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 June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-40501 iSpecimen Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organizati ...

WOBURN, Mass., July 31, 2025 (GLOBE NEWSWIRE) -- iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers, today announced that it entered into a securities purchase agreement with accredited investors for aggregate gross proceeds of approximately $1.75 million, before deducting fees to the placement agent and other offering expenses payable by the Company. T ...

Company Overview - iSpecimen Inc. operates an online global marketplace connecting scientists with healthcare specimen providers for medical research [6] - The company utilizes proprietary cloud-based technology to facilitate the search for biospecimens and patients across a network of healthcare organizations [6] Recent Offering - On July 25, 2025, iSpecimen announced the closing of an underwritten public offering of 5,714,283 shares at a price of $0.70 per share, generating approximately $4 million in gross proceeds [2][3] - The offering was conducted on a firm commitment basis, with WestPark Capital, Inc. serving as the Sole Book-Runner [3] Use of Proceeds - The net proceeds from the offering will be allocated as follows: $1.5 million for marketing and advertising services from IR Agency LLC, $1 million for an initial milestone payment to Sales Stack Solutions Corp., and the remainder for working capital and general corporate purposes [3] Regulatory Compliance - The securities offered are pursuant to a registration statement on Form S-1, which was declared effective by the SEC on July 23, 2025 [4]

Core Viewpoint - iSpecimen Inc. announced a public offering of 5,714,283 shares at a price of $0.70 per share, aiming to raise approximately $4 million in gross proceeds before expenses [2][3]. Group 1: Offering Details - The public offering is expected to close on July 25, 2025, pending customary closing conditions [2]. - The net proceeds from the offering will be allocated as follows: $1.5 million for marketing and advertising services, $1 million for an initial milestone payment to Sales Stack Solutions Corp., and the remainder for working capital and general corporate purposes [3]. Group 2: Company Overview - iSpecimen operates an online marketplace connecting scientists with healthcare providers for biospecimens needed in medical research, utilizing proprietary cloud-based technology [6].

Core Viewpoint - iSpecimen Inc. has successfully closed a public offering of 5,714,283 shares at a price of $0.70 per share, raising approximately $4 million in gross proceeds before expenses [1][2]. Group 1: Offering Details - The public offering was conducted on a firm commitment basis, with WestPark Capital, Inc. serving as the Sole Book-Runner [2]. - The offering price was set at $0.70 per share, resulting in gross proceeds of around $4 million [1][2]. Group 2: Use of Proceeds - The company plans to allocate $1,500,000 for marketing and advertising services from IR Agency LLC [2]. - An initial milestone payment of $1,000,000 will be made under a definitive agreement with Sales Stack Solutions Corp. [2]. - The remaining funds will be used for working capital and general corporate purposes [2]. Group 3: Company Overview - iSpecimen operates an online marketplace connecting scientists with healthcare providers for biospecimens needed in medical research [5]. - The company utilizes proprietary, cloud-based technology to facilitate searches for specimens and patients across a network of healthcare organizations [5].

Core Viewpoint - iSpecimen Inc. has announced a public offering of 5,714,283 shares at a price of $0.70 per share, aiming to raise approximately $4 million in gross proceeds before expenses [1][2]. Group 1: Offering Details - The public offering is priced at $0.70 per share, with expected gross proceeds of around $4 million [1]. - The offering is set to close on July 25, 2025, pending customary closing conditions [1]. - WestPark Capital, Inc. is acting as the Sole Book-Runner for the offering [2]. Group 2: Use of Proceeds - The company plans to allocate $1,500,000 for marketing and advertising services from IR Agency LLC [2]. - An initial milestone payment of $1,000,000 will be made to Sales Stack Solutions Corp. [2]. - Remaining funds will be used for working capital and general corporate purposes [2]. Group 3: Company Overview - iSpecimen operates an online marketplace connecting scientists with healthcare specimen providers for medical research [5]. - The company utilizes proprietary cloud-based technology to facilitate searches for biospecimens across a network of healthcare organizations [5].

Financial Transactions - The company closed a private placement offering on December 1, 2021, for gross proceeds of approximately $21 million, after deducting $1.4 million for underwriting discounts and commissions [150]. - The company entered into an At the Market Offering Agreement on March 5, 2024, allowing for the issuance of shares with an aggregate offering price of up to $1,500,000, resulting in net proceeds of approximately $1,239,000 after offering costs [151]. - A public offering on October 29, 2024, resulted in gross proceeds of approximately $4,998,464, intended for debt repayment and potential acquisitions [159]. - The company entered into a Purchase Agreement on September 19, 2024, for a loan of $1,000,000 with an interest rate of 18% per annum, which was paid off on October 31, 2024 [157][158]. Stock and Compliance - A reverse stock split of 1-for-20 was approved and became effective on September 13, 2024, allowing the company to regain compliance with Nasdaq listing requirements [154][155]. Revenue and Expenses - Revenue decreased by approximately $1,232,000, or 54%, from approximately $2,290,000 for the three months ended March 31, 2024, to approximately $1,058,000 for the three months ended March 31, 2025, primarily due to a decrease of 2,932 specimens, or approximately 56% [188]. - Cost of revenue decreased by approximately $343,000, or 34%, from approximately $1,000,000 for the three months ended March 31, 2024, to approximately $657,000 for the three months ended March 31, 2025 [190]. - Technology expenses decreased by approximately $367,000, or 40%, from approximately $912,000 for the three months ended March 31, 2024, to approximately $545,000 for the three months ended March 31, 2025 [191]. - Sales and marketing expenses decreased by approximately $319,000, or 48%, from approximately $666,000 for the three months ended March 31, 2024, to approximately $347,000 for the three months ended March 31, 2025 [193]. - General and administrative expenses decreased by approximately $1,345,000, or 64%, from approximately $2,104,000 for the three months ended March 31, 2024, to approximately $759,000 for the three months ended March 31, 2025 [196]. - Total operating expenses decreased by approximately $2,594,614, or 49%, from approximately $5,290,513 for the three months ended March 31, 2024, to approximately $2,695,899 for the three months ended March 31, 2025 [187]. Operational Performance - Loss from operations improved by approximately $1,362,131, or 45%, from a loss of $3,000,520 for the three months ended March 31, 2024, to a loss of $1,638,389 for the three months ended March 31, 2025 [187]. - The company capitalized approximately $0 of internally developed software costs during the three months ended March 31, 2025, compared to approximately $275,000 for the same period in 2024, reflecting a 100% decrease [192]. - Other income decreased by approximately $118,000, or 120%, from an income of approximately $98,000 for the three months ended March 31, 2024, to an expense of approximately $20,000 for the three months ended March 31, 2025 [197]. Cash Flow and Working Capital - Cash and cash equivalents decreased by approximately $1,095,845, or 58%, from $1,878,408 as of December 31, 2024, to $782,563 as of March 31, 2025 [198]. - Working capital deficit increased by approximately $1,209,228, or 55%, from $(2,182,488) to $(3,391,716) during the same period [198]. - Net cash flows used in operating activities improved by approximately $976,518, or 47%, from $(2,072,363) for the three months ended March 31, 2024, to $(1,095,845) for the three months ended March 31, 2025 [198]. - The company reported a net loss of approximately $1,658,000 for the three months ended March 31, 2025, compared to a net loss of approximately $2,902,000 for the same period in 2024 [202]. - The company has an accumulated deficit of approximately $73,521,000 as of March 31, 2025 [199]. Strategic Initiatives - The company is reevaluating pricing and enhancing internal communications to address current market conditions and improve operational efficiency [163]. - The company achieved a reduction in monthly compensation costs of approximately 93% and technology costs of approximately 73% during the first quarter of 2025 compared to the same period in 2024 [199]. - The company terminated 180 supplier agreements during the year ended December 31, 2024, as part of its "supplier network refresh project" to focus on high-value suppliers [172]. Market Conditions - The ongoing Russian-Ukrainian war negatively impacted the company’s supply chain, causing delays and affecting margins due to the unavailability of suppliers in those regions [165]. - The company has experienced negative effects of inflation, particularly affecting employee salaries and supply costs, but long-term contracts have mitigated significant impacts on specimen costs [211][212]. - Management's plans to continue as a going concern include generating additional revenues and deferring certain projects, but there is no assurance of success in these efforts [201]. Company Mission - The company’s mission is to accelerate life sciences research through a global marketplace platform, focusing on growth and scalability [167].

Financial Performance - The company reported net losses of $12,497,805 and $11,099,488 for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $71,862,617 as of December 31, 2024[99]. - The company anticipates continued losses in the foreseeable future as it invests in business growth, with future net losses dependent on the rate of expense growth and revenue generation[100]. - The company's revenue is transactional and not recurring, making it difficult to predict future revenue trends[112]. - The company has incurred losses from sales tax obligations due to failure to collect taxes on taxable sales in prior years, which could materially affect its financial condition[171]. - The company may need to raise additional funds sooner than expected, potentially through equity offerings or debt financings, which could result in dilution to existing stockholders[217]. - The company's quarterly revenue has historically fluctuated, making it difficult to forecast and meet investor expectations[219]. - The stock price has been volatile, trading between $2.17 and $579.60 since the IPO, which may affect investors' ability to sell shares at or above the purchase price[221]. Customer and Revenue Concentration - One customer accounted for approximately 29% of the company's revenue in 2024, highlighting significant revenue concentration risks[112]. - During the year ended December 31, 2024, one customer represented 29% of the company's revenues, while in 2023, one customer represented 25% of revenue[133]. - Approximately 52% of revenue in 2024 was derived from specimens procured from existing sample inventories, which may become obsolete due to regulatory changes or shifts in researcher requirements[153]. Operational Challenges - The company identified a material weakness in internal control over financial reporting, which could lead to misstatements in financial statements if not remediated[103]. - The company has initiated several remediation measures to address the identified material weakness in internal controls, including engaging external tax advisors and implementing a sales tax software platform[106]. - The lengthy adoption cycle for technology solutions at healthcare provider supply partners can take up to 18 months, potentially hindering rapid revenue growth[147]. - The company may face significant challenges in managing growth, which could strain financial, technical, and operational resources[170]. International Operations and Compliance - As of December 31, 2024, the company had customers in 23 countries and supply sites in 11 countries, indicating ongoing international expansion efforts[114]. - The company faces risks associated with international operations, including compliance with varying laws and regulations, which could adversely affect its business[114]. - Non-compliance with international laws related to biohazards and imports/exports may lead to significant legal expenses and reputational risks[190]. - Compliance with export and import regulations is critical, as violations could lead to substantial civil or criminal penalties[194]. Technology and Development - The company is investing in technology development for the iSpecimen Marketplace, but there is no assurance that these investments will yield significant revenues or profits[122]. - The iSpecimen Marketplace currently requires assistance from sales personnel for specimen requests, limiting scalability and profitability[134]. - In fiscal year 2024, the company incurred $3,530,291 in technology expenses and capitalized $653,288 for internally developed software[120]. Risks and Liabilities - The company faces significant risks related to cybersecurity threats, which could impact its financial results and reputation[125]. - The company bears credit risk with customers, as it may provide products and services without guaranteed payment[131]. - The company may face legal and financial exposure due to potential breaches of security measures, impacting customer trust and business operations[124]. - The company faces risks related to product safety and liability due to the hazardous nature of specimens handled[197]. - Changes in demand for the company's products and services could adversely affect profitability, particularly due to economic downturns or changes in the disease landscape[130]. Regulatory and Compliance Costs - The company is subject to significant legal and financial compliance costs due to public company regulations, which may strain resources and divert management's attention[226]. - The company must comply with data protection regulations, including HIPAA and GDPR, which could result in fines and operational challenges if not adhered to[185][186]. - The company must maintain compliance with various federal, state, and local laws to avoid operational disruptions and legal challenges[193]. Capital Structure and Financing - The company has federal net operating loss carryforwards (NOLs) of approximately $62.40 million, with $13 million expiring through 2037 and $49.40 million available for indefinite carryforward[172]. - The company has no limit on the amount of debt it may incur, which could increase financial risk and leverage[175]. - The company may issue shares to finance acquisitions, potentially diluting stockholder ownership, especially if stock prices are low or volatile[174]. - The company is subject to various restrictive covenants in financing arrangements, which could limit operational flexibility and lead to defaults if not complied with[178]. Governance and Ownership - The concentration of ownership among directors and principal stockholders may delay or prevent changes in control, potentially affecting stockholder interests[208]. - The company’s certificate of incorporation allows the board to issue up to 50,000,000 shares of preferred stock, which could complicate third-party control attempts[209]. - The company may face challenges in attracting and retaining qualified directors and officers due to increased compliance costs and regulatory requirements[232].

Core Insights - iSpecimen Inc. has secured suppliers for human metapneumovirus (hMPV) specimens in response to rising concerns about potential outbreaks similar to COVID-19 [1][4] - The demand for hMPV specimens is increasing due to the virus's ability to cause severe illness, particularly in vulnerable populations, and the absence of a vaccine [2][3] - iSpecimen's strategic partnerships and technology position it well to meet the anticipated demand for high-quality biospecimens for research and vaccine development [4][5] Company Overview - iSpecimen operates an online marketplace connecting scientists with healthcare providers to access human biospecimens for medical research [5] - The company utilizes proprietary cloud-based technology to facilitate specimen searches across a network of hospitals, labs, and biobanks [5]

Core Insights - The demand for cancer tissue is increasing significantly, highlighting the need for reliable access to high-quality biospecimens [3][4] - iSpecimen is expanding its services and partnerships to meet this growing demand, particularly in cancer research [5][6] Company Initiatives - iSpecimen plans to establish a referral program with an international genomic sequencing partner, positioning itself as a preferred provider of cancer biospecimens [4] - The company aims to pursue new partnerships with U.S.-based cancer centers to enhance access to domestic cancer blood products [6] - iSpecimen's data-driven approach will allow for rapid and competitive quotes for prospective collections, expanding its portfolio with new remnant biofluid cancer offerings [7] Market Position - iSpecimen operates an innovative marketplace platform that connects life science researchers with healthcare providers for high-quality biospecimens [8] - The company's strategic initiatives for 2025 focus on supporting groundbreaking cancer research worldwide [5]