Financial Data and Key Metrics Changes - iSpecimen reported revenue of $2.6 million for Q3 2022, a decrease from $2.7 million in Q3 2021, primarily due to declining sales of COVID-19 specimens [29] - Non-COVID revenue reached $2.3 million, accounting for 88% of total revenue, marking a 26% increase compared to the same period last year [31] - For the nine-month period ended September 30, 2022, revenue was approximately $7.4 million, down from $8.6 million in the same period last year, attributed to the impact of the Russia-Ukraine war and declining COVID-19 specimen sales [32] Business Line Data and Key Metrics Changes - Specimens accession decreased by 11% to 4,750 in Q3 2022 compared to 5,300 in Q3 2021 [29] - The average selling price per specimen increased by approximately $32 or 6% compared to the same prior year's period [30] - For the nine-month period, non-COVID-19 related specimens accounted for approximately $6.5 million, a 7% increase compared to the same prior year's period [34] Market Data and Key Metrics Changes - The macroeconomic environment remains uncertain due to high interest rates and potential recession concerns, impacting specimen transactions [27] - The company is closely monitoring the market health, particularly among small biotech and pharma customers, who are preserving cash while continuing research [48] Company Strategy and Development Direction - The company is focused on reducing supplier concentration and increasing utilization of its supplier network to enhance match rates and market depth [13][16] - A significant initiative to reorganize the sales approach is underway, with a renewed focus on the sales funnel to scale in a post-COVID-19 environment [17] - The company plans to launch a data-as-a-service pilot, expected to validate new revenue streams [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience through economic downturns and inflation impacts [28] - The company is excited about near and long-term prospects, actively pursuing multimillion-dollar business initiatives [11] - Management noted that while projects are smaller in value, customers are still engaging in research, indicating a cautious but ongoing commitment to their work [48] Other Important Information - The company increased cash spend for technology to approximately $1.2 million in Q3 2022, up from $592,000 in the same period last year, reflecting a commitment to technology investments [38] - General and administrative expenses rose to approximately $2.2 million in Q3 2022, primarily due to increased compensation and severance costs [44] Q&A Session Summary Question: Health of the biotech and pharma markets - Management noted that while projects are still being received, they are smaller in value as customers are preserving cash [48] Question: Ensuring no disruption during search capability enhancements - Management confirmed that enhancements are being tested in a separate environment to avoid disruption to ongoing business [49] Question: Biggest potential driver for growth and profitability - Management highlighted the revenue stream associated with data as a significant potential driver for growth, with a pilot expected by mid-next year [52]

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201%20.%20Financial%20Statements) The financial statements for the period ended September 30, 2022, show a decrease in total assets to $27.9 million from $35.7 million, primarily due to a reduction in cash, and a net loss of $8.1 million, an increase from the prior year period [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) As of September 30, 2022, total assets decreased to $27.9 million from $35.7 million, driven by a drop in cash, while total stockholders' equity fell to $22.4 million due to accumulated deficits Condensed Balance Sheet Highlights (as of September 30, 2022 vs. December 31, 2021) | Balance Sheet Item | September 30, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $20,657,719 | $27,738,979 | | Total current assets | $24,236,174 | $32,948,349 | | Total assets | $27,939,939 | $35,719,598 | | **Liabilities & Equity** | | | | Total current liabilities | $2,833,338 | $2,505,394 | | Total liabilities | $5,516,479 | $5,928,010 | | Accumulated deficit | $(46,105,643) | $(38,019,402) | | Total stockholders' equity | $22,423,460 | $29,791,588 | [Condensed Statements of Operations](index=4&type=section&id=Condensed%20Statements%20of%20Operations) For Q3 2022, revenue decreased 5% to $2.6 million, while operating expenses increased 36% to $5.7 million, resulting in a net loss of $3.1 million, nearly double the prior year Three Months Ended September 30, 2022 vs 2021 | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Revenue | $2,583,412 | $2,718,534 | | Total operating expenses | $5,684,471 | $4,177,607 | | Loss from operations | $(3,101,059) | $(1,459,073) | | Net loss | $(3,095,690) | $(1,553,023) | | Net loss per share | $(0.35) | $(0.22) | Nine Months Ended September 30, 2022 vs 2021 | Metric | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | | Revenue | $7,440,760 | $8,586,217 | | Total operating expenses | $15,485,214 | $12,516,465 | | Loss from operations | $(8,044,454) | $(3,930,248) | | Net loss | $(8,086,241) | $(6,911,428) | | Net loss per share | $(0.92) | $(2.17) | [Condensed Statements of Cash Flows](index=7&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2022, net cash used in operating activities was $5.6 million, with investing activities using $1.5 million, resulting in a net decrease in cash of $7.1 million Cash Flow Summary (Nine Months Ended September 30) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,610,366) | $(9,348,701) | | Net cash used in investing activities | $(1,549,281) | $(733,722) | | Net cash provided by financing activities | $78,387 | $19,177,246 | | **Net change in cash** | **$(7,081,260)** | **$9,094,823** | | Cash at end of period | $20,657,719 | $9,790,732 | [Notes to Unaudited Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Financial%20Statements) The notes detail the company's biospecimen marketplace business, significant events like CEO departure and term loan payoff, and impacts from the Russia-Ukraine war and COVID-19 - The company's business was negatively impacted in the first half of 2022 by the Russia-Ukraine war, which disrupted approximately **$1 million in purchase orders** from its supply network in that region[30](index=30&type=chunk) - The company recognized a severance expense of **$376,400** for the departing CEO, Dr. Christopher Ianelli, effective October 24, 2022[76](index=76&type=chunk) - On August 13, 2021, the company entered into a **$3.5 million term loan** with Western Alliance Bank, which was subsequently paid off on November 3, 2022[82](index=82&type=chunk)[120](index=120&type=chunk) - Management believes existing cash will be sufficient for operations for at least the next 12 months, alleviating substantial doubt about going concern raised in prior periods[24](index=24&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=ITEM%202%20.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 5% revenue decrease for Q3 2022, driven by a significant drop in COVID-19 related specimen demand, offset by non-COVID growth, and a sharp rise in operating expenses due to increased spending and a severance charge [Overview and Known Trends](index=21&type=section&id=Overview%20and%20Known%20Trends) The company operates the iSpecimen Marketplace, connecting researchers with human biospecimens, and faces trends including a 62% decline in COVID-19 related revenue and disruptions from the Russia-Ukraine war - The company's core business is the iSpecimen Marketplace, a platform that automates the process of searching for and procuring human biospecimens for research[124](index=124&type=chunk)[125](index=125&type=chunk) Revenue Trend: COVID-19 vs. Non-COVID-19 (Nine Months Ended Sep 30) | Revenue Type | 2022 | 2021 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | COVID-19 | $971,000 | $2,523,000 | $(1,552,000) | (62)% | | Non-COVID-19 | $6,470,000 | $6,063,000 | $407,000 | 6% | - Following management changes, the interim CEO is focused on improving execution, reviewing company structure, and green-lighting projects to accelerate technology development[142](index=142&type=chunk)[144](index=144&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) For Q3 2022, revenue decreased 5% to $2.6 million due to lower COVID-19 demand, while operating expenses surged 36% from higher spending and a severance charge, leading to a doubled loss from operations - Q3 2022 revenue decreased by **5% YoY**, primarily due to a reduction in demand for COVID-19 specimens, with COVID-related revenue at **$322,000 (12% of total)**, down from **$923,000 (34% of total)** in Q3 2021[162](index=162&type=chunk) - Q3 2022 General and Administrative expenses increased by **37% YoY**, largely due to a **$376,000 severance charge** for the former CEO and a **$166,000 increase** in taxes and insurance[169](index=169&type=chunk) - For the nine months ended Sep 30, 2022, revenue decreased **13% YoY**, impacted by lower COVID-19 demand, supply network shutdowns in Ukraine/Russia, and smaller purchase order sizes due to recessionary effects[173](index=173&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2022, cash decreased by $7.1 million to $20.7 million, driven by operating and investing activities, though management believes current cash is sufficient for the next 12 months Key Liquidity Metrics | Metric | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash | $20,657,719 | $27,738,979 | | Working Capital | $21,402,836 | $30,442,955 | - For the nine months ended Sep 30, 2022, net cash used in operating activities was **$5.6 million**, net cash used in investing activities was **$1.5 million**, and net cash from financing was **$0.08 million**[183](index=183&type=chunk)[187](index=187&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) - Management believes its current cash and anticipated cash flow will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months[185](index=185&type=chunk) [Non-GAAP Financial Measure](index=32&type=section&id=Non-GAAP%20Financial%20Measure) The company uses Adjusted EBITDA to evaluate core operating performance, reporting losses of $2.2 million and $6.1 million for the three and nine months ended September 30, 2022, respectively, significantly wider than prior year periods Reconciliation of Net Loss to Adjusted EBITDA | Period | Net Loss | Adjusted EBITDA | | :--- | :--- | :--- | | **Three Months Ended Sep 30, 2022** | $(3,095,690) | $(2,173,243) | | **Three Months Ended Sep 30, 2021** | $(1,553,023) | $(823,290) | | **Nine Months Ended Sep 30, 2022** | $(8,086,241) | $(6,124,463) | | **Nine Months Ended Sep 30, 2021** | $(6,911,428) | $(2,750,061) | [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=ITEM%203%20.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as the company qualifies as a smaller reporting company - Not applicable for smaller reporting companies[223](index=223&type=chunk) [Controls and Procedures](index=37&type=section&id=ITEM%204%20.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2022, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of September 30, 2022, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[226](index=226&type=chunk) - No changes in internal control over financial reporting occurred during the nine months ended September 30, 2022, that materially affected, or are reasonably likely to materially affect, internal controls[227](index=227&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=ITEM%201%20.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[230](index=230&type=chunk) [Risk Factors](index=38&type=section&id=ITEM%201A%20.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Form 10-K for the year ended December 31, 2021 - No material changes from the risk factors disclosed in the Form 10-K filed on March 22, 2022[231](index=231&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the nine months ended September 30, 2022, the company granted an aggregate of 175,261 restricted stock units (RSUs) to employees under its 2021 Stock Incentive Plan - In the nine months ended September 30, 2022, the company granted **175,261 restricted stock units (RSUs)** to employees under the 2021 Stock Incentive Plan[232](index=232&type=chunk) [Other Part II Items](index=38&type=section&id=Other%20Part%20II%20Items) The company reported no defaults upon senior securities, no mine safety disclosures, and no other information requiring disclosure under Item 5 for the period - Item 3. Defaults Upon Senior Securities: None[234](index=234&type=chunk) - Item 4. Mine Safety Disclosures: Not Applicable[235](index=235&type=chunk) - Item 5. Other Information: None[236](index=236&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $2.3 million, down from $2.9 million in Q2 2021, primarily due to a decline in COVID-19 specimen sales [23][24] - For the first half of 2022, revenue was approximately $4.9 million compared to $5.9 million in the same period last year, affected by the Russia-Ukraine war and reduced COVID-19 specimen sales [24][25] - Non-COVID-19 revenue increased by 8% year-over-year, accounting for 93% of total revenue in Q2 2022 [25] - Average selling price per specimen decreased by approximately $130 or 28% compared to the same prior year's period [26] Business Line Data and Key Metrics Changes - Specimens accessioned in Q2 2022 increased by 12% to 7,004 specimens compared to 6,266 in Q2 2021 [26] - Prospective collection comprised about 25% of revenue in Q2 2022, which is lower than typical levels [11][56] - The average cost per specimen decreased by 40% in Q2 2022, influenced by specimen mix [28] Market Data and Key Metrics Changes - The ongoing geopolitical unrest and economic environment have reduced visibility for the business, impacting order sizes and fulfillment velocity [7][15] - The average size of purchase orders has decreased by about 20% over the past six months due to economic slowdown [18] Company Strategy and Development Direction - The company is focused on enhancing the iSpecimen marketplace platform to better support research clients and healthcare providers [9][10] - A new sales team structure has been implemented to improve productivity and efficiency, allowing senior sales staff to focus on larger deals [14] - The company is expanding its global biospecimen supplier list, particularly in oncology and cardiovascular disease research [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of their strategy and investments in technology and personnel to gain market share [21] - The impact of the Ukraine conflict is being managed cautiously, with a focus on diversifying supplier sources [15][42] - COVID-19 specimen sales are expected to continue declining, but the overall business is not dramatically affected at this time [20] Other Important Information - Cash balance as of June 30, 2022, was approximately $23.7 million, down from $27.7 million at the end of 2021 [34] - Increased cash spend for technology development was noted, with $807,000 spent in Q2 2022 compared to $351,000 in Q2 2021 [28][29] Q&A Session Summary Question: Areas of enhancement on the platform - The company is working on integrating a unified search for biospecimens and patients into one interface [37][38] Question: Geopolitical headwinds and economic impact - Management is cautious about the ongoing war in Ukraine and its impact on operations, with no specific dollar guidance provided [41][42] Question: Sustainability of gross margin - The company aims for margins in the 50% to 60% range, with current performance being better due to specific project mixes [44][46] Question: Details on the large purchase order - The order was from a new customer related to a long-term oncology project, showcasing the effectiveness of the new sales structure [48][50] Question: Pricing and margin differentials between prospective and remnant collections - Prospective collections are priced significantly higher than clinical remnants, impacting average selling prices [54][56]

Table of Contents 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, 2022 ☐ 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 i ...

| --- | --- | --- | --- | |-----------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | CONNECT. INNOVATE. | | | | | | | | | | | | | | | TRANSFORMING BIOSPECIMEN | | | | | PROCUREMENT An online marketplace for human biospecimens | | | | | May 2022 Investor Presentation | | | | Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Sec ...

iSpecimen Inc. (NASDAQ:ISPC) Q1 2022 Earnings Conference Call May 10, 2022 8:30 AM ET Company Participants Allison Soss - Investor Relations Christopher Ianelli - Chief Executive Officer and President Tracy Curley - Chief Financial Officer Jill Mullan - Chief Operating Officer Conference Call Participants Matthew Hewitt - Craig-Hallum Capital Group Constantine Davides - EF Hutton Operator Good day, everyone, and welcome to iSpecimen's First Quarter 2022 Conference Call. [Operator Instructions] This confere ...

Table of Contents For the Quarterly Period Ended March 31, 2022 ☐ 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) 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 Delaware 27-0480143 (I.R.S. Empl ...

For The Transition Period From To Commission file number: 001-40501 iSpecimen Inc. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Delaware 27-0480143 (State of other jurisdiction of incorporation o ...

Call Start: 08:30 January 1, 0000 8:53 AM ET iSpecimen Inc. (NASDAQ:ISPC) Q4 2021 Earnings Conference Call February 17, 2022, 8:30 ET Company Participants Christopher Ianelli – Chief Executive Officer and President Tracy Curley – Chief Financial Officer Jill Mullan – Chief Operating Officer Allison Soss – Investor Relations Conference Call Participants Lucas Baranowski – Craig-Hallum Operator Good day, everyone and welcome to iSpecimen's Full-Year 2021 Conference Call. At this time, all participants are in ...

Financial Data and Key Metrics Changes - The company reported revenue of approximately $2.7 million for Q3 2021, a 21% increase compared to approximately $2.3 million for Q3 2020 [15] - For the first nine months of 2021, revenue reached approximately $8.6 million, a 57% increase compared to $5.5 million for the same period in 2020 [15][37] - The average selling price per specimen increased by approximately $138 or 37% in Q3 2021 compared to Q3 2020 [36] Business Line Data and Key Metrics Changes - Non-COVID related revenue for Q3 2021 was approximately $1.8 million, or 66% of total revenue, compared to approximately $838,000 or 37% for Q3 2020 [35] - COVID-19 related revenue was approximately $923,000 in Q3 2021, accounting for 34% of total revenue, down from approximately $1.4 million or 63% in Q3 2020 [35] Market Data and Key Metrics Changes - The company grew its unique supplier organizations under agreement to 197 by the end of Q3 2021, up from 190 at the end of Q2 2021 [13] - The number of specimens accessioned during Q3 2021 decreased by approximately 700 specimens, or 12%, to approximately 5,300 specimens compared to Q3 2020 [36] Company Strategy and Development Direction - The company aims to broaden service offerings and expand the supplier network to relieve supply constraints and increase data asset value [31][32] - Strategic investments will be made to refine the technology platform and expand capabilities, which are key components of the growth strategy [32] Management's Comments on Operating Environment and Future Outlook - Management expects strong growth in the core non-COVID-related business to continue, replacing the diminishing COVID business [23] - The company believes its ability to adapt and grow during the pandemic demonstrates the strength of its technology-enabled approach and marketplace platform [24] Other Important Information - iSpecimen was added to the Russell Microcap Index in late September 2021, which is expected to increase visibility and exposure to investors [30] - The company launched an enhanced custom biofluids collection service to provide rapid delivery options for researchers [25] Q&A Session Summary Question: Please describe the enhanced custom biofluids collection service - The service allows the company to collect specimens internally and use mobile phlebotomists to quickly access patients not connected to healthcare systems [59] Question: Can you clarify the backlog figure? - The company ended the quarter with a backlog of approximately $7.5 million, which includes orders taken but not yet shipped [62] Question: How does seasonality affect the business? - Historically, the fourth quarter tends to be stronger due to budget spending before year-end, making it the best quarter for the company [67]