iSpecimen (US:ISPC)2025-08-14 20:05Financing Activities - iSpecimen Inc. closed a private placement offering on December 1, 2021, for gross proceeds of approximately $21 million, after deducting $1.4 million for underwriting discounts and commissions [164]. - The company entered into an At the Market Offering Agreement on March 5, 2024, allowing for the issuance of shares with an aggregate offering price of up to $1,500,000, resulting in net proceeds of approximately $1,239,000 after offering costs [165]. - On September 19, 2024, iSpecimen Inc. secured a loan of $1,000,000 with an interest rate of 18% per annum, which was fully paid off by October 31, 2024 [171][172]. - The company raised approximately $4,998,464 in a public offering on October 31, 2024, with plans to use the net proceeds for debt repayment, potential acquisitions, and working capital [173]. Stock and Compliance - A reverse stock split of 1-for-20 was approved and became effective on September 13, 2024, allowing the company to regain compliance with Nasdaq listing requirements [168][169]. Revenue and Sales Performance - Revenue decreased by approximately $2,151,000, or 75%, from approximately $2,864,000 for the three months ended June 30, 2024, to approximately $713,000 for the three months ended June 30, 2025 [202]. - Revenue decreased by approximately $3,383,000, or 66%, from approximately $5,154,000 for the six months ended June 30, 2024 to approximately $1,771,000 for the six months ended June 30, 2025 [213]. - Average selling price decreased by approximately $202, or 42%, from approximately $484 in the three months ended June 30, 2024, to approximately $282 in the three months ended June 30, 2025 [203]. - Average selling price decreased by approximately $96, or 21%, from approximately $462 to approximately $366 during the same period [214]. - Specimen count decreased by 3,385, or approximately 57%, from 5,918 specimens in the three months ended June 30, 2024, to 2,533 specimens in the three months ended June 30, 2025 [202]. - Specimen count decreased by 6,317, or approximately 57%, from 11,159 specimens in the six months ended June 30, 2024 to 4,842 specimens in the six months ended June 30, 2025 [213]. Expenses and Cost Management - Cost of revenue decreased by approximately $980,000, or 69%, from approximately $1,424,000 for the three months ended June 30, 2024, to approximately $444,000 for the three months ended June 30, 2025 [204]. - Technology expenses decreased by approximately $376,000, or 41%, from approximately $912,000 for the three months ended June 30, 2024, to approximately $536,000 for the three months ended June 30, 2025 [205]. - Sales and marketing expenses decreased by approximately $825,000, or 76%, from approximately $1,083,000 for the three months ended June 30, 2024, to approximately $258,000 for the three months ended June 30, 2025 [207]. - Fulfillment costs decreased by approximately $185,000, or 43%, from approximately $433,000 for the three months ended June 30, 2024, to approximately $248,000 for the three months ended June 30, 2025 [209]. - General and administrative expenses decreased by approximately $107,000, or 10%, from approximately $1,055,000 for the three months ended June 30, 2024, to approximately $948,000 for the three months ended June 30, 2025 [210]. - Total operating expenses decreased by approximately $5,105,000, or 49%, from approximately $10,336,000 for the six months ended June 30, 2024 to approximately $5,231,000 for the six months ended June 30, 2025 [212]. Financial Position and Cash Flow - Cash and cash equivalents decreased by approximately $1,290,000, or 69%, from approximately $1,878,000 as of December 31, 2024 to approximately $589,000 as of June 30, 2025 [224]. - Working capital deficit increased by approximately $1,823,000, or 84%, from approximately $2,182,000 to approximately $4,005,000 [224]. - Net cash used in operating activities decreased by approximately $2,324,000, or 64%, from approximately $3,612,000 for the six months ended June 30, 2024 to approximately $1,288,000 for the same period in 2025 [224]. - Net cash provided by financing activities was approximately $1,187,000 for the six months ended June 30, 2024, consisting of approximately $1,494,000 from common stock issuance and offset by approximately $308,000 in offering costs and stock repurchase [235]. Operational Challenges - The ongoing Russian-Ukrainian war impacted the company's supply chain, causing delays and increased costs due to the unavailability of suppliers in those regions [179][180]. - Inflation has negatively impacted employee salaries, which constitute a significant portion of operating costs, but the costs of supplies have not significantly affected the company's results [237]. - Long-term contracts with vendors have mitigated the impact of inflation on specimen costs, which include revenue sharing plans [238]. - The company experienced an increase in shipping costs during the six months ended June 30, 2025, although timely deliveries were maintained due to the small size of packages shipped [236]. Strategic Initiatives - iSpecimen Inc. is actively reevaluating pricing strategies and enhancing internal communications to improve sales efficiency amid challenging economic conditions [177]. - The company aims to retain and grow researcher and supplier usage of its iSpecimen Marketplace to support biospecimen procurement and explore adjacent business opportunities [162]. - The company continues to focus on improving liquidity to address financial obligations and mitigate adverse effects from economic downturns in life science research [178]. - The company terminated 180 supplier agreements during the year ended December 31, 2024, as part of its "supplier network refresh project" [186]. Accounting and Regulatory Matters - There have been no material changes in critical accounting policies and procedures during the six months ended June 30, 2025 [240]. - The company has elected not to "opt out" of the extended transition period under the JOBS Act, allowing it to adopt new accounting standards at the same time as private companies [242]. - The company intends to rely on certain exemptions provided by the JOBS Act, including reduced reporting requirements and auditor's attestation reports [243]. - The company will remain classified as an "emerging growth company" until it meets specific revenue or debt thresholds, or until December 31, 2026 [243]. Loss and Income - Net loss improved by approximately $2,306,000, or 46%, from a net loss of approximately $5,011,000 to approximately $2,705,000 for the same period [212]. - Other income, net, increased by approximately $583,000, or 341%, from approximately $171,000 to approximately $754,000 for the six months ended June 30, 2025 [223].