Form 8-K - Current report

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): August 6, 2024

 

iSpecimen Inc.

(Exact name of registrant as specified in its charter)

 

Delaware		001-40501		27-0480143
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

450 Bedford Street Lexington, MA 02420

(Address of principal executive offices, including zip code)

 

Registrant’s telephone number, including area code: [phone]

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001 per share		ISPC		The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

Item 2.02.

Results of Operations and Financial Condition.

 

On August 6, 2024, iSpecimen Inc., a Delaware corporation (the “Company”), issued a press release (“Earnings Release”) announcing its financial and operating results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. You are advised that financial information in the Earnings Release for the quarter ended June 30, 2024 is unaudited. The Company also filed its unaudited financial statements for the quarter ended June 30, 2024 with its Quarterly Report on Form 10-Q on August 6, 2024.

 

The Earnings Release contains certain statements and information that speak to the Company’s expectations or predictions of the future. These statements and information may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such forward-looking statements are subject to risks and uncertainties, many of which are beyond the Company’s control, which could cause the Company’s actual results to differ materially from those expressed in or implied by these statements. Please see the Company’s disclosures regarding risk factors and forward-looking statements in its filings with the Securities and Exchange Commission (the “SEC”) (including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q, and most recent Annual Report on Form 10-K) for a discussion of the known material factors that could cause the Company’s actual results to differ materially from those indicated or implied by such forward-looking statements.

 

The information in this Item 2.02 and Exhibit 99.1 attached hereto will not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor will it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Item 7.01.

Regulation FD Disclosure.

 

The Company also held a conference call and audio webcast at 8:30 a.m. Eastern Time on August 6, 2024 (“Earnings Call”) in which it discussed its second quarter of 2024 results. The Company issued a press release on July 25, 2024, providing information on how to access the Earnings Call. A replay of the Earnings Call is available through August 20, 2024, by calling [phone] (U.S. Toll Free) or [phone] (International). An archived version of the Earnings Call will also be available on the Company’s Investor Relations site at https://investors.ispecimen.com/presentations/. During the Earnings Call, the Company provided an investor presentation, dated August 2024 (the “Presentation”), which is attached hereto as Exhibit 99.2 and incorporated by reference herein. The Presentation will also be posted on the Company’s website and can be accessed at https://investors.ispecimen.com/. The Company expressly disclaims any obligation to update the Presentation, or any other information posted on or available through its website, and cautions that the information set forth therein is only accurate as of the date indicated on such materials. The inclusion of any data or statements in the Presentation (or available on or through the Company’s website) does not signify that such information is considered material.

 

The information in this Item 7.01 and Exhibit 99.2 attached hereto will not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor will it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Forward-Looking Statements

 

This Current Report on Form 8-K may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such forward-looking statements are characterized by future or conditional verbs such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “continue” or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. Such statements are only predictions and the Company’s actual results may differ materially from those anticipated in these forward-looking statements.

 

 

 

 

There may be events in the future that the Company is not able to accurately predict or control. Factors that may cause such differences include, but are not limited to, those discussed under risk factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and other filings filed with the SEC, including the uncertainties associated with the Company’s lack of profitability, its continued capital needs, its lack of a long operating history, its growth strategy, inflation and recession and its impact on the business, Russia’s war with Ukraine and its impact on the operations, its technology development plans, and the regulatory environment in which it operates. Forward-looking statements speak only as of the date they are made. The Company does not assume any obligation to update forward-looking statements as circumstances change. The Company gives no assurance that it will achieve its expectations.

 

You may access the Company’s SEC filings by visiting SEC’s website at http://www.sec.gov. This Current Report on Form 8-K does not constitute an offer or invitation for the sale or purchase of securities or to engage in any other transaction with the Company or its affiliates. The information in this Current Report on Form 8-K is not targeted at the residents of any particular country or jurisdiction and is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

 

Item 9.01.

Financial Statements and Exhibits.

 

(d)

Exhibits.

 

99.1	Press Release, dated August 6, 2024.
99.2	Investor Presentation, dated August 2024.
104	Cover Page Interactive Data File

 

Portions of this Current Report on Form 8-K may constitute “forward-looking statements” as defined by federal law. Although the Company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to material changes in the Company’s performance is contained in the Company’s filings with the SEC.

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: August 6, 2024

 

	iSPECIMEN INC.
	By:	/s/ Tracy Curley
	Name:	Tracy Curley
	Title:	Chief Executive Officer

 

 

 

 

Exhibit 99.1

 

iSpecimen Reports Second Quarter 2024 Results

 

Revenue increased 76% year-over-year to approximately $2.86 million

 

Brielan Smiechowski Named SVP of Sales and Business Development

 

LEXINGTON, Mass., August 6, 2024 – iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers, today reported its financial and operating results for the three and six month periods ended June 30, 2024.

 

“iSpecimen’s strong results reflect the progress we have made towards operational improvements throughout the Company this year, resulting in a 76% increase in revenue to $2.86 million for the second quarter of 2024,” stated Tracy Curley, CEO of iSpecimen. “The initiatives we have completed, namely, our Next Day Quotes program, has quickly become a key focus internally for our business and has meaningfully improved our conversion rates throughout the first half of 2024. In addition, our Supplier Refresh program has allowed us to engage with our suppliers at a level not previously possible, which in turn, has contributed to increased velocity through our sales funnel and the strong results we generated for the quarter. We also continued to decrease costs through head count and other expense reductions, as we focus on driving towards profitability and increasing shareholder value,”

 

“During the quarter we hired Brielan Smiechowski as our new Senior Vice President of Sales & Business Development. She brings over 15 years of sales experience in life sciences and healthcare. In this role, Brielan will be leading the focus on key customer accounts as well as implementing a more robust outbound sales and business development structure” concluded Ms. Curley.

 

Second Quarter and First Six-Month 2024 Highlights

 

●

In the first half of 2024, 58% of Next Day Quotes were converted to purchase orders, directly contributing to our ability to exceed our internal revenue goals for Q2 2024;

●

As of June 30, 2024, iSpecimen had over 105 unique supplier organizations under contract, compared to 243 suppliers on December 31, 2023, and down from 140 at the end of the first quarter 2024, as the Company continues to focus on building a higher quality supplier network; and

●

As of June 30, 2024, iSpecimen had $2.15 million of cash and available-for-sale securities, which represented a decrease of approximately $2.86 million from approximately $5.01 million, as of December 31, 2023 and a decrease of approximately $405,000 from approximately $2.56 million as of March 31, 2024.

 

Financial Results for the Three and Six Months Ended June 30, 2024

 

Revenue was approximately $2.86 million for the second quarter of 2024, an increase of 76%, compared to approximately $1.63 million for the second quarter of 2023. The increase in revenue was primarily due to an increase of 1,236 specimens, or 26%, in specimen count from 4,682 specimens in the three months ended June 30, 2023 to 5,918 specimens in the three months ended June 30, 2024. The average selling price per specimen also increased by $137, or 39%, from $347 in the three months ended June 30, 2023 to $484 in the three months ended June 30, 2024.

 

During the six-month period ended June 30, 2024, we reported revenue of approximately $5.15 million, compared to approximately $4.58 million during the same period last year. The increase in revenue for the six-month period ended June 30, 2024, was attributable to an increase in average selling price per specimen of $119, or 34%, from $343 in the six months ended June 30, 2023, to $462 in the six months ended June 30, 2024. The increase in average selling price per specimen was offset by a decrease of 2,152 specimens, or 16%, in specimen count from 13,311 specimens in the six months ended June 30, 2023 to 11,159 specimens in the six months ended June 30, 2024.

 

 

 

 

For the quarter ended June 30, 2024, cost of revenue increased by approximately $570,000, or 67%, from approximately $854,000 in the second quarter of 2023 to approximately $1,424,000 for the second quarter of 2024, which was attributable to a 26% increase in the number of specimens accessioned for the current period compared to the same period in the prior year, and a $58, or 32%, increase in the average cost per specimen.

 

Cost of revenue for the six-month period ended June 30, 2024 was approximately $2.42 million compared to approximately $2.00 million for the same period in 2023, an increase of 21%. The six-month period increase was attributable to a 45% increase in the average cost per specimen impacted by the specimen mix, offset by a 16% decrease in the number of specimens accessioned during the six months ended June 30, 2024, over the same period in the prior year.

 

General and administrative expenses for the three months ended June 30, 2024, decreased by approximately $703,000, or 40%, to approximately $1.05 million compared to approximately $1.76 million for the same period in the prior year. For the six-month period ended June 30, 2024, general and administrative expenses decreased by approximately $311,000, or 9%, to approximately $3.16 million compared to approximately $3.47 million during the same period in the prior year.

 

Net loss was approximately $2.11 million, or $(0.19) per share, for the second quarter of 2024, compared to a net loss of approximately $3.50 million, or $(0.39) per share, for the second quarter of 2023. Net loss was approximately $5.01 million, or $(0.49) per share, for the first six months of 2024, compared to a net loss of approximately $5.9 million, or $(0.66) per share, for the first six months of 2023.

 

As of June 30, 2024, cash and cash equivalents, along with available-for-sale securities, were approximately $2.15 million, compared to approximately $5.01 million as of December 31, 2023.

 

Conference Call and Webcast Information

 

The Company will host a conference call and audio webcast on Tuesday, August 6, 2024, at 8:30 a.m. Eastern Time featuring remarks by Tracy Curley, CEO.

 

Event:	iSpecimen Second Quarter 2024 Results Conference Call
Date:	Tuesday, August 6, 2024
Time:	8:30 a.m. Eastern Time
Dial in:	1-800-717-1738 (U.S. Toll Free) or 1-646-307-1865 (International)
Webcast:	https://viavid.webcasts.com/starthere.jsp?ei=1680345&tp_key=2f4ff16577

 

For interested individuals unable to join the conference call, a replay will be available through August 20, 2024, at [phone] (U.S. Toll Free) or + 1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 1170973. An archived version of the webcast will also be available on iSpecimen’s Investor Relations site: https://investors.ispecimen.com/presentations/.

 

About iSpecimen

 

iSpecimen (Nasdaq: ISPC) offers an online marketplace for human biospecimens, connecting scientists in commercial and non-profit organizations with healthcare providers that have access to patients and specimens needed for medical discovery. Proprietary, cloud-based technology enables scientists to intuitively search for specimens and patients across a federated partner network of hospitals, labs, biobanks, blood centers and other healthcare organizations. For more information, please visit www.ispecimen.com.

 

 

 

 

Forward Looking Statements

 

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or conditional verbs such as "may," "will," "expect," "intend," "anticipate," “believe," "estimate," "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.

 

Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the risk factors contained in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. Forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company's forward-looking statements occurs, the Company's business, financial condition and operating results may vary materially from those expressed in the Company's forward-looking statements.

 

Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

 

For further information, please contact:

 

Investor Contact

KCSA Strategic Communications

Phil Carlson

[e-mail]

 

 

 

 

iSpecimen Inc.

Condensed Balance Sheets

 

		June 30, 2024				December 31, 2023
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	2,151,243			$	2,343,666
Available-for-sale securities			—				2,661,932
Accounts receivable – unbilled			1,953,632				2,212,538
Accounts receivable, net of allowance for doubtful accounts of $700,862 and $520,897 at June 30, 2024 and December 31, 2023, respectively			892,814				728,388
Prepaid expenses and other current assets			237,564				292,079
Total current assets			5,235,253				8,238,603
Property and equipment, net			104,822				127,787
Internally developed software, net			5,695,166				6,323,034
Other intangible assets, net			812,478				908,255
Operating lease right-of-use asset			26,538				193,857
Security deposits			27,601				27,601
Total assets		$	11,901,858			$	15,819,137
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	4,205,371			$	3,925,438
Accrued expenses			1,319,201				1,540,607
Operating lease current obligation			29,130				167,114
Deferred revenue			258,872				415,771
Total current liabilities			5,812,574				6,048,930
Operating lease long-term obligation			—				29,130
Total liabilities			5,812,574				6,078,060
Commitments and contingencies (See Note 8)
Stockholders’ equity
Common stock, $0.0001 par value, 200,000,000 shares authorized, 13,126,770 issued and 13,095,770 outstanding at June 30, 2024 and 9,114,371 issued and 9,083,371 outstanding at December 31, 2023			1,309				908
Additional paid-in capital			70,464,100				69,104,313
Treasury stock, 31,000 shares, at cost			(172	)			(172	)
Accumulated other comprehensive income			—				840
Accumulated deficit			(64,375,953	)			(59,364,812	)
Total stockholders’ equity			6,089,284				9,741,077
Total liabilities and stockholders’ equity		$	11,901,858			$	15,819,137

 

 

 

 

iSpecimen Inc.

Condensed Statements of Operations and Comprehensive Loss

(Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Revenue		$	2,863,679			$	1,625,140			$	5,153,672			$	4,575,339
Operating expenses:
Cost of revenue			1,424,392				853,633				2,424,398				2,000,545
Technology			911,927				843,099				1,823,894				1,677,506
Sales and marketing			1,082,949				977,748				1,748,890				2,025,346
Supply development			137,511				291,360				335,350				614,862
Fulfillment			433,189				462,672				844,043				891,692
General and administrative			1,055,376				1,758,451				3,159,282				3,469,633
Total operating expenses			5,045,344				5,186,963				10,335,857				10,679,584
Loss from operations			(2,181,665	)			(3,561,823	)			(5,182,185	)			(6,104,245	)
Other income, net
Interest expense			(4,474	)			(3,535	)			(8,939	)			(7,070	)
Interest income			9,163				110,882				39,661				225,144
Other income (expense), net			67,952				(29,138	)			140,322				(29,255	)
Total other income, net			72,641				78,209				171,044				188,819
Net loss		$	(2,109,024	)		$	(3,483,614	)		$	(5,011,141	)		$	(5,915,426	)
Other comprehensive income (loss):
Net loss		$	(2,109,024	)		$	(3,483,614	)		$	(5,011,141	)		$	(5,915,426	)
Unrealized gain (loss) on available-for-sale securities			(41	)			(18,155	)			(840	)			688
Total other comprehensive income (loss)			(41	)			(18,155	)			(840	)			688
Comprehensive loss		$	(2,109,065	)		$	(3,501,769	)		$	(5,011,981	)		$	(5,914,738	)
Net loss per share - basic and diluted		$	(0.19	)		$	(0.39	)		$	(0.49	)		$	(0.66	)
Weighted average shares of common stock outstanding - basic and diluted			11,340,586				9,033,868				10,236,523				9,011,644

 

 

 

Exhibit 99.2

 

August 2024 Investor Presentation Nasdaq: ISPC The Online Marketplace for Human Biospecimens Transforming Biospecimen Procurement

 

 

This presentation may contain forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . Such forward - looking statements are characterized by future or conditional verbs such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate” and “continue” or similar words . You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward - looking information . Such statements are only predictions and our actual results may differ materially from those anticipated in these forward - looking statements . We believe that it is important to communicate future expectations to investors . However, there may be events in the future that we are not able to accurately predict or control . Factors that may cause such differences include, but are not limited to, those discussed under Risk Factors in our filings filed with the Securities and Exchange Commission (the "SEC"), including the uncertainties associated with our lack of profitability, our continued capital needs, our lack of a long operating history, our growth strategy, the uncertain effect of geopolitical developments, our technology development plans, and the regulatory environment in which we operate . We do not assume any obligation to update forward - looking statements as circumstances change . Certain market data information in this presentation is based on management's estimates . We obtained the industry, market and competitive position data used throughout this presentation from internal estimates and research as well as from industry publications and research, surveys and studies conducted by third parties . We believe our estimates to be accurate as of the date of this presentation . However, this information may prove to be inaccurate because of the method by which we obtained some of the data for our estimates or because this information cannot always be verified due to the limits on the availability and reliability of raw data, and the nature of the data gathering process . You may access our SEC filings by visiting the SEC’s website at http : //www . sec . gov . This presentation does not constitute an offer or invitation for the sale or purchase of securities or to engage in any other transaction with us or our affiliates . The information in this presentation is not targeted at the residents of any particular country or jurisdiction and is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation . 2 Forward - Looking Statements

 

 

Our Vision To support the biospecimen industry with an online marketplace connecting researchers to patients, biospecimens, and data, through our global network. 3

 

 

4 1. Similar to Amazon, iSpecimen has developed an online marketplace to seamlessly connect researchers with healthcare providers and supplier organizations 2. First mover advantage that addresses an inefficient and fragmented global biospecimen supply chain that is poised to be disrupted by an online solution 3. $3B - $4B global biospecimen market growing at 10 - 15% per year 1,2 4. Strong revenue growth with an 8 - year CAGR of 39% fueled by precision and regenerative medicine research 5. Plans to enhance existing platform and develop new service offering to increase revenue opportunities Investor Highlights >105 Healthcare Provider / Supplier Organizations >600 Customer Organizations 1,2 “Sources Cited” page 27

 

 

Biospecimens are Essential for Life Science R&D Basic Research Biomarker Identification & Validation Drug Discovery & Development Diagnostics Discovery & Validation Biofluids Solid Tissue Stem & Immune Cells Plasma, Serum, Urine, Saliva Industry Academia Government 5 Lung, Breast, Colon, Brain Bone Marrow, Blood, Tonsils, Lymph Nodes Applications Patients SUPPLY SIDE HEALTHCARE PROVIDERS DEMAND SIDE LIFE SCIENCE RESEARCHERS Biospecimens Data Organizations Medical Record

 

 

Biospecimen Supply Chain Challenges Providers miss revenue and research opportunities > 3 Billion clinical specimens are discarded annually worldwide 4 > 1 Billion Patient encounters yearly in the U.S. where a specimen could be provided for research 3 > 800 Million banked specimens are in biorepository inventories worldwide 5 6 Researchers limit their work … in 2022, 78% of researchers said they find it difficult - to - extremely difficult to find the type and quantity of specimens they need 7 “Challenging” and “Inefficient” most common words used to describe biospecimen procurement process by researchers 7 10 years ago, 81% of researchers said they limit the scope of their work due to difficulties obtaining biospecimens 6

 

 

Biospecimen Supply Chain Challenges 7 - Difficult to Connect, Search and Compliantly Transact - Average time to develop relationships is 6 - 12 months ᶟ PROVIDERS RESEARCHERS CHALLENGE

 

 

iSpecimen Marketplace | Approach Demand Side Life Science Researchers Supply Side Providers

 

 

Advance Scientific Discovery Support research mission and advance diagnostic, therapeutic and vaccine research Monetize Banked Biospecimens Instantly connect to a global network of researchers in search for biospecimens Ensure Compliance Protect the privacy and security of patient information Accelerate Research Procure specimens, even hard - to - find samples, through our streamlined biospecimen match - making process Save Time and Money Instantly connect to global network of specimen providers Reduce Risk Manage contracting and regulatory compliance Providers… Researchers… 9 iSpecimen Value Proposition

 

 

10 Agreements with 140+ Supplier Organizations ✔ Hospitals ✔ Clinics and Practice Groups ✔ Clinical Research Centers ✔ Clinical and Pathology Labs ✔ Biorepositories ✔ Blood Centers Growing Researcher Adoption ✔ 600+ Buyside Customers ✔ Work with 70% of Top - 20 Pharma and IVD Companies in the World ✔ Cumulatively delivered 175,000+ Specimens Across 2,400+ Projects • 71% CAGR – Registered Users (2015 – Q2 2024) • 36% CAGR – Marketplace Logins (2015 - 2023) • Approximately 7,700 Registered Research and Supplier Users as of June 30, 2024 Comprehensive Supplier & Researcher Networks Global Footprint United States Mexico United Kingdom Netherlands Germany Turkey Cyprus Romania Ukraine Armenia Georgia Nigeria Russian Federation India

 

 

Strategic Growth Initiatives 11

 

 

“Utilization of sample data for research and for monetization is the next key value driver for the biobanks.” - Frost & Sullivan, Global Biobanking Market Landscape Capitalize on Growing Data Asset Banked Specimen Records Patient Records Medical Condition Records Clinical Specimen Records Laboratory Test Records Millions of Unique Specimen and Patient Records provide a competitive advantage and differentiator now and available for future adjacent opportunities such as patient search, clinical trial recruitment, and data licensing. 80M+ 12 1.2M + 15M+ 1M+ 640M + 1

 

 

Financial Overview 13

 

 

$700 $1,448 $3,067 $4,395 $4,298 $8,184 $11,135 $10,402 $9,928 $5,154 2015 2016 2017 2018 2019 2020 2021 2022 2023 1H24 Annual Revenue ($1,000) 2015 – Q2 2024 ▲ 39% CAGR Revenue (2015 – 2023) Annual Revenue 14

 

 

Statement of Operations 15 Three months ended June 30,  Six months ended June 30,  2024 2023 2024 2023 (unaudited) (unaudited) (unaudited) (unaudited) Revenue $2,863,679 $1,625,140 $5,153,672 $4,575,339 Operating expenses: Cost of revenue 1,424,392 853,633 2,424,398 2,000,545 Technology 911,927 843,099 1,823,894 1,677,506 Sales and marketing 1,082,949 977,748 1,748,890 2,025,346 Supply development 137,511 291,360 335,350 614,862 Fulfillment 433,189 462,672 844,043 891,692 General and administrative 1,055,376 1,758,451 3,159,282 3,469,633 Total operating expenses $5,045,344 $5,186,963 $10,335,857 $10,679,584 Loss from operations ($2,181,665) ($3,561,823) ($5,182,185) ($6,104,245) Other income, net Interest expense (4,474) (3,535) (8,939) (7,070) Interest income 9,163 110,882 39,661 225,144 Other income (expense), net 67,952 (29,138) 140,322 (29,255) Total other income, net $72,641 $78,209 $171,044 $188,819 Net loss ($2,109,024) ($3,483,614) ($5,011,141) ($5,915,426) Other comprehensive income (loss): Net loss (2,109,024) (3,483,614) (5,011,141) (5,915,426) Unrealized gain (loss) on available-for-sale securities (41) (18,155) (840) 688 Total other comprehensive income (loss) ($41) ($18,155) ($840) $688 Comprehensive loss ($2,109,065) ($3,501,769) ($5,011,981) ($5,914,738) Net loss per share Basic and diluted ($0.19) ($0.39) ($0.49) ($0.66) Weighted average common shares outstanding Basic and diluted 11,340,586 9,033,868 10,236,523 9,011,644 iSpecimen Inc. Condensed Statement of Operations

 

 

Balance Sheet 16 June 30, 2024      December 31, 2023 ASSETS Cash $2,151,243 $2,343,666 Investments-short term 0 2,661,932 Accounts receivable - unbilled 1,953,632 2,212,538 Accounts receivable, net of allowance for doubtful accounts 892,814 728,388 Prepaid expenses and other current assets 237,564 292,079 Tax credit receivable, net of current portion 0 0 Total current assets $5,235,253 $8,238,603 Property and equipment, net 104,822 127,787 Internally developed software, net 5,695,166 6,323,034 Other intangible assets, net 812,478 908,255 Operating lease right-of-use asset 26,538 193,857 Security deposits 27,601 27,601 Other income, net $11,901,858 $15,819,137 LIABILITIES AND STOCKHOLDERS’ EQUITY       Accounts payable 4,205,371 3,925,438 Total other income, net 1,319,201 1,540,607 Operating lease - current obligation 29,130 167,114 Deferred revenue 258,872 415,771 Total current liabilities $5,812,574 $6,048,930 Other comprehensive income (loss): 0 29,130 Total liabilities $5,812,574 $6,078,060 Common stock 1,309 908 Additional paid-in capital 70,464,100 69,104,313 Treasury stock (172) (172) Other comprehensive income 0 840 Accumulated deficit (64,375,953) (59,364,812) Total stockholders’ equity $6,089,284 $9,741,077 Total liabilities and stockholders’ equity $11,901,858 $15,819,137 iSpecimen Inc. Condensed Balance Sheet Information 5

 

 

Common Stock Information 17 Diluted Shares of Common Stock Shares outstanding at June 30, 2024 13,095,770 Shares issuable upon vesting of RSUs 56,558 Shares issuable upon exercise of stock options 351,670 Shares issuable upon exercise of warrant to purchase common stock 102,500 Total diluted shares at June 30, 2024 13,606,498 iSpecimen Inc. Fully Diluted Shares Outstanding

 

 

Tracy Curley | Chief Executive Officer, Chief Financial Officer and Treasurer Ms . Curley brings three decades of experience in public accounting and corporate finance for both publicly traded companies and emerging companies like iSpecimen and joined iSpecimen in August 2020 . She came to iSpecimen after over a decade with national accounting firms such as CohnReznick where she focused on serving clients in the middle markets . During her time as a partner in public accounting firms, she was responsible for creating and leading teams to provide audit and consulting services to a growing clientele of private and public emerging growth companies primarily in the technology and life sciences industries . Ms . Curley received her Master of Accountancy and Bachelor of Science in Business Administration with a concentration in accounting from Kansas State University . She also attended the United States Military Academy . She is a certified public accountant licensed in the Commonwealth of Massachusetts . Leslie Hoyt | Senior Vice President Operations Leading Operations for iSpecimen, Leslie utilizes her 30+ years as a COO in healthcare, and focuses on operational efficiency , c hange management, and building strong relationships in and out of the company. She is responsible for the teams of professionals wo rki ng on order fulfillment, supplier relationships, laboratory and distribution services, customer service, and human resources. Leslie exce ls in start - up, high growth settings, and more recently has been a COO for biotech companies in the Boston area such as GNS (now Aitia), Olaris , and Naveris . Evan Cox | Senior Vice President Innovation & Strategy 18 Management Team 9 “Sources Cited” page 31 Evan brings nearly 20 years of Product Management, strategy and leadership experience to iSpecimen. In his role at iSpecimen, Ev an is responsible for creation and management of the long - term innovation roadmap and strategy plan for our industry leading iSpecimen Marketplace application. Prior to joining iSpecimen, Evan held several key senior management roles at Definitive Healthcare Corp., a prov ide r of healthcare commercial intelligence, most recently where he led the product management team. Before that, he held multiple product strate gy and decision support roles at Change Healthcare, a healthcare technology company, where he focused on artificial intelligence and natural lan guage processing to streamline existing workflows.

 

 

1 9 1. Similar to Amazon, iSpecimen has developed an online marketplace to seamlessly connect researchers with healthcare providers and supplier organizations 2. First mover advantage that addresses an inefficient and fragmented global biospecimen supply chain that is poised to be disrupted by an online solution 3. $3B - $4B global biospecimen market growing at 10 - 15% per year 4. Strong revenue growth with an 8 - year CAGR of 39% fueled by precision and regenerative medicine research 5. Plans to enhance existing platform and develop new service offering to increase revenue opportunities Investor Highlights >105 Healthcare Provider / Supplier Organizations >600 Customer Organizations

 

 

Sign up for a free iSpecimen Marketplace account at iSpecimen.com Contact us. iSpecimen Inc. 450 Bedford Street Lexington, MA 02420 [e-mail] Be a part of the biospecimen revolution

 

 

Appendix 21

 

 

PHASE 3 Expansion via the Online iSpecimen Marketplace Œ START UP Company Ideation and Self - Funding PHASE 1 Proof of Concept PHASE 2 Critical Mass of Suppliers and Early Customer Adoption �� � 2010 – 2011 2012 – 2013 2014 – 2017 2018 – 2025 0 Customers 1 Supplier Agreement 0 Specimen Records 0 Patient Records 0 FTEs $500K Friends and Family Covert. Debt 1 Customer 3 Supplier Agreements 2+ Million Specimen Records 400+ Thousand Patient Records 7 FTEs $2.5M Series A 140+ Customers 60+ Supplier Agreement 26+ Million Specimen Records 5+ Million Patient Records 33 FTEs $8M Series B 700 Customers 140 Supplier Agreement 80+ Million Specimen Records 15+ Million Patient Records 47 FTEs $20.7M + $21M IPO + Private Placement 22 Strategic Evolution

 

 

iSpecimen Marketplace UI/UX Click Search to start searching for specimens 23

 

 

2 4 iSpecimen Marketplace UI/UX Use search bar to quickly find specimens that match search criteria

 

 

Refine Search Results Using Sliders and Check Boxes iSpecimen Marketplace UI/UX 25

 

 

View Quote Request and Add More Specimens Request a Quote iSpecimen Marketplace UI/UX 26 Track and Manage Requests

 

 

27 Page Note Source Cited 4 1 iSpecimen estimates based on In Vitro Diagnostics Market Size, Share & Trends Analysis Report By Product, By Application, By Technology (Immunochemistry, Molecular Diagnostics) By End - use, By Region, And Segment Forecasts, 2021 – 2027. Grandview Research, January 2021; and World Preview 2020,Outlook to 2026. EvaluatePharma, July 2020. 4 2 Global Marketing Insights, Precision Medicine Market Size By Technology (Big Data Analytics, Bioinformatics, Gene Sequencing, Dr ug Discovery, Companion Diagnostics), By Application (Oncology, Immunology, CNS, Respiratory), By End - use (Pharmaceutical Companies , Diagnostic Companies, Healthcare IT companies), Industry Analysis Report, Regional Outlook, Application Potential, Competitiv e M arket Share & Forecast, 2020 - 2026, Feb. 2020. and Regenerative Medicine Market Size, Share and Industry Analysis by Product (Cell Therapy, Gene Therapy, Tissue Engineering, Pl ate let Rich Plasma), By Application (Orthopaedics, Wound Care, Oncology), By Distribution Channel (Hospitals, Clinics) & Regional Fo rec ast, 2019 – 2026. Fortune Business Insight, 2019. 6 3 Frost & Sullivan, Global Biobanking Market Landscape. May 20, 2020, page 357 . 6 4 Centers for Disease Control, https://www.cdc.gov/nchs/data/ahcd/namcs_summary/2016_namcs_web_tables.pdf 6 5 iSpecimen estimates based upon American Association of Clinical Chemistry US lab test data cited at https://www.360dx.com/research - funding/aacc - calls - congress - fund - clinical - lab - training - programs, 2020; and Clinical Lab Services, Global Market Trajectory and Analytics; Global Industry Analysts report, 2020. 6 6 iSpecimen estimate based upon Henderson, G.E., Cadigan, R.J., Edwards, T.P. et al. Characterizing biobank organizations in th e U .S.: results from a national survey, 2013; and Puchois, Comprehensive Biomarker Discovery and Validation for Clinical Application, 20 13. 6 7 Holly A. Massett et al. Assessing the need for a standardized cancer HUman Biobank (caHUB): findings from a national survey w ith cancer researchers; JNCI Monographs, Volume 2011, Issue 42, June 2011. 7 8 Specimen Independent Researcher Survey, 2022. 18 9 All company names and logos appearing on this page are trademarks Ƞ or registered® trademarks of their respective holders. Use and appearance in this presentation of such trademarks (excluding iSpecimen®) do not imply or assert any form of affiliation wit h or endorsement by those companies of iSpecimen or the contents of this presentation. Sources Cited

 

 

 

 

Cover	Aug. 06, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 06, 2024
Entity File Number	001-40501
Entity Registrant Name	iSpecimen Inc.
Entity Central Index Key	0001558569
Entity Tax Identification Number	27-0480143
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	450 Bedford Street
Entity Address, City or Town	Lexington
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02420
City Area Code	781
Local Phone Number	301-6700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	ISPC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false

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