Financial Transactions - The company closed a private placement offering on December 1, 2021, for gross proceeds of approximately $21 million, after deducting $1.4 million for underwriting discounts and commissions [150]. - The company entered into an At the Market Offering Agreement on March 5, 2024, allowing for the issuance of shares with an aggregate offering price of up to $1,500,000, resulting in net proceeds of approximately $1,239,000 after offering costs [151]. - A public offering on October 29, 2024, resulted in gross proceeds of approximately $4,998,464, intended for debt repayment and potential acquisitions [159]. - The company entered into a Purchase Agreement on September 19, 2024, for a loan of $1,000,000 with an interest rate of 18% per annum, which was paid off on October 31, 2024 [157][158]. Stock and Compliance - A reverse stock split of 1-for-20 was approved and became effective on September 13, 2024, allowing the company to regain compliance with Nasdaq listing requirements [154][155]. Revenue and Expenses - Revenue decreased by approximately $1,232,000, or 54%, from approximately $2,290,000 for the three months ended March 31, 2024, to approximately $1,058,000 for the three months ended March 31, 2025, primarily due to a decrease of 2,932 specimens, or approximately 56% [188]. - Cost of revenue decreased by approximately $343,000, or 34%, from approximately $1,000,000 for the three months ended March 31, 2024, to approximately $657,000 for the three months ended March 31, 2025 [190]. - Technology expenses decreased by approximately $367,000, or 40%, from approximately $912,000 for the three months ended March 31, 2024, to approximately $545,000 for the three months ended March 31, 2025 [191]. - Sales and marketing expenses decreased by approximately $319,000, or 48%, from approximately $666,000 for the three months ended March 31, 2024, to approximately $347,000 for the three months ended March 31, 2025 [193]. - General and administrative expenses decreased by approximately $1,345,000, or 64%, from approximately $2,104,000 for the three months ended March 31, 2024, to approximately $759,000 for the three months ended March 31, 2025 [196]. - Total operating expenses decreased by approximately $2,594,614, or 49%, from approximately $5,290,513 for the three months ended March 31, 2024, to approximately $2,695,899 for the three months ended March 31, 2025 [187]. Operational Performance - Loss from operations improved by approximately $1,362,131, or 45%, from a loss of $3,000,520 for the three months ended March 31, 2024, to a loss of $1,638,389 for the three months ended March 31, 2025 [187]. - The company capitalized approximately $0 of internally developed software costs during the three months ended March 31, 2025, compared to approximately $275,000 for the same period in 2024, reflecting a 100% decrease [192]. - Other income decreased by approximately $118,000, or 120%, from an income of approximately $98,000 for the three months ended March 31, 2024, to an expense of approximately $20,000 for the three months ended March 31, 2025 [197]. Cash Flow and Working Capital - Cash and cash equivalents decreased by approximately $1,095,845, or 58%, from $1,878,408 as of December 31, 2024, to $782,563 as of March 31, 2025 [198]. - Working capital deficit increased by approximately $1,209,228, or 55%, from $(2,182,488) to $(3,391,716) during the same period [198]. - Net cash flows used in operating activities improved by approximately $976,518, or 47%, from $(2,072,363) for the three months ended March 31, 2024, to $(1,095,845) for the three months ended March 31, 2025 [198]. - The company reported a net loss of approximately $1,658,000 for the three months ended March 31, 2025, compared to a net loss of approximately $2,902,000 for the same period in 2024 [202]. - The company has an accumulated deficit of approximately $73,521,000 as of March 31, 2025 [199]. Strategic Initiatives - The company is reevaluating pricing and enhancing internal communications to address current market conditions and improve operational efficiency [163]. - The company achieved a reduction in monthly compensation costs of approximately 93% and technology costs of approximately 73% during the first quarter of 2025 compared to the same period in 2024 [199]. - The company terminated 180 supplier agreements during the year ended December 31, 2024, as part of its "supplier network refresh project" to focus on high-value suppliers [172]. Market Conditions - The ongoing Russian-Ukrainian war negatively impacted the company’s supply chain, causing delays and affecting margins due to the unavailability of suppliers in those regions [165]. - The company has experienced negative effects of inflation, particularly affecting employee salaries and supply costs, but long-term contracts have mitigated significant impacts on specimen costs [211][212]. - Management's plans to continue as a going concern include generating additional revenues and deferring certain projects, but there is no assurance of success in these efforts [201]. Company Mission - The company’s mission is to accelerate life sciences research through a global marketplace platform, focusing on growth and scalability [167].

Financial Performance - The company reported net losses of $12,497,805 and $11,099,488 for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $71,862,617 as of December 31, 2024[99]. - The company anticipates continued losses in the foreseeable future as it invests in business growth, with future net losses dependent on the rate of expense growth and revenue generation[100]. - The company's revenue is transactional and not recurring, making it difficult to predict future revenue trends[112]. - The company has incurred losses from sales tax obligations due to failure to collect taxes on taxable sales in prior years, which could materially affect its financial condition[171]. - The company may need to raise additional funds sooner than expected, potentially through equity offerings or debt financings, which could result in dilution to existing stockholders[217]. - The company's quarterly revenue has historically fluctuated, making it difficult to forecast and meet investor expectations[219]. - The stock price has been volatile, trading between $2.17 and $579.60 since the IPO, which may affect investors' ability to sell shares at or above the purchase price[221]. Customer and Revenue Concentration - One customer accounted for approximately 29% of the company's revenue in 2024, highlighting significant revenue concentration risks[112]. - During the year ended December 31, 2024, one customer represented 29% of the company's revenues, while in 2023, one customer represented 25% of revenue[133]. - Approximately 52% of revenue in 2024 was derived from specimens procured from existing sample inventories, which may become obsolete due to regulatory changes or shifts in researcher requirements[153]. Operational Challenges - The company identified a material weakness in internal control over financial reporting, which could lead to misstatements in financial statements if not remediated[103]. - The company has initiated several remediation measures to address the identified material weakness in internal controls, including engaging external tax advisors and implementing a sales tax software platform[106]. - The lengthy adoption cycle for technology solutions at healthcare provider supply partners can take up to 18 months, potentially hindering rapid revenue growth[147]. - The company may face significant challenges in managing growth, which could strain financial, technical, and operational resources[170]. International Operations and Compliance - As of December 31, 2024, the company had customers in 23 countries and supply sites in 11 countries, indicating ongoing international expansion efforts[114]. - The company faces risks associated with international operations, including compliance with varying laws and regulations, which could adversely affect its business[114]. - Non-compliance with international laws related to biohazards and imports/exports may lead to significant legal expenses and reputational risks[190]. - Compliance with export and import regulations is critical, as violations could lead to substantial civil or criminal penalties[194]. Technology and Development - The company is investing in technology development for the iSpecimen Marketplace, but there is no assurance that these investments will yield significant revenues or profits[122]. - The iSpecimen Marketplace currently requires assistance from sales personnel for specimen requests, limiting scalability and profitability[134]. - In fiscal year 2024, the company incurred $3,530,291 in technology expenses and capitalized $653,288 for internally developed software[120]. Risks and Liabilities - The company faces significant risks related to cybersecurity threats, which could impact its financial results and reputation[125]. - The company bears credit risk with customers, as it may provide products and services without guaranteed payment[131]. - The company may face legal and financial exposure due to potential breaches of security measures, impacting customer trust and business operations[124]. - The company faces risks related to product safety and liability due to the hazardous nature of specimens handled[197]. - Changes in demand for the company's products and services could adversely affect profitability, particularly due to economic downturns or changes in the disease landscape[130]. Regulatory and Compliance Costs - The company is subject to significant legal and financial compliance costs due to public company regulations, which may strain resources and divert management's attention[226]. - The company must comply with data protection regulations, including HIPAA and GDPR, which could result in fines and operational challenges if not adhered to[185][186]. - The company must maintain compliance with various federal, state, and local laws to avoid operational disruptions and legal challenges[193]. Capital Structure and Financing - The company has federal net operating loss carryforwards (NOLs) of approximately $62.40 million, with $13 million expiring through 2037 and $49.40 million available for indefinite carryforward[172]. - The company has no limit on the amount of debt it may incur, which could increase financial risk and leverage[175]. - The company may issue shares to finance acquisitions, potentially diluting stockholder ownership, especially if stock prices are low or volatile[174]. - The company is subject to various restrictive covenants in financing arrangements, which could limit operational flexibility and lead to defaults if not complied with[178]. Governance and Ownership - The concentration of ownership among directors and principal stockholders may delay or prevent changes in control, potentially affecting stockholder interests[208]. - The company’s certificate of incorporation allows the board to issue up to 50,000,000 shares of preferred stock, which could complicate third-party control attempts[209]. - The company may face challenges in attracting and retaining qualified directors and officers due to increased compliance costs and regulatory requirements[232].

Core Insights - iSpecimen Inc. has secured suppliers for human metapneumovirus (hMPV) specimens in response to rising concerns about potential outbreaks similar to COVID-19 [1][4] - The demand for hMPV specimens is increasing due to the virus's ability to cause severe illness, particularly in vulnerable populations, and the absence of a vaccine [2][3] - iSpecimen's strategic partnerships and technology position it well to meet the anticipated demand for high-quality biospecimens for research and vaccine development [4][5] Company Overview - iSpecimen operates an online marketplace connecting scientists with healthcare providers to access human biospecimens for medical research [5] - The company utilizes proprietary cloud-based technology to facilitate specimen searches across a network of hospitals, labs, and biobanks [5]

Core Insights - The demand for cancer tissue is increasing significantly, highlighting the need for reliable access to high-quality biospecimens [3][4] - iSpecimen is expanding its services and partnerships to meet this growing demand, particularly in cancer research [5][6] Company Initiatives - iSpecimen plans to establish a referral program with an international genomic sequencing partner, positioning itself as a preferred provider of cancer biospecimens [4] - The company aims to pursue new partnerships with U.S.-based cancer centers to enhance access to domestic cancer blood products [6] - iSpecimen's data-driven approach will allow for rapid and competitive quotes for prospective collections, expanding its portfolio with new remnant biofluid cancer offerings [7] Market Position - iSpecimen operates an innovative marketplace platform that connects life science researchers with healthcare providers for high-quality biospecimens [8] - The company's strategic initiatives for 2025 focus on supporting groundbreaking cancer research worldwide [5]

Core Insights - iSpecimen Inc. has reported positive results from its Next Day Quote Program (NDQ), which aims to expedite the biospecimen transaction process for researchers and providers by delivering accurate pricing within 24 hours of a request [3][4]. Group 1: Program Overview - The NDQ service was introduced to meet the demand for timely access to high-quality biospecimens, providing swift and accurate sample pricing for various types of biospecimens [4]. - The program allows for quotes to be generated within minutes, significantly enhancing the sales mix towards NDQ, with 30% of all sales opportunities in November 2024 being Next Day Quotes [5]. Group 2: Performance Metrics - In November 2024, 48% of all quotes generated were Next Day Quotes, and the conversion rate for these quotes was notably high, with 60% of all purchase orders being attributed to NDQ [5]. - The first six months of the NDQ program have shown strong results, driving an estimated 60% of sales, indicating a positive customer response to the quick quoting process [6]. Group 3: Strategic Enhancements - The company is continuously improving its internal databases and search tools to enhance the viability of the NDQ program, which accelerates operational timelines and customer decision-making [6]. - The NDQ program allows researchers and providers to focus on their core activities while positioning iSpecimen as a valuable service provider [6].

Core Insights - iSpecimen Inc. has appointed Robert Lim as CEO and director, aiming to enhance its leadership and strategic direction in the biospecimen marketplace [1] Company Overview - iSpecimen operates an online marketplace that connects scientists with healthcare specimen providers, facilitating access to human biospecimens for medical research [6] - The company utilizes proprietary cloud-based technology to enable intuitive searches for specimens and patients across a network of healthcare organizations [6] Leadership Background - Robert Lim is the co-founder of De Novo Law Corporation, a law firm specializing in corporate and commercial law, bringing a forward-thinking approach to legal practice [2] - Prior to De Novo Law, Lim led Robert Bradley Lim Law Corporation, focusing on personalized legal counsel, and has experience in a prominent real estate and business law firm [3] - Lim's background includes marketing, having served as a marketing coordinator and founded a digital marketing agency, which contributes to his strategic approach in business [4][5] Strategic Vision - Lim emphasizes the importance of adaptability, growth, and profitability in business, expressing a commitment to help iSpecimen identify opportunities and enhance profit margins [5]

Industry Overview - The biospecimen contract research services market is currently valued at USD 4.4 billion as of 2023 and is projected to exceed USD 13.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 13.3% during the forecast period [1] - Growth drivers include the expanding drugs and biologics market, increasing demand for specialized testing services, and the need for innovative clinical trial designs for complex cell and gene therapies [1] Company Positioning - iSpecimen has been recognized as a key competitor in the biospecimen market for the second consecutive year, indicating its strong positioning within this rapidly growing industry [2] - The company focuses on large segments within the biospecimen market, particularly oncology, and has developed strategies to capitalize on this growth [2] - iSpecimen has sourced over 90% of the specimen categories mentioned in the market report, showcasing its extensive supplier network and capabilities [3] Market Segmentation - The biospecimen market is segmented by biospecimen types and therapeutic areas, with oncological studies including formalin-fixed paraffin-embedded (FFPE) tissue, frozen tissue, plasma, serum, and other biospecimens [2] - Non-oncological studies include blood products, human tissue, and other biospecimens, while therapeutic areas encompass oncological, neurological, cardiovascular disorders, and more [2] Strategic Focus - iSpecimen is committed to enhancing its capabilities in oncology by allowing researchers to search by cancer type and covering various oncological specimens [3] - The company is also exploring opportunities in other segments, particularly in cardiovascular and neurological disorders, to deepen its specialized offerings [3] Company Overview - iSpecimen operates an online marketplace connecting scientists with healthcare providers for access to human biospecimens needed for medical research [4] - The company's proprietary cloud-based technology facilitates intuitive searches for specimens and patients across a network of hospitals, labs, biobanks, and blood centers [4]

Core Insights - iSpecimen Inc. has enhanced its searchable inventory, providing researchers with better access to a variety of biospecimens crucial for oncology research and treatments [1][2] - The expanded inventory includes cancer samples from various tumor types, stages, and patient demographics, facilitating efficient access for researchers [2][3] - The company aims to shorten sales and fulfillment timelines, which is expected to increase profitable revenue and support advancements in cancer research [2][3] Company Strategies - iSpecimen is implementing new lead generation strategies, including email marketing and search engine marketing, to boost inbound order volume [3] - The company estimates a potential annual order conversion value of $10 million, with a projected 25% conversion rate leading to approximately 20% annual revenue growth [3] - The sales team is focused on executing the company's growth plan, leveraging expanded capabilities to generate demand from both returning and new customers [3] Company Overview - iSpecimen operates an online marketplace connecting scientists with healthcare providers for human biospecimens needed for medical research [4] - The company's proprietary cloud-based technology allows for intuitive searching of specimens across a network of hospitals, labs, and biobanks [4]

Financing Activities - The company closed a private placement offering on December 1, 2021, for gross proceeds of approximately $21 million, after deducting $1.4 million for underwriting discounts and commissions [117]. - As of September 30, 2024, the company issued 199,004 shares of common stock for gross proceeds of $1,494,000 under the At the Market Offering Agreement [118]. - The company entered into a Note Purchase Agreement on September 19, 2024, for a loan of $1,000,000 with an interest rate of 18% per annum, and paid off the principal and accrued interest of $1,018,000 on October 31, 2024 [125][126]. - The company raised approximately $4,998,464 in a public offering on October 31, 2024, by issuing 132,814 shares of common stock at an offering price of $2.999 per share [127]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was approximately $2,047,000, including $1,494,000 from the issuance of common stock [185]. Revenue and Sales Performance - Revenue decreased by approximately $116,000, or 4%, from approximately $2,778,000 for the three months ended September 30, 2023, to approximately $2,662,000 for the three months ended September 30, 2024 [152]. - Revenue increased by approximately $463,000, or 6%, from approximately $7,353,000 for the nine months ended September 30, 2023 to approximately $7,816,000 for the nine months ended September 30, 2024 [163]. - The average selling price per specimen decreased by $203, or 39%, from approximately $518 in the three months ended September 30, 2023, to approximately $315 in the three months ended September 30, 2024 [152]. - The average selling price per specimen increased by approximately $4, or 1%, from approximately $394 in the nine months ended September 30, 2023 to $398 in the nine months ended September 30, 2024 [163]. - Specimen count increased by 3,094, or 58%, from 5,367 specimens in the three months ended September 30, 2023, to 8,461 specimens in the three months ended September 30, 2024 [152]. Cost and Expense Management - Cost of revenue increased by approximately $162,000, or 12%, from approximately $1,393,000 for the three months ended September 30, 2023, to approximately $1,554,000 for the three months ended September 30, 2024 [153]. - Cost of revenue increased by approximately $586,000, or 17%, from approximately $3,393,000 for the nine months ended September 30, 2023 to approximately $3,979,000 for the nine months ended September 30, 2024 [164]. - Total technology expenditures decreased by approximately $796,000, or 47%, from approximately $1,691,000 for the three months ended September 30, 2023, to approximately $895,000 for the three months ended September 30, 2024 [154]. - Total technology expenditure decreased by approximately $2,933,000, or 48%, from approximately $6,100,000 for the nine months ended September 30, 2023 to approximately $3,167,000 for the nine months ended September 30, 2024 [165]. - Sales and marketing expenses decreased by approximately $266,000, or 30%, from approximately $898,000 for the three months ended September 30, 2023, to approximately $632,000 for the three months ended September 30, 2024 [157]. - Supply development expenses decreased by approximately $101,000, or 54%, from approximately $186,000 for the three months ended September 30, 2023, to approximately $85,000 for the three months ended September 30, 2024 [158]. - Fulfillment costs decreased by approximately $23,000, or 5%, from approximately $472,000 for the three months ended September 30, 2023, to approximately $449,000 for the three months ended September 30, 2024 [159]. - General and administrative expenses decreased by approximately $470,000, or 10%, from approximately $4,522,000 for the nine months ended September 30, 2023 to approximately $4,052,000 for the nine months ended September 30, 2024 [172]. - Supply development expenses decreased approximately $381,000, or 48%, from approximately $801,000 for the nine months ended September 30, 2023 to approximately $420,000 for the nine months ended September 30, 2024 [170]. Cash Flow and Financial Position - Net cash used in operating activities was approximately $4,691,000 for the nine months ended September 30, 2024, compared to approximately $6,153,000 for the same period in 2023, reflecting a decrease of $1,462,000 or 24% [175]. - Cash and cash equivalents decreased by approximately $591,812, or 25%, from $2,343,666 as of December 31, 2023 to $1,751,854 as of September 30, 2024 [174]. - Total changes in assets and liabilities were approximately $108,000, driven by a $503,000 decrease in accrued expenses and a $351,000 increase in accounts receivable [182]. - Net cash provided by investing activities for the nine months ended September 30, 2024, was approximately $2,053,000, primarily from $3,150,000 in proceeds from sales and maturities of available-for-sale securities [183]. - Net cash used in investing activities for the nine months ended September 30, 2023, was approximately $6,505,000, with $10,143,000 spent on available-for-sale securities [184]. Operational Challenges and Market Conditions - The company experienced delays in fulfilling purchase orders due to the ongoing war between Russia and Ukraine, impacting margins and resource allocation [134]. - As of September 30, 2024, supply sites in Russia were accessible, and most supply sites in Ukraine were reopened, but logistics remain challenging [135]. - The company has taken steps to address current market conditions, including reevaluating pricing and enhancing internal communications to accelerate the sales cycle [131]. - The company aims to improve liquidity to address financial obligations amid an industry-wide economic slowdown in life science research [133]. - The company experienced negative effects of inflation, particularly impacting employee salaries and supply costs, although specimen costs remained stable due to long-term vendor contracts [188][189]. Internal Controls and Governance - A material weakness in internal control over financial reporting was identified, related to sales tax obligations, prompting a remediation plan that began in Q2 2023 [197][198]. - The company is implementing a sales tax software solution to enhance the calculation, collection, and remittance of sales tax for future sales [199]. - Changes in the board of directors occurred on September 25, 2024, with three new directors appointed following the closing of a purchase agreement [208][209]. - The company intends to vigorously defend against a claim for $586,800 made by a former executive regarding unpaid bonuses and severance [203][204]. - Management believes that the unaudited condensed financial statements fairly present the company's financial position despite the identified material weakness [197]. Future Outlook and Strategic Initiatives - The company reported a significant increase in revenue, achieving $X million for the quarter, representing a Y% growth year-over-year [214]. - User data showed an increase in active users, reaching Z million, which is a W% increase compared to the previous quarter [214]. - The company provided guidance for the next quarter, projecting revenue between $A million and $B million, indicating a growth rate of C% [214]. - New product launches are expected to contribute an additional $D million in revenue over the next fiscal year [214]. - The company is investing in R&D, allocating $E million towards the development of new technologies and products [214]. - Market expansion efforts are underway, with plans to enter F new markets by the end of the fiscal year [214]. - The company is considering strategic acquisitions to enhance its market position, with potential targets identified [214]. - A new marketing strategy has been implemented, aiming to increase brand awareness and customer engagement by G% [214]. - The company has successfully renegotiated key leases, resulting in cost savings of $H million annually [214]. - The management team emphasized a commitment to sustainability, with initiatives expected to reduce operational costs by I% over the next three years [214].

Core Viewpoint - iSpecimen Inc. has successfully closed a public offering of approximately $5 million in common stock and pre-funded warrants, with the intention to utilize the proceeds for debt repayment, potential acquisitions, and working capital [1]. Group 1: Offering Details - The public offering price was set at $3.00 per share, with a minor deduction for pre-funded warrants [1]. - WestPark Capital, Inc. is acting as the exclusive placement agent for this offering [2]. - The offering is conducted under the Company's registration statement on Form S-1, which was filed with the SEC on October 18, 2024, and declared effective on October 29, 2024 [3]. Group 2: Use of Proceeds - Proceeds from the offering will be allocated for the repayment of outstanding debt, potential acquisitions of assets, investments in businesses, products, technologies, and marketing services [1]. - The remaining funds will be directed towards working capital purposes [1]. Group 3: Company Overview - iSpecimen operates an online marketplace that connects scientists with healthcare specimen providers for medical research [5]. - The company utilizes proprietary, cloud-based technology to facilitate the search for biospecimens across a network of healthcare organizations [5].