate to program, we believe their as drug drug academic initiatives. has -- at we So launched it’s we development and discovery and

the or efforts. is now and And as indirectly. because partnering growth in our So you has will role, development, the been past, directly either Chief company’s Pamela Business Pamela, know, all of those and to strategy that you she all business lead introduced in Officer.

So, call, of questions please to feel that to the you’d free any ask about like these contracts, ask. her specific at of end objectives initiatives, any the

and of to life legal obvious because Predictive issues They science on and the company biopharma. to has intellectual David have. supplement at tissues launch we’ve surrounding not strategy, in of with attorney These of science this are or begun does it that’s be that Oncology we made commercialization known property accelerate significance in Smith, a be support and what they the expand and growth are intellectual interested the the property authority life and public. therapeutic further should human nationally the in that, experts recognized be inform, leading all In experts. should our use to everyone should which authority, a biobank if two leading biopharma you strategy Again, Board to least cells, of

sure Chief President and significance Corporate And should most Executive Ph.D./M.B.A, should it. acquired is who intelligence the fact Gritsone equally But this, The an Roche to has other Business That Foundation which intelligence of Medicine, obvious. Medicine by was to I’m the of Roche. Business President being Hawryluk, does, Board what the them, also Bio, make Foundation everyone is you artificial the also Medicine, Vice Officer currently of know which on of former that why is Vice component comfortable. it Matthew be Development subsequently component acquired he artificial of the there’s Matthew Foundation and an is

for application the intelligence not we and development drug in who on the even in specifically really positioning fact, have specifically understands someone of in for In artificial the the marketplace. valuation and that of Board terms just company genomics the more but

with parallel oncology that, around intelligence, the and opportunities our to with respect, So, discovery emerging and Board Advisory market of course, drug rebuilding in repurposing. artificial Scientific drug we’re also

the at Foundation in machine added address Dr. to addition PEDAL. inventor recently, actually pioneer. actually President for that Zuckerberg Murphy, and of in Operations Robert So I of CORE can analytics think and Bob this platform Sciences drives We’ve Malandro, the learning with Marc just current bit. a members, platform, Vice CORE Chan

the sorry, them. program also Just Oncology with for there preclinical Christoph Director He Lilly Research agreement the preclinical and who signed Reinhard, Senior clinical Pharmaceuticals space and the is I’m Therapeutics next Company. PHMDA, sequencing clinical and generation Translational Eli at established in and of and yesterday,

so So obvious the of Eli company. the be an science, from came Ph.D not business from he the Lilly. just MBA, He’s industry like to coming Pamela understands he asset itself. Pamela. also too he’s science Pamela, like a And should

were and was healthcare life have advisors, Europe America, available They to They about again, was their among this and in including Wall have relations The awareness life most largest global investor made our available, across analysts investors. life sciences engaged recently, we constituents, science firm North made this and company’s operations institutional shareholders. world. And Israel. engaged to the in Street integrated raise information science oncology predictive the

intellectual and and property. have with Piper, experience global engaged lastly that, life also artificial we deep DLA a firm very supplement intelligence in To sciences, law

we overdue this Cvergenx, make collectively, we which control the we’ve protectors. we’ve market ourselves moved Cancer from significant a can by UK through Research moved in own moved which we Inc. differentiating and clear that validation or So radio destiny control respect -- over. collaboration R&D, And sensitizers to have risk radio through should from and relationship radiation oncology with it the into have with our marketplace in

And is Directors, that the then Board, building team with firm board, Advisory law the board, the expanding of our firm. our us Scientific Investor Scientific Relations Advisory and around Board

sure, and So hearing is want is Bob. call, earning talking to the since this to really person be an you from

off to of presentation. the questions the Thank welcome pass and you. end will now at this any I So Bob

Bob Myers

equity then concluded go of period. the that and Thank all summary to our million answer I million Oncology at profit to was the stable XXXX in XXXX able of compared completed XXXX cash financial in and financial stockholders at of XXXX. be was equivalents in Predictive summary, in $XX.X our against XXXX give you, XXXX to with million in XX%. cash revenue $X.X gross $XX.X Raymond. prior full-year and and we year we’ll $X.X million. compared and will $XX.X million The to $XX.X The you million question margin a recorded

increased a by development increase cost in in expenses and driven increased in business related marketing, to sales was as laboratory initiatives higher from XXXX and well research as The XXXX that are higher primarily as transition cost, commercialization. expenses cost into due development XXXX. payroll to compared we Expenses to

in Net a XXXX, million was cash slight used is $XX.X increase from XXXX. million in operating in which $XX.X activities

flow. We’re monitoring cash our very consistent in

maintaining XXXX used was fixed activities Cash other flows cash to to $XX.X used and in in acquisition in cash activities to in activities the used XXXX. were $XXX,XXX And investing subsidiaries. related investing our The in flows primarily purchasing of initial investing million were related zPREDICTA primarily of intangibles. one assets the compared

from [$XX.X million] common activities financing first proceeds due were million XXXX of primarily financing and compared million issuance warrants by XXXX. flows provided of of in provided to stock by in (ph) Cash from was cash provided $X.X net in Our the the $X.X activities half XXXX during XXXX.

activities XXXX company warrants from financing of of in The offset of of by provided debt stock exercise of primarily debt were $XX.X flows million. is in was warrants free. from of issuance by and Cash million a $X.X in currently $X.X which proceeds due common all million from the repayment the proceeds

for We ended During XX, we XXXX. goodwill an some for acquired according full intangible zPREDICTA impairment fixed related totaling a accounting impairment the million GAAP, the recorded impaired XXXX, December recorded intangible assets year and we of $X.X of of which the GAAP in issues. during $X.X of impairment assets at $XXX,XXX. And to goodwill full million zPREDICTA, year the XXXX predominantly of of was

year XXXX that impairments. our in net done would December the reachable earnings was you XX, losses predominantly the XX-K or the in which were X-K with our XX, and SEC December report and And website. financial release our XXXX be on that the could and incurred yesterday, see comprised file with in losses for of our We summation, in press

going Raymond, to the So I believe and over with question-and-answers. call that, start Raymond, we to I’m turn can

Raymond Vennare

whomever it you everyone, to Hi a whomever to want would do. question with, speak like please or ask is

Operator

Instructions]. you. Thank [Operator

will come analyst. question first Michael Our Broadbent, from the

open. is line Your

Michael Broadbent

Hi, Ray, you Bob, me can okay? hear

Raymond Vennare

you. Yes, I can. Thank

Michael Broadbent

and the or the year, to investment necessary or zPREDICTA I with of really inflationary percent the a investment My planning and cost you million I over Okay, acquisitions. right, most haven’t business make debt you’re as the there’s cash. road is kind potential and do to seems down increases filed, that outside why around climate. do the entities, In POAI two we left was to I’m then impairment convertible Appreciate any $XX notes there current it’s revenue doesn’t the zPREDICTA other six partner. go wondering of reverse in investors under in to further. additional to the impeding growth, payout diluted to economic to of like be with -- or with reverse And any hope great. a the the after time. split offerings Helomics. at within she investors growth It goes any to are the required as to unless split, seem And for that purchase, zPREDICTA in for than mention it, inflationary, couple say last offering months else goes And would looming further the that in X-K don’t about promise help an the want get most. revolves of as Julia, the additional question diluted investment revenue not do it acquisition, offering willing far asset the that seen said everything long those a way any, lines. confessions how who especially and an

Raymond Vennare

Right.

So all essentially occurred the of that the the the the acquisition that your but it. entire he company, other everything up of last perspective Bob you has because address historical since those -- very I ask and I mentioned to zPREDICTA I’m to part question, before judging into came not on question I’ll will

Bob, So mind. don’t you if

Bob Myers

and Raymond, you, thank course, you thank Michael. Of

purposes that is and to as The price goodwill is our And cash to rules, it GAAP earlier are intangibles is simplifying I’m the only Under million. that at a $X.X value did for relevant Michael, from we explained from that zPREDICTA, own you we foremost, beginning time. market in We year QX, essentially, against as to rules where impairment we on our things. the of predominantly One, two the intangibles because write-off a per dropped and substantiated. impair is the $X.X of was year. had as fact that and accounting this to share our the fact bring the revenue explained have and So earlier, the the not company in of GAAP. the again, million and really when and result, first zPREDICTA in this, means but forecast it’s the

is we In $XXX,XXX. what’s and revenue balance our to zPREDICTA is comes that rules the the that and doing It’s XXXX. were various believe of line sheet of sitting way recognized. we’re is stages in have so the the recognized. toward The under revenue, reason called various the in accounting are about various developed recognition not the therefore, acceptance with revenue in levels. from the contracts contract terms that not out Customers I liabilities zPREDICTA it’s way reached revenue that the It’s because there of there’s levels it we not that and work level, are yet in

of one see Pittsburgh are In kind we with look and future under of now company can gone revenue. we lab and to are we’ll CLIA how through our develop consolidated terms revenues, everything we larger future the now molecule as Predictive and

split was second possible point and raise. cash of the your question reverse And regarding

for Michael So this me let address you, for everybody it way else. and

want at I said that Predictive do Oncology repeat reverse to continually. off, we have We First not do to a split. want something

of with We’ve investment that getting of investors. an anything we possible stock this been course a personally now We’ve again met made to market. down We the everything left to over split. things PROC, said, having have contacting with the in deal point companies has the just our the have, have brought brought that to year as during was then Cvergenx, a time Raymond deal fortunately increase within past conferences. right. a done at do -- avoid We’ve with and possible and reverse We’ve control to Raymond

help, tried doing. fight was This are to we and something against we not still certainly was it but something we can

rules That split. according reverse begin to and that the to for we have have procedure is do. the So put regulations fact something we to in

the and value company on keep as the we shareholders we the and doing long the are timing, to everything waited of Based protect could as we and to stock.

and of split have terms fact way for days. stays In the reverse -- between ability time in what and gets by procedure. large then stop very the ourselves happens the a company consecutive meeting, drop of this don’t share shareholders not reverse become do now doing then the split becoming the that dollars shares and the XX we the procedure, a we to compliant reverse disservice. we the above if if the a leave can would and compliant of procedure price We position we But and split per shareholder May of X trading in

regards cash, cash very our and Michael comfortable unusual where you’re We to As position. everybody an we in quite else, is This are right. feel situation.

that look the cash when you companies there go us not absolutely intention deficient has have in at and going raise. which a through the we of strength reverse market fact no a And doing If given we going, are we to hundreds, is that be that this that are are split, the any

I make following. six can months XXX% can’t that promise, do nobody

of any have I do intention for it. doing it. find no to reason We us don’t

validated a our ongoing We firm accounting -- we by have are been as organization. continuing and

have much bring bring we of increase cash. in. share will we and a increase warrant to very large the input We to have revenue hold of prices as the support don’t And

desire that Thank promise I the nature to the Raymond. that and raise cash intention, of you, the can doing to do. do everything avoid bringing the in and So

Michael Broadbent

for you up compliance? get Bob, us more back Bob. calls, have there? the If tricks I think had know more has one to even to more one sleeve mentioned how in Do any If question. POAI past, the ask on I you ask shareholder your I question get you to could that can

Bob Myers

my we’ve with deal a deal you wish sleeve. not can company have sleeveless there’s we we’ve to and and and Cvergenx, PEDAL, we build through. our it if than promising no what I good us Everything just doing everything here, possible be did sure I is being company And done more done I’m will. people per up the tricks, bringing to share things. the make make do this Michael, are tricks for an see shareholders that in. There’s up incredibly with what to fighting it and to can is. our and that we altruistically have It’s price build follow make

Michael Broadbent

soon. Hopefully, guys. we work. appreciate of behind it. those and public terms out get can hard get Thank I some And I contract much the NDAs you appreciate those so

Raymond Vennare

Am this -- I I Raymond, is I heard? May if Can may. – I

Bob Myers

Yes, good. you’re

Raymond Vennare

Okay.

just you thank for that So possible. that we I can and we’ll Michael, you transparent had I do on I all know point, faith honestly. want humanly have keeping to how we’ve am done I say everything continue with know of and last this. the conversations honestly some

say, saying with is not But can equally can happy by about really sound I an very the to can investor We’re these working that and is going can’t we much contracts be a says are. one can’t We we’re terms. Where talking to be you. what contracts let constrained to say investors we we’re that you. blind to know those horrible they’re I are say those more with financial What’s answers. the It’s we closed contracts also is, it anxious what’s you’re be tell investors no word? I you. about? say are can’t fact I but want we disclosed the arrogant, honest to, what How make I cannot in. than honest who them. not. about All swift and I mean, say. tell doing with and can we to is situation can’t They in tell who

what investors of can nanosecond the you since history from will a time in with company. tell investors I I My tried company to very the be speak. to this terms and my disclosed different we’ve completely the a the demonstrate notified. a it’s It’s That’s there with and are is history company November, but I different definition ink the Bob’s a short, the And of mean, only to can company. nanosecond. point, dry is which being definition But the is

progress question, has is, have, respect to the that promise for need significant. be direct But reverse evidence we’ve isn’t this. about direct the us just is squeamish the to to made keep for investors my to the been investors, your That’s we split we It we you truly The them period. have, can the see, convince want that possibly not that traction doing we continue that last but doing from thing or answer the truth. to and we everything do it can to a to the also

Bob Myers

Are there questions? other

Operator

[Operator Instructions].

question Our the from next will Antioni] come [Robert (ph). analyst,

is line open. Your

Unidentified Analyst

the at I etcetera. I the we’re, of, months you in the a say, revenue in for? charges, that $XX it’s off XX or the revenues I of impairment down kind departure And and Great. acquired Bob. on and zPREDICTA, that departure Thank you then in And described much and individual, little realization million at charges, questions. very do you, XXXX, or time, revenue Two Raymond was thank the if key months and add Predictive pretty now follow December was that you’ve very of tumor immediate of one was leveraging adoption slow zPREDICTA, it announced One sort first. platform because show on by an Oncology’s of did much written is would later, that guess kind XX as months really revenue can it cell individual was etcetera. key to revenue that that new complementary its the it did sort core of the statement Bob, in AI culture, a the release I specific, XX zPREDICTA other streams. is, acquisition, to said, then was question

Bob Myers

Raymond, or to do you want me you respond do want to?

Raymond Vennare

join give yeah, can my No, perspective. current I’m I can it. have you happy you again, in. the assessment, give But the but to start. perspective can you on historical

Bob Myers

Robert, you, for Sure. Thank question. your

at San and departure five individual next departure the the for signed advance So Predictive as harm. office we of office new Jose becoming we’ve way is, where towards and expanded one just Pittsburgh a leases its answer zPREDICTA to key We years prepared lab. no, costs Predictive into our us departure. are that used the that hence The for consolidated

CLIA Pittsburgh, Uihlein, that Dr. that everything is and very leader site and the at does. handles Arlette medical who at the she proficient a is lab very, director lab

zPREDICTA, because the one So our ongoing subsidiaries we Predictive. is is don’t the simply location. Pittsburgh we’re We with our from to over which work things now refer anymore took our that

capable I said the It very is the Pamela is There hand as there. was there person As is earlier, and to in sitting closing Bush is that we for now that PROC who the responsible revenue revenue of just had. recognized. Dr. primarily be future a deal

Dr. already it’s that very from there different preexisting cross-sell the customers, revenue we familiar those when in November, utilizing. something new is December perhaps with of said gain now And we fact the those large already not referring And is were that this XXXX avenues deal. But we to that that XD and can the Bush and that were we to the within revenue. is back one customers’ areas of very just companies, customers that that’s could but through culturing

to to? of So, I is be what Pamela yet going perhaps on to where from that think those that be and And a do lot expand we’re would like want to or to you value that seen as customers. of to got Raymond, we the

Raymond Vennare

Well, person. Robert, to can certainly, I you talk pleasure in to

Unidentified Analyst

Yes.

Raymond Vennare

did of Dr. departure the did No, Julia hurt Kirshner So, not. us? it

not As you and to know, in essential. essential made the acquisition be need, decisions have of consolidation we any about what’s what asset personnel, and what’s company

this Bob the assumption And very company, the we the sorry as I’m do for Julia living. people And forward forward. to have moving has the biologists, scientists, a was company they essential Julia essential in always that been our some smart So, -- to transition. not She’s said, technology was computational essential. MDs,

now. here. Julia’s secondly, in number the is one He to they’re moves XD family company who modeling And person the and did his Pittsburgh,

a that more now I at there’s at now ago. lost here. was importantly this or -- and this my that it here. more we recognized about year But was The was, The expertise or than least thought. this that year nothing in to move more ago ways a did to than assets it immediately domain we know integrate frankly, And looking we retrospect So it is actually not is we whenever perspective forward in transition. are think it, see

We’re different matrix a these change way the -- another we actually company it in modeling it. how you a and does XD That you least in with use that’s evaluate or different may of it may different is, experiments a it done. speaking trajectory with which at are and what modeling not, at and we’re that actually that is very the culture media but look science XD

say So, It and should it and overhead. we’ve acquisition not Julia entirely and shed that that on working. personal wasn’t wasn’t working personally an wasn’t we that, a wasn’t lost leave. anything professionally to wasn’t working, was decision chose by It was we Julia’s that expense Julia’s also but departure, part -- it it because I did

was knew after learned We -- that was the a that fact we possibility.

power everything investment. that in did we So our accident, protect to that that

that with explanation hopefully supplements of Bob the the gave. So,

Unidentified Analyst

for and Yes, thank you. I this don’t other me things this And but. sort if one how of answer to going one know you’re --

So cross-sell, and on based etcetera Bob, up-sell, relationships kind you of talked clients. about

etcetera. unique And, the is had to labs, equal, sort started machine And And not the validation unique value XX% It’s conversation etcetera. Raymond, biobank, you quite that’s it’s solid. around etcetera, wet effective right? that that you’ve of a AIs created proposition all learning, access

why it biotech guess obvious? guess kind aren’t maybe I that’s at? it’s to And the communicating get again, of they question, we’re I’m is, -- do, of trying they and I to answer particularly your an POAI, that if genesis the to shareholders, the if flocking? see that that’s is to right, really question as what farmers as but obvious, and oncology

Raymond Vennare

Robert, Yes, sure. not an it’s Well, all, question. unfair of first

Pam, there going I to I’ll over a in to So, moment. moment, a this you I because promise, know right hand sweating you’re now. you In off I’m hand

apparent. we But we in There the definition, to thing. have understand by that workflow. you their here’s Robert, no ways something the at when One to are fit curve, you’re else an So this. innovator, you solution need to see are in the it where is biopharma. three has, see the have one when we biopharma biopharma. of you’re We And for make look that, has ahead when

point but I that of cycle there again, talk month was cycle in, mentioned scientists. the I believe Pamela a it to view, probably sales to get a from A, just sales believe, as I So wasn’t XX she conversation, the for mentioned,

understand sales to the cycle have You is. what

business You those to a to and the of that that or talk down people, people you talk conversation talk to it’s decide up mix PIs, move scientists, you to ladder.

So, long. can be cycle that

UK, one signed So day for perspective, speaking literally Cancer was months. from It the was started the the was Research that time contract day Pamela year a XX the that cycle. with

cycle what projection on. our sales was So, correct, the spot on absolutely

and It’s is biopharma it of AI in Secondly, these to are artificial using organizations. widget. within drug understand the fit not there you other yes, intelligence and in has a for that, being people biopharma used workflow have discovery. But to

discovery, it plug don’t drug just into drug fit protocol. development their is You in. to This It has science.

-- one of have takes fits. a year it show So understand is how you the reasons it them to

to How of And have a information the approve we on third forget can You end to going the perspective, meaningful They’re the them. front going because day have these that of deliver the that at is end make don’t -- to deliver things. from we end. billion the demonstrate the difference. show the make put line, $X is FDA and my we not to how a mistake

once So, decision, right, them our says it’s platform this ultimately -- then they it’s how this them. will is to you that the back of that we lead do know through tracing and about that believe could fact it’s move data, you probability development, molecule on on make drug that all tracing correct,

there are to letter on a being do In investors was of does biopharma, analysis but done, at we end. not it. front do to that that the that preclinical it. the They it I lot cycle mean it the there mitigation actually market all are sent risk is it’s anxious So, why by and on to not mitigation, side AI that is so biopharma on important market get around pressures Xth, where analysis, fit to not unwilling conditions the risk on why a in in the process sales external the adopted this the really,

my insight, So, But it’s like you perspective, provide if Pamela, of please to more from all things. those do. would

Operator

Pamela Bush. Bush. Ms. Hi,

you Bush unmute can please is line line. Your your Ms. open. if

Bob Myers

if whatever be is we’re Raymond, unmuted. Pamela connect having, continue I and is difficulty and able -- think on we She I should that technical great. in would to get

Raymond Vennare

Sure.

answer, want answer more panel specific or question. on you you a get to the can directly Robert, me that So I’m you happy with call we’ll phone if

Unidentified Analyst

Thank you very much.

Operator

Thank you. conference And turn in Vennare I’m queue. seeing questions the the Raymond for closing to further no I now to would back remarks. like

Bob Myers

be looking for shareholders I after a that? sure were the that that me a forgive Raymond, ask saying cut-off Chris. few know Can we going I’m And yet we’ve there I me, in contact moment, Because of questions. have had interject they questions. and past here to to

and So, and get a how be that go make could if I a re-explain would ahead make helpful. you -- on to present think a question, question to to everybody

Operator

Yes, Instructions]. [Operator sir.

Bob Myers

Thank you, Chris.

Operator

have line we from And Michael have questions. One You’re [Operator have we -- from is Again, open. welcome, We a do moment. sir. analyst, Instructions]. follow-up follow-up the your two now a Broadbent.

Michael Broadbent

question way I of one Thank that milestones status way it workflow, is it the months? two zero burn. the breakeven trajectory there will in year? you that a cash I’m a on Predictive’s current you. This happen? looking it Horizon based Is three is for Bob, major when Is six -- any predict be to achieving when milestone any Is able Is is for Bob. there it to months? think and that for all years? Is the

Bob Myers

various as There that I with got year you components everybody and year it milestones indicated to occur cycle me and a not can a both progress currently with agreements or takes revenue that. it thinking. let along just for Predictive PEDAL is why, years. a sales predict silence right? progress that And the PEDAL. reached our me show not is that when as very, will we that has stated that tell to explain Raymond, agreements can Michael, and I are currently succinctly And very way actually indicated

So --

Michael Broadbent

could little smaller. the rephrase bit question, a could you be Maybe Okay. I

Bob Myers

yes. Sure,

Michael Broadbent

is that Predictive type signing a seeing contract timeframe violating contract of that a be type is to able being it payment done? the PEDAL is the Where because without three What year? divulged receives what Is a contracts? from should to or any month month on of that the six think be timeframe you’re work I first timeframe? not Is contract milestone?

Bob Myers

view. a Yes, absolutely. you I can Right? generalized give

Michael Broadbent

Perfect.

Bob Myers

Raymond, sorry, in are I’m there? you cutting

Raymond Vennare

me. No, no, that wasn’t

Bob Myers

sorry. All can right. I give Okay, you a generalized view.

to tumors going and on of where have a to receive first to the work. begin going evaluate of vary in to revenue an get for use This to drugs initial to to process we then based foremost, the price paid to on that’s we’re be through want the the and the number So -- come and the be contract that the agreement us amount there is we is is that going that we’re go and that has that drugs. we process

course we each could our it from It’s Now and process along the being that a process -- iterations as through general number and back machine go a goes going the process and through continual longer. very through but little a of be lab. and both year, learning based it continually we’re could I’m to based that learning of the drugs, on number of iteration on again week, be tissues,

what initial have we’re hope project with what there could is next of be the what on don’t milestone and going XX answer, a the be the is happens valuing whatever doing. later, project. on what drug they proceed weeks what the the Again, contract company to stage is on proceed with. they to have that in the XX for on the So, contract could they size depending for do. pharma from dependent Based answers now we And is this successes we to

the go have for in. number The clinical. revenue to come to a just is through there’s So of that ways drugs next thing

in direction. of saying clinical. helpful you’re that paraphrasing, but essentially in II, if the of answer being in the essentially potentially of wants to sure reduce this not it, Modernization here accepting that’s I’m intelligence with and December FDA past this going and liberal I’m it’s the again, FDA that eliminate Now to not very that aware even FDA proceed what artificial is it’s animal Act something past is And if my terms which

opportunity money, and time years, this again, it That saving that’s two years a for the on revenue take again by So could us. depends three process.

I’m of goes drug that. income through might fine market, and a So, once discovery and capable that new go there’s equals go opportunity through for for goes you passive a really the does deal to market that tuning through Then then you that to patients. actually the off not drug get make ultimately and we revenue succeeds, to of for

clarity at longer looking looking more you’re think you’re that? I term on

Michael Broadbent

to me ask just question. sorry, going I’m a

Bob Myers

on did. on clarity said have you based any do additional I that? I Yes, my answer,

Raymond Vennare

Yes.

So from it Michael, a let address contract. me

contract, will Just of from the structure pretty answer think your the this I straightforward. question

phase need where for the Phase I’m contracts possible a or X. into at the basically through a a molecule. will into move to in compound. compound to of way know pharmaceutical look comes Take preclinical molecules animal meaning success these this probability So just Take company at contracts this our and making to tiered are this up, testing is preclinical the I be, drug us least says, it this works. development humans when look and at it or

yes That’s front a they it fee this say, Is So look what at for the we stuff, it stuff, or They it you Is our probability? at it Is it come. bill. look service. send first good? a Low Is that’s bad? high part think, of the right? that them probability? end tell is, tell them They come and we in, us no?

that said, fairly contact So as could from that’s the us. time that they And immediate. Bob be

widget. work I show as our the said, to the of to asking figure We our to said do us. a out, sales answer not, side have they’re we It’s that we contracts, protocols to develop have in as initially, not the actually I them on and cycle actually, it’s questions own to

drop and back toaster don’t it up. in it just pops a You

do high So three there’s the work that. do. we us Then low do the the months front end. for they that give work them. for answer the on say, it’s That’s, and to we answer let’s or We probability. pay contract the and work That’s probability our them whether on is the part

moves everything assuming estimate, quickly. fair a that’s think I

part of it is… second The

Michael Broadbent

If I can jump in.

Raymond Vennare

ahead. go Yes,

Michael Broadbent

with ultimately, quick take what want this because increase is, shareholders we at are think in fees should when from from away going a gross that get positive to to research is partnership see we a each some Services. is after announcements small other upfront takeaway and know latching contracts companies onto that question we And be mind, assuming this we’ll see in I UK that is a the revenue? Predictive, an we this in QX revenue And QX, for should bump Federal correct? see were signed all revenue, with from for revenue these in contract the should QX signing XXXX, bump

Raymond Vennare

Not from ahead. partnership go -- the

Michael Broadbent

but we may small, should see something. be It

Raymond Vennare

Yeah.

I’ll the directly go. contracts as it So answer

revenue not going the this we to So that is no, because control to How whole for where do their we destiny. to to how bump own use in immediate PGRT we’re utilize stuff the an develop something us of see own our platform to Cvergenx, ourselves, our point figure out for which benefit. we

sensitizer with So works us radio different. right? molecule that’s molecule, to or than waiting to point a protector, to with and for this rather say, pharmaceutical is we there we a as analogy some molecule that go the come think So hey, company a a at them radio

We’re to do own engine actually that. building our

work once do see that us time the respect has days, of CRUK to any contract, out then days, whatever that the it’s invoice protocol want that or XX from signed, everything with XX to work, it XX days, time it’s what when actually that With -- to cycle the they is, is. figure issued, and delivery is the the whatever that do, pay their we

figured than that, we that’s molecule work that if yes. figured we the value $XX value have do. probability, told be development come million year they and to five would to years we milestones it service, end it saying when us And can Kill no. the a tied molecule right? end have work five work that didn’t Right? or And milestones. taken could later they could front a a back is answer the Because them out quick. have low the So out are through and fee is, less created identify years that and by the has otherwise The in for for work

proposition. So value that’s the

Michael Broadbent

term. we the some the happy see revenue hear as in should progress by to hear of it Predictive QX this even I’m liabilities, in on to QX, bumps if that it’s short nice is contract there’s listed year, though end

Bob Myers

Thank you, Michael.

Operator

next moment our And follow-up analysts, for question. be for you. (ph). next the One question a Antioni] [Robert will Thank please our also

line Your is open.

Unidentified Analyst

in to time, of Thanks and and promise as sorry, good a I believe on really just but a all of kind the time long want of monopolize shareholder, question kind here the don’t in things. those been a I’ve talking kind I and as of outside the Predictive of is I are shareholders key executives amount of about had the is, some that Oncology, based question have the key executives guess one of the the ownership things that incentive compensation.

in for that? acquiring to stock? there any individuals market confidence you put guess, are make based I a plans comment Can their on key by

Raymond Vennare

Sure.

yes, slightly addressed in members, the in and is investor I that either itself, I think market or the yes, Robert, company I yes, buy the open yes, stock to letter. and purchase. management, board interest, senior of think, stock There

doing We that. are from precluded

that But since if period. we we great. you be been have a exact We and we’re have in December the through Bob, can’t, May. dates, that’s will if blackout

than process is it. out blackout. but SEC so We’re figure it’s takes tried. The to do I end this and deadline We May way the some process, out there to of to sort for not contact waiting of permitted actually the the asked the Bob convoluted. safe longer harbor

it in nothing not which senior stock time there’s at up there reality a to is not we knew we any It’s to do like with But when a to So if was time moment, the other investor. good it. at reasonable we price. buy just do a is can’t it buy the purchasing because desire management any do nefarious stock, permitted it, there’s can

Unidentified Analyst

fair. That’s

of the totally outside So blackout fair. period, that’s

will the pilot the guess are you do in But show shareholders confidence in intent. You to blackout guys of period, outside got it with Again, -- the is really with you it along anything. with of my there’s question that don’t want the kind to to us.

Raymond Vennare

Yes. No, there’s Robert listen.

about public also constrained of court, SEC improper right. that the You obvious. under of I either reality the There’s that SEC. we’re the and a the question should But guidance, at or are of company under least, nothing being the it’s so not by thumb say,

Unidentified Analyst

Thank you.

Operator

not KSU. for turn have question, back the Garcia It in a questions you. queue. do Thank one like from conference Vennare Raymond moment. I Instructions]. to have moment. looks Danny am One any remarks. question seeing [Operator closing do will I the another we of We

open. is line Your

Danny Garcia

Are asked I’m Bob, And up anybody little I you able yet. question don’t late, guy’s if a Ray. has right. me so showing give know Hello, the

Bob Myers

you. to talk to good Danny, Yes.

Danny Garcia

Hey, good ahead some split. everything the you of to from to again. split, in that going guys’ because to investors with you as going slightly Good structured you you I reverse to hear talk that’s ask, know, well. the you reverse know, was currently way the on

range You you guidance $X want view, know, post-split? off on the number guys for price share guys to what the what depending to guys You decision in are dilution What of? what’s of on you use? shooting $X, you based your be or would $X

Bob Myers

for answer is I’ll Danny, you. This Bob. that So,

we that where the and such look us effective. be The price is the know, going to to reason the the is you on As per at share it to broad to $X.XX. put a $X in the to of approved range of proxy because before dependent meeting time preliminary lot go is shareholder do out, a make we a board $X that we

we shareholders anything to the can from between goal based is to the do So that $X.XX. fact the on $X $X

management we is We’ll that reverse little It split be. things. discussing off lot team involves a only consultants. a the with of ride we once usually wise who you down bit. want not a from a already determination a a approved, very amongst you when this come ourselves, initial make as generally and has down Number Then is to to been sell reaction do some but there’s to one, as where where split,

second doesn’t This carrying that will are It’s that in X, So days. price business May we automatically gain new have compliance. split reverse per tension compliant. by

we’ve go coming just in wouldn’t done everything too in $X.XX or and can coming So by $X prudent a low. at sacrificed move be $X.XX because they dollars below it

Ideally, don’t that at of going an indication to that On look what doing. a what analysts be that the high hand, look and the to value disruptive the saying the to stock is anybody. That’s market, other investors past, by which of anywhere using want ratio net do has I’m what various $X:XX. in worth we’re been from it’s $X:XX $X. we I’m institutions excited the to in at, not

go But into the So I’m the don’t answer. it is we have not XX gain to avoiding and and the of goes through value compliance NASDAQ. question. the the what I determination assurance that the complete consecutively with of could days return shareholders stock,

Danny Garcia

Yes.

Okay.

is you towards this directed question So Bob. more

So, no you shares basically, would saying of about over be with have, something the from would make compensation you the Board you that right? if guys you company -- more you’re getting was many to to guys’ willing just there and how a down, to stock price be increase, decisions accept like would on how it’s the than pay the Directors instead guys cash, question switch pay willing grows, willing be anything wouldn’t guys you you to guys want stock more share go else, getting because depending paid of

it. back said they based in so be of what of receiving all supposed the in these contracts to Bob deal, did you And off and being going end day the the real Helomics was

so guys a just cash? than you shift hopped zPREDICTA, stock subsidiaries, was you different off, to write which for including know, massive, pay be would to, which willing over we guys, more you And

Bob Myers

So Danny, that’s question. a good

-- I’m personal to a this going question, it since -- first answer me I’m to Let is going kind of personally.

still believe Cvergenx. now are in for believe and with that our and for said, workers OR much protectively living. families stream patients years because trying still with doing what that we’re do I’ve all the really what weighing I we’re a been believe are make in all that supporting XX people here, the practitioners. We’re and in it this with I being opportunity very and company I people the With and and can to in it. I’m in machine it PEDAL

to that can very, believe very very bring now. So, my and is love value we the altruistic we make the and do succeed shareholders’ much to cancer. a that desire in see in just would to hope and what I And difference very,

yes, and And paid pay. when terms of I very not as done little company, because in even I’m there I many In stock, was shareholders I like the getting that are I’ve there stock I because first again. that that’s stock. and regulations through very, willing very restrictions, salary. problems as and certain very, chance the chance historical received cash. And I that much certain past, options took But to okay rules a the and with regarding that joined there’s lost was my take

might it. people the that further terms are plan. give are inspiration the actually So we combination both but in company to try haven’t we would presented of looking we help for do I the to plan. a can doing work. I’m to people new That that developing best get options the at are a anybody, That yet it of and in to new doing

side hope So personal from is generally yes, I a the answer that helps. and that

Raymond Vennare

company. without Yes. predates from And people I to it There but add mean, this is company going. this also works this salaries is I it again, Raymond. me, investors, in it who dealt keep see the retrospectively. historically, I would And this that are

days necessary without gone year help to they potential the also to company but a worked around XXX to move completely while, company. that importance a quite forward, is salaries that company make week, have recognized work a continue They this a of have these the what days been the if have do, for to this any of forward. As and a moves commitment and sure have year stock absent people seven

opportunity and concern to we’re is is of true. to taking investors there commitment make that the committed simply some company we’re So, that’s not taking in if than there. it not by the money advantage is successful desire the rather make The stock, or the to way

comfortable want to feel comfortable. everyone feel to I want So I you and

there things take are are So we in point, can’t we to and that. seriously. very certain who people Bob’s it by do constrained all But company the

won’t so And do they that.

Operator

another Thompson. Brenda Instructions] you. question. from Thank will [Operator And have do we come Question

open. Your line is

Brenda Thompson

all a even to is you have shareholders split. question it have rhetorical because mean, get doesn’t the that benefit that Thank reverse of question. that’s do my the you. a higher $X.XX, then diluted and price the they’re less? if I to Doesn’t I

Bob Myers

this. basically I let sorry, the question as Brenda, higher split. reverse regarding the me And I’m guess, price. So, taking is question the say the a that I’m

to shareholder of per the Its shares of change. price value actual terms the the value, In to doesn’t share the you proportional price of to split own. amount

your value So essential does switch. not

better point. good In believe and they the we’re because being because terms of to people the in doing price to them. to you and get make higher bringing buying price are stock very, want return way the we want It’s get the good a the the there. there for what shareholders, and not very We we’re

as support that invest that But high price company right and stock net naturally all really were a are are wish of be we But by a we investors help. into reverse you’re big this price that to like absolutely a to split, is up cognizant affected. to areas that go you is of price how are have value now getting going very the something That of type worth to. the looking true doing to cause where and when the of

do split, And do not be to going really want again, do we this. to have We since do to this. hope I’m we But I’m talking reverse about not here to annoying everybody.

by back natural Let’s means. that bring up just

Operator

you. questions Instructions]. queue. [Operator further seeing I’m the no Thank in

remarks. the back closing like, will Raymond you Vennare for hand Mr. If I call to

Raymond Vennare

from moving as forward usual any But and our anyone of and have as and Thank perspective are has are helpful I made. a we’ll deeper about tensions are question, has answer anything, and thank please what being you, understanding the promise been where you if everyone. And Hopefully, that as possible. and this efforts honestly best question we and Chris. us day contact our directly as one, do that to you,

long, for We’ve all been with fact so you So unless that on to us. I just long a today, little I’m time. your and but this questions interactive you’ve are thank gone stayed want any Thank grateful the for you. there other

Operator

There you. queue the questions at Thank are in time. no this

So Thank participating. this call. will conclude conference for today’s you all

now day. may pleasant have disconnect and You a

Predictive Oncology (POAI) 22 Mar 232022 Q4 Earnings call transcript