Financial Data and Key Metrics - Revenue grew by almost 30% quarter-over-quarter and doubled year-over-year, reaching $4.5 million in Q3 2023, putting the company on an annualized run rate of $18 million [8] - Cash burn dropped to around $1 million in Q3 2023, down approximately 40% from $2.5 million in the same quarter of the previous year [9] - The Pathology division reached a cash-neutral status, achieving a breakeven run rate of $14 million, while the Product division is on track to reach a reduced breakeven threshold of $6 million annually ($1.5 million per quarter) [13][15] Business Line Performance - Both the Pathology and Product businesses contributed to the revenue growth, with the Pathology division now operating as a cash-neutral entity [8][13] - The Product division has not yet reached its $8 million target but is expected to achieve a revised breakeven threshold of $6 million annually due to operational efficiencies [15] Market and Strategic Direction - The company's strategy focuses on developing and selling diagnostic products for laboratories, leveraging its cash-neutral Pathology division as a cost-free R&D center [18][19] - The release of the BCR-ABL assay in August 2023, developed at a cost of less than $100,000, exemplifies the company's low-cost product development model [20] - The total available market potential for products like HemeScreen is estimated at $400 million annually, with significant growth potential [23] Management Commentary on Operating Environment and Future Outlook - Management emphasized the importance of maintaining a frugal mindset even after achieving breakeven, highlighting operational efficiencies such as bringing billing functions in-house, which saves $50,000 to $75,000 monthly [14][17] - The company plans to focus on financial stability, product growth, and R&D development in 2024, including expanding the HemeScreen product line and developing new products [24][26] - Management intends to increase investor outreach through conferences, social media, and digital marketing campaigns to raise awareness of the company's financial success and growth potential [27] Other Key Information - The company believes it has sufficient cash reserves to achieve financial independence, even if it takes one or two more quarters to reach the target [16] - Investments in sales and marketing, as well as product production lines, are expected to yield positive ROI within 12 months, further improving business economics [21][22] Q&A Session - No specific questions or answers were provided in the transcript [30]

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, 2023 OR Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☐ 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 - In Q3, the company achieved $2.7 million in revenues, representing 77% of its goal, with July marking the first time revenues exceeded $1 million [9] - The company aims to reach breakeven with a target of $14 million annual run rate for the Pathology Services Division, translating to approximately $3.5 million per quarter [25] Business Line Data and Key Metrics Changes - The Pathology Services Division's breakeven point is approximately $14 million annual run rate, with ongoing efforts to add new customers to create a predictable revenue stream [25][26] - The Products Division aims for an $8 million annual run rate, with current revenues at approximately $900,000, or 45% of the target [15] Market Data and Key Metrics Changes - The company has a pipeline of over $10 million in annual revenue, with expectations to close 40% of this pipeline to achieve breakeven [17] - The HemeScreen product suite has a total available market of approximately $500 million per year, while IVCell has a market of $250 million [19] Company Strategy and Development Direction - The primary goal for 2023 is to achieve breakeven and financial independence, eliminating the need to raise capital to cover cash burn [12][30] - The company plans to focus on new product development and technology expansion in 2024, diversifying revenue sources and reducing reliance on a single technology platform [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the share price stagnation is primarily due to concerns about potential capital raises, which could dilute shareholder value [21] - The company believes that as it continues to deliver results and improve its cash position, the downward pressure on the share price will subside [22] Other Important Information - Cost-cutting initiatives are projected to have a positive net impact of over $40 million in cash annually, with ongoing efforts to reduce monthly cash burn [32] - The company is prepared for a reverse stock split, which is seen as a way to increase share price and attract more investors without changing the overall market value [34][35] Q&A Session Summary Question: Would the company like to regain compliance organically? - The management expressed a desire to regain compliance organically while acknowledging that performance is key to achieving this goal [2] Question: What is the focus for the company moving forward? - The focus is on increasing revenue, reducing costs, and reaching breakeven, with confidence that the market will recognize the company's true value once these goals are met [3]

[PART I. Financial Information](index=3&type=section&id=PART%20I.%2E%20Financial%20Information) [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201%2E%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Precipio, Inc. as of June 30, 2023, and for the three and six-month periods then ended Condensed Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $4,348 | $5,710 | | **Total Assets** | $19,472 | $21,504 | | **Total Current Liabilities** | $4,721 | $4,361 | | **Total Liabilities** | $5,381 | $5,137 | | **Total Stockholders' Equity** | $14,091 | $16,367 | | **Working Capital** | ($373) | $1,349 | Condensed Consolidated Statements of Operations Summary (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $3,533 | $2,359 | $6,350 | $4,806 | | **Gross Profit** | $1,371 | $773 | $2,120 | $1,476 | | **Operating Loss** | ($2,292) | ($2,433) | ($5,318) | ($7,242) | | **Net Loss** | ($2,293) | ($2,138) | ($5,323) | ($6,722) | | **Basic and Diluted Loss Per Share** | ($0.09) | ($0.09) | ($0.22) | ($0.30) | Condensed Consolidated Statements of Cash Flows Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($2,777) | ($3,980) | | **Net cash used in investing activities** | ($54) | ($106) | | **Net cash provided by (used in) financing activities** | $1,959 | ($109) | | **Net change in cash** | ($872) | ($4,195) | | **Cash at end of period** | $2,573 | $7,473 | - The company's ability to continue as a going concern is in substantial doubt due to a history of operating losses, negative working capital of **$0.4 million**, and a net loss of **$5.3 million** for the first six months of 2023[25](index=25&type=chunk)[28](index=28&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the three and six months ended June 30, 2023, compared to the same periods in 2022 [Results of Operations for the Three Months Ended June 30, 2023 and 2022](index=30&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202023%20and%202022) Q2 Net Sales Comparison (in thousands) | Revenue Type | Q2 2023 | Q2 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Service revenue, net | $2,656 | $2,139 | $517 | 24% | | Other | $877 | $220 | $657 | 299% | | **Total Net Sales** | **$3,533** | **$2,359** | **$1,174** | **50%** | - The **50% increase** in Q2 net sales was driven by a **60% increase** in cases processed (1,614 in Q2 2023 vs. 1,009 in Q2 2022) and a significant increase in 'Other revenue' primarily from HemeScreen product sales[149](index=149&type=chunk) Q2 Gross Profit Comparison (in thousands) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | **Gross Profit** | $1,371 | $773 | | **Gross Margin** | 39% | 33% | - Operating expenses increased by **$0.5 million** to **$3.7 million** in Q2 2023, driven by higher general & administrative expenses (+$0.3M), sales & marketing (+$0.2M), and R&D (+$0.1M), partially offset by lower stock-based compensation (-$0.1M)[153](index=153&type=chunk)[154](index=154&type=chunk) [Results of Operations for the Six Months Ended June 30, 2023 and 2022](index=31&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) H1 Net Sales Comparison (in thousands) | Revenue Type | H1 2023 | H1 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Service revenue, net | $4,712 | $4,064 | $648 | 16% | | Other | $1,638 | $742 | $896 | 121% | | **Total Net Sales** | **$6,350** | **$4,806** | **$1,544** | **32%** | - The **32% increase** in H1 net sales was driven by a **40% increase** in cases processed (2,810 in H1 2023 vs. 2,006 in H1 2022) and strong growth in HemeScreen product sales[156](index=156&type=chunk) H1 Gross Profit Comparison (in thousands) | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | **Gross Profit** | $2,120 | $1,476 | | **Gross Margin** | 33% | 31% | - Operating expenses for H1 2023 decreased by **$1.3 million** to **$7.4 million**, primarily due to a **$1.9 million reduction** in stock-based compensation expense, partially offset by an **$0.8 million increase** in sales and marketing costs from an expanded sales force[161](index=161&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Working Capital Position (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Current Assets | $4,348 | $5,710 | | Current Liabilities | $4,721 | $4,361 | | **Working Capital** | **($373)** | **$1,349** | - During the first six months of 2023, the company raised net proceeds of **$2.2 million** from the sale of **4,742,038 shares** of common stock through purchase agreements and at-the-market offerings[163](index=163&type=chunk) - Net cash used in operating activities decreased to **$2.8 million** in H1 2023 from **$4.0 million** in H1 2022, an improvement of **$1.2 million**[164](index=164&type=chunk) - Cash flows from financing activities were a net inflow of **$2.0 million** in H1 2023, compared to a net outflow of **$0.1 million** in H1 2022, primarily due to proceeds from the issuance of common stock[167](index=167&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is a smaller reporting company and is not required to provide the information for this item - As a smaller reporting company, Precipio, Inc. is not required to provide quantitative and qualitative disclosures about market risk[174](index=174&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management, including the CEO and Interim CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of June 30, 2023 - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2023[175](index=175&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal controls[176](index=176&type=chunk) [PART II. Other Information](index=35&type=section&id=PART%20II%2E%20Other%20Information) [Legal Proceedings](index=35&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is subject to various laws and regulations typical of the healthcare industry and is involved in incidental legal proceedings - The company is involved in a dispute with CPA Global, which claims approximately **$0.2 million** is owed for patent services, and a liability of less than **$0.1 million** has been recorded for this matter[182](index=182&type=chunk) - Management believes the company is in compliance with healthcare fraud and abuse regulations, but notes that compliance is subject to future government review and interpretation[179](index=179&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A%2E%20Risk%20Factors) This section updates key risks facing the company, including a history of losses, the need for additional capital, and non-compliance with Nasdaq listing rules - The company has a history of losses, with a net loss of **$5.3 million** and an operating cash flow deficit of **$2.8 million** for the six months ended June 30, 2023, and expects to incur losses for the foreseeable future[184](index=184&type=chunk) - The company is not in compliance with the Nasdaq minimum bid price rule (**$1.00 per share**) and has until **October 23, 2023**, to regain compliance or face potential delisting[188](index=188&type=chunk)[189](index=189&type=chunk) - As of June 30, 2023, there is a risk of substantial dilution from approximately **9.7 million shares** underlying outstanding warrants and **4.6 million shares** underlying outstanding stock options[199](index=199&type=chunk) - The company may need to raise substantial additional capital to fund operations and commercialize its technology, and failure to do so on acceptable terms could force it to delay or cease operations[187](index=187&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no sales of unregistered securities during the three months ended June 30, 2023, except as previously detailed in a Form 8-K filing - During Q2 2023, the company did not have any sales of unregistered securities other than those disclosed in the Form 8-K filed on **June 12, 2023**, related to the private placement of warrants[204](index=204&type=chunk) [Defaults Upon Senior Securities](index=39&type=section&id=Item%203%2E%20Defaults%20Upon%20Senior%20Securities) Not applicable [Mine Safety Disclosures](index=39&type=section&id=Item%204%2E%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=39&type=section&id=Item%205%2E%20Other%20Information) None [Exhibits](index=39&type=section&id=Item%206%2E%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including forms of warrants, the securities purchase agreement, and officer certifications

As filed with the U.S. Securities and Exchange Commission on July 7, 2023 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Precipio, Inc. (Exact name of registrant as specified in its charter) | Delaware | 3826 | 91-1789357 | | --- | --- | --- | | (State or other jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer | | incorporation or organization) | Classification Code Number) | Ident ...

Precipio, Inc. (NASDAQ:PRPO) Q1 2023 Earnings Conference Call May 17, 2023 5:00 PM ET Company Participants Ilan Danieli - CEO Conference Call Participants Operator Welcome to the Precipio Q1 2023 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 contain forward-looking statements about our business. You should not place undue reliance on forward-looking statements as th ...

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, 2023 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 i ...

Precipio, Inc. (NASDAQ:PRPO) Q4 2022 Earnings Conference Call April 3, 2023 5:00 PM ET Company Participants Ilan Danieli - CEO Operator Welcome to the Precipio Shareholder 2022 Fourth Quarter and Year-End 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 contain forward-looking statements about our business. You should not place undue reliance on forward-looking stateme ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | Commission File Number: 001-36439 | | | --- | --- | | PRECIPIO, | INC. | | (Exact name of registrant as specified in its charter) | | | Delaware | 91-1789357 | | (State or ot ...

Precipio, Inc. (NASDAQ:PRPO) Q3 2022 Earnings Conference Call November 14, 2022 5:00 PM ET Company Participants Ilan Danieli - Chief Executive Officer Conference Call Participants Operator Welcome to the Precipio Shareholder Third Quarter 2022 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 contain forward-looking statements about our business. You should not place undue r ...