Financial Performance - Q3 2025 net revenue was $8.8 million, a decrease of 29% from $12.3 million in Q3 2024, but an increase of 22% from $7.3 million on a pro forma basis[5] - Income from continuing operations for Q3 2025 was $1.0 million, compared to $1.8 million in Q3 2024 and a loss of $0.7 million on a pro forma basis[11] - Adjusted EBITDA for Q3 2025 was $1.3 million, down from $2.5 million in the prior year quarter and $0.1 million on a pro forma basis[11] - Cash collections for Q3 2025 totaled $10.0 million, compared to $11.2 million in the prior year quarter[11] - The gross profit percentage for Q3 2025 was 62%, compared to 64% in the prior year quarter and 57% on a pro forma basis[5] - The company reported a total stockholders' deficit of $298,000 as of September 30, 2025, improved from a deficit of $2.2 million at the end of 2024[15] Revenue and Growth - Q3 2025 thyroid test volume increased by 12% year-over-year, reaching record levels, contributing to thyroid revenue of $8.8 million, up 22% year-over-year[4] - The company anticipates continued growth in revenue, profitability, and cash flow as a thyroid-only clinical diagnostics business[2] Operational Efficiency and Strategy - The company is focused on enhancing operational efficiency through AI and automation as part of its digital strategy[2] - The company continues to develop its unique combination testing platform, including ThyGeNEXT® and ThyraMIR®v2, to support informed patient management decisions[2] Previous Year Comparisons - Net revenue for the three months ended September 30, 2024, was $12,295 million, with a gross profit of $7,902 million[19] - Operating income for the same period was $2,301 million, while net income was $1,676 million[19] - Basic income per share from continuing operations was $0.40, compared to $0.55 in the previous year[19] - Adjusted EBITDA for the three months ended September 30, 2025, was $1,263 million, reflecting a decrease from $2,472 million in the previous year[21] - Total operating expenses for the three months ended September 30, 2024, were $5,601 million, with sales and marketing expenses at $2,864 million[19] - The company reported a loss from discontinued operations of $82 million for the three months ended September 30, 2024[19] - The weighted average number of diluted shares outstanding was 4,423 million[19] - The company incurred interest expenses of $141 million related to note payable for the three months ended September 30, 2024[19] - Research and development expenses were $199 million for the three months ended September 30, 2024[19] Non-GAAP Measures - The company provided non-GAAP financial measures to evaluate ongoing business performance, including Adjusted EBITDA[22]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number: 000-24249 Interpace Biosciences, Inc. (Exact name of registrant as specified in its charter) De ...

 ●Q3 Revenue of $8.8 million ●Q3 Cash Collections of $10.0 million ●Q3 Thyroid test volume up 12% year-over-year to record levels ●Q3 Thyroid revenue of $8.8M; up 22% year-over-year to record levels    PARSIPPANY, NJ, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Interpace Biosciences, Inc. (“Interpace” or the “Company”) (OTCQX: IDXG) today announced financial results for the third quarter ended September 30, 2025 and provided a business and financial update. Third quarter Net Revenue was $8.8 million. Income from cont ...

Core Insights - Interpace Biosciences presented two scientific posters at the 2025 American Thyroid Association Annual Meeting, showcasing advancements in thyroid nodule testing and risk stratification [2][3][7] Group 1: Scientific Findings - The first poster demonstrated that 86% of previously insufficient thyroid FNA cases yielded successful molecular results using Interpace's ThyGeNEXT + ThyraMIRv2 testing from archival cytology slides, reducing the need for repeat FNAs [3][7] - The second poster reported on 28,144 indeterminate (Bethesda III/IV) nodules tested, revealing that ThyGeNEXT identified BRAF V600E-like alterations in approximately 4%-6% and RAS-like alterations in about 19%, with 76%-77% being mutation-negative [3][7] - ThyraMIRv2 microRNA profiling further refined malignancy risk, classifying over 90% of mutation-negative nodules as low risk, thus aiding clinical decision-making [3][4] Group 2: Clinical Implications - The integration of archival cytology slides in testing has shown practical advantages, enabling actionable molecular results and clearer patient care guidance [3][7] - The combination platform of ThyGeNEXT and ThyraMIRv2 supports more informed clinical decisions, particularly in managing RAS-like and mutation-negative indeterminate nodules [4][6] Group 3: Company Overview - Interpace Biosciences is positioned as an emerging leader in personalized medicine, offering specialized services from early diagnosis to targeted therapeutic applications [5][6] - The company provides clinically useful molecular diagnostic tests and bioinformatics services to evaluate cancer risk, leveraging advanced technology for improved patient management [6][8]

Interpace Biosciences Q2 2025 Financial and Business Results [Business & Financial Highlights](index=1&type=section&id=Business%20%26%20Financial%20Highlights) The company is transitioning to a thyroid testing focus, with Q2 2025 revenue impacted by PancraGEN wind-down, but showing strong July 2025 growth - The company is transitioning to a business focused solely on **Thyroid testing** following the loss of reimbursement for its PancraGEN test[2](index=2&type=chunk)[3](index=3&type=chunk) - The reported loss includes **$1.2 million** in one-time charges associated with the wind-down of the PancraGEN business[2](index=2&type=chunk)[5](index=5&type=chunk) - The core Thyroid testing business demonstrated significant year-over-year growth in Q2, with **double-digit increases** in both volume and revenue[3](index=3&type=chunk)[4](index=4&type=chunk) - Positive momentum continued into Q3, with preliminary revenue for July 2025 reaching **$3.3 million**, a **54% increase** compared to July 2024[2](index=2&type=chunk) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Q2 2025 net revenue decreased to $9.2 million, resulting in an operating loss, primarily due to PancraGEN reimbursement loss, despite strong Thyroid segment growth Q2 2025 vs. Q2 2024 Financial Comparison | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $9.2 million | $12.0 million | -23% | | Thyroid Revenue | $8.7 million | Not specified | +25% | | Thyroid Test Volume | Record levels | Not specified | +16% | | Gross Profit % | 57% | 65% | -8 p.p. | | Operating (Loss) Income | ($0.5 million) | $2.6 million | - | | Loss from Continuing Ops | ($0.5 million) | $2.5 million (Income) | - | | Adjusted EBITDA | $0.4 million | $2.8 million | -85.7% | | Cash Collections | $10.8 million | $11.0 million | -1.8% | - Excluding the one-time impact from the PancraGEN reimbursement loss, the Gross Profit percentage would have been **65%**, consistent with the prior year quarter[5](index=5&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) The consolidated financial statements show a Q2 2025 net loss, reduced assets and liabilities, and positive operating cash flow offset by financing activities [Condensed Consolidated Statements of Operations](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Interpace reported a Q2 2025 net loss of $640,000, a reversal from prior year income, driven by revenue decline and increased operating expenses Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue, net | $9,232 | $12,042 | $20,747 | $22,219 | | Gross Profit | $5,276 | $7,806 | $12,646 | $14,117 | | Operating (loss) income | $(468) | $2,632 | $1,362 | $3,746 | | (Loss) income from continuing operations | $(533) | $2,511 | $1,221 | $3,323 | | Net (loss) income | $(640) | $2,437 | $1,007 | $3,145 | [Selected Balance Sheet Data](index=4&type=section&id=Selected%20Balance%20Sheet%20Data) As of June 30, 2025, cash and cash equivalents decreased to $502 thousand, with total assets and liabilities also reduced, while the stockholders' deficit improved Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $502 | $1,461 | | Total current assets | $9,504 | $11,773 | | Total assets | $12,335 | $14,792 | | Total current liabilities | $7,149 | $10,615 | | Total liabilities | $13,548 | $17,009 | | Total stockholders' deficit | $(1,213) | $(2,217) | [Selected Cash Flow Data](index=4&type=section&id=Selected%20Cash%20Flow%20Data) For the six months ended June 30, 2025, net cash provided by operating activities was $1,755 thousand, offset by financing activities, resulting in a net decrease in cash Cash Flow Highlights for Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,755 | $1,346 | | Net cash used in investing activities | $(201) | $(225) | | Net cash used in financing activities | $(2,513) | $(2,600) | | Change in cash and cash equivalents | $(959) | $(1,479) | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a non-GAAP measure, significantly decreased to $365 thousand in Q2 2025, reflecting adjustments for severance and asset impairment related to the PancraGEN wind-down - Adjusted EBITDA is used by management to measure the cash flow of the ongoing business, defined as income/loss from continuing operations adjusted for specific non-cash and non-recurring items[21](index=21&type=chunk) Reconciliation of Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | (Loss) income from continuing operations (GAAP) | $(533) | $2,511 | $1,221 | $3,323 | | Severance & related expense | $524 | $ - | $692 | $ - | | Asset impairment - lab supplies | $198 | $ - | $198 | $ - | | Adjusted EBITDA (Non-GAAP) | $365 | $2,752 | $2,472 | $3,997 | [Company Overview](index=2&type=section&id=About%20Interpace%20Biosciences) Interpace Biosciences specializes in personalized medicine, offering molecular diagnostic tests and pathology services for cancer risk assessment, including commercialized tests for thyroid and lung cancer - Interpace offers specialized services in **personalized medicine**, focusing on diagnosis and prognostic planning for cancer[6](index=6&type=chunk) - The company has three commercialized molecular tests: **ThyGeNEXT**, **ThyraMIRv2** (for thyroid cancer), and **RespriDX** (for lung cancer)[7](index=7&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-looking%20Statements) This section contains forward-looking statements subject to risks and uncertainties, including the company's history of losses, financing needs, and dependence on clinical service reimbursements - The press release contains forward-looking statements regarding future financial and operating performance, which are subject to significant risks and uncertainties[9](index=9&type=chunk) - Key risks include the company's history of operating losses, ability to finance its business, dependence on clinical service reimbursements, and the impact of the PancraGEN product reimbursement loss[9](index=9&type=chunk)

PART I - FINANCIAL INFORMATION [Item 1. Unaudited Interim Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Interim financials for June 30, 2025, reflect decreased assets, a Q2 net loss due to lost Medicare coverage, and reduced cash despite positive operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets and liabilities decreased, while the total stockholders' deficit slightly improved Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $502 | $1,461 | | Total current assets | $9,504 | $11,773 | | Total assets | $12,335 | $14,792 | | Total current liabilities | $7,149 | $10,615 | | Total liabilities | $13,548 | $17,009 | | Total stockholders' deficit | $(1,213) | $(2,217) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue decreased 23% year-over-year, resulting in a net loss, with six-month revenue also declining Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue, net | $9,232 | $12,042 | $20,747 | $22,219 | | Gross profit | $5,276 | $7,806 | $12,646 | $14,117 | | Operating (loss) income | $(468) | $2,632 | $1,362 | $3,746 | | Net (loss) income | $(640) | $2,437 | $1,007 | $3,145 | | Net (loss) income per basic share | $(0.14) | $0.56 | $0.23 | $0.72 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating cash flow increased, but financing outflows led to a net cash decrease Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,755 | $1,346 | | Net cash used in investing activities | $(201) | $(225) | | Net cash used in financing activities | $(2,513) | $(2,600) | | **Net decrease in cash and cash equivalents** | **$(959)** | **$(1,479)** | | Cash and cash equivalents – ending | $502 | $2,019 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail liquidity challenges from lost Medicare coverage for PancraGEN, a restructuring plan, and the BroadOak term loan status - The company was negatively impacted by Local Coverage Determination (LCD) L39365, which resulted in the loss of Medicare coverage for its **PancraGEN molecular test** as of April 24, 2025[22](index=22&type=chunk) - A restructuring and cost-savings plan was implemented, resulting in workforce reductions and severance costs of **$0.7 million** for the six months ended June 30, 2025[23](index=23&type=chunk)[25](index=25&type=chunk)[87](index=87&type=chunk) - Despite the loss of PancraGEN revenue, management anticipates that current cash and forecasted receipts will be **sufficient to meet cash requirements for the next twelve months**[29](index=29&type=chunk) - The outstanding balance of the Term Loan with BroadOak was **$1.9 million** as of June 30, 2025, with the maturity date extended to **December 31, 2025**[73](index=73&type=chunk)[72](index=72&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the impact of lost Medicare coverage for PancraGEN, leading to revenue decline and operating loss, and liquidity strategies - The primary challenge discussed is the reliance on Medicare reimbursement and the negative impact from the Center for Medicare and Medicaid Services' decision to cease coverage for the **PancraGEN test**, effective April 24, 2025[94](index=94&type=chunk)[97](index=97&type=chunk) - As a result of the PancraGEN non-coverage, the company implemented a restructuring plan, incurring approximately **$0.7 million** in related costs for the first six months of 2025[100](index=100&type=chunk) - The company's **liquidity strategy** involves using available cash, improving margins, collecting receivables, containing costs, and exploring other financing or strategic alternatives[139](index=139&type=chunk)[140](index=140&type=chunk) Reconciliation of Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | (Loss) income from continuing operations (GAAP) | $(533) | $2,511 | $1,221 | $3,323 | | **Adjusted EBITDA (Non-GAAP)** | **$365** | **$2,752** | **$2,472** | **$3,997** | [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q2 2025 net revenue decreased 23% due to lost PancraGEN reimbursement, leading to an operating loss, with six-month revenue also down - Q2 2025 net revenue decreased by **$2.8 million (23%)** year-over-year, primarily driven by the loss of reimbursement for **PancraGEN**[108](index=108&type=chunk) - Q2 2025 operating expenses included **$0.5 million** in severance and related costs and a **$0.2 million** asset impairment charge for lab supplies associated with PancraGEN[111](index=111&type=chunk)[113](index=113&type=chunk) - For the six months ended June 30, 2025, net revenue decreased by **$1.5 million (7%)** year-over-year, also due to the loss of PancraGEN revenue[119](index=119&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended with **$0.5 million** cash, with operating cash flow of **$1.8 million**, anticipating sufficient liquidity for the next twelve months - As of June 30, 2025, the company had **$0.5 million** in cash and cash equivalents, down from **$1.5 million** at year-end 2024[136](index=136&type=chunk) - The Term Loan with BroadOak has been amended multiple times, extending the maturity date to **December 31, 2025**. The outstanding balance was **$1.9 million** at June 30, 2025[135](index=135&type=chunk) - Management believes that even with the loss of PancraGEN reimbursement, current cash and forecasted receipts are **sufficient for the next twelve months**[144](index=144&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk - The company is not required to provide information for this item as it qualifies as a **smaller reporting company**[148](index=148&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) A material weakness in internal control over financial reporting was identified, rendering disclosure controls ineffective, with a remediation plan adopted - A **material weakness** was identified in internal control over financial reporting related to accruing royalty expense and understanding complex royalty agreements[150](index=150&type=chunk) - Due to the material weakness, the company's disclosure controls and procedures were concluded to be **not effective** as of June 30, 2025[150](index=150&type=chunk) - A **remediation plan** has been adopted, involving quarterly meetings between the accounting department and lab management to mitigate the weakness[151](index=151&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no pending legal proceedings at this time - There are **no pending legal proceedings** involving the Company at this time[153](index=153&type=chunk)[48](index=48&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The report refers to previously disclosed risk factors in the Annual Report on Form 10-K, with no material changes noted - The company directs investors to the risk factors disclosed in its **Annual Report on Form 10-K** filed on March 31, 2025, as amended[154](index=154&type=chunk) [Other Items (2, 3, 4, 5)](index=32&type=section&id=Other%20Items%20%282%2C%203%2C%204%2C%205%29) The company reported no information for Items 2, 3, 4, or 5, including no unregistered equity sales or defaults - **No information was reported** for Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), Item 4 (Mine Safety Disclosures), or Item 5 (Other Information)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications - The exhibits include certifications from the Principal Executive Officer and Principal Financial Officer as required by the **Sarbanes-Oxley Act of 2002**[160](index=160&type=chunk)

PART I - FINANCIAL INFORMATION [Unaudited Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Unaudited Q1 2025 financial statements detail revenue and net income growth, stockholders' deficit, and notes on PancraGEN, restructuring, and debt [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased, total liabilities decreased, and the stockholders' deficit improved Condensed Consolidated Balance Sheets (in thousands) | | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $11,654 | $11,773 | | **Total assets** | $14,494 | $14,792 | | **Total current liabilities** | $8,678 | $10,615 | | **Total liabilities** | $15,076 | $17,009 | | **Total stockholders' deficit** | $(582) | $(2,217) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, net revenue grew **13%**, operating income increased, and net income more than doubled Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenue, net** | $11,515 | $10,178 | | **Gross profit** | $7,370 | $6,311 | | **Operating income from continuing operations** | $1,829 | $1,114 | | **Net income** | $1,647 | $708 | | **Net income per basic share** | $0.37 | $0.16 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw significant improvement in operating cash flow, with cash used in financing activities, leading to an overall cash decrease Q1 2025 vs Q1 2024 Cash Flows (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $1,235 | $(58) | | **Net cash used in investing activities** | $0 | $(28) | | **Net cash used in financing activities** | $(1,500) | $(600) | | **Net decrease in cash and cash equivalents** | $(265) | $(686) | | **Cash and cash equivalents – ending** | $1,196 | $2,812 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail liquidity, a corporate restructuring plan, amendments to the term loan, preferred stock conversion, and subsequent events - The company provides molecular diagnostics and pathology services focused on early cancer detection[21](index=21&type=chunk) - A Local Coverage Determination (LCD) by Medicare contractor Novitas resulted in the loss of Medicare coverage for the PancraGEN test, effective **April 24, 2025**, with the company stopping specimen acceptance after **May 2, 2025**[25](index=25&type=chunk)[27](index=27&type=chunk) - In response to losing PancraGEN coverage, the board approved a Restructuring Plan to reduce operating costs, expecting to incur severance costs of **$0.5 to $0.6 million** in Q2 2025, in addition to **$0.2 million** recorded in Q1 2025[26](index=26&type=chunk)[28](index=28&type=chunk)[92](index=92&type=chunk) - Despite the loss of PancraGEN, management anticipates that current cash, cash equivalents, and forecasted cash receipts will be sufficient to meet cash requirements for the next twelve months[32](index=32&type=chunk) - The company's term loan with BroadOak was amended multiple times, with the maturity date extended to **December 31, 2025**, and an outstanding balance of **$2.9 million** as of March 31, 2025[75](index=75&type=chunk)[76](index=76&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, PancraGEN reimbursement cessation impact, a corporate restructuring plan, and sufficient liquidity [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q1 2025 revenue increased **13%** due to higher test volumes, with gross profit margin improving and operating income growing Q1 2025 vs Q1 2024 Results of Operations (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenue, net** | $11,515 | $10,178 | | **Gross profit** | $7,370 | $6,311 | | **Gross Margin** | 64.0% | 62.0% | | **Operating income** | $1,829 | $1,114 | | **Net income** | $1,647 | $708 | - The increase in revenue was driven by increased test volumes compared to the prior year[112](index=112&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company generated cash from operations, amended its primary term loan, and anticipates sufficient liquidity for the next twelve months - As of **May 2, 2025**, the company had approximately **$1.6 million** of cash and cash equivalents[130](index=130&type=chunk) - The company's term loan with BroadOak was amended in **January 2025**, extending the maturity date to **December 31, 2025**[127](index=127&type=chunk)[128](index=128&type=chunk) - Management anticipates that current cash and forecasted cash receipts will be sufficient to meet its cash requirements through the next twelve months, even with the loss of PancraGEN reimbursement[138](index=138&type=chunk) [Non-GAAP Financial Measures](index=27&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a non-GAAP measure, significantly increased in Q1 2025, with reconciliation from GAAP income Reconciliation of Adjusted EBITDA (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Income from continuing operations (GAAP Basis)** | $1,754 | $812 | | **Adjusted EBITDA** | $2,096 | $1,245 | [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Interpace Biosciences is not required to provide market risk disclosures - The company is a smaller reporting company and is not required to provide the information requested by this item[141](index=141&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective due to a material weakness in royalty expense accrual, with a remediation plan adopted - A material weakness was identified in the company's internal control over financial reporting related to accruing royalty expense and understanding complex agreements[143](index=143&type=chunk) - Due to this material weakness, the principal executive officer and principal financial officer concluded that disclosure controls and procedures were not effective as of **March 31, 2025**[143](index=143&type=chunk) - A remediation plan has been adopted, which includes holding quarterly meetings between the accounting department and lab management to discuss new agreements[144](index=144&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - There are no legal proceedings to report[147](index=147&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company refers investors to risk factors in its Annual Report on Form 10-K, with no material changes reported - The report refers to the risk factors disclosed in the company's Annual Report on Form 10-K filed on **March 31, 2025**[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - There were no unregistered sales of equity securities or use of proceeds to report[149](index=149&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the BroadOak loan amendment and officer certifications - Key exhibits filed include the Fourth Amendment to the Loan and Security Agreement with BroadOak Fund V, L.P., and officer certifications pursuant to the Sarbanes-Oxley Act of 2002[153](index=153&type=chunk)

[Interpace Biosciences First Quarter 2025 Results](index=1&type=section&id=Interpace%20Biosciences%20First%20Quarter%202025%20Results) [Business and Financial Highlights](index=1&type=section&id=Business%20and%20Financial%20Highlights) Interpace Biosciences reported strong Q1 2025 financial results, driven by record Thyroid test revenue and cash collections, and initiated full-year 2025 revenue guidance - Management highlighted **record Thyroid test revenue and cash collections**, attributing the success to increased volume and collection initiatives. The company's cash position enabled investments in AI and automation for lab efficiency and allowed for additional principal payments on long-term debt[2](index=2&type=chunk)[3](index=3&type=chunk) - The company has initiated its full-year 2025 revenue guidance at approximately **$38 million**, factoring in the expected loss of PancraGEN revenue after May 2, 2025[2](index=2&type=chunk) Q1 2025 Financial Performance vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net Revenue** | **$11.5 million** | $10.2 million | **+13%** | | **Cash Collections** | **$11.3 million** | - | **+10%** | | **Thyroid Test Volume** | - | - | **+16%** | | **Thyroid Revenue** | **$8.0 million** | - | **+19%** | | **Gross Profit %** | **64%** | 62% | **+2 p.p.** | | **Operating Income** | **$1.8 million** | $1.1 million | **+64%** | | **Income from Continuing Ops** | **$1.8 million** | $0.8 million | **+125%** | | **Adjusted EBITDA** | **$2.1 million** | $1.2 million | **+75%** | [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated statements of operations, selected balance sheet data, and cash flow information [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Q1 2025 statement of operations reflects significant year-over-year growth in net revenue, gross profit, and net income Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenue, net** | **$11,515** | **$10,178** | | Gross Profit | $7,370 | $6,311 | | Total operating expenses | $5,541 | $5,197 | | **Operating income** | **$1,829** | **$1,114** | | Income from continuing operations | $1,754 | $812 | | **Net income** | **$1,647** | **$708** | | Basic EPS from continuing ops | $0.40 | $0.19 | [Selected Balance Sheet Data](index=4&type=section&id=Selected%20Balance%20Sheet%20Data) The balance sheet as of March 31, 2025, indicates a reduction in total liabilities and a significant improvement in the stockholders' deficit Balance Sheet Data (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,196 | $1,461 | | Total current assets | $11,654 | $11,773 | | Total current liabilities | $8,678 | $10,615 | | **Total liabilities** | **$15,076** | **$17,009** | | **Total stockholders' deficit** | **($582)** | **($2,217)** | [Selected Cash Flow Data](index=5&type=section&id=Selected%20Cash%20Flow%20Data) Cash flow data for Q1 2025 shows a positive shift to cash generation from operating activities, with increased cash used in financing for debt repayment Cash Flow Data for Three Months Ended March 31 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | **$1,235** | **($58)** | | Net cash used in investing activities | $0 | ($28) | | Net cash used in financing activities | ($1,500) | ($600) | | **Change in cash and cash equivalents** | **($265)** | **($686)** | | Cash and cash equivalents – ending | $1,196 | $2,812 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The company presents Adjusted EBITDA as a key non-GAAP measure to assess ongoing business performance and cash flow, showing a significant increase in Q1 2025 - Management uses **Adjusted EBITDA** to measure the cash flow of the ongoing business. It is defined as income from continuing operations adjusted for depreciation, amortization, stock-based compensation, severance, interest, taxes, and other non-cash expenses[20](index=20&type=chunk)[21](index=21&type=chunk) Reconciliation of Adjusted EBITDA (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Income from continuing operations (GAAP)** | **$1,754** | **$812** | | Depreciation and amortization | $95 | $52 | | Stock-based compensation | $15 | $79 | | Severance expense | $168 | $0 | | Note payable interest | $78 | $197 | | Other adjustments | ($15) | $86 | | **Adjusted EBITDA (Non-GAAP)** | **$2,096** | **$1,245** | [About Interpace Biosciences & Forward-Looking Statements](index=2&type=section&id=About%20Interpace%20Biosciences%20%26%20Forward-Looking%20Statements) Interpace Biosciences specializes in molecular diagnostic tests for cancer risk evaluation, and this report includes standard forward-looking statements regarding future performance - The company's clinical services offer molecular diagnostic tests for cancer risk evaluation, including three commercialized tests: **ThyGeNEXT®**, **ThyraMIR®v2** (thyroid cancer), and **RespriDX®** (lung cancer)[7](index=7&type=chunk) - The press release includes **forward-looking statements** concerning future financial and operating performance, which are subject to various risks and uncertainties, including the potential inaccuracy of revenue estimates and reliance on third-party payer reimbursements[9](index=9&type=chunk)[10](index=10&type=chunk)

Core Viewpoint - Interpace Biosciences reported strong financial results for Q1 2025, highlighting record revenues in thyroid testing and a positive outlook for the full year despite the loss of PancraGEN revenue after May 2, 2025 [2][3]. Financial Performance - Q1 2025 net revenue was $11.5 million, a 13% increase from $10.2 million in Q1 2024 [6][7]. - Income from continuing operations was $1.8 million, up from $0.8 million in the prior year quarter, reflecting a $0.9 million improvement [2][7]. - Gross profit margin improved to 64% compared to 62% in the prior year quarter [7]. - Adjusted EBITDA for Q1 2025 was $2.1 million, compared to $1.2 million in Q1 2024 [7][21]. Revenue Growth - Cash collections reached $11.3 million, a 10% increase year-over-year, achieving record levels [6][7]. - Thyroid test revenue was $8.0 million, representing a 19% increase year-over-year, with test volume up 16% [6][7]. Future Guidance - The company initiated full-year 2025 revenue guidance of approximately $38 million, despite anticipated challenges from the loss of PancraGEN revenue [2][3]. Company Overview - Interpace Biosciences is focused on personalized medicine, providing molecular diagnostic tests and bioinformatics services to evaluate cancer risk [5].

Core Viewpoint - Interpace Diagnostics will cease offering the PancraGEN test due to the end of Medicare reimbursement, but the company expects to remain profitable through its thyroid-focused testing services [1][3]. Group 1: Company Overview - Interpace Diagnostics is a subsidiary of Interpace Biosciences, focusing on personalized medicine and molecular diagnostic tests [4]. - The company has three commercialized molecular tests: ThyGeNEXT, ThyraMIRv2, and RespriDX, along with BarreGEN currently in clinical evaluation [5]. Group 2: Impact of Reimbursement Changes - The Genetic Testing for Oncology Local Coverage Determination (LCD) by Novitas Solutions will end reimbursement for the PancraGEN test, effective May 2, 2025 [1][2]. - PancraGEN has been utilized for over a decade to assess the risk of pancreatic cyst progression to cancer, primarily for Medicare patients [2][3]. - The loss of reimbursement will require Interpace to restructure its operations, although the company believes it can sustain profitability without PancraGEN [3]. Group 3: Future Outlook - The company anticipates that its testing franchise for indeterminate thyroid nodules, specifically ThyGeNEXT and ThyraMIRv2, will support continued profitability in 2025 and beyond [3].