- Company reports third quarter revenues of $6.8 Million, an increase of 68% over the third quarter of 2015
- The revenue growth rate was 58% for the first 9 months of 2016 as compared to 2015
- Company continues to decrease operating expenses both in sequential quarters and year over year
- Signed contracts for expected future revenue with pharmaceutical and biotech companies have increased to $49 Million
- Cancer Genetics will host a conference call Thursday, November 10, 2016 at 8:30 AM Eastern Time (ET) / 5:30 AM Pacific Time (PT)
- Revenues were $6.8 million, a 68% increase over the third quarter of 2015 with Biopharma services contributing $3.8 million, Clinical services contributing $2.7 million, and Discovery services contributing $0.3 million.
- Gross profit margins improved by $1.4 million or 12% to 34% or $2.3 million as compared to only $0.9 million or 22% during the 3 rd quarter of 2015.
- Organic revenue growth was 19% when excluding tests and services performed at the Solid Tumor Center of Excellence, formerly Response Genetics.
- Q3 Clinical services test volumes increased by 204% to 7,334 over Q3 of 2015 - driven by an increase in immuno-oncology testing, companion diagnostic testing for PD-L1 and solid tumor profiling.
- Clinical services revenue also grew in sequential quarters from Q2 to Q3 of 2016 by 6%.
- Operating expenses continue to decrease, with an improvement of 6% over sequential quarters, from Q2 to Q3 of 2016 or $0.4 million - from $6.7 million to $6.3 million.
- Operating expenses have decreased 20% over the past 3 quarters, from $7.9 million in Q4 of 2015, after the acquisition of Response Genetics, to $6.3 million in the most recent quarter, as the Company progresses towards being profitable.
- Total expenses for Q3 were $10.8 million, which includes non cash items of $1.1 million and were down 2% from $11.0 million during Q2 and down 4% from $11.3 million during Q1 of 2016.
- Total cash at the end of the quarter was $10.7 million.
- CGI launched Focus::Renal™, a unique, comprehensive and highly sensitive next generation sequencing (NGS) panel for enabling precision and personalized medicine for renal cancers.
- Strengthened our position as a leader in myeloid cancer diagnosis and management by receiving New York State approval for Focus::Myeloid™, our NGS panel for diagnosis, risk stratification and therapy selection for myeloid cancers.
- Presented insights and details on CGI's technology and platforms for patient stratification and improved diagnosis in immunotherapy trials at the Companion Diagnostics (CDx) Symposium.
- Increased the number of clinical trials and studies we are supporting in immuno-oncology to over 27.
|Cancer Genetics, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) (in thousands, except par value)|
|September 30, 2016||December 31, 2015|
|Cash and cash equivalents||$||10,716||$||19,459|
|Accounts receivable, net of allowance for doubtful accounts||13,679||6,621|
|Other current assets||2,185||2,118|
|Total current assets||26,580||28,198|
|FIXED ASSETS, net of accumulated depreciation||4,912||6,069|
|Patents and other intangible assets, net of accumulated amortization||1,594||1,727|
|Investment in joint venture||296||341|
|Total other assets||14,331||14,617|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$||8,341||$||7,579|
|Obligations under capital leases, current portion||69||122|
|Bank term note, current portion||2,000||1,333|
|Total current liabilities||10,620||9,865|
|Obligations under capital leases||228||276|
|Deferred rent payable and other||299||315|
|Deferred revenue, long-term||864||752|
|Bank term note||3,151||4,642|
|Preferred stock, authorized 9,764 shares, $0.0001 par value, none issued||—||—|
|Common stock, authorized 100,000 shares, $0.0001 par value, 18,870 and 13,652 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively||2||1|
|Additional paid-in capital||139,023||131,167|
|Total Stockholders' Equity||27,847||33,017|
|Total Liabilities and Stockholders' Equity||$||45,823||$||48,884|
|Cancer Genetics, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) (in thousands, except per share amounts)|
|Three Months Ended September 30,||Nine Months Ended September 30,|
|Cost of revenues||4,444||3,103||12,832||9,342|
|Research and development||1,594||1,802||4,806||4,335|
|General and administrative||3,701||3,487||11,677||9,536|
|Sales and marketing||1,054||1,243||3,731||3,543|
|Total operating expenses||6,349||6,532||20,214||17,414|
|Loss from operations||(4,043||)||(5,634||)||(13,227||)||(14,200||)|
|Other income (expense):|
|Change in fair value of acquisition note payable||18||315||119||(91||)|
|Change in fair value of warrant liability||712||214||729||18|
|Total other (expense)||298||422||200||(270||)|
|Basic Net (Loss) Per Share||$||(0.23||)||$||(0.54||)||$||(0.88||)||$||(1.49||)|
|Diluted Net (Loss) Per Share||$||(0.23||)||$||(0.56||)||$||(0.88||)||$||(1.49||)|
|Basic Weighted-Average Shares Outstanding||16,519||9,726||14,868||9,715|
|Diluted Weighted-Average Shares Outstanding||16,519||9,728||14,868||9,716|
|Cancer Genetics, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) (in thousands)|
|Nine Months Ended September 30,|
|CASH FLOWS FROM OPERATING ACTIVITIES|
|Adjustments to reconcile net (loss) to net cash (used in) operating activities:|
|Provision for bad debts||8||213|
|Change in fair value of acquisition note payable||(119||)||91|
|Change in fair value of Gentris contingent consideration||—||(162||)|
|Change in fair value of warrant liability||(729||)||(18||)|
|Amortization of debt issuance costs||9||5|
|Loss in equity method investment||45||748|
|Other current assets||(67||)||(368||)|
|Other non-current assets||(9||)||(86||)|
|Accounts payable, accrued expenses and deferred revenue||372||1,330|
|Deferred rent payable and other||(16||)||(59||)|
|Net cash (used in) operating activities||(17,299||)||(9,950||)|
|CASH FLOWS FROM INVESTING ACTIVITIES|
|Purchase of fixed assets||(345||)||(440||)|
|Decrease in restricted cash||—||6,000|
|Deposit for acquisition of Response Genetics||—||(880||)|
|Net cash provided by (used in) investing activities||(472||)||4,571|
|CASH FLOWS FROM FINANCING ACTIVITIES|
|Principal payments on capital lease obligations||(101||)||(44||)|
|Payments for deferred equity offering costs||—||(237||)|
|Proceeds from option exercises||—||23|
|Proceeds from offerings of common stock with derivative warrants, net of certain offering costs||9,962||34|
|Principal payments on bank term note||(833||)||—|
|Payment of debt issuance costs||—||(33||)|
|Net cash provided by (used in) financing activities||9,028||(257||)|
|Net (decrease) in cash and cash equivalents||(8,743||)||(5,636||)|
|CASH AND CASH EQUIVALENTS|
|SUPPLEMENTAL CASH FLOW DISCLOSURE|
|Cash paid for interest||$||250||$||158|
Contact:Panna SharmaCancer Genetics, Inc.firstname.lastname@example.org