Precipio’s Q3 Cash Burn From Operations (unaudited) Declines 59% YoY, from $2.5M in Q3-2022 to approximately $1M in Q3-2023
03 Oktober 2023 - 4:00PM
Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO),
announces that the combination of revenue growth and cost cutting
initiatives has reduced Cash Burn From Operations (CBFO) by 59%
compared to the same quarter last year, from approximately
$2.5M/quarter to $1M/quarter.
Management has set a
target of reaching financial independence with its current cash
reserves, meaning that the company will no longer need to conduct
capital raises to fund cash burn. For the purpose of measuring
success against that goal, we have selected the term Cash Burn From
Operations (CBFO).
CBFO is a non-GAAP
term calculated by using our total net change in cash (as reported
in our financial statements), less net proceeds from any sale of
shares through equity raises or use of the ATM. Continued revenue
growth, alongside further implementation of cost reduction
initiatives, drives down the company CBFO, ultimately towards
reaching zero - which means the company has reached breakeven.
Following our news of
$1.2 million Pathology revenues in August, which is our breakeven
target for the Pathology division, September revenues are expected
to exceed $1.4M, positioning the division to continue to exceed its
breakeven target and generate cash, which lowers the company
CBFO.
As recently announced,
the Products division has received several new orders from new
customers, and continues to make strides towards its breakeven
target.
Given the current
visibility to the pipeline in both the pathology and products
division, the reduced threshold of products breakeven result, as
well as the continued impact of the cost reduction initiatives,
management anticipates that it has sufficient cash to reach
breakeven, avoiding any significantly dilutive capital raise
transactions.
“We are rapidly moving
towards our goal of financial independence. Our business needs to
stand on its own feet, unsupported by external cash raises, and
generate a profit. It’s as simple as that.” said Ilan Danieli, CEO.
“Once we achieve this, I’m confident the market will reward us with
increased shareholder value, as appropriate to a cash-positive
company with IP-protected leading products, a huge TAM, and
significant impact on the healthcare system and patient’s
lives.”
About Precipio
Precipio has built a platform designed to
eradicate the problem of misdiagnosis by harnessing the intellect,
expertise and technology developed within academic institutions and
delivering quality diagnostic information to physicians and their
patients worldwide, as well as proprietary products that serve
laboratories worldwide. Through its collaborations with world-class
academic institutions specializing in cancer research, diagnostics
and treatment, Precipio offers a new standard of diagnostic
accuracy enabling the highest level of patient care. For more
information, please visit www.precipiodx.com.
Please follow us on LinkedIn, Twitter
@PrecipioDx and on Facebook.
Forward-Looking Statements
This press release contains “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, including, among others, including other
financial projections and potential market opportunity, plans and
prospects. Except for historical information, statements about
future volumes, sales, growth, costs, cost savings, margins,
earnings, earnings per share, diluted earnings per share, cash
flows, plans, objectives, expectations, growth or profitability are
forward-looking statements based on management’s estimates,
beliefs, assumptions and projections. Words such as “could,” “may,”
“expects,” “anticipates,” “will,” “targets,” “goals,” “projects,”
“intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,”
and variations on such words, and similar expressions that reflect
our current views with respect to future events and operational,
economic and financial performance, are intended to identify such
forward-looking statements. These forward-looking statements are
only predictions, subject to risks and uncertainties, and actual
results could differ materially from those discussed. We caution
investors not to place undue reliance on the forward-looking
statements contained in this press release. You are encouraged to
read our filings with the SEC, available at www.sec.gov, for a
discussion of these and other risks and uncertainties Important
factors that could affect performance and cause results to differ
materially from management’s expectations, or could affect the
company’s ability to achieve its strategic goals, includes factors
that are described in the sections entitled “Risk Factors” and
“Management’s Discussion and Analysis” in the company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2022, as
updated from time to time in the company’s Securities and Exchange
Commission filings. The company’s forward-looking statements in
this press release are based on management’s current views,
beliefs, assumptions and expectations regarding future events and
speak only as of the date of this release. The company undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by the federal securities
laws.
Inquiries:
investors@precipiodx.com
+1-203-787-7888 Ext. 523
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