Core Insights - Precipio, Inc. reported strong financial performance in Q1-2025, with a 43% year-over-year revenue increase, reaching $4.9 million [9][10] - The company anticipates continued revenue growth and a return to positive operating cash flow by Q2 or Q3 of 2025, driven by momentum in its Product business and expanded reimbursement opportunities in Pathology Services [2][8] Financial Performance - Q1-2025 revenues increased by 43% year-over-year, but decreased by 9.5% from Q4-2024 due to seasonal factors and onboarding delays [9] - Adjusted EBITDA improved significantly to ($108K) from ($1,409K) year-over-year, marking a 92% improvement [9] - Cash used in operations decreased to ($44K) in Q1-2025 from ($667K) in Q1-2024, an improvement of 93% [9] Product Division Highlights - The Products Division onboarded one new customer and launched two new panels in Q1-2025, with expectations for increased orders in Q2 [5] - Gross margins for the Products Division increased from 37% to 51% year-over-year [10] Pathology Services Division Highlights - Pathology Services revenues grew 54% year-over-year, with test volume increasing by 46% [7] - The division received MolDx approval for NGS testing, allowing Medicare billing, which is expected to positively impact future revenues [7] Operational Efficiency - Operating expenses as a percentage of net revenue decreased from 87% to 61% year-over-year, with management maintaining flat operating expenses at approximately $3 million per quarter [9] - Overall gross margins improved from 27% to 43% year-over-year, with expectations for continued growth as the revenue mix shifts towards more product sales [10]

[Financial Information](index=4&type=section&id=PART%20I%2E%20Financial%20Information) This section presents the company's condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and internal controls assessment [Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201%2E%20Condensed%20Consolidated%20Financial%20Statements) Unaudited Q1 2025 financials show reduced net loss, but liquidity issues persist, raising going concern doubts Condensed Consolidated Balance Sheets (in thousands) | | (unaudited) March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **ASSETS** | | | | Cash | $1,017 | $1,389 | | Total current assets | $3,278 | $3,451 | | Total assets | $17,785 | $16,996 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $4,331 | $4,271 | | Total liabilities | $6,087 | $4,902 | | Total stockholders' equity | $11,698 | $12,094 | | Total liabilities and stockholders' equity | $17,785 | $16,996 | Condensed Consolidated Statements of Operations (in thousands, except per share data) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net sales | $4,929 | $3,432 | | Gross profit | $2,140 | $920 | | Operating loss | $(859) | $(2,074) | | Net loss | $(884) | $(2,079) | | Basic and diluted loss per common share | $(0.59) | $(1.46) | Condensed Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(44) | $(667) | | Net cash used in investing activities | $(138) | — | | Net cash used in financing activities | $(190) | $(59) | | Net change in cash | $(372) | $(726) | | Cash at end of period | $1,017 | $776 | - The company is a healthcare biotechnology firm focused on developing diagnostic products and services to address cancer misdiagnoses[19](index=19&type=chunk) - The company has incurred substantial operating losses, has a working capital deficit of **$1.1 million**, and an accumulated deficit of **$103.3 million** as of March 31, 2025, raising **substantial doubt about its ability to continue as a going concern**[26](index=26&type=chunk)[27](index=27&type=chunk) - In April 2025, the company received an initial payment of approximately **$0.4 million** related to an Employee Retention Credit (ERC) claim, which will be recorded as other income in Q2 2025[117](index=117&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025 sales growth to increased diagnostic cases, improving gross margin, while addressing working capital and going concern risks Net Sales Comparison (in thousands) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Change $ (in thousands) | Change % | | :--- | :--- | :--- | :--- | :--- | | Service revenue, net | $4,275 | $2,775 | $1,500 | 54% | | Product revenue | $654 | $657 | $(3) | -% | | **Net Sales** | **$4,929** | **$3,432** | **$1,497** | **44%** | - The increase in service revenue was driven by processing **3,021 cases** in Q1 2025, a **47% increase** from the **2,062 cases** processed in Q1 2024[142](index=142&type=chunk) Gross Profit and Margin Comparison | (Dollars in Thousands) | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Gross Profit | $2,140 | $920 | | Gross Margin % | 43% | 27% | - Operating expenses remained flat at **$3.0 million** for Q1 2025 compared to Q1 2024[145](index=145&type=chunk) Working Capital Position (in thousands) | | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Current assets | $3,278 | $3,451 | $(173) | | Current liabilities | $4,331 | $4,271 | $60 | | **Working capital** | **$(1,053)** | **$(820)** | **$(233)** | - Net cash used in operating activities significantly decreased to **$44 thousand** in Q1 2025 from **$667 thousand** in Q1 2024, primarily due to a smaller net loss and changes in working capital[149](index=149&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is exempt from providing quantitative and qualitative market risk disclosures - As a smaller reporting company, Precipio is not required to provide the information under this item[158](index=158&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls were effective with no material changes to internal controls during Q1 2025 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective at a reasonable assurance level** as of March 31, 2025[161](index=161&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[162](index=162&type=chunk) [Other Information](index=50&type=section&id=PART%20II%2E%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety disclosures, and a list of exhibits [Legal Proceedings](index=50&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is involved in a legal proceeding with a former employee, which management disputes and does not expect to have a material financial impact - The company is involved in a legal proceeding brought by a former employee alleging unfair dismissal, which it is defending vigorously and **does not expect to have a material financial impact**[168](index=168&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A%2E%20Risk%20Factors) No material changes to risk factors have occurred since the company's most recent Annual Report on Form 10-K - There have been no material changes from the risk factors disclosed in the company's most recent Annual Report on Form 10-K[171](index=171&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no sales of unregistered equity securities during the three months ended March 31, 2025 - During the three months ended March 31, 2025, the company did not have any sales of unregistered securities[173](index=173&type=chunk) [Defaults Upon Senior Securities](index=52&type=section&id=Item%203%2E%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None reported[174](index=174&type=chunk) [Mine Safety Disclosures](index=52&type=section&id=Item%204%2E%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business operations - Not applicable[175](index=175&type=chunk) [Other Information](index=52&type=section&id=Item%205%2E%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or other trading plans during Q1 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading plan or a non-Rule 10b5-1 trading arrangement during the fiscal quarter[177](index=177&type=chunk) [Exhibits](index=53&type=section&id=Item%206%2E%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, SOX certifications, and Inline XBRL files - The report includes a list of filed exhibits, such as the Certificate of Incorporation, Bylaws, Sarbanes-Oxley certifications (31.1, 31.2, 32.1, 32.2), and Inline XBRL documents[180](index=180&type=chunk)

Core Company Information - Precipio, Inc. is a specialty cancer diagnostics company focused on addressing cancer misdiagnoses through innovative diagnostic products and services [4] - The company aims to improve diagnostic accuracy, laboratory workflow, and patient outcomes, ultimately reducing healthcare expenses [4] Upcoming Corporate Update - Precipio will host its Q1-2025 corporate update call on May 15, 2025, at 5:00 PM ET, which will cover updates on the company's core businesses [1] - Participants can access the call by dialing 844-695-5519 for domestic calls or 1-412-902-6760 for international calls [2] Engagement and Communication - Listeners can submit questions in advance via email to investors@precipiodx.com, and management will address these during the call [3] - A replay of the call will be available approximately 24 hours after the event on Precipio's Investors page [3] Additional Information - For more information, stakeholders can visit Precipio's website or follow the company on social media platforms [5]

Financial Data and Key Metrics Changes - In Q4, the company achieved positive and adjusted EBITDA along with positive cash flow, marking a significant milestone towards profitability [9] - Revenue growth for Q4 was nearly 26% compared to the same quarter of the previous year, while full-year revenue growth was close to 22% [14] Business Line Data and Key Metrics Changes - The pathology division's revenues exceeded the breakeven point of $1.3 million per month for the second consecutive quarter, with a target run rate of approximately $25 million by the end of 2025 [16] - The products division's Q4 revenues remained stable at $700,000, with ongoing customer onboarding processes affecting revenue recognition [17][18] Market Data and Key Metrics Changes - The company anticipates a gradual increase in revenue share generated through its distributor network versus direct sales, aiming for scalable growth [37] Company Strategy and Development Direction - The company aims to shift its mindset from a defensive to an offensive approach, viewing expenditures as investments for future growth [13] - A revitalized distribution strategy is in place to create new opportunities for scalable growth beyond direct sales [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming challenges related to regulatory changes, equipment processes, and personnel issues, emphasizing a proactive approach to customer onboarding [31][32] - The company is focused on enhancing visibility within financial markets and aims to provide clearer insights into its growth trajectory [40][42] Other Important Information - The return of Steve Miller as Chief Commercial Officer is expected to accelerate growth in the products division, leveraging his extensive background in the diagnostic field [35] Q&A Session Summary - No specific questions or answers were provided in the content, thus this section is not applicable.

Core Company Update - Precipio, Inc. will host its Q4 and year-end 2024 corporate update call on March 31, 2025, at 5:00 PM ET, providing updates on its core businesses [1] - The conference call can be accessed via specific phone numbers for domestic and international callers, with an option for pre-registration [2] Investor Engagement - Listeners can submit questions in advance via email, and management will address these during the call [3] - A replay of the call will be available approximately 24 hours after the event on Precipio's Investors page [3] Company Overview - Precipio is a healthcare biotechnology company focused on cancer diagnostics, aiming to reduce cancer misdiagnoses through innovative diagnostic products and services [4] - The company develops technologies in its laboratory to improve diagnostic outcomes and commercializes these as proprietary products for the global laboratory community [4] Additional Information - For more information, stakeholders are encouraged to visit Precipio's website and follow the company on social media platforms [5]

Core Insights - Precipio, Inc. has achieved significant financial milestones in Q4 2024, indicating its ability to attain financial independence through positive cash flow from its pathology service division [1][2][3] - The company reported an Adjusted EBITDA of $0.4 million for Q4 2024, marking a positive operational performance [6] - Precipio experienced an increase of $0.3 million in cash during Q4 2024, primarily driven by cash flow from operations [6] Financial Performance - The company reported a net loss of $0.3 million for Q4 2024, with an Adjusted EBITDA of $0.4 million after accounting for non-cash stock-based compensation and other significant expenses [5][6] - The reconciliation of financial metrics shows that EBITDA was $0 for the quarter, highlighting the impact of non-cash costs on profitability [5][6] Management Commentary - The CEO emphasized that ending 2024 with positive financial results is a crucial step for the company, allowing it to focus on growth and value creation without relying on external capital [3] - Management believes that the current cash reserves and growth pipeline position the company to become profitable in the near future [2][3] Company Overview - Precipio is a healthcare biotechnology company specializing in cancer diagnostics, aiming to reduce misdiagnoses through innovative diagnostic products and services [7] - The company develops and commercializes proprietary technologies to improve diagnostic accuracy and laboratory workflow, ultimately enhancing patient outcomes [7]

NEW HAVEN, Conn., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company Precipio, Inc. (NASDAQ:PRPO), announced that options granted to senior management on January 14 would vest when the 10-day VWAP of the Company's common stock exceeds $30.30 per share – a level 5x greater than the option exercise price, the closing price from Tuesday, January 14. These options have no time-based vesting; if the performance above is not met, the options will not vest. The Compensation Committee approved t ...

Financial Data and Key Metrics - The company crossed the 10,000 case mark for the year, compared to close to 8,000 in 2023 [7] - Q3 pathology revenues reached $4.5 million, an 18% increase from Q2 [9] - Q3 Products division revenues increased by 13% over Q2, reaching $680,000 [13] - Cash burn reduced by 75% from approximately $1 million in Q3 2023 to $226,000 in Q3 2024 [19] Business Line Performance - Pathology division exceeded breakeven for the second consecutive quarter, with a goal to reach a $20 million run rate [9] - Products division is progressing towards breakeven, with three key customers in onboarding stages expected to significantly impact performance [13] - Products division is expected to become the main growth engine due to recurring revenue, customer retention, and higher margins [14][15] Market and Strategic Direction - The company aims to achieve breakeven in 2024, avoiding dilutive capital raises and focusing on organic growth [8] - Pathology division serves as a self-sustained cost-free R&D platform, supporting future product development [10] - The company plans to leverage distribution channels for product sales, increasing revenue share from distributors [17][18] Management Commentary on Environment and Outlook - Management is confident in achieving financial independence and building cash reserves through organic growth [20][21] - The company plans to enhance investor education and visibility through investor conferences, analyst coverage, and consistent performance [25][26] - Management anticipates ending the year strong and entering the next year with even stronger performance [27] Other Important Information - The company’s sales team consists of five members in the pathology division and three in the products division, with potential hiring for additional stability [11][16] - The majority of revenues are currently from direct sales, but a gradual shift towards distributor-generated revenue is expected [17] Q&A Session - No specific questions or answers were provided in the transcript [31]

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 September 30, 2024 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: 001-36439 PRECIPIO, INC. (Exact name of registrant as specified in its charter) Delaware 91-17893 ...

NEW HAVEN, Conn., Oct. 08, 2024 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO) announces the launch of a new version of its Bloodhound MPN (Myeloproliferative Neoplasm) panel that is now able to distinguish between CALR type 1 and type 2 mutations. The CALR mutation data plays a critical role in disease prognosis and therapeutic decision-making. This differentiation aligns with the latest National Comprehensive Cancer Network (NCCN) guidelines released in August of th ...