Predictive Oncology (POAI) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company is transitioning from R&D and product development to the validation, commercialization, and launch of its PEDAL drug discovery platform [15][28] - The sales cycle for the PEDAL platform is approximately 12 months, which impacts revenue recognition [46][48] Business Line Data and Key Metrics Changes - The company has partnered with Cancer Research Horizons to integrate its PEDAL platform into drug discovery processes, enhancing visibility and credibility in the market [15][16] - A collaboration with Cvergenx, Inc. aims to develop a genomics-based approach to precision radiation therapy using the PEDAL platform [18][20] Market Data and Key Metrics Changes - The company is focusing on oncology drug discovery and development, leveraging its unique AI capabilities and biorepository of tumor samples [8][9] - The market for AI in biopharma is growing, with increasing adoption of AI technologies for drug discovery [50] Company Strategy and Development Direction - The company is rebranding and repositioning itself to emphasize its unique AI-driven approach to drug discovery [5][8] - There is a strategic focus on expanding the intellectual property portfolio and enhancing partnerships with academic and research institutions through the Accelerating Compound Exploration program [10][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges of being an innovator in the biopharma space, emphasizing the need to demonstrate how their platform fits into existing workflows [45][48] - The FDA's acceptance of AI technologies is seen as a positive development for the company's future prospects [72] Other Important Information - The company has engaged a leading investor relations firm to raise awareness among Wall Street constituents [27] - A new Scientific Advisory Board is being formed to focus on emerging market opportunities in AI and oncology [25][26] Q&A Session Summary Question: Did the departure of Dr. Julia Kirshner hurt the company? - Management stated that her departure did not hinder technological progress, as the necessary expertise remains within the company [34][40] Question: What is the expected timeline for achieving breakeven status? - The CFO indicated that predicting a timeline for breakeven is challenging due to the variability in sales cycles and contract milestones [62] Question: What is the timeframe from signing a contract to receiving the first payment? - The company expects initial payments within 10 to 12 weeks after contract signing, depending on project size [68][70] Question: Will key executives purchase stock to show confidence in the company? - Management expressed interest in purchasing stock but is currently in a blackout period preventing such actions [89][91] Question: What is the target share price post-reverse split? - The management indicated that the ideal post-split share price would be in the range of $3.50 to $4.50, but this will depend on market conditions at the time [96][100] Question: How does the reverse split benefit shareholders? - Management clarified that while the reverse split does not change the actual value, a higher share price could attract more investors [110][111]