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Form 8-K iSpecimen Inc. For: Aug 04

August 4, 2022 8:56 AM EDT
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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 4, 2022

 

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: (781) 301-6700

 

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 4, 2022, 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, 2022. A copy of the press release is furnished as Exhibit 99.1 to this Current Report. You are advised that financial information in the Earnings Release for the quarter ended June 30, 2022 is unaudited. The Company also filed its unaudited financial statements for the quarter ended June 30, 2022 with its Quarterly Report on Form 10-Q on August 4, 2022.

 

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 Current Reports on Form 8-K, Quarterly Reports on Form 10-Q, and 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 4, 2022 (“Earnings Call”) in which it discussed its second quarter 2022 results. The Company issued a press release on August 4, 2022, providing information on how to access the Earnings Call. A replay of the Earnings Call is available through August 18, 2022, by calling 1-844-512-2921 (toll free) or 1-412-317-6671 (for international callers). An archived version of the Earnings Call will also be available on the Company’s Investor Relations site at https://ispecimen.irpass.com/. During the Earnings Call, the Company provided an investor presentation, dated August 2022 (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” 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 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, 2021 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, the COVID-19 pandemic and its continued 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 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 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 4, 2022.
99.2 Investor Presentation, dated August 2022.
104 Cover Page Interactive Data File

 

Portions of this report 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 4, 2022

 

  iSPECIMEN INC.
     
  By: /s/ Christopher Ianelli
    Name: Christopher Ianelli
    Title: Chief Executive Officer and President

 

 

 

Exhibit 99.1

 

 

iSpecimen Reports Second Quarter 2022 Financial and Operating Results

 

- Enhanced iSpecimen Marketplace Platform® with Data Integration Capabilities to Simplify the Ingestion and Maintenance of Biospecimen Inventories for Providers -

 

LEXINGTON, MA, August 4, 2022 – iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists in need of biospecimens for medical research with a network of healthcare specimen providers, today reported its financial and operating results for the three- and six-month period ended June 30, 2022.

 

“During the first half of 2022, we remained intensely focused on refining the iSpecimen Marketplace® platform along with expanding our healthcare specimen provider network. As a result, during the second quarter, we expanded the capabilities of the iSpecimen Marketplace to better support the sourcing of biospecimens critical for medical research and welcomed new healthcare providers specializing in oncology and cardiovascular disease research. Together, these efforts are helping to alleviate supply constraints, which will ultimately help researchers get the specimens they need to advance the pace of medical discovery,” said Christopher Ianelli, MD, PhD, CEO and President of iSpecimen.

 

“The first half of 2022 also posed challenges outside of our control, namely geopolitical unrest that affected some key suppliers and a difficult economic environment that is impacting some of our research clients. Despite these challenges, we remain extremely confident that the execution of our strategy, along with our investments in technology, supply development, and key personnel will continue to improve our position to gain market share over the coming quarters. I also believe that our leadership, including our senior team and our board, has done a great job of navigating the challenges of the past two years and we look forward to realizing the benefits of the ongoing development work and the restructuring of our marketing and sales processes – and returning to growth,” concluded Dr. Ianelli.

 

Q2 2022 Financial & Operational Highlights

 

Revenue mix in Q2 2022 was comprised of approximately $2.2 million in general specimen revenue and approximately $0.2 million in COVID-related revenue, or 93% and 7% of revenue, respectively, compared to approximately $2.0 million in general specimen revenue and $0.9 million in COVID-related revenue, or 69% and 31% of revenue, respectively the same period a year ago. This resulted in an 8% increase in general specimen revenue for Q2 2022 compared to the same prior year’s period.

Unique supplier organizations under agreement were 214 as of June 30, 2022, up from 205 as of March 31, 2022.

Unique customer organizations who have purchased from iSpecimen totaled 459 as of June 30, 2022, an increase of 21% year over year.

iSpecimen Marketplace had nearly 6,000 registered research and supplier users as of June 30, 2022, up 32% year-over-year.

 

Recent Corporate Updates

 

Expanded its global biospecimen suppliers list on the iSpecimen Marketplace™ platform with the addition of new suppliers concentrated on the advancement of oncology and cardiovascular disease research.

Appointed Evan Cox, an industry veteran and healthcare data expert, as Vice President of Product Management to better support development efforts. In this role, Evan Cox is focused on the growth and future development of the Marketplace platform.

Presented new research on optimizing biobanking in three presentations at a key industry event, this year's International Society for Biological and Environmental Repositories (ISBER) Annual Meeting in Atlanta, GA.

 

 

 

 

 

Enhanced its iSpecimen Marketplace® platform with a redesigned platform with an easy-to-use interface that allows researchers to directly search for desired samples in iSpecimen's provider network via a Google-like search bar. The new software includes improved search and supplier data integration capabilities that have been designed to efficiently connect scientists with well-matched samples for their research, as well as help to increase supplier inventory utilization.

Added Acutis Diagnostics, a clinical diagnostics laboratory, to its platform as a laboratory services provider. Through this relationship, iSpecimen now offers sequencing services to its research community to help researchers better understand genetic mutations and their impact on diseases such as COVID-19 and cancer.

 

Financial Results for the Second Quarter of 2022

 

Revenue for the second quarter of 2022 was approximately $2.3 million, compared to approximately $2.9 million for the second quarter of 2021. The decrease in revenue was due to was primarily attributable to the continuing decline in sales of COVID-19 specimens, when compared to the same period in the prior year.

 

Cost of revenue was approximately $1.0 million for the second quarter of 2022, compared to approximately $1.5 million for the second quarter of 2021. The decrease was attributable to a 40% decrease in the average cost per specimen impacted by the specimen mix, offset somewhat by a 12% increase in the number of specimens accessioned for the current period compared to the same prior year's period.

 

General and administrative expenses were approximately $1.6 million for the second quarter of 2022, compared to approximately $1.5 million for the second quarter of 2021. The increase was primarily attributable to increases in directors’ and officers’ insurance and operating and maintenance expenses, somewhat offset by a reduction in compensation costs.

 

Net loss was approximately $2.6 million or $(0.30) per share for the second quarter 2022, compared to net loss of approximately $1.4 million or $(0.87) per share for the same period in 2021.

 

Cash was approximately $23.7 million as of June 30, 2022, compared to approximately 27.7 million as of December 31, 2021.

 

Conference Call and Webcast Information

 

The Company will host a conference call and audio webcast today, Thursday, August 4, 2022 at 8:30 a.m. Eastern Time featuring remarks by Christopher Ianelli, MD, PhD, CEO and President, Tracy Curley, CFO and Treasurer, and Jill Mullan, COO and Secretary.

 

Event: iSpecimen Second Quarter 2022 Results Conference Call
   
Date: Thursday, August 4, 2022
   
Time: 8:30 a.m. Eastern Time
   
Live Call: +1-877-425-9470 (U.S. Toll Free) or +1-201-389-0878 (International)
   
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=4jeXXrdH

 

For interested individuals unable to join the conference call, a replay will be available through August 18, 2022, at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 13730127. An archived version of the webcast will also be available on iSpecimen’s Investor Relations site: https://ispecimen.irpass.com/.

 

 

 

 

 

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" 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.

 

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 risks factors contained in the Company's filings with the 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 do 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

Allison Soss

[email protected]

 

Media Contacts

KCSA Strategic Communications

Raquel Cona / Shana Marino

[email protected]

 

 

 

 

 

 

iSpecimen Inc.
Condensed Balance Sheets

 

   June 30, 2022   December 31, 2021 
  (Unaudited)     
ASSETS        
Current assets:          
Cash  $23,691,175   $27,738,979 
Accounts receivable - unbilled   1,264,278    1,739,020 
Accounts receivable, net of allowance for doubtful accounts of $289,207 and $269,170 at June 30, 2022 and December 31, 2021, respectively   1,660,076    3,002,442 
Prepaid expenses and other current assets   374,867    327,035 
Tax credit receivable, current portion   140,873    140,873 
Total current assets   27,131,269    32,948,349 
Property and equipment, net   23,648    32,781 
Internally developed software, net   2,954,936    2,710,867 
Operating lease right-of-use asset   260,003     
Security deposits   27,601    27,601 
Total assets  $30,397,457   $35,719,598 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $433,026   $832,678 
Accrued expenses   634,256    1,009,803 
Accrued interest   7,778    8,167 
Operating lease current obligation   152,780     
Term loan, net of debt discount, current portion   466,667     
Deferred revenue   334,980    654,746 
Total current liabilities   2,029,487    2,505,394 
Operating lease long-term obligation   107,975     
Term loan, net of debt discount - long term   2,962,065    3,422,616 
Total liabilities   5,099,527    5,928,010 
           
Commitments and contingencies (See Note 6)          
           
Stockholders’ equity          
Common stock, $0.0001 par value, 200,000,000 shares authorized, 8,904,711 issued, and 8,873,711 outstanding at June 30, 2022 and 8,764,479 issued and 8,733,479 outstanding at December 31, 2021   887    873 
Additional paid-in capital   68,307,168    67,810,289 
Treasury stock, 31,000 shares at June 30, 2022 and December 31, 2021, at cost   (172)   (172)
Accumulated deficit   (43,009,953)   (38,019,402)
Total stockholders’ equity   25,297,930    29,791,588 
Total liabilities and stockholders’ equity  $30,397,457   $35,719,598 

 

 

 

 

 

iSpecimen Inc.

Condensed Statements of Operations

(Unaudited)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2022   2021   2022   2021 
Revenue  $2,338,688   $2,903,876   $4,857,348   $5,867,683 
Operating expenses:                    
Cost of revenue   999,743    1,489,196    2,165,659    3,112,847 
Technology   635,650    361,799    1,163,173    771,750 
Sales and marketing   950,563    647,592    1,697,994    1,176,978 
Supply development   242,380    100,693    424,450    212,269 
Fulfillment   519,994    287,275    963,788    556,371 
General and administrative   1,575,365    1,545,852    3,385,679    2,508,643 
Total operating expenses   4,923,695    4,432,407    9,800,743    8,338,858 
Loss from operations   (2,585,007)   (1,528,531)   (4,943,395)   (2,471,175)
                     
Other income (expense), net                    
Interest expense   (42,273)   (1,133,479)   (80,321)   (1,986,407)
Change in fair value of derivative liability on convertible notes       (117,000)       (271,000)
Change in fair value of derivative liability on bridge notes and bridge notes, related parties       1,630,700        1,582,700 
Gain (loss) on extinguishment of bridge notes and bridge notes, related parties       9,746        (2,740,425)
Loss on extinguishment of convertible notes and convertible notes, related parties       (260,185)       (260,185)
Gain on extinguishment of note payable               788,156 
Other income (expense), net   6,590    3,663    6,630    (69)
Interest income   13,881    172    26,535     
Total other income (expense), net   (21,802)   133,617    (47,156)   (2,887,230)
Net loss  $(2,606,809)  $(1,394,914)  $(4,990,551)  $(5,358,405)
                     
Net loss per share - basic and diluted  $(0.30)  $0.87   $(0.57)  $(4.21)
                     
Weighted average shares of common stock outstanding - basic and diluted   8,821,698    1,611,774    8,793,723    1,273,993 

 

 

 

Exhibit 99.2

 

CONNECT. INNOVATE. August 2022 Investor Presentation TRANSFORMING BIOSPECIMEN PROCUREMENT An online marketplace for human biospecimens

 

 

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 registration statement and other 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 COVID - 19 pandemic and its continued impact on the business, 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 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 . Forward - Looking Statements 2

 

 

Christopher Ianelli, MD, PhD | Chief Executive Officer, President, and Director Dr . Ianelli has been serving as our Chief Executive Officer, President, and Director since founding iSpecimen in July 2009 . Dr . Ianelli served as Chief Executive Officer of Abkine Pharmaceuticals, Inc . Dr . Ianelli served as Managing Director at Leerink Partners (formerly Leerink Swann), a leading healthcare and life science investment bank, where he managed the expansion and delivery of services and directed strategy to develop new healthcare data and information assets for the firm from August 2003 to March 2008 . Prior to that, Dr . Ianelli was a co - founder and Managing Director of Boston Medical & Scientific Advisors, a healthcare investment research firm . Dr . Ianelli received his Bachelor of Science degree in Biological Sciences from University of Lowell and both his Ph . D . in Immunology and his M . D . from Tufts University . He completed his residency training, including a year as Chief Resident, in Pathology at Brigham & Women’s Hospital and Harvard Medical School . Jill Mullan | Chief Operating Officer, Secretary, and Director Ms . Mullan h as been serving as our Chief Operating Officer since August 2013 , Secretary since November 2012 , Treasurer from February 2017 to June 2021 , and Director since October 2014 . She joined iSpecimen in 2010 as the Vice President of Marketing . From 2003 to 2010 , she was a marketing and business strategy consultant to various technology - based companies including EMC, AppNeta, and Planon Software . From 2000 to 2003 , Ms . Mullan was on the founding team and Director of Marketing at Storigen Systems, a provider of distributed storage networks . She was also employed at Avid Technology from 1996 to 2000 , most recently as a Director of Product Marketing and Management with product responsibility for Avid’s editing product line . Prior to that, she worked at IBM, MIPS, and Hewlett Packard . She graduated with distinction from Cornell University with a Bachelor of Science in electrical engineering and received a Masters of Business Administration from Stanford University with a focus on entrepreneurship and marketing . Tracy Curley | 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 . Benjamin Bielak | Chief Information Officer Mr . Bielak has been serving as our Chief Information Officer since June 2018 . He served as the Chief Information Officer at GNS Healthcare, a leading casual machine learning product and services company, from January 2017 to May 2018 and as Director of Academic Technology at Harvard University, from February 2015 to January 2017 . Prior to his work at GNS and Harvard, Mr . Bielak was the Chief Information Officer at Dovetail Health from November 2006 to April 2014 . He previously held roles as Manager of Development and Integration at Boston Medical Center and Senior Manager of Technology at Sapient, a global services company, from December 1997 to July 2005 . Mr . Bielak holds a Masters of Business Administration degree from Bentley University, where his studies focused on change management, and a master’s degree from Boston University in computer science . Management Team 3

 

 

Investor Highlights 4 >200 Healthcare Provider / Supplier Organizations >450 Customer Organizations 1. Early - stage opportunity with a first mover advantage 2. $3B - $4B global biospecimen market growing at 10 - 15% per year 1 3. Unique two - sided marketplace disrupting the biospecimen procurement process 4. Strong revenue growth with a 6 - year CAGR of 59% 5. Growing data asset that’s a key enabler and differentiator 1 “Sources Cited” page 28

 

 

Accelerate scientific discovery via an online marketplace that empowers researchers to instantly search for and gain access to patients, biospecimens, and data across a global network of healthcare providers Our Vision 5

 

 

Human 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 6 Lung, Breast, Colon, Brain Bone Marrow, Blood, Tonsils, Lymph Nodes Applications Patients SUPPLY HEALTHCARE PROVIDERS DEMAND LIFE SCIENCE RESEARCHERS Biospecimens Data Organizations Medical Record

 

 

10 - 15% Annual Growth Fueled by precision and regenerative medicine research 2 Disconnected Market Participants in Need of a Marketplace Solution With an Inefficient Supply Chain Manual processes plus fragmentation make it ripe for an online marketplace solution Large and Inefficient Biospecimen Market $3 - $4 Billion Worldwide yearly spend on human biospecimen procurement 1 7 1, 2 “Sources Cited” page 28

 

 

Market Inefficiencies PROVIDER RESEARCHER Scientist / Informaticist Procurem ent Legal & Compliance IT / Informaticist Scientist & Informaticist Legal & Compliance IT / Informaticist Researcher & Procurement Legal & Compliance Principal Investigator & Specimen Operations PATIENTS PROVIDERS RESEARCHERS 8 Difficulties Connecting, Searching, and Compliantly Transacting 6 - 12 months on average to develop relationships, requiring the involvement of many stakeholders 3 3 “Sources Cited” page 28

 

 

Inefficiencies Lead to Losses Providers miss revenue and research opportunities > 3 Billion clinical specimens are discarded annually worldwide 5 > 1 Billion Patient encounters yearly in the U.S. where a specimen could be provided for research 4 > 800 Million banked specimens are in biorepository inventories worldwide 6 9 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 8 “Challenging” and “Inefficient” most common words used to describe biospecimen procurement process by researchers 8 10 years ago, 81% of researchers said they limit the scope of their work due to difficulties obtaining biospecimens 7 4,5,6,7,8 “Sources Cited” page 28

 

 

The iSpecimen Marketplace ® Solution 10 PROVIDER Procurement Principal Investigator / Operations IT / Informaticist PATIENTS Legal & Compliance IT / Informaticist Researcher & Procurement Legal & Compliance Principal Investigator & Specimen Operations Scientist & Informaticist Blood / Pheresi s Centers Clinical Labs Biorepositories Pathology Labs RESEARCH PATHWAY CLINICAL PATHWAY Industry Academia Government RESEARCHERS An Online Platform That Instantly Connects Researchers to a Global Network of Patients, Biospecimens, and Data to Accelerate Time to Discovery Saves months in the average biospecimen procurement process PROVIDERS Healthcare Data

 

 

Full - Service Procurement We Not Only Connect Suppliers and Customers, but Also Manage the Entire Procurement Process SPECIMEN SEARCH & SELECTION SPECIMEN LOGISTICS SPECIMEN MANAGEMENT DATA MANAGEMENT STUDY/ORDER MANAGEMENT SUPPLIER SITE TRAINING COLLECTION KIT BUILDING COMPLIANCE MANAGEMENT STUDY DESIGN & SPECIFICATION CONTRACTING 11

 

 

Suppliers and Researchers Benefit Advance Discovery Suppor t research mission and advance diagnostic, therapeutic, and vaccine research Increase Revenue Instantly connect to a global network of researchers Ensure Compliance On a platform that protects the privacy and security of patient information Accelerate Research Search for specimens anytime, anywhere, through our easy - to - use online marketplace Save Money Instantly connect to a global network of specimen providers Reduce Risk On a platform that manages contracting and regulatory compliance Providers… Researchers… 12

 

 

13 34 66 102 147 181 200 214 2015 2016 2017 2018 2019 2020 2021 30-Jun-22 Growing Supplier Adoption 1000+ Hospitals Also includes two Healthcare Information Exchanges 54% CAGR Number of Suppliers (2015 – June 30, 2022) WORLDWIDE COVERAGE United States United Kingdom Germany France Ukraine Georgia Bulgaria Russian Federation India Peru Dominican Republic Jamaica Spain Mexico Netherlands Estonia Venezuela Turkey Cumulative Supplier Organizations Under Agreement 2015 – June 30, 2022 Unique Supplier Organizations Provide Access to: 000’s Clinics and Practice Groups >55 Biorepositories >150 Clinical Research Centers >60 Clinical and Pathology Labs 8 Blood Centers 13

 

 

$700 $1,448 $3,067 $4,395 $4,298 $8,184 $11,135 $4,857 2015 2016 2017 2018 2019 2020 2021 30-Jun-22 Cumulative Customer Organizations with Purchases 2015 – June 30, 2022 57% CAGR Customers (2015 – June 30, 2022) Annual Revenue ($000) - Unaudited 2015 - 18, 2022 2015 – June 30, 2022 59% CAGR Revenue (2015 – 2021) Growing Researcher Adoption 70% of the Top 20 Pharma Companies and 70% of the Top 20 IVD Companies Worldwide are iSpecimen customers are iSpecimen customers >175,000+ Specimens Across >2,400 Projects delivered to our customers 14 24 69 135 172 230 330 415 459 2015 2016 2017 2018 2019 2020 2021 30-Jun-22

 

 

80 118 668 1,587 2,681 3,871 5,218 5,995 2015 2016 2017 2018 2019 2020 2021 30-Jun-22 Cumulative Researcher and Supplier Marketplace Users 2015 – June 30, 2022 94% CAGR Registered Users (2015 – June 30, 2022) Growing Marketplace Adoption ~4,400 Unique searches performed by researchers in the iSpecimen Marketplace in 2021 ~65% % of suppliers in the iSpecimen Marketplace with specimen requests in 2021 15 Annual Researcher and Supplier Marketplace Logins* 2015 – June 30, 2022 50% CAGR Marketplace Logins (2015 – 2021) 2,214 7,237 9,518 16,962 21,009 27,221 24,847 13,314 2015 2016 2017 2018 2019 2020 2021 30-Jun-22 *Researcher logins grew in 2021 while supplier logins dropped by 9% due to pandemic slowdowns at healthcare provider partners

 

 

“Utilization of sample data for research and for monetization is the next key value driver for the biobanks.” - Frost & Sullivan, Global Biobanking Market Landscape 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+ 16 1.2M+ 15 M+ 1M+ 640M+

 

 

Statements of Operations (Unaudited) 17                     Revenue $ 2,338,688 $ 2,903,876 $ 4,857,348 $ 5,867,683 Operating Expenses: Revenue (Q2 2022 vs. Q2 2022) Cost of revenue   999,743   1,489,196 2,165,659 3,112,847 Technology   635,650   361,799 1,163,173 771,750 $2.9M Sales and marketing   950,563   647,592 1,697,994 1,176,978 $2.3M Supply development   242,380   100,693 424,450 212,269 Fulfillment   519,994   287,275 963,788 556,371 General and administrative   1,575,365   1,545,852 3,385,680 2,508,643 Total Operating Expenses   4,923,695   4,432,407 9,800,744 8,338,858 Loss from Operations   (2,585,007)   (1,528,531) (4,943,396) (2,471,175) 6/30/2021 6/30/2022 Other Income (Expense), net: Interest expense   (42,273) (1,133,479) (80,321) (1,986,407) Revenue (YTD 2022 vs. YTD 2022) Change in fair value of derivative liability on convertible notes - (117,000) - (271,000) Change in fair value of derivative liability on bridge notes and bridge notes, related parties - 1,630,700 - 1,582,700 $5.9M Loss on extinguishment of bridge notes and bridge notes, related parties - 9,746 - (2,740,425) Loss on extinguishment of convertible notes and convertible notes, related parties - (260,185) - (260,185) $4.9M Gain on extinguishment of note payable - - - 788,156 Other income (expense) 6,590 3,663 6,630 (69) Interest income 13,881 172 26,535 - Other Income (Expense), net   (21,802)   133,617 (47,156) (2,887,230) 6/30/2021 6/30/2022 Net Loss $ (2,606,809) $ (1,394,914) $ (4,990,552) $ (5,358,405) Three Months Ended June 30,  -19% -17% Six Months Ended June 30,  2022 2021 2022 2021

 

 

Balance Sheets 18 June 30, 2022 December 31, 2021 (Unaudited) Assets         Cash 23,691,175$ 27,738,979$ Accounts receivable - unbilled 1,264,278 1,739,020 Accounts receivable, net of allowance 1,660,076 3,002,442 Prepaid expenses and other current assets 374,867 327,035 Tax credit receivable, net of current portion 140,873 140,873 Property and equipment, net 23,648 32,781 Internally developed software, net 2,954,936 2,710,867 Operating lease right-of-use asset 260,003 - Security deposits 27,601 27,601 Total Assets 30,397,457$ 35,719,598$ Liabilities       Accounts payable 433,026$ 832,678$ Accrued expenses 634,256 1,009,803 Accrued interest 7,778 8,167 Operating lease current obligation 152,780 - Deferred revenue 334,980 654,746 Operating lease long-term obligation 107,975 - Term loan, net of debt discount 3,428,732 3,422,616 Total Liabilities 5,099,527 5,928,010 Total Stockholders’ Equity 25,297,930 29,791,588 Total Liabilities and Stockholders’ Equity 30,397,457$ 35,719,598$ Condensed Balance Sheets iSpecimen Inc.

 

 

Fully Diluted Shares of Common Stock Outstanding 19 Diluted Shares of      Common Stock Shares outstanding at June 30, 2022 8,873,711 Shares issuable upon vesting of restricted stock units 367,118 Shares issuable upon exercise of stock options 171,154 Shares issuable upon exercise of PIPE Warrant to purchase common stock 1,415,000 Total diluted shares at June 30, 2022 10,826,983

 

 

Investor Summary 20 >200 Healthcare Provider / Supplier Organizations >450 Customer Organizations 1. Early - stage opportunity with a first mover advantage 2. $3B - $4B global biospecimen market growing at 10 - 15% per year 3. Unique two - sided marketplace disrupting the biospecimen procurement process 4. Strong revenue growth with a 6 - year CAGR of 59% 5. Growing data asset that’s a key enabler and differentiator

 

 

CONNECT. INNOVATE. Sign up for free iSpecimen Marketplace account at www.ispecimen.com CONTACT US iSpecimen Inc. 450 Bedford Street Lexington, MA 02420 [email protected] ispecimen.com

 

 

Appendix 22

 

 

Strategic Evolution PHASE 3 Expansion via the Online iSpecimen Marketplace Ƞ 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 – June 30, 2022 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 450+ Customers 200+ Supplier Agreement 80+ Million Specimen Records 15+ Million Patient Records 78 FTEs $20.7M + $21M IPO + Private Placement 23

 

 

iSpecimen Marketplace UI/UX Click Search to start searching for specimens 24

 

 

25 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 26

 

 

View Quote Request and Add More Specimens Request a Quote iSpecimen Marketplace UI/UX 27 Track and Manage Requests

 

 

28 Page Note Source Cited 7 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. 7 2 Global Marketing Insights, Precision Medicine Market Size By Technology (Big Data Analytics, Bioinformatics, Gene Sequencing, Drug 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, Competitive Market Share & Forecast, 2020 - 2026, Feb. 2020. and Regenerative Medicine Market Size, Share and Industry Analysis by Product (Cell Therapy, Gene Therapy, Tissue Engineering, Platelet Rich Plasma), By Application (Orthopaedics, Wound Care, Oncology), By Distribution Channel (Hospitals, Clinics) & Re gio nal Forecast, 2019 – 2026. Fortune Business Insight, 2019. 8 3 Frost & Sullivan, Global Biobanking Market Landscape. May 20, 2020, page 357 . 9 4 Centers for Disease Control, https://www.cdc.gov/nchs/data/ahcd/namcs_summary/2016_namcs_web_tables.pdf 9 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. 9 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, 2013. 9 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. 9 8 Specimen Independent Researcher Survey, 2022. Sources Cited

 

 

 

 



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