Precipio, Inc. (NASDAQ:PRPO) Q3 2021 Earnings Conference Call November 15, 2021 5:00 PM ET Company Participants Ilan Danieli - CEO Conference Call Participants Operator Welcome to the Precipio Shareholder -- Third Quarter 2021 Shareholder Update Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note that the conference is being recorded. Statements made during this call may contain forward-looking statements about our business. We should not place undue reliance ...

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

Financial Data and Key Metrics Changes - Revenue from pathology services increased by 55% year-over-year and 29% from Q1 to Q2 of 2021 [7] - Collection rate improved from the 70% range to approaching 90% billable revenue, positively impacting cash flow [8] Business Line Data and Key Metrics Changes - Pathology services continue to be the primary revenue driver, with significant growth attributed to new customer acquisition and improved collections [7] - HemeScreen is expected to contribute significantly to growth, with operations and revenues anticipated to commence in Q4 2021 [12] Market Data and Key Metrics Changes - The U.S. HemeScreen market is projected to approach several hundred million dollars per year, indicating substantial market potential [14] Company Strategy and Development Direction - The company plans to maintain high-quality clinical diagnostic services, focus on quality production fulfillment, and leverage R&D expertise to broaden offerings [23][24] - HemeScreen is identified as a key focal point for future growth, providing financial stability and enhancing patient care [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in the sales environment due to market restrictions but believes the entire industry is facing similar issues, which could lead to collective growth [9][10] - The company is optimistic about reaching a $10 million run rate by the end of the year, marking a significant milestone [11] Other Important Information - A new production facility for HemeScreen is planned to ensure quality and consistency in product delivery [18] - The company celebrated its 10th anniversary, highlighting its commitment to impactful patient care through accurate diagnostics [28][30] Summary of Q&A Session - The conference call concluded without a formal Q&A session, as indicated by the operator's closing remarks [32]

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, 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: 001-36439 PRECIPIO, INC. (Exact name of registrant as specified in its charter) Delaware 91-1789357 in ...

Precipio, Inc. (NASDAQ:PRPO) Q1 2021 Earnings Conference Call May 20, 2021 5:00 PM ET Company Participants Ilan Danieli - Chief Executive Officer Conference Call Participants Operator Good day and welcome to the Precipio’s Shareholder First Quarter 2021 Shareholder Update Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business. You should ...

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 March 31, 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: 001-36439 PRECIPIO, INC. (Exact name of registrant as specified in its charter) Delaware 91-1789357 ( ...

Precipio, Inc. (NASDAQ:PRPO) Q4 2020 Earnings Conference Call March 31, 2021 5:00 PM ET Company Participants Ilan Danieli - CEO Carl Iberger - CFO Conference Call Participants Operator Welcome to the Precipio Q4 2020 and Yearend Shareholder Update Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business. You should not place undue reliance on forward- ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Precipio, Inc. is a cancer diagnostics company focused on mitigating misdiagnosis through a platform combining academic expertise with proprietary technologies - The company operates as a cancer diagnostics and reagent technology provider, aiming to reduce cancer misdiagnosis by leveraging academic expertise and proprietary technologies[15](index=15&type=chunk) - Precipio's key proprietary products include IV-Cell™ (a universal cell culture media), HemeScreen™ (genetic diagnostic panels for blood cancers), and the exclusively licensed ICE-COLD-PCR™ (a liquid biopsy specimen enrichment technology)[24](index=24&type=chunk)[31](index=31&type=chunk)[41](index=41&type=chunk) - The company targets the US domestic oncology market (over **$20 billion** annually) and the oncology reagent market (over **$14 billion** annually)[21](index=21&type=chunk) - In April 2020, Precipio formed a joint venture with Poplar Healthcare to provide oncology services to office-based physicians and medical centers[17](index=17&type=chunk) Employee Distribution as of March 25, 2021 | Department | Number of Employees | | :--- | :--- | | **Full-time** | **54** | | Finance, General & Administration | 12 | | Laboratory Operations | 21 | | Sales and Marketing | 10 | | Customer Service and Support | 5 | | Research & Development | 9 | | **Part-time** | **3** | [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks, including substantial doubt about its ability to continue as a going concern, requiring additional financing, and intense competition - There is substantial doubt about the company's ability to continue as a going concern, having incurred a net loss of **$10.6 million** and negative working capital of **$0.5 million** for the year ended December 31, 2020[80](index=80&type=chunk) - The company requires significant additional financing to sustain operations, with a purchase agreement with Lincoln Park for up to **$10 million** in common stock to fund working capital needs[83](index=83&type=chunk)[84](index=84&type=chunk) - The COVID-19 pandemic has caused business interruptions ranging from **30% to 85%** in certain markets, and the ongoing impact remains uncertain[108](index=108&type=chunk)[110](index=110&type=chunk) - The company faces intense competition from specialized oncology service providers like Neogenomics and large commercial labs like LabCorp and Quest Diagnostics[51](index=51&type=chunk)[102](index=102&type=chunk) - The company's laboratories require ongoing CLIA certification, and failure to comply could result in suspension of operations and loss of Medicare/Medicaid reimbursement[130](index=130&type=chunk)[131](index=131&type=chunk) - The company received a PPP loan of **$787,200**, and if forgiveness is not granted by the SBA, the loan will need to be repaid, which could adversely affect cash flows[124](index=124&type=chunk)[125](index=125&type=chunk) [Unresolved Staff Comments](index=55&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[187](index=187&type=chunk) [Properties](index=55&type=section&id=Item%202.%20Properties) Precipio leases approximately 7,630 sq. ft. of lab and office space in New Haven, CT, and 5,300 sq. ft. in Omaha, NE, which are deemed adequate for current needs - Leases office and laboratory space in New Haven, Connecticut (**7,630 sq. ft**, lease expires Dec 2021) and Omaha, Nebraska (**5,300 sq. ft**, lease expires May 2022)[188](index=188&type=chunk) [Legal Proceedings](index=55&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in incidental legal proceedings, including an unresolved claim from CPA Global and a settled lawsuit with Jesse Campbell - CPA Global claims approximately **$0.2 million** for patent maintenance services; the company has recorded a liability of less than **$0.1 million**[193](index=193&type=chunk) - The Jesse Campbell lawsuit from 2017 was settled for **$1.95 million**, with the company paying **$0.27 million** and its insurance covering the rest, closing the matter in June 2020[194](index=194&type=chunk)[196](index=196&type=chunk) [Mine Safety Disclosures](index=57&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[197](index=197&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=58&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NASDAQ Capital Market under "PRPO", with 18,132,063 shares outstanding as of March 25, 2021, and no cash dividends paid or anticipated - Common stock trades on the NASDAQ Capital Market under the symbol "**PRPO**"[200](index=200&type=chunk) - As of March 25, 2021, there were **18,132,063** shares of common stock outstanding[201](index=201&type=chunk) - The company has never paid cash dividends and does not anticipate paying them in the foreseeable future[202](index=202&type=chunk) Quarterly Stock Price (2020) | Quarter Ended | High | Low | | :--- | :--- | :--- | | March 31, 2020 | $2.30 | $0.68 | | June 30, 2020 | $1.51 | $0.58 | | September 30, 2020 | $7.00 | $1.16 | | December 31, 2020 | $2.64 | $1.94 | [Selected Consolidated Financial Data](index=58&type=section&id=Item%206.%20Selected%20Consolidated%20Financial%20Data) As a smaller reporting company, Precipio is not required to provide the information for this item - The company is a smaller reporting company and is not required to provide this information[205](index=205&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=60&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2020, Precipio's net sales increased by 95% to $6.1 million, driven by a 120% increase in patient diagnostic cases, despite reporting a net loss of $10.6 million and a working capital deficit of $0.5 million Results of Operations (2020 vs. 2019) | Metric (in thousands) | 2020 | 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $6,092 | $3,127 | $2,965 | 95% | | Gross Profit | $1,150 | $219 | $931 | 425% | | Gross Margin | 19% | 7% | - | - | | Operating Loss | ($9,146) | ($10,994) | $1,848 | (17%) | | Net Loss | ($10,598) | ($13,243) | $2,645 | (20%) | - The **95% increase in net sales** was primarily due to a **120% increase** in patient diagnostic cases processed, from **1,672 in 2019 to 3,677 in 2020**[227](index=227&type=chunk) - The company's financial condition raises substantial doubt about its ability to continue as a going concern, with a net loss of **$10.6 million**, negative working capital of **$0.5 million**, and **$7.4 million** cash used in operations as of December 31, 2020[221](index=221&type=chunk)[222](index=222&type=chunk) - To address liquidity, the company relies on an equity purchase agreement with Lincoln Park (of which **$8.8 million** has been drawn), a **$0.8 million** PPP loan, and an effective S-3 registration to offer up to **$50 million** in securities[225](index=225&type=chunk) Working Capital (in thousands) | | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Current Assets | $4,204 | $1,878 | | Current Liabilities | $4,656 | $4,334 | | **Working Capital** | **($452)** | **($2,456)** | [Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Price) As a smaller reporting company, Precipio is not required to provide the information for this item - The company is a smaller reporting company and is not required to provide this information[262](index=262&type=chunk) [Financial Statements and Supplementary Data](index=77&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The consolidated financial statements for 2020 and 2019 are presented, with the auditor's report highlighting substantial doubt about the company's going concern ability and identifying critical audit matters - The independent auditor's report includes an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern due to significant working capital deficiency and recurring losses[266](index=266&type=chunk) - Critical Audit Matters identified by the auditor include: 1) Assessment of the estimation for collections over diagnostic testing revenue, and 2) Evaluation of changes in convertible debt to determine proper accounting treatment (extinguishment)[273](index=273&type=chunk)[276](index=276&type=chunk) Consolidated Balance Sheet Summary (in thousands) | | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total Current Assets | $4,204 | $1,878 | | **Total Assets** | **$20,713** | **$19,511** | | Total Current Liabilities | $4,656 | $4,334 | | **Total Liabilities** | **$6,551** | **$6,306** | | **Total Stockholders' Equity** | **$14,162** | **$13,205** | Consolidated Statement of Operations Summary (in thousands) | | 2020 | 2019 | | :--- | :--- | :--- | | Net Sales | $6,092 | $3,127 | | Gross Profit | $1,150 | $219 | | Operating Loss | ($9,146) | ($10,994) | | **Net Loss** | **($10,598)** | **($13,243)** | | **Basic and Diluted Loss Per Share** | **($0.85)** | **($2.33)** | Consolidated Cash Flow Summary (in thousands) | | 2020 | 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | ($7,434) | ($9,141) | | Net cash used in investing activities | ($96) | ($55) | | Net cash provided by financing activities | $9,338 | $9,663 | | **Net Change in Cash** | **$1,808** | **$467** | | **Cash at End of Period** | **$2,656** | **$848** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosures](index=151&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[512](index=512&type=chunk) [Controls and Procedures](index=151&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2020, with no material changes during the fourth quarter - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of December 31, 2020[515](index=515&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2020[517](index=517&type=chunk) - No material changes were made to internal control over financial reporting during the quarter ended December 31, 2020[519](index=519&type=chunk) [Other Information](index=153&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[521](index=521&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=154&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item will be included in the company's definitive 2021 Proxy Statement, incorporated by reference - Information is incorporated by reference from the forthcoming 2021 Proxy Statement[524](index=524&type=chunk) [Executive Compensation](index=154&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item will be included in the company's definitive 2021 Proxy Statement, incorporated by reference - Information is incorporated by reference from the forthcoming 2021 Proxy Statement[525](index=525&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=154&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item will be included in the company's definitive 2021 Proxy Statement, incorporated by reference - Information is incorporated by reference from the forthcoming 2021 Proxy Statement[526](index=526&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=154&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item will be included in the company's definitive 2021 Proxy Statement, incorporated by reference - Information is incorporated by reference from the forthcoming 2021 Proxy Statement[527](index=527&type=chunk) [Principal Accountant Fees and Services](index=154&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information for this item will be included in the company's definitive 2021 Proxy Statement, incorporated by reference - Information is incorporated by reference from the forthcoming 2021 Proxy Statement[528](index=528&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=155&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the documents filed as part of the report, including financial statements and a list of 30 exhibits such as material contracts and officer certifications - The financial statements listed under Item 8 are filed as part of this report[531](index=531&type=chunk) - All financial statement schedules are omitted as they are inapplicable or the information is included in the notes to the financial statements[534](index=534&type=chunk) - A list of **30 exhibits** is provided, including material contracts, corporate charters, and officer certifications[535](index=535&type=chunk)[536](index=536&type=chunk)[537](index=537&type=chunk) [Form 10-K Summary](index=159&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None[539](index=539&type=chunk)

Precipio, Inc. (NASDAQ:PRPO) Q3 2020 Results Conference Call November 19, 2020 5:00 PM ET Company Participants Ilan Danieli - CEO Conference Call Participants Operator Good day, and welcome to the Precipio Quarterly Shareholder Update Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business. You should not place undue reliance on forward-looking state ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Commission File Number: 001-36439 PRECIPIO, INC. (Exact name of registrant as specified in its charter) Delaware 91-1789357 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) (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, 2020 OR ◻ TRANSITION REPORT PURSUANT TO SE ...