Company Quick10K Filing
Quick10K
Precipio
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$2.55 6 $15
10-Q 2019-09-30 Quarter: 2019-09-30
S-1 2019-08-09 Public Filing
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
S-1 2019-02-01 Public Filing
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-Q 2014-12-31 Quarter: 2014-12-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-11-04 Regulation FD, Exhibits
8-K 2019-10-02 Regulation FD, Exhibits
8-K 2019-09-26 Regulation FD, Exhibits
8-K 2019-08-13 Regulation FD, Exhibits
8-K 2019-06-20 Regulation FD, Exhibits
8-K 2019-06-19 Shareholder Vote
8-K 2019-06-10 Other Events
8-K 2019-05-23 Other Events
8-K 2019-05-15 Other Events, Exhibits
8-K 2019-04-25 Amend Bylaw, Regulation FD, Exhibits
8-K 2019-03-26
8-K 2019-03-11 Regulation FD, Exhibits
8-K 2019-02-14 Earnings, Exhibits
8-K 2019-01-29 Enter Agreement, Leave Agreement, Sale of Shares, Exhibits
8-K 2019-01-15 Sale of Shares, Exhibits
8-K 2019-01-02 Enter Agreement, Exhibits
8-K 2018-12-20 Shareholder Vote
8-K 2018-11-29 Enter Agreement, Exhibits
8-K 2018-11-15 Regulation FD, Exhibits
8-K 2018-10-16 Earnings, Exhibits
8-K 2018-09-26 Exhibits
8-K 2018-09-20 Enter Agreement, Exhibits
8-K 2018-09-17 Enter Agreement, Exhibits
8-K 2018-09-07 Enter Agreement, Sale of Shares, Other Events, Exhibits
8-K 2018-08-17 Regulation FD, Exhibits
8-K 2018-08-09 Officers, Exhibits
8-K 2018-07-18 Earnings, Exhibits
8-K 2018-07-06 Shareholder Vote
8-K 2018-06-15 Other Events, Exhibits
8-K 2018-06-04 Other Events
8-K 2018-05-14 Earnings, Exhibits
8-K 2018-04-26 Regulation FD, Exhibits
8-K 2018-04-20 Enter Agreement, Sale of Shares, Regulation FD, Exhibits
8-K 2018-03-26
8-K 2018-03-21 Enter Agreement, Shareholder Rights, Exhibits
8-K 2018-03-14 Other Events
8-K 2018-02-26 Other Events
8-K 2018-02-12 Other Events
8-K 2018-02-08 Enter Agreement, Earnings, Shareholder Rights, Exhibits
8-K 2018-01-30 Shareholder Vote, Other Events
ILMN Illumina 41,904
A Agilent Technologies 22,006
MTD Mettler Toledo 16,033
BIO Bio-Rad Laboratories 10,088
COHR Coherent 3,726
PACB Pacific Biosciences of California 850
QTRX Quanterix 615
HBIO Harvard Bioscience 104
HTGM HTG Molecular Diagnostics 27
AEMD Aethlon Medical 6
PRPO 2019-09-30
Part 1. Financial Information
Item 1. Condensed Consolidated Financial Statements
Item 2. Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosure About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Default Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 prpo-20190930ex3113183ad.htm
EX-31.2 prpo-20190930ex312dba1d2.htm
EX-32.1 prpo-20190930ex32163cf93.htm
EX-32.2 prpo-20190930ex322f463a2.htm

Precipio Earnings 2019-09-30

PRPO 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 prpo-20190930x10q.htm 10-Q prpo_Current_Folio_10Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 10-Q


(Mark One)

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

 

For the quarterly period ended September 30, 2019

 

 

 

OR

 

 

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

 

For the transition period from _____ to _____

 

Commission File Number: 001‑36439


PRECIPIO, INC.

(Exact name of registrant as specified in its charter)


Delaware

91‑1789357

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

 

 

4 Science Park, New Haven, CT

06511

(Address of principal executive offices)

(Zip Code)

 

(203) 787‑7888

(Registrant’s telephone number, including area code)


 

a

 

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

Title of each class

Ticker symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

PRPO

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes      X         No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes      X           No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

  

Smaller reporting company

Emerging growth company

 

 

 

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes       No   

 

As of November 11, 2019, the number of shares of common stock outstanding was 7,430,117.

 

 

 

PRECIPIO, INC.

INDEX

 

 

    

Page No.

 

 

 

 

PART I. 

Financial Information

 

3

 

 

 

 

Item 1. 

Condensed Consolidated Financial Statements

 

3

 

 

 

 

 

Condensed Consolidated Balance Sheets at September 30, 2019 (unaudited) and December 31, 2018

 

3

 

 

 

 

 

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2019 and 2018 (unaudited)

 

4

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2019 and 2018 (unaudited)

 

5

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018 (unaudited)

 

7

 

 

 

 

 

Notes to the Condensed Consolidated Financial Statements (unaudited)

 

8

 

 

 

 

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

44

 

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk

 

49

 

 

 

 

Item 4. 

Controls and Procedures

 

50

 

 

 

 

PART II. 

Other Information

 

51

 

 

 

 

Item 1. 

Legal Proceedings

 

51

 

 

 

 

Item 1A. 

Risk Factors

 

52

 

 

 

 

Item 2. 

Unregistered Sales of Equity Securities and Use of Proceeds

 

53

 

 

 

 

Item 3. 

Defaults Upon Senior Securities

 

53

 

 

 

 

Item 4. 

Mine Safety Disclosures

 

54

 

 

 

 

Item 5. 

Other Information

 

54

 

 

 

 

Item 6. 

Exhibits

 

54

 

 

 

 

Signatures 

 

 

55

 

 

2

PART 1.  FINANCIAL INFORMATION

Item 1.  Condensed Consolidated Financial Statements

PRECIPIO, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

 

    

(unaudited)

    

December 31, 2018

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash

 

$

1,683

 

$

381

Accounts receivable, net

 

 

693

 

 

690

Inventories

 

 

182

 

 

197

Other current assets

 

 

398

 

 

525

Total current assets

 

 

2,956

 

 

1,793

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

464

 

 

496

 

 

 

 

 

 

 

OTHER ASSETS:

 

 

 

 

 

 

Operating lease right-of-use assets

 

 

574

 

 

 —

Intangibles, net

 

 

18,506

 

 

19,291

Other assets

 

 

25

 

 

25

Total assets

 

$

22,525

 

$

21,605

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Current maturities of long-term debt, less debt issuance costs

 

$

454

 

$

263

Current maturities of convertible notes, less debt discounts and debt issuance costs

 

 

34

 

 

4,377

Current maturities of finance lease liabilities

 

 

65

 

 

57

Current maturities of operating lease liabilities

 

 

210

 

 

 —

Accounts payable

 

 

2,363

 

 

5,169

Accrued expenses

 

 

1,495

 

 

1,940

Deferred revenue

 

 

19

 

 

49

Other current liabilities

 

 

 —

 

 

1,910

Total current liabilities

 

 

4,640

 

 

13,765

LONG TERM LIABILITIES:

 

 

 

 

 

 

Long-term debt, less current maturities and debt issuance costs

 

 

207

 

 

253

Finance lease liabilities, less current maturities

 

 

126

 

 

155

Operating lease liabilities, less current maturities

 

 

370

 

 

 —

Common stock warrant liabilities

 

 

1,773

 

 

1,132

Derivative liabilities

 

 

 —

 

 

62

Deferred tax liability

 

 

70

 

 

70

Other long-term liabilities

 

 

45

 

 

45

Total liabilities

 

 

7,231

 

 

15,482

COMMITMENTS AND CONTINGENCIES (Note 6)

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

Preferred stock - $0.01 par value, 15,000,000 shares authorized at September 30, 2019 and December 31, 2018, 47 shares issued and outstanding at September 30, 2019 and December 31, 2018, liquidation preference at par value at September 30, 2019 and December 31, 2018

 

 

 —

 

 

 —

Common stock, $0.01 par value, 150,000,000 shares authorized at September 30, 2019 and December 31, 2018, 7,136,117 and 2,298,738 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively

 

 

71

 

 

23

Additional paid-in capital

 

 

72,381

 

 

53,796

Accumulated deficit

 

 

(57,158)

 

 

(47,696)

Total stockholders’ equity

 

 

15,294

 

 

6,123

 

 

$

22,525

 

$

21,605

 

 

See notes to unaudited condensed consolidated financial statements.

 

3

PRECIPIO, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 

 

Nine Months Ended September 30, 

 

 

    

2019

    

2018

    

2019

    

2018

 

SALES:

 

 

  

 

 

  

 

 

  

 

 

  

 

Service revenue, net

 

$

1,020

 

$

808

 

$

3,125

 

$

2,498

 

Clinical research grants

 

 

 –

 

 

13

 

 

 –

 

 

75

 

Other

 

 

26

 

 

 2

 

 

37

 

 

 5

 

Revenue, net of contractual allowances and adjustments

 

 

1,046

 

 

823

 

 

3,162

 

 

2,578

 

less allowance for doubtful accounts

 

 

(262)

 

 

(173)

 

 

(723)

 

 

(399)

 

Net sales

 

 

784

 

 

650

 

 

2,439

 

 

2,179

 

COST OF SALES:

 

 

  

 

 

  

 

 

  

 

 

  

 

Service revenue

 

 

756

 

 

653

 

 

2,201

 

 

1,926

 

Clinical research grants

 

 

 –

 

 

 8

 

 

 –

 

 

65

 

Total cost of sales

 

 

756

 

 

661

 

 

2,201

 

 

1,991

 

Gross profit (loss)

 

 

28

 

 

(11)

 

 

238

 

 

188

 

OPERATING EXPENSES:

 

 

  

 

 

  

 

 

  

 

 

  

 

Operating expenses

 

 

2,391

 

 

2,831

 

 

6,955

 

 

7,367

 

Impairment of goodwill

 

 

 –

 

 

1,275

 

 

 –

 

 

1,569

 

TOTAL OPERATING EXPENSES

 

 

2,391

 

 

4,106

 

 

6,955

 

 

8,936

 

OPERATING LOSS

 

 

(2,363)

 

 

(4,117)

 

 

(6,717)

 

 

(8,748)

 

OTHER INCOME (EXPENSE):

 

 

  

 

 

  

 

 

  

 

 

  

 

Interest expense, net

 

 

(97)

 

 

(120)

 

 

(298)

 

 

(176)

 

Warrant revaluation

 

 

563

 

 

176

 

 

(19)

 

 

760

 

Loss on modification of warrants

 

 

 –

 

 

(143)

 

 

(1,128)

 

 

(143)

 

Derivative revaluation

 

 

 –

 

 

117

 

 

(415)

 

 

116

 

Gain on settlement of liability, net

 

 

 –

 

 

66

 

 

1,251

 

 

213

 

Gain on extinguishment of debt

 

 

 –

 

 

284

 

 

 –

 

 

284

 

Loss on litigation

 

 

 –

 

 

 –

 

 

(266)

 

 

 –

 

Loss on issuance of convertible notes

 

 

 –

 

 

(112)

 

 

(1,870)

 

 

(1,040)

 

Loss on settlement of equity instruments

 

 

 –

 

 

 –

 

 

 –

 

 

(385)

 

 

 

 

466

 

 

268

 

 

(2,745)

 

 

(371)

 

LOSS BEFORE INCOME TAXES

 

 

(1,897)

 

 

(3,849)

 

 

(9,462)

 

 

(9,119)

 

INCOME TAXES

 

 

 –

 

 

 –

 

 

 –

 

 

 –

 

NET LOSS

 

 

(1,897)

 

 

(3,849)

 

 

(9,462)

 

 

(9,119)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deemed dividends related to beneficial conversion feature of preferred stock and fair value of consideration issued to induce conversion of preferred stock

 

 

 –

 

 

 –

 

 

 –

 

 

(3,848)

 

TOTAL DIVIDENDS

 

 

 –

 

 

 –

 

 

 –

 

 

(3,848)

 

NET LOSS AVAILABLE TO COMMON STOCKHOLDERS

 

$

(1,897)

 

$

(3,849)

 

$

(9,462)

 

$

(12,967)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED LOSS PER COMMON SHARE

 

$

(0.31)

 

$

(2.49)

 

$

(1.85)

 

$

(10.30)

 

BASIC AND DILUTED WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING

 

 

6,186,119

 

 

1,546,814

 

 

5,104,397

 

 

1,258,507

 

 

 

See notes to unaudited condensed consolidated financial statements.

4

PRECIPIO, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2019

 

 

Preferred Stock

 

Common Stock

 

Additional

 

 

 

 

 

 

 

 

Outstanding

 

Par

    

Outstanding

    

Par

 

Paid-in

 

Accumulated

 

 

 

 

    

Shares

    

Value

    

Shares

    

Value

    

Capital

    

Deficit

    

Total

Balance, July 1, 2019

 

47

 

$

 —

 

5,993,369

 

$

60

 

$

69,428

 

$

(55,261)

 

$

14,227

Net loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(1,897)

 

 

(1,897)

Conversion of convertible notes into common stock

 

 —

 

 

 —

 

52,748

 

 

 —

 

 

118

 

 

 —

 

 

118

Issuance of common stock in connection with purchase agreements

 

 —

 

 

 —

 

1,090,000

 

 

11

 

 

2,750

 

 

 —

 

 

2,761

Write-off debt premiums in conjunction with convertible note conversions

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(63)

 

 

 —

 

 

(63)

Stock-based compensation

 

 —

 

 

 —

 

 —

 

 

 —

 

 

148

 

 

 —

 

 

148

Balance, September 30, 2019

 

47

 

$

 —

 

7,136,117

 

$

71

 

$

72,381

 

$

(57,158)

 

$

15,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2019

 

 

Preferred Stock

 

Common Stock

 

Additional

 

 

 

 

 

 

 

 

Outstanding

 

Par

    

Outstanding

    

Par

 

Paid-in

 

Accumulated

 

 

 

 

 

Shares

    

Value

    

Shares

    

Value

    

Capital

    

Deficit

    

Total

Balance, January 1, 2019

 

47

 

$

 —

 

2,298,738

 

$

23

 

$

53,796

 

$

(47,696)

 

$

6,123

Net loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(9,462)

 

 

(9,462)

Conversion of convertible notes into common stock

 

 —

 

 

 —

 

2,439,173

 

 

24

 

 

7,366

 

 

 —

 

 

7,390

Issuance of common stock in connection with purchase agreements

 

 —

 

 

 —

 

2,088,077

 

 

21

 

 

5,150

 

 

 —

 

 

5,171

Write-off debt discounts (net of debt premiums) in conjunction with convertible note conversions

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(590)

 

 

 —

 

 

(590)

Write-off debt derivative liability in conjunction with convertible note conversions

 

 —

 

 

 —

 

 —

 

 

 —

 

 

477

 

 

 —

 

 

477

Proceeds upon issuance of common stock from exercise of warrants

 

 —

 

 

 —

 

310,200

 

 

 3

 

 

1,572

 

 

 —

 

 

1,575

Write-off warrant liability in conjunction with warrant exercises

 

 —

 

 

 —

 

 —

 

 

 —

 

 

2,364

 

 

 —

 

 

2,364

Beneficial conversion feature on issuance of convertible notes

 

 —

 

 

 —

 

 —

 

 

 —

 

 

1,792

 

 

 —

 

 

1,792

Stock-based compensation

 

 —

 

 

 —

 

 —

 

 

 —

 

 

455

 

 

 —

 

 

455

Payment of fractional common shares in conjunction with reverse stock split

 

 —

 

 

 —

 

(71)

 

 

 —

 

 

(1)

 

 

 —

 

 

(1)

Balance, September 30, 2019

 

47

 

$

 —

 

7,136,117

 

$

71

 

$

72,381

 

$

(57,158)

 

$

15,294

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2018

 

 

Preferred Stock

 

Common Stock

 

Additional

 

 

 

 

 

 

 

 

Outstanding

 

Par

    

Outstanding

    

Par

 

Paid-in

 

Accumulated

 

 

 

 

    

Shares

    

Value

    

Shares

    

Value

    

Capital

    

Deficit

    

Total

Balance, July 1, 2018

 

47

 

$

 —

 

1,503,969

 

$

15

 

$

49,455

 

$

(37,272)

 

$

12,198

Net loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(3,849)

 

 

(3,849)

Issuance of common stock in connection with purchase agreements

 

 —

 

 

 —

 

40,000

 

 

 1

 

 

(1)

 

 

 —

 

 

 —

Issuance of common stock upon exercise of warrants

 

 —

 

 

 —

 

39,753

 

 

 —

 

 

179

 

 

 —

 

 

179

Beneficial conversion feature on issuance of convertible notes

 

 —

 

 

 —

 

 —

 

 

 —

 

 

528

 

 

 —

 

 

528

Stock-based compensation

 

 —

 

 

 —

 

 —

 

 

 —

 

 

122

 

 

 —

 

 

122

Balance, September 30, 2018

 

47

 

$

 —

 

1,583,722

 

$

16

 

$

50,283

 

$

(41,121)

 

$

9,178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2018

 

 

Preferred Stock

 

Common Stock

 

Additional

 

 

 

 

 

 

 

 

Outstanding

 

Par

    

Outstanding

    

Par

 

Paid-in

 

Accumulated

 

 

 

 

 

Shares

    

Value

    

Shares

    

Value

    

Capital

    

Deficit

    

Total

Balance, January 1, 2018

 

4,935

 

$

 —

 

679,774

 

$

 7

 

$

44,560

 

$

(31,542)

 

$

13,025

Net loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(9,119)

 

 

(9,119)

Conversion of preferred stock into common stock

 

(4,888)

 

 

 —

 

431,022

 

 

 4

 

 

(4)

 

 

 —

 

 

 —

Issuance of common stock in connection with purchase agreements

 

 —

 

 

 —

 

99,457

 

 

 2

 

 

616

 

 

 —

 

 

618

Issuance of common stock in exchange for cancelation of other current liabilities

 

 —

 

 

 —

 

120,983

 

 

 1

 

 

1,896

 

 

 —

 

 

1,897

Issuance of common stock upon exercise of warrants

 

 —

 

 

 —

 

252,486

 

 

 2

 

 

1,269

 

 

 —

 

 

1,271

Beneficial conversion feature on issuance of convertible notes

 

 —

 

 

 —

 

 —

 

 

 —

 

 

1,604

 

 

 —

 

 

1,604

Liability recorded related to equity purchase agreement repricing

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(460)

 

 

(460)

Stock-based compensation

 

 —

 

 

 —

 

 —

 

 

 —

 

 

342

 

 

 —

 

 

342

Balance, September 30, 2018

 

47

 

$

 —

 

1,583,722

 

$

16

 

$

50,283

 

$

(41,121)

 

$

9,178

 

See notes to unaudited condensed consolidated financial statements

 

6

PRECIPIO, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 

 

    

2019

    

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(9,462)

 

$

(9,119)

 

 

 

 

 

 

 

Adjustments to reconcile net loss to net cash flows used in operating activities:

 

 

  

 

 

  

Depreciation and amortization

 

 

838

 

 

972

Amortization of operating lease right-of-use asset

 

 

176

 

 

 —

Amortization of finance lease right-of-use asset

 

 

46

 

 

 —

(Accretion) amortization of deferred financing costs, debt discounts and debt premiums

 

 

(8)

 

 

70

Gain on extinguishment of debt

 

 

 —

 

 

(284)

Gain on settlement of liability, net

 

 

(1,251)

 

 

(213)

Loss on settlement of equity instrument

 

 

 —

 

 

385

Loss on litigation

 

 

266

 

 

 —

Loss on issuance of convertible notes

 

 

1,870

 

 

1,040

Stock-based compensation

 

 

455

 

 

342

Impairment of goodwill

 

 

 —

 

 

1,569

Provision for losses on doubtful accounts

 

 

724

 

 

394

Warrant revaluation

 

 

19

 

 

(617)

Loss on modification of warrants

 

 

1,128

 

 

 —

Derivative revaluation

 

 

415

 

 

(116)

Changes in operating assets and liabilities:

 

 

  

 

 

  

Accounts receivable

 

 

(727)

 

 

(322)

Inventories

 

 

15

 

 

(14)

Other assets

 

 

302

 

 

13

Accounts payable

 

 

(1,624)

 

 

526

Operating lease liabilities

 

 

(170)

 

 

 —

Accrued expenses and other liabilities

 

 

(13)

 

 

573

Net cash used in operating activities

 

 

(7,001)

 

 

(4,801)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

  

 

 

  

Purchase of property and equipment

 

 

(49)

 

 

(66)

Net cash used in investing activities

 

 

(49)

 

 

(66)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

  

 

 

  

Principal payments on finance lease obligations

 

 

(44)

 

 

(44)

Payment of deferred financing costs

 

 

(120)

 

 

(138)

Payment of fractional common shares in conjunction with reverse stock split

 

 

(1)

 

 

 —

Issuance of common stock, net of issuance costs

 

 

5,171

 

 

618

Proceeds from exercise of warrants

 

 

1,575

 

 

1,271

Proceeds from long-term debt

 

 

 —