Business
Precipio’s Q3 Cash Burn From Operations (unaudited) Declines 59% YoY, from $2.5M in Q3-2022 to approximately $1M in Q3-2023
Company anticipates current cash levels sufficient to reach breakeven NEW HAVEN, Conn., Oct. 03, 2023 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company
About this update from Precipio, Inc.
[{"type":"text","content":"Company anticipates current cash levels sufficient to reach breakeven\nNEW HAVEN, Conn., Oct. 03, 2023 (GLOBE NEWSWIRE) -- 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...