iSpecimen (ISPC) - 2025 Q3 - Quarterly Report

Financial Performance - Revenue decreased by approximately $2,555,000, or 96%, from approximately $2,662,000 for the three months ended September 30, 2024, to approximately $107,000 for the three months ended September 30, 2025[208]. - Specimen count decreased by 8,181, or approximately 97%, from 8,461 specimens in the three months ended September 30, 2024, to 280 specimens in the three months ended September 30, 2025[208]. - Revenue decreased by approximately $5,938,000, or 76%, from approximately $7,816,000 for the nine months ended September 30, 2024 to approximately $1,877,000 for the nine months ended September 30, 2025, primarily due to a decrease of 14,498 specimens, or approximately 74%[219]. - Cost of revenue decreased by approximately $2,673,000, or 67%, from approximately $3,979,000 for the nine months ended September 30, 2024 to approximately $1,306,000 for the nine months ended September 30, 2025, attributed to a 74% decrease in the number of specimens delivered[221]. - Net loss increased by approximately $1,340,795, or 93%, from $1,439,853 for the three months ended September 30, 2024, to $2,780,648 for the three months ended September 30, 2025[207]. Operating Expenses - Total operating expenses decreased by approximately $1,430,526, or 33%, from $4,367,340 for the three months ended September 30, 2024, to $2,936,814 for the three months ended September 30, 2025[207]. - Total operating expenses decreased by approximately $6,535,923, or 44%, from approximately $14,703,197 for the nine months ended September 30, 2024 to approximately $8,167,274 for the nine months ended September 30, 2025[218]. - General and administrative expenses decreased by approximately $1,481,000, or 37%, from approximately $4,052,000 for the nine months ended September 30, 2024 to approximately $2,571,000 for the nine months ended September 30, 2025[227]. - Fulfillment costs decreased by approximately $597,000, or 46%, from approximately $1,293,000 for the nine months ended September 30, 2024 to approximately $696,000 for the nine months ended September 30, 2025[226]. - Technology expenses decreased by approximately $946,000, or 37%, from approximately $2,579,000 for the nine months ended September 30, 2024 to approximately $1,633,000 for the nine months ended September 30, 2025[222]. Cash Flow and Financing - Cash and cash equivalents increased by approximately $904,350, or 48%, from approximately $1,878,408 as of December 31, 2024 to approximately $2,782,758 as of September 30, 2025[229]. - Net cash flows used in operating activities decreased by approximately $1,367,347, or 29%, from approximately $4,691,032 for the nine months ended September 30, 2024 to approximately $3,323,685 for the nine months ended September 30, 2025[229]. - Net cash provided by financing activities was approximately $5,228,000 for the nine months ended September 30, 2025, including $1,750,000 from PIPE financing and $4,000,000 from Underwritten financing[239]. Market and Operational Challenges - iSpecimen Inc. faced operational challenges due to the Russian-Ukrainian war, impacting approximately $1 million in purchase orders and leading to delays and margin reductions[185]. - Inflation has negatively impacted employee salaries and supply costs, although the costs of specimens have not been significantly affected due to long-term vendor contracts[242][243]. - The company has not experienced material supply chain issues affecting transportation, allowing timely deliveries during the nine months ended September 30, 2025[241]. Strategic Initiatives - iSpecimen Marketplace automates the procurement process, allowing researchers to efficiently find and manage specimens, enhancing operational efficiency for both researchers and biospecimen providers[159][161]. - The company is focused on enhancing pricing strategies and operational efficiencies to address current market conditions and improve liquidity[183][184]. - The company intends to rely on exemptions provided by the JOBS Act, remaining an "emerging growth company" until certain revenue or debt thresholds are met[248]. Stock and Securities - 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[171][172]. - The company raised gross proceeds of $4,998,464 from a public offering on October 31, 2024, with net proceeds of approximately $4,632,275 after offering costs[176][177]. - The company generated gross proceeds of $1,749,998 from a private placement on July 31, 2025, with net proceeds of approximately $1,649,998 after offering costs[166][167]. - The company issued 199,004 shares under an ATM agreement for gross proceeds of approximately $1,494,000 during the year ended December 31, 2024, resulting in net proceeds of approximately $1,239,000 after costs[168]. - iSpecimen Inc. entered into a Note Purchase Agreement for a loan of $1,000,000 with an interest rate of 18% per annum, which was fully paid off by October 31, 2024[174][175].