Predictive Oncology Inc. (NASDAQ:POAI) Q3 2022 Earnings Conference Call November 11, 2022 12:00 PM ET Company Participants Theresa Ferguson - Investor Relations Raymond Vennare - Chairman and Chief Executive Officer Pamela Bush - Senior Vice President of Strategic Sales and Business Development Bob Myers - Chief Financial Officer and Site Leader, Skyline Medical Conference Call Participants Michael Broadbent - Bedrock Group Inc. Operator Good day, ladies and gentlemen, and thank you for standing by. Welcome ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The company's financial statements show a net loss of $17.8 million and reduced assets due to a goodwill impairment [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $33.2 million, driven by a full goodwill impairment and a decline in cash reserves Key Balance Sheet Items | Balance Sheet Items | September 30, 2022 (unaudited) | December 31, 2021 (audited) | | :--- | :--- | :--- | | Cash and Cash Equivalents | $25,393,738 | $28,202,615 | | Total Current Assets | $26,857,321 | $29,458,273 | | Goodwill | $0 | $6,857,790 | | **Total Assets** | **$33,166,209** | **$43,771,271** | | Total Current Liabilities | $3,468,078 | $3,240,508 | | **Total Liabilities** | **$3,573,331** | **$3,505,587** | | **Total Stockholders' Equity** | **$29,592,878** | **$40,265,684** | - Goodwill was **fully impaired**, decreasing from **$6.9 million** at the end of 2021 to zero as of September 30, 2022[10](index=10&type=chunk) [Condensed Consolidated Statements of Net Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Net%20Loss) The nine-month net loss widened to $17.8 million, primarily due to a $7.2 million goodwill impairment charge Key P&L Metrics | Metric | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $455,827 | $313,663 | $1,141,986 | $944,187 | | Gross Profit | $347,676 | $203,498 | $790,317 | $593,387 | | Loss on goodwill impairment | $0 | $2,813,792 | $7,231,093 | $2,813,792 | | **Net Loss** | **$(4,059,484)** | **$(5,438,017)** | **$(17,821,524)** | **$(11,900,662)** | | Loss per share (basic and diluted) | $(0.05) | $(0.08) | $(0.25) | $(0.23) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased by $10.7 million to $29.6 million, driven by a net loss partially offset by capital raising - Total stockholders' equity declined by **$10.7 million** during the first nine months of 2022, from $40.3 million to $29.6 million[13](index=13&type=chunk) - The company's accumulated deficit increased by **$17.8 million**, from $(128.0) million to $(145.9) million, due to the net loss incurred during the period[13](index=13&type=chunk) - In May 2022, the company issued **12,000,000 shares and warrants** in a private offering, increasing additional paid-in capital by approximately **$6.4 million**[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased by $2.8 million, with operating cash burn partially offset by $6.7 million from financing activities Key Cash Flow Activities | Cash Flow Activity (Nine Months Ended Sep 30) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(9,135,812) | $(8,464,821) | | Net cash used in investing activities | $(412,096) | $(820,233) | | Net cash provided by financing activities | $6,739,031 | $50,378,237 | | **Net increase (decrease) in cash** | **$(2,808,877)** | **$41,093,183** | | **Cash at end of period** | **$25,393,738** | **$41,771,515** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business segments, goodwill impairment, and management's view on capital sufficiency - The company operates in four primary business areas: drug response prediction (Helomics), in vitro models for oncology (zPREDICTA), contract research for solubility (Soluble Biotech), and medical fluid waste disposal systems (Skyline)[19](index=19&type=chunk) - Management believes existing capital resources of **$25.4 million** will be sufficient to support the operating plan for the next twelve months and beyond[20](index=20&type=chunk) - A goodwill impairment charge of **$7,231,093** related to the zPREDICTA reporting unit was recorded, reducing its goodwill balance to zero as of June 30, 2022[85](index=85&type=chunk)[86](index=86&type=chunk) - On September 15, 2022, CEO J. Melville Engle announced his retirement, and the company recorded a liability of **$741,505** for severance and other benefits[112](index=112&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses increased revenue, a wider net loss due to goodwill impairment, and its strategic focus on key segments - The company will focus its resources on the **Helomics** (AI-powered drug response prediction) and **zPREDICTA** (3D cell culture models) segments[119](index=119&type=chunk) - The company believes its existing capital of **$25.4 million** will be sufficient to support its operating plan for the next twelve months and beyond, but may seek additional capital[144](index=144&type=chunk) - In May 2022, the company raised capital through two offerings, selling an aggregate of **12 million shares** of common stock at $0.60 per share and issuing warrants[89](index=89&type=chunk)[90](index=90&type=chunk)[147](index=147&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Revenue increased due to the zPREDICTA acquisition, while expenses rose from G&A costs and a significant goodwill impairment Nine-Month Operational Performance Comparison | Expense/Income (Nine Months Ended Sep 30) | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1,141,986 | $944,187 | $197,799 | | General and administrative expense | $8,063,265 | $7,410,208 | $(653,057) | | Operations expense | $2,657,314 | $1,791,543 | $865,771 | | Sales and marketing expense | $908,867 | $447,298 | $461,569 | | Loss on goodwill impairment | $7,231,093 | $2,813,792 | $4,417,301 | - The increase in revenue for the nine-month period was primarily driven by **$261,099** from the zPREDICTA division[125](index=125&type=chunk) - The increase in G&A expenses for the nine-month period was mainly due to costs from the **CEO's retirement** and increased headcount from the zPREDICTA acquisition, offset by lower professional fees[130](index=130&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $25.4 million in cash, with an $8.9 million equity line restricted until May 2023 - The company had **$25.4 million in cash** as of September 30, 2022, after incurring a net loss of $17.8 million for the nine-month period[143](index=143&type=chunk) - Net cash provided by financing activities was **$6.7 million** for the nine months ended September 30, 2022, compared to **$50.4 million** in the prior-year period[142](index=142&type=chunk) - The company has an equity line with an available balance of **$8,877,820**, but agreed not to access it until May 18, 2023, as part of the May 2022 offerings[143](index=143&type=chunk)[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, this disclosure is not required - Disclosure is not required for this item[158](index=158&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were deemed ineffective due to a material weakness in accounting expertise for complex transactions - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of September 30, 2022[160](index=160&type=chunk) - A **material weakness** was identified: the company has not maintained adequate accounting resources with sufficient understanding of U.S. GAAP for complex technical accounting transactions[161](index=161&type=chunk) - To remediate the weakness, the company has **hired additional accounting resources** with the required experience[162](index=162&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no material legal proceedings - None[165](index=165&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) Readers are referred to the company's 2021 Annual Report on Form 10-K for detailed risk factors - Readers are referred to the risk factors detailed in the Annual Report on Form 10-K for the year ended December 31, 2021[165](index=165&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued 29,346 unregistered shares for professional services under a Securities Act exemption - In the first nine months of 2022, the company issued **29,346 unregistered shares** of common stock in exchange for $25,000 worth of professional research services[166](index=166&type=chunk) - The sale was exempt from registration under **Section 4(a)(2)** of the Securities Act[167](index=167&type=chunk) [Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[168](index=168&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[169](index=169&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This item is not applicable - Not applicable[170](index=170&type=chunk)

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 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: 001-36790 Predictive Oncology Inc. (Exact name of registrant as specified in its charter) Delaware 33-100 ...

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 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: 001-36790 Predictive Oncology Inc. (Exact name of registrant as specified in its charter) Delaware 33-10 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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. ☐ 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: 001-36790 PREDICTIVE ONCOLOGY INC. (Exact name of registrant as specified in its charter) Delaware 33-1007393 (State or other jurisdiction of incorpora ...

As of November 5, 2021, the registrant had 65,576,334 shares of common stock, par value $0.01 per share outstanding. PREDICTIVE ONCOLOGY INC. TABLE OF CONTENTS | | Page No. | | --- | --- | | PART I. FINANCIAL INFORMATION | | | Item 1. Unaudited Condensed Consolidated Financial Statements | 3 | | Condensed Consolidated Balance Sheets as of September 30, 2021, and December 31, 2020 | 3 | | Condensed Consolidated Statements of Net Loss for the three and nine months ended September 30, 2021, and | | | September ...

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 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: 001-36790 Predictive Oncology Inc. (Exact name of registrant as specified in its charter) Delaware 33-100 ...

(Mark One) SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Predictive Oncology Inc. (Exact name of registrant as specified in its charter) | Delaware | 33-1007393 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 2915 Commers Drive, Suite 900 | Eagan, Minnesota 55121 | (Address of principal executive offices) (Zip Code) 651-389-4800 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCH ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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, 2020. ☐ 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: 001-36790 PREDICTIVE ONCOLOGY INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction (IRS Employer of incorporation o ...

Predictive Oncology Inc. (NASDAQ:POAI) Q2 2019 Results Earnings Conference Call August 19, 2019 5:30 PM ET Company Participants Scott Gordon - IR, CORE IR Carl Schwartz - President and CEO Bob Myers - CFO Gerald Vardzel - President of Helomics Amelia Warner - COO of Helomics Conference Call Participants Jason Kolbert - Dawson James Operator Good afternoon, and welcome to the Predictive Oncology Earnings Conference Call for the Second Quarter Ending June 30, 2019. All participants will be in a listen-only mo ...