Predictive Oncology (US:POAI)2023-05-16 01:22Financial Data and Key Metrics Changes - As of March 31, 2023, cash and cash equivalents decreased to $18.6 million from $22.1 million as of December 31, 2022 [29] - Shareholders' equity stood at $18.6 million compared to $21.8 million as of December 31, 2022 [77] - First quarter 2023 revenue was $0.2 million, down from $0.3 million in the first quarter of 2022, with a gross margin of 50% compared to 65% in the previous year [77] Business Line Data and Key Metrics Changes - The PeDAL platform is highlighted as a significant asset, with the ability to predict tumor responses with 92% accuracy, aiding in drug discovery [8] - The company has launched 11 cancer therapies currently on the market and is sponsoring an additional 160 compounds [9] Market Data and Key Metrics Changes - The company is positioned to participate in the $1 billion artificial intelligence drug discovery market, projected to grow annually at a compound rate of more than 30% [51] Company Strategy and Development Direction - The company aims to leverage its PeDAL platform and partnerships to mitigate clinical risks and enhance drug discovery processes [82] - Recent partnerships with Cancer Research Horizon (CRH) and Cvergenx are expected to expand the company's reach in oncologic drug development [85][87] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue potential in the next six months, indicating that it will be greater than the previous year [46] - The company is working towards breakeven, with expectations of achieving this within the next 12 months [103] Other Important Information - The company has no debt, indicating a strong balance sheet [29] - A recent lawsuit was mentioned, with management asserting a strong commitment to resolving it with minimal impact on investors [14] Q&A Session Summary Question: What is the timeline for breakeven and how many molecules have been looked at under the partnership with Cancer Research? - Management confirmed that they are working on one compound, and successful development will trigger financial milestones [35] Question: Can you clarify the situation regarding David Smith stepping down from the Board? - Management explained that David Smith stepped down due to a conflict with his law firm but will remain as a Board adviser and lead corporate counsel [99] Question: What are the expectations for revenue growth in the next quarter? - Management expressed hope for revenue growth within the fiscal year, noting that no machines were sold in the last quarter but a new agreement in Canada was signed [103]