"data-reactid =" 11 "> RUTHERFORD, NJ, Nov 20 2019 (GLOBE NEWSWIRE) – Cancer Genetics, Inc. (CGIX), a leader in medical findings and preclinical oncology and immuno-oncology services, today announced strategic, financial and operational results for the third quarter ended September 30, 201
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " RECENT STRATEGIC AND OPERATIONAL HighHIGHTS " data -reactid = "12"> RECENT STRATEGIC AND OPERATIONAL HIGHLIGHTS
- Delivered on cost reduction initiatives and consolidated operations focused on drug discovery and preclinical services
- Increased Discovery Services revenue in Q3 2019 to $ 2.1 million , an increase of $ 0.5 million, or 35% growth in Q3 2019 in relation to Q2 2019
- Discovery Services gross margin was 53.2%, in line with Q2 2019 results
- Completed disposal of two operating units is for cash, banknotes and future cash flows; received a total amount of approximately $ 9.1 million in cash from such transactions in Q3 and October 2019
- Retained HC Wainwright & Co. to explore strategic options for future merger, sale of other assets or other strategic transactions
We continue to make progress to improve the Company's financial profile with a reduction of over $ 15 million in total liabilities over the nine month period ended 30 September 2019. We received over $ 9.1 million in cash, including approximately $ 0.8 million from siParadigm in Q3 and $ 8.3 million from Interpace Diagnostics Group ($ 2.3 million in Q3 and Q6) , $ 0 million in October 2019), the recently announced M&A transactions. We repaid approximately $ 9 million in senior unsecured debt and paid down approximately $ 2.6 on two unsecured notes to be paid in October, further reducing debt, and we expect to reduce debt further through Q4 2019, giving the company time to explore a number of new strategic alternatives, "said John A. Roberts, CEO of Cancer Genetics.
In addition, Mr. Roberts stated" our Discovery Services business is self-sustaining and thus eliminates further cash burn, and we are now focused on collecting cash owed to the company, significantly reducing our accounts receivable with unsecured creditors, focusing on the operational elements of our Discovery Services business, and continuing to explore strategic alternatives, which may include the sale of other assets, a merger or other strategic strategies transactions. When these assets are now complete, we believe the company is well positioned to explore further strategic initiatives as well as expand the remaining Discovery Services business. "
<p class =" canvas atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm "type =" text "content =" THIRD QUARTER 2019 FINANCIAL RESULTS "data-reactid =" 21 "> THIRD QUARTER 2019 FINANCIAL RESULTS
As described in the company's Q3 2019 quarterly report on Form 10-Q, the company presented its financial results for its historical BioPharma and clinical services discontinued as a result of the two July 2019 sales sales transactions, and the company currently has a comprehensive set of antitumor-referenced data based on predictive xenograft and syngeneic tumor models from the acquisition of vivoPharm, Pty Ltd. ("vivoPharm" ) in 2017, to offer Discovery Services as contract research services, focused primarily on unique specialized studies to guide drug discovery and development programs in oncology and immuno-oncology. The company reported total revenue from Discovery Services of $ 2.1 million for the third quarter of 2019 compared to revenue of $ 0.5 million in the third quarter of 2018, partly the result of recording adjustments of the measurement period to deferred revenue in the Q3 2018 period related to in vivoPharm acquisition and the corresponding effect of 2018 of the adoption of ASC 606.
Gross profit margin from continuing operations was 53.2% or $ 1.1 million in the third quarter of 2019, compared to -28% or ($ 0.2) million in third quarter of 2018. Total operating expenses from continuing operations for the third quarter of 2019 were approximately $ 4.8 million, compared to $ 3.1 million in the third quarter of 2018. The increase is a result of the recording of one-off costs, one-time goodwill amounts of $ 2 , $ 9 million and $ 0.3 million merger-related costs. Net loss from continuing operations was $ 3.7 million in the third quarter of 2019, compared to a net loss of $ 3.3 million in the same period 2018, and total net income was $ 1.9 million or $ 0.98 per share for the third quarter 2019, compared with a comprehensive net loss of $ 8.5 million or $ 9.34 per share for the third quarter of 2018.
Cash and cash equivalents as of September 30, 2019 totaled $ 2.1 million, compared to $ 0.2 million as of December 31, 2018, an increase of approx. $ 2 million.
<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " About Cancer Genetics, Inc. "data-reactid =" 25 "> About Cancer Genetics, Inc.
Through the acquisition of vivoPharm, the company offers proprietary preclinical testing systems that support early-stage clinical diagnostic offers, valued by the pharmaceutical industry, biotechnology companies and academic research centers. . vivoPharm specializes in conducting studies tailored to guide drug development, starting from composite libraries and ending with a comprehensive set of in vitro and in vivo data and reports, as needed for investigations of new drug submissions. The company had revenues from its Discovery Services business of continuing operations of $ 4.9 million for the full year 2018 and $ 5.4 million for the nine-month period ended September 30, 2019.
This press release contains forward-looking statements within the meaning of the Private Securities Reform Act (1995). All statements related to Cancer Genetics, Inc.'s expectations for future financial and / or operating results, the potential for our testing and services, and future revenues or growth in this press release constitute forward-looking statements.
Any statements that are not historical fact (including, but not limited to, statements containing words such as "will," "believe," "plan," "anticipate," "expect," "estimates") should also be considered as forward-looking statements. Forward-looking statements involve risk and uncertainty, including, without limitation, risks with respect to our ability to collect future revenue or payment streams and settle with our creditors, risks with respect to our ability to operate the Discovery Services business, risk associated with consideration of our ability to raise future capital to meet our obligations to our lenders and creditors, regulatory risks, risk of cancellation of customer contracts or termination of trials, uncertainty regarding the evaluation of strategic options, maintenance of intellectual property rights, risk in respect of. maintain our listing on Nasdaq and other risks discussed in Cancer Genetics, Inc. Form 10-K for the year ended December 31, 2018 and Form 10-Q for the quarter ended September 30, 2019, along with other filings with Securities and the Exchange Commission. These forward-looking statements speak only from the date of this. Cancer Genetics, Inc. disclaims any obligation to update these forward-looking statements.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Investor contacts:
John A. Roberts & nbsp;
Email: jay.roberts@cgix.com "data-reactid =" 34 "> Investor contacts:
John A. Roberts
Email: jay.roberts@cgix.com
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Cancer Genetics, Inc. and affiliates
Consolidated Balance Sheets (Unaudited)
(in thousands, excluding face value) " data-reactid = "35"> Cancer Genetics, Inc. and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(in thousands, excluding face value) [19659027]
30. September
31. December
[19659036] 2019
2018
Means
CURRENT ASSETS
Cash and cash equivalents
$ [19659035] 2,147
$
161
Accounts receivable
813
777
Earn-Out from siParadigm, current part
693 [19659028]
–
Accounts receivable from IDXG
6,795
–
Other current assets
1.030 [19659036]
553
Current assets for discontinued operations
1,125
23,421
Total current assets
12603
24,912
FIXED ASSETS, net of accumulated depreciation
[1965 [19659028]
497
OTHER ASSETS
Operational lease right-use funds
115
–
Limited cash [1 9659028]
350
350
Earn from siParadigm, less current part [19659028]
594
–
Patents and other intangible assets, net of accumulated amortization
3,021
3,349
Investment in joint venture [19659034]
92
92
goodwill
[19659044] 3090
5963
Other
300
[19659110]
243 [19659081] Total Other Assets
7,562
9997
Total Assets
$ [19659215] 20,836
$
35.406
OBLIGATIONS AND SHAREHOLDERS
[19659160]
19659044]
CURRENT OBLIGATIONS
Payments and expenses
]
3.330 [1 9659036]
3,100
Obligations under operating leases, current part
207
–
Obligations under financial lease, current part [19659028]
60
20
Deferred income
[19659028]
1607
1,215
Convertible note, not
[19659044] 2,273
2,481
Advance from NovellusDx, Ltd., net
[19659044] 1500
535
Advance from siParadigm, current part
469
–
Other derivatives
– [19659028]
86
Short-term debt on liquidation of business
3,229
20,742
Total short-term debt
[19659028]
12,675 [19659036]
28,179
Obligations under operating agreements minus current part
[19659028]
29
–
Obligations under financial lease, less current part
148
23
Advances from siParadigm, minor current part
505
–
Exposed rent and more
–
154
Guarantee liability
15
248
Total debt
13372
]
28.604
OBLIGATIONS AND RELATIONS
SHAREHOLDER REQUIREMENTS
Preferred stock, authorized 9,764 shares, $ 0.0001 par value, none issued
[19659044] –
–
Issued shares, authorized 100,000 shares, $ 0.0001 par value de, 2,101 and 924 issues d and outstanding on September 30, 2019 and December 31, 2018 respectively
–
–
Additional paid-up capital [19659028]
171,696
164,458
Accumulated other comprehensive income (loss)
(101
)
60
Accumulated deficit
[19659107] (164.131
)
(157.716
)
Total Stockholders & # 39; Equity
7464
]
6802
Sum debt and shareholders
$
20,836
$
35,406 [19659033]
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Cancer Genetics, Inc. and subsidiaries
Condensed Consolidated Statements of Assurance and Other Comprehensive Losses (Unaudited)
(in thousands, excluding amounts per share) "data-reactid =" 38 "> Cancer Genetics, Inc. and affiliates
Condensed Consolidated Operations and Other Comprehensive Losses (Unaudited)
(in thousands, excluding amounts per share)
| Three months ended September 30 [19659000] ] |
9 months ending September 30 |
||||||||||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
| Turnover | [19659028] $ | 2069 | $ | 535 | $ | 5,416 | $ | 3,243 | |||||||||||||||||||||||
| Income Costs | 960 | 685 | [19659051] 2,631 [19659052] 2.145 | ||||||||||||||||||||||||||||
| Gross Profit (Loss) | 1,109 | (150 | ) | 2785 | 1.098 | ||||||||||||||||||||||||||
| Operating Expenses: | [19659037] | [19659033] | [19659033] | ||||||||||||||||||||||||||||
| General and administrative | 1,290 | 1.939 | 4 463 | 5.236 | |||||||||||||||||||||||||||
| Sales and Marketing | 322 | 320 [19659160] | 825 | 900 | |||||||||||||||||||||||||||
| Impairment of benevolence | 2.873 | – | 2873 | [19659037] – | [19659059] Merger costs | 284 | 890 | 284 | 890 | ||||||||||||||||||||||
| Total operating expenses | 4,769 | 3,149 [19659160] | 8455 | 7 .026 | |||||||||||||||||||||||||||
| Loss from further operation | (3,660 | ) | ] | (3,299 | ) | (5,660 | ) [19659159] (5,928 | ) | |||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||
| Interest expense | [19659035] (200 | ) | (82 | ) | (1 327 | ) | (87 | ) | |||||||||||||||||||||||
| Interest Income | [19659044] – | – | – | [19659031] | [19659037] 21 | ||||||||||||||||||||||||||
| Change in fair value of purchase note payable | 5 | [19659031] | (13 | ) | 12 | 68 [19659033] | |||||||||||||||||||||||||
| Change in fair value of other derivatives | – | [1 9659037] – | 86 | – | |||||||||||||||||||||||||||
| Change in fair value of warranty liability | 34 | [19659033] | 12 | [19659034] | 233 | 2858 | |||||||||||||||||||||||||
| Change in fair value of siParadigm Earn-Out | (982 | ) | – | [19659028] | (982 | ) | – | ||||||||||||||||||||||||
| Other expenditure | [19659107] – | (55 | ) [19659051] (11 | ) | (78 | ) | |||||||||||||||||||||||||
| Total other income (expenditure) | [19659106] | (1,143 | ) | (138 | ) | (1,989 | ) | [19659110] | 2,782 | ||||||||||||||||||||||
| Loss before income tax | [19659035] (4,803 | ) [19659031] | (3,437 | ) | (7.6 49 | ) | (3 146 | ) | |||||||||||||||||||||||
| Income Tax Benefit | – | – | (512 | ) [19659159] – | |||||||||||||||||||||||||||
| Losses from continuing operation ns | (4,803 | ) | (3,437 | ) | [19659035] (7.137 | ) | (3.146 | ) | |||||||||||||||||||||||
| Income (loss) from discontinuing business (including gain on sale of companies of $ 8,496 over of the three and nine months ended September 30, 2019) | 6,778 | (5,082 | ) | 722 | (13,462 | ) | |||||||||||||||||||||||||
| Net income (tap) | 1,975 | (8.519 | ) | (6.415 | ) | [19659033] | ( 16 608 | ) | |||||||||||||||||||||||
| Foreign currency translation gain (loss) | (120 [19659154]) | (30 | ) | (161 | ) | 35 | |||||||||||||||||||||||||
| Comprehensive Income (Loss) [19659028] | $ | 1855 | $ [19659087] (8,549 | ) | $ | (6,576 | ) | $ | (16,573 | ) | |||||||||||||||||||||
| [19659160] | |||||||||||||||||||||||||||||||
| Basic and diluted net loss per share from continued business | $ | (2.38 | ) | $ | (3.77 | ) [19659028] | $ | (3.86 | ) | $ | (3.48 | ) | |||||||||||||||||||
| Basic and diluted net income (loss) per share from discontinued operations | 3.36 | (5.57 [19659160)]) | 0.39 | (14.87 | ) | ||||||||||||||||||||||||||
| Basic and diluted net income (t ap) per share | $ | 0.98 [19659028] | $ | (9.34 | ) | $ [19659167] (3.47 | ) | $ | (18.35 [19659033]) | ||||||||||||||||||||||
| [19659160] | |||||||||||||||||||||||||||||||
| Based and diluted weighted average shares outstanding | [19659215] 2014 | [19659087] 912 | 1850 | 905 [19659033] | |||||||||||||||||||||||||||
