INTERPACE BIOSCIENCES, INC. FORWARD-LOOKING STATEMENTS
This quarterly report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not historical facts, including statements about our plans, objectives, beliefs and expectations, are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words "believes," "expects," "anticipates," "plans," "estimates," "intends," "projects," "should," "could," "may," "will" or similar words and expressions. These forward-looking statements are contained throughout this Form 10-Q.
Forward-looking statements are only predictions and are not guarantees of future performance. These statements are based on current expectations and assumptions involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. These predictions are also affected by known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from those expressed or implied by any forward-looking statement. Many of these factors are beyond our ability to control or predict. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors. Such factors include, but are not limited to, the following:
? material adverse impact of Coronavirus (COVID-19) pandemic due to the
slowdown in demand for our clinical services and pharma services, a
reduction in samples received and testing volume and delayed third party
collections and other factors;
? the substantial doubt about our ability to continue as a going concern due
to our history of operating losses, declining cash position and other
liquidity factors, which in the absence of additional short term financing
may cause us to cease or scale back operations;
? the limited revenue generated by our clinical services and pharma
services;
? we expect to incur net losses for the foreseeable future and may never
achieve or sustain profitability;
? our limited operating history, the limited revenue generated from our
business thus far and our fluctuating quarterly and annual revenue and
operating results, including as a result of how we recognize revenue;
? our ability to timely file our SEC reports the failure of which could
result in a delisting from Nasdaq, and loss of eligibility for certain
registration statements and exemptions for resales;
? the failure to meet Nasdaq minimum stockholders' equity requirement as of
June 30, 2020 resulting in a letter from Nasdaq notifying us of the
failure to meet this listing requirement and commencing procedures to
potentially delist our Common Stock from Nasdaq, as well as the increased
difficulty in meeting the minimum stockholders' equity requirement as a
result of the impairment charge, which delisting (if effected) could lead
to a possible reduced stock price, potentially causing difficulty raising
additional capital or debt, and also resulting in the loss of exemptions
from various state securities laws;
? we generally depend on sales and reimbursements from our clinical services
for more than 50% of our revenue; the ability to continue to generate
sufficient revenue from these and other products and/or solutions that we
develop in the future is important for our ability to meet our financial
and other targets;
? we rely on third parties to process and transmit claims to payers for our
clinical services, and any delay, data loss, or other disruption in
processing or transmitting could have an adverse effect on our revenue and
financial condition;
? our ability to utilize our commercial and operating experience to sell our
clinical and pharma services;
? our ability to compete successfully in the markets that our clinical
services and pharma services operate in;
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INTERPACE BIOSCIENCES, INC
? our ability to obtain, retain and increase sufficient levels of
third-party reimbursement for our clinical services tests in a changing
and challenging reimbursement environment, including our current
dependence on a concentrated number of third-party payers, the lack of
timeliness of their payments and the potential failure of such payments to
ever occur;
? our billing practices and those of our third-party billing providers that
can impact our ability to effectively bill and collect on claims for the
sale of our clinical tests;
? our revenue recognition is based, in part, on our estimates for future
collections and such estimates may prove to be incorrect;
? a deterioration in the collectability of our accounts receivable could
have a material adverse effect on our business, financial condition and
results of operations;
? the inability to finance our business on acceptable terms in the future
may limit the ability to grow our business, develop and commercialize
products and services, develop and commercialize new molecular clinical
service solutions and technologies and expand our pharma services
offerings;
? we have issued convertible preferred stock, and may issue additional
convertible preferred stock in the future, that includes terms that may
dilute our Common Stock;
? the concentration of our ownership in two private equity firms and their
affiliates that control, on an as-converted basis, 66% of our fully
diluted outstanding shares of Common Stock through their holdings of
Series B Preferred Stock, as well as their corresponding designation
rights for a majority of our directors and their right to approve certain
of our actions, has resulted in these stockholders having a substantial
influence on our business decisions;
? as billing for our clinical services tests is complex, we must dedicate
substantial time and resources to its invoicing process and are
continuously taking measures to improve the success of our accounts
receivable collection activities;
? we depend upon a small number of payers for a significant portion of our
clinical services and could experience a decline in revenue, as well as a
compromise to our commercial success, should one or more of these payers
stop, delay or decrease reimbursement payments;
? if payers do not provide reimbursement, rescind or modify their
reimbursement policies or delay payments for our clinical services, we
could experience a decline in revenue and our commercial success could be
compromised;
? the development of new tests, products and related services and solutions
typically requires a lengthy, complex and costly process and development
activities could prove unsuccessful or yield uncertain results;
? the effect of potential adverse findings, including potential laboratory
shut downs, resulting from regulatory audits and inspections of our
facilities, as well as our billing and payment practices, and the impact
such adverse findings could have on our continuing business operations;
? a decline in demand for our clinical services tests and/or our pharma
services products;
? the failure of our products and services to perform as forecast;
? customer claims against us asserting inaccurate results from our clinical
services tests or our pharma services products;
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INTERPACE BIOSCIENCES, INC
? our obligations to make royalty and milestone payments to our licensors;
? our ability to obtain the data and samples that are needed to perform the
clinical studies that will enable us to publish data demonstrating the
clinical relevance and value of our clinical services tests, including to
support sufficient levels of third-party reimbursement;
? our dependence on third parties for the supply of some of the materials
used in our clinical and pharma services tests;
? our ability to successfully scale our operations, which could potentially
result in delays in providing test results or in shortages for our tests
and services;
? our ability to develop or acquire tests, services or solutions;
? the ability of our clinical services to enter into collaborations with
highly regarded institutions;
? the potential adverse impact of current and future laws, licensing
requirements and governmental regulations upon our business operations,
including but not limited to the evolving U.S. regulatory environment
related to laboratory developed tests ("LDTs"), pricing of our tests and
services and patient access limitations;
? if we fail to comply with Federal, State and foreign laboratory licensing
requirements, we could lose the ability to perform our tests resulting in
disruptions to our business;
? legislation reforming the U.S. healthcare system;
? a failure to comply with Federal and State laws and regulations pertaining
to our billing practices could result in our being excluded from
participation in Medicare, Medicaid or other governmental payer programs
and/or significant monetary fines;
? our ability to comply with U.S. fraud and abuse laws, as well as payer
regulations, could result in our being excluded from participation in
Medicare, Medicaid or other governmental payer programs and/or significant
monetary fines;
? compliance with numerous statutes and regulations pertaining to our
business;
? the effect of The Eliminating Kickbacks in Recovery Act of 2018 to the
extent that it could negatively impact our ability to incentivize our
sales personnel;
? our ability to realize all of the anticipated benefits of the acquisition
of our pharma services or those benefits, if any, taking longer to realize
than was forecasted;
? if pharmaceutical and biotech companies, universities and contract
research organizations performing clinical trials decide not to use our
tests and services, we may be unable to generate sufficient revenue to
sustain our pharma services;
? if we fail to perform our pharma services in accordance with contractual
and regulatory requirements, and ethical considerations, we could be
subject to significant costs, legal liabilities and could experience a
decline in revenue;
? our ability to attract and retain key employees and management personnel;
? our reliance on our sales and marketing activities for future business
growth and our ability to continue to expand our sales and marketing
activities;
? our limited experience in marketing and selling our products;
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INTERPACE BIOSCIENCES, INC
? the ability of our clinical services tests to be successfully embraced by
physicians and members of the medical community who have historically used
traditional methods to diagnose gastrointestinal and endocrine cancers;
? our ability to effectively compete against competitors that offer product
lines that extend beyond the clinical services testing market, that have
greater brand recognition and that possess greater financial resources;
? our ability to license rights to use emerging technologies that will
enhance our ability to commercialize new products and services;
? the potential for liabilities or restraints on our business as a result of
unanticipated, future litigation, as well as our potential inability to
enforce legal judgments or collect monetary damages awarded in our favor;
? the adverse impact of force majeure events, including but not limited to
acts of nature, adverse weather conditions, hurricanes and floods,
epidemics and pandemics upon our business and the ability of our suppliers
to provide us with critical materials and services;
? our use of hazardous materials;
? the susceptibility of our information systems to security breaches, loss
of data and other disruptions;
? catastrophic loss of our laboratories;
? our ability to obtain and maintain sufficient qualified laboratory space
to meet the processing needs of our business, as well as our ability to
pass regulatory inspections and continue to be Clinical Laboratory
Improvement Amendments ("CLIA") and the College of American Pathologists
certified or accredited;
? compliance with the U.S. Foreign Corrupt Practices Act and anti-bribery
laws;
? our ability to respond to rapid scientific changes in the areas in which
we operate;
? our compliance with our license agreements and our ability to protect and
defend our intellectual property rights;
? patent infringement claims against us;
? changes in U.S. and global patent law;
? tax reform legislation;
? stock dilution;
? changes in financial accounting standards or practices;
? exposure to international law, regulations and risk as a result of
international expansion;
? we may acquire businesses or assets or make investments in other companies
or testing, service or solution technologies that could negatively impact
the results of business operations, dilute our stockholders' ownership,
increase our debts and/or cause us to incur significant expenses;
? the potential impact of existing and future contingent liabilities on our
financial condition;
? the results of any future impairment testing for intangible assets as
required under U.S. generally accepted accounting principles ("GAAP");
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INTERPACE BIOSCIENCES, INC
? our ability to remediate material weaknesses in internal controls and to
maintain and implement effective internal controls over financial
reporting, especially as we are consolidating operations;
? if our information technology or communications systems fail or we
experience a significant interruption in their operation, our reputation,
business and results of operations could be materially and adversely
affected;
? the impact of future issuances of debt, common and preferred shares on
stockholders' interest and stock price;
? our ability to report financial results on a timely and accurate basis;
? our ability to manage our growth or unexpected declines;
? uncertainty regarding the regulatory obligations related to our receipt of
$650,000 funding for COVID-19 testing;
? the potential impact of the relocation of our laboratory activities from
Rutherford, NJ facility to our North Carolina facility upon ongoing
customer clinical trials if revalidation is delayed with respect to the
new site;
? the impact of costs associated with expanding our laboratory capabilities
in North Carolina in connection with the relocation of operations from
Rutherford, NJ , as well as the potential for loss of customers as a result
of this relocation;
? our ability to efficiently execute and complete the planned laboratory
transition from Rutherford, NJ to North Carolina on a timely basis and
within our forecasted costs;
? potential loss of personnel that are uniquely qualified to perform the
breadth of specialty testing and lab applications necessary for developing
customized assays in our pharma services;
? potential legal liabilities related to our employees, contractors and
other third parties asserting claims for damages arising from workplace
exposure to certain infectious agents, including but not limited to the
COVID-19 virus;
? the possibility that we may have to cease laboratory operations at one or
more facilities for an undefined period of time due to the contraction of
COVID-19 by persons that have been in such facilities, resulting in our
inability to satisfy contractual obligations, a loss of revenue and other
potential legal liabilities;
? certain payors may decline to reimburse us for services rendered and
billed using new billing codes currently in use with Medicare;
? the inability to charge and collect payment for the Company's serology
antibody ELISA test for COVID-19 or the inability to coordinate the
technology with a polymerase chain reaction test;
? the inability to raise capital in the future under the terms of our
preferred stock arrangement could result in a Nasdaq market delisting and
possibly in the Company seeking creditor protection pursuant to U.S.
bankruptcy laws;
? the inability by the Company to consolidate its multiple LIM's programs
into one functioning LIM's program in the North Carolina laboratory could
negatively impact the operations of our pharma services;
? the risk of a breach of proprietary or confidential data, regulated data,
and personal information of employees, customers and others; successful
breaches, employee malfeasance, or human or technological error that could
result in, unauthorized access to, disclosure, modification, misuse, loss,
or destruction of company, customer, or other third party data or systems;
theft of sensitive, regulated, or confidential data including personal
information and intellectual property; the loss of access to critical data
or systems through ransomware, destructive attacks or other means; and
business delays, service or system disruptions or denials of service, as
well as legal consequences under Federal, state and other applicable laws
and regulations;
? the risk and cost associated with whistleblower threats, interventions and
lawsuits on our business and the cost of responding to such matters;
? our ability to respond to rapid scientific change;
? the risk of liability in conducting clinical trials and the sufficiency of
our insurance to cover such claims;
? our ability to implement our business strategy;
? Food and Drug Administration ("FDA") regulation of LDTs;
? our ability to integrate future acquisitions and costs related to such
acquisitions;
? our ability to hire and retain sufficient managerial, sales, clinical and
other personnel to meet our needs; and
? our ability to successfully scale our business, including expanding our
facilities, our backup systems and infrastructure.
30
INTERPACE BIOSCIENCES, INC Please see Part I - Item 1A - "Risk Factors" in our Form 10-K for the fiscal
year ended
OVERVIEW
We provide complex molecular analysis for the early diagnosis and treatment of certain cancers and supporting the development of targeted therapeutics. Though our clinical and pharma services, we offer specialized services along the therapeutic value chain from early diagnosis and prognostic planning to targeted therapeutic applications. Our clinical services enable physicians to personalize the clinical management of each patient by providing genomic information that allows them to better diagnose certain cancers and individualize patient treatments. Our proprietary molecular diagnostic tests, bioinformatics and pathology services leverage the latest personalized medicine technologies in order to improve patient diagnosis and management.
Through our pharma services, we offer an extensive suite of molecular- and biomarker-based tests and services that provide unique, customized solutions for patient stratification and treatment selection. Our tests and services include DNA- and RNA- extraction, customized assay development and trial design consultation. Our pharma services offerings also include pharmacogenomics testing, genotyping, biorepository and other specialized services to the pharmaceutical and biotechnology industries. Through collaboration with pharmaceutical, academic and technology leaders, we are investing in innovations that will advance personalized medicine by better integrating pharmacogenomics into the drug development process and clinical trial programs. Our goal is to help deliver safer, more effective drugs to market more quickly, while also improving patient care.
During fiscal 2019, in connection with the acquisition of our Pharma Services,
an affiliate of
Impact of COVID-19 pandemic
We have taken what we believe are necessary precautions to safeguard our
employees from the COVID-19 pandemic. We continue to follow
31
INTERPACE BIOSCIENCES, INC The continuing impact that the COVID-19 pandemic will have on our operations, including duration, severity and scope, remains highly uncertain and cannot be fully predicted at this time. Accordingly, we believe that the COVID-19 pandemic could continue to adversely impact our results of operations, cash flows and financial condition in the future.
To optimize the operations of laboratory operations within our pharma services,
we are transitioning activities from the
All of our laboratories are currently in operation and, in our view, are appropriately staffed for current volumes. While we do not anticipate any laboratory closures at this time beyond periodic, temporary work stoppages to clean and disinfect the labs, this could change in the future based upon conditions caused by the pandemic. Further, while we have acquired additional inventories of laboratory supplies, including reagents, it is possible that we could experience supply chain shortages if the pandemic continues for a prolonged period and/or if one or more suppliers is unable to continue to provide us with inventory. For the foreseeable future, however, we do not anticipate supply chain shortages of critical supplies or delays from our third-party clinical services billing and collections company. We continue to monitor the actual and potential impact of the pandemic upon our operations and will continue to do so.
We have developed and validated a serology antibody ELISA testing for COVID-19
at our CLIA lab in
32
INTERPACE BIOSCIENCES, INC Additional Reimbursement Coverage and Price Increase During 2020 and 2021
Reimbursement progress is key for us. We have been successful to date in expanding both the scope and amount of product reimbursement for our clinical services in 2020. Examples of our progress include:
? InFebruary 2020 , we announced an increase in Medicare reimbursement for our ThyraMIR® test from$1,800 to$3,000 , retroactive toJanuary 1, 2020 , reflecting a re-evaluation of the technical and clinical performance of the test relative to other molecular tests in the market and their respective prices. ? InMarch 2020 , we announced an agreement withBlue Cross Blue Shield of Massachusetts under which ThyGeNEXT® and ThyraMIR® tests are now covered in-network services for their more than 3 million members inMassachusetts and acrossNew England . ? InMarch 2020 , we announced an agreement with CareFirst Blue Cross Blue Shield that makes ThyGeNEXT® and ThyraMIR® tests covered in-network services for their more than 3.3 million members inMaryland ,Washington, D.C. , andNorthern Virginia . ? InMarch 2020 , we announced we had entered into a contract withPremera Blue Cross , making ThyGeNEXT® and ThyraMIR® tests covered in-network services for their more than 2 million members inWashington State andAlaska . ? InApril 2020 , we executed an agreement with Avalon Healthcare Solutions (Avalon), a laboratory benefit manager representing numerous health plans. This agreement provides in-network status for our products to approximately 5.8 million lives covered by the following health plans: Blue Cross BlueShield North Carolina ,South Carolina ,Kansas City andVermont , andCapital Blue Cross of Central Pennsylvania . ? InApril 2020 , we executed a contract withBlue Cross of Idaho making ThyGeNEXT® and ThyraMIR® tests covered in-network services for their more than 576,000 members. ? InMay 2020 , we executed a contract withBlue Cross Blue Shield of Wyoming . ? InJuly 2020 , we announced that our peer reviewed manuscript, describing results from a seminal clinical validation study of the combination of ThyGeNEXT® and ThyraMIR®, was accepted for publication in the highly respected journal Diagnostic Cytopathology and also accepted as a podium presentation for theAmerican Society of Cytopathology (ASC) Annual Meeting. OnAugust 7, 2020 this publication was made available on-line. ? InDecember 2020 , we executed an agreement with Regence Blue Cross Blue Shield ofWashington State ,Utah ,Oregon , andIdaho . ? InDecember 2020 , we executed an agreement withHealthNow New York , parent company ofBlue Cross Blue Shield of Western New York , andBlue Cross Blue Shield of Northeastern New York . ? In December, 2020, we executed an agreement with Florida Blue/Blue Cross Blue Shield of Florida , which was effectiveJanuary 1, 2021 . ? InDecember 2020 , Medicare increased pricing for our ThyGeNEXT® test from$600 to$2,900 . We began realizing reimbursement at the higher rate starting inJanuary 2021 . Revenue Recognition
Clinical services derive its revenues from the performance of its proprietary assays or tests. Our performance obligation is fulfilled upon completion, review and release of test results to the customer, at which time we bill third-party payers or direct-bill payers for the tests performed. Under Accounting Standards Codification 606, revenue is recognized based upon the estimated transaction price or net realizable value ("NRV"), which is determined based on historical collection rates by each payer category for each proprietary test offered. To the extent that the transaction price includes variable consideration, for all third party and direct-bill payers and proprietary tests, we estimate the amount of variable consideration that should be included in the transaction price using the expected value method based on historical experience.
The ultimate amounts received from the third-party and direct-bill payers and related estimated reimbursement rates are regularly reviewed and we adjust the NRV's and related contractual allowances accordingly. If actual collections and related NRV's vary significantly from our estimates, we adjust the estimates of contractual allowances, which affects net revenue in the period such variances become known.
With respect to our pharma services, customer performance obligations are satisfied at a point in time as the Company processes samples delivered by the customer. Project level activities, including study setup and project management, are satisfied over the life of the contract. Revenues are recognized at a point in time when the test results or other deliverables are reported to the customer.
Deferred Revenue
For our pharma services, project level fee revenue is recognized as deferred revenue and recorded at fair value. It represents payments received in advance of services rendered and is recognized ratably over the life of the contract.
Cost of Revenue
Cost of revenue consists primarily of the costs associated with operating our laboratories and other costs directly related to our tests. Personnel costs, which constitute the largest portion of cost of services, include all labor-related costs, such as salaries, bonuses, fringe benefits and payroll taxes for laboratory personnel. Other direct costs include, but are not limited to, laboratory supplies, certain consulting expenses, royalty expenses, and facility expenses.
33
INTERPACE BIOSCIENCES, INC CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, certain statements of operations data. The trends illustrated in this table may not be indicative of future results.
Condensed Consolidated Results of Continuing Operations for the Quarter EndedSeptember 30, 2020 Compared to the Quarter EndedSeptember 30, 2019 (unaudited, in thousands) Three Months Ended September 30, 2020 2020 2019 2019 Revenue, net$ 8,248 100.0 %$ 7,725 100.0 % Cost of revenue 5,194 63.0 % 4,835 62.6 % Gross profit 3,054 37.0 % 2,890 37.4 % Operating expenses: Sales and marketing 2,699 32.7 % 2,757 35.7 % Research and development 763 9.3 % 857 11.1 % General and administrative 4,482 54.3 % 4,492 58.1 % Acquisition related expense - 0.0 % 838 10.8 % Acquisition amortization expense 1,115 13.5 % 1,079 14.0 % Total operating expenses 9,059 109.8 % 10,023 129.7 % Operating loss (6,005 ) -72.8 % (7,133 ) -92.3 % Interest accretion (138 ) -1.7 % (111 ) -1.4 % Other income (expense), net (12 ) -0.1 % (135 ) -1.7 %
Loss from continuing operations before tax (6,155 ) -74.6 % (7,379 ) -95.5 % Provision for income taxes
14 0.2 % 9 0.1 %
Loss from continuing operations (6,169 ) -74.8 % (7,388 ) -95.6 %
Loss from discontinued operations, net of tax (65 ) -0.8 % (58 ) -0.8 %
Net loss$ (6,234 ) -75.6 %$ (7,446 ) -96.4 % Revenue, net
Consolidated revenue, net for the three months ended
Cost of revenue
Consolidated cost of revenue for the three months ended
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INTERPACE BIOSCIENCES, INC
Gross profit
Consolidated gross profit was approximately
Sales and marketing expense
Sales and marketing expense was approximately
Research and development
Research and development expense was
General and administrative
General and administrative expense was approximately
Acquisition related expense
During the three months ended
Acquisition amortization expense
During the three months ended
Operating loss
Operating loss from continuing operations was
Provision for income taxes
Income tax expense was approximately
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INTERPACE BIOSCIENCES, INC Loss from discontinued operations, net of tax
We had a loss from discontinued operations of approximately
Condensed Consolidated Results of Continuing Operations for the Nine-Months EndedSeptember 30, 2020 Compared to the Nine-Months EndedSeptember 30, 2019 (unaudited, in thousands) Nine Months Ended September 30, 2020 2020 2019 2019 Revenue, net$ 22,752 100.0 %$ 20,005 100.0 % Cost of revenue 15,156 66.6 % 10,489 52.4 % Gross profit 7,596 33.4 % 9,516 47.6 % Operating expenses: Sales and marketing 6,776 29.8 % 8,127 40.6 % Research and development 2,123 9.3 % 2,032 10.2 % General and administrative 13,481 59.3 % 9,613 48.1 % Acquisition related expense - 0.0 % 2,534 12.7 % Acquisition amortization expense 3,346 14.7 % 2,874 14.4 % Total operating expenses 25,726 113.1 % 25,180 125.9 % Operating loss (18,130 ) -79.7 % (15,664 ) -78.3 % Interest accretion (414 ) -1.8 % (331 ) -1.7 % Other (expense) income, net 473 2.1 % (12 ) -0.1 % Loss from continuing operations before tax (18,071 ) -79.4 % (16,007 ) -80.0 % Provision for income taxes 43 0.2 % 19 0.1 %
Loss from continuing operations (18,114 ) -79.6 % (16,026 ) -80.1 %
Loss from discontinued operations, net of tax (194 ) -0.9 % (51 ) -0.3 % Net loss$ (18,308 ) -80.5 %$ (16,077 ) -80.4 % Revenue, net
Consolidated revenue, net for the nine months ended
Cost of revenue
Consolidated cost of revenue for the nine months ended
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INTERPACE BIOSCIENCES, INC
Gross profit
Consolidated gross profit was approximately
Sales and marketing expense
Sales and marketing expense was
Research and development
Research and development expense was
General and administrative
General and administrative expense for the nine months ended
Acquisition related expense
During the nine months ended
Acquisition amortization expense
During the nine months ended
Operating loss
Operating loss from continuing operations was
Provision for income taxes
Income tax expense was approximately
Loss from discontinued operations, net of tax
We had a loss from discontinued operations of approximately
37
INTERPACE BIOSCIENCES, INC LIQUIDITY AND CAPITAL RESOURCES
For the nine months ended
During the nine months ended
For the nine months ended
For the nine months ended
On
On
As of
During
In
In
See Note 1, Overview, of the notes to the financial statements, regarding the potential adverse impact of the COVID-19 pandemic on our results of operations, cash flows and financial condition for the third quarter of fiscal 2020 and possibly beyond.
During
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INTERPACE BIOSCIENCES, INC During April and early
The Company has and may continue to delay, scale-back, or eliminate certain of its activities and other aspects of its operations until such time as the Company is successful in securing additional funding. The Company is exploring various dilutive and non-dilutive sources of funding, including equity and debt financings, strategic alliances, business development and other sources. The future success of the Company is dependent upon its ability to obtain additional funding. There can be no assurance, however, that the Company will be successful in obtaining such funding in sufficient amounts, on terms acceptable to the Company, or at all. These factors raise substantial doubt about the Company's ability to continue as a going concern.
The Company's cash and cash equivalents balance is decreasing and we will not
generate positive cash flows from operations for the year ending
In the event the Company's Common Stock is delisted from Nasdaq due to its
failure to meet minimum stockholders' equity requirements, the Company's ability
to raise additional capital may be materially adversely impacted. In addition,
the Company's inability to use Form S-3 after it files its Form 10-K for the
fiscal year ended
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INTERPACE BIOSCIENCES, INC
Inflation
We do not believe that inflation had a significant impact on our results of operations for the periods presented. On an ongoing basis, we attempt to minimize any effects of inflation on our operating results by controlling operating costs and whenever possible, seeking to ensure that billing rates reflect increases in costs due to inflation.
Off-Balance Sheet Arrangements
None.
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