Interpace Biosciences®, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Overview (Tables)

Overview (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Restatement of Previously Issued Consolidated Financial Statements

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(in thousands, except share and per share data)

	March 31, 2020
	As Previously Reported			Restatement Amount			Restatement Reference		As Restated
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	13,370		$	-				$	13,370
Accounts receivable, net of allowance for doubtful accounts of $275		9,799			-					9,799
Other current assets		4,976			-					4,976
Total current assets		28,145			-					28,145
Property and equipment, net		6,610								6,610
Other intangible assets, net		32,470			(17,736	)		(a) (b)		14,734
Goodwill		8,433			-					8,433
Operating lease right of use assets		2,811			-					2,811
Other long-term assets		42			-					42
Total assets	$	78,511		$	(17,736	)			$	60,775

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,456		$	-				$	4,456
Accrued salary and bonus		1,865			-					1,865
Other accrued expenses		8,639			-					8,639
Current liabilities from discontinued operations		766			-					766
Total current liabilities		15,726			-					15,726
Contingent consideration		2,264			-					2,264
Operating lease liabilities, net of current portion		1,384			-					1,384
Line of credit		1,200			-					1,200
Other long-term liabilities		4,563			-					4,563
Total liabilities		25,137			-					25,137

Commitments and contingencies (Note 8)

Preferred stock, $.01 par value; 5,000,000 shares authorized, 47,000 Series B shares issued and outstanding		46,536			-					46,536

Stockholders’ equity:
Common stock, $.01 par value; 100,000,000 shares authorized; 4,055,454 and 4,043,673 shares issued and outstanding, respectively;		402			-					402
Additional paid-in capital		182,580			-					182,580
Accumulated deficit		(174,423	)		(17,736	)		(a) (b) (c)		(192,159	)
Treasury stock, at cost (11,781 shares)		(1,721	)		-					(1,721	)
Total stockholders’ equity		6,838			(17,736	)				(10,898	)
Total liabilities and stockholders’ equity	$	31,975		$	(17,736	)			$	14,239

Total liabilities, preferred stock and stockholders’ equity	$	78,511		$	(17,736	)			$	60,775

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except for per share data)

	Three Months Ended March 31, 2020										Three Months Ended March 31, 2019
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated

Revenue, net	$	9,200		$	(141	)	(c)	$	9,059		$	6,010		$	-			$	6,010
Cost of revenue		6,113			-				6,113			2,622			-				2,622
Gross profit		3,087			(141	)	(c)		2,946			3,388			-				3,388
Operating expenses:
Sales and marketing		2,481			-				2,481			2,411			-				2,411
Research and development		809			-				809			528			-				528
General and administrative		4,887			6		(c)		4,893			2,912			(177	)	(c)		2,735
Acquisition related amortization expense		1,031			84		(a)		1,115			813			84		(a)		897
Total operating expenses		9,208			90		(a) (c)		9,298			6,664			(93	)	(a) (c)		6,571

Operating loss		(6,121	)		(231	)	(a) (c)		(6,352	)		(3,276	)		93		(a) (c)		(3,183	)
Interest accretion		(109	)		-				(109	)		(129	)		-				(129	)
Other income (expense), net		47			-				47			48			-				48
Loss from continuing operations before tax		(6,183	)		(231	)	(a) (c)		(6,414	)		(3,357	)		93		(a) (c)		(3,264	)
Provision for income taxes		15			-				15			5			-				5
Loss from continuing operations, net of tax		(6,198	)		(231	)	(a) (c)		(6,429	)		(3,362	)		93		(a) (c)		(3,269	)

Loss from discontinued operations, net of tax		(65	)		-				(65	)		(57	)		-				(57	)

Net loss		(6,263	)		(231	)	(a) (c)		(6,494	)		(3,419	)		93		(a) (c)		(3,326	)

Less adjustment for preferred stock deemed dividend		(3,033	)		-				(3,033	)		-			-				-

Net loss attributable to common stockholders		(9,296	)		(231	)			(9,527	)		(3,419	)		93				(3,326	)

Basic and diluted loss per share of common stock:
From continuing operations	$	(2.31	)	$	(0.06	)		$	(2.37	)	$	(0.96	)	$	0.03			$	(0.93	)
From discontinued operations		(0.01	)		-				(0.01	)		(0.01	)		-				(0.01	)
Net loss per basic and diluted share of common stock	$	(2.32	)	$	(0.06	)		$	(2.38	)	$	(0.97	)	$	0.03			$	(0.94	)
Weighted average number of common shares and common share equivalents outstanding:
Basic		4,004			4,004				4,004			3,515			3,515				3,515
Diluted		4,004			4,004				4,004			3,515			3,515				3,515

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(unaudited, in thousands)

	As Previously Reported										As Restated
	For The Three Months Ended										For The Three Months Ended
	March 31, 2020					Restatement			Restatement		March 31, 2020
	Shares		Amount			Amount			Reference		Shares		Amount
Common stock:
Balance at January 1		3,932	$	393		$	-					3,932	$	393
Common stock issued		37		1			-					37		1
Restricted stock issued		6		-			-					6		-
Common stock issued through market sales		80		8			-					80		8
Common stock issued through offerings		-		-			-					-		-
Balance at March 31		4,055		402			-					4,055		402
Treasury stock:
Balance at January 1		12		(1,721	)		-					12		(1,721	)
Treasury stock purchased		-		-			-					-		-
Balance at March 31		12		(1,721	)		-					12		(1,721	)
Additional paid-in capital:
Balance at January 1				182,514			-							182,514
Common stock issued through offerings, net of expenses				-			-							-
Extinguishment of Series A Shares				(828	)		-							(828	)
Beneficial Conversion Feature in connection with Series B Issuance				2,205			-							2,205
Amortization of Beneficial Conversion Feature				(2,205	)		-							(2,205	)
Common stock issued through market sales				476			-							476
Stock-based compensation expense				418			-							418
Balance at March 31				182,580			-							182,580
Accumulated deficit:
Balance at January 1				(168,160	)		(17,505	)		(a)(b)(c)				(185,665	)
Net loss				(6,263	)		(231	)		(a)(c)				(6,494	)
Adoption of ASC 842				-			-							-
Balance at March 31				(174,423	)		(17,736	)						(192,159	)

Total stockholders’ equity			$	6,838		$	(17,736	)					$	(10,898	)

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(unaudited, in thousands)

	As Previously Reported										As Restated
	For The Three Months Ended										For The Three Months Ended
	March 31, 2019					Restatement			Restatement		March 31, 2019
	Shares		Amount			Amount			Reference		Shares		Amount
Common stock:
Balance at January 1		2,877	$	287		$	-					2,877	$	287
Common stock issued		9		1			-					9		1
Restricted stock issued		-		-			-					-		-
Common stock issued through market sales		-		-			-					-		-
Common stock issued through offerings		933		94			-					933		94
Balance at March 31		3,819		382			-					3,819		382
Treasury stock:
Balance at January 1		7		(1,680	)		-					7		(1,680	)
Treasury stock purchased		3		(32	)		-					3		(32	)
Balance at March 31		10		(1,712	)		-					10		(1,712	)
Additional paid-in capital:
Balance at January 1				175,820			-							175,820
Common stock issued through offerings, net of expenses				5,868			-							5,868
Extinguishment of Series A Shares				-			-							-
Beneficial Conversion Feature in connection with Series B Issuance				-			-							-
Amortization of Beneficial Conversion Feature				-			-							-
Common stock issued through market sales				-			-							-
Stock-based compensation expense				266			-							266
Balance at March 31				181,954			-							181,954
Accumulated deficit:
Balance at January 1				(141,489	)		(17,492	)		(a)(b)(c)				(158,981	)
Net loss				(3,419	)		93			(a)(c)				(3,326	)
Adoption of ASC 842				55			-							55
Balance at March 31				(144,853	)		(17,399	)						(162,252	)

Total stockholders’ equity			$	35,771		$	(17,399	)					$	18,372

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

	For The Three Months Ended March 31,
	2020								2020
	As Previously Reported			Restatement Amount			Restatement Reference		As Restated

Cash Flows From Operating Activities
Net loss	$	(6,263	)	$	(231	)		(a)(c)	$	(6,494	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,235			84			(a)		1,319
Interest accretion		109			-					109
Mark to market on warrants		(26	)		-					(26	)
Stock-based compensation		418			-					418
Bad debt expense		250			-					250
Other gains and expenses, net		-			-					-
Other changes in operating assets and liabilities:
Decrease (increase) in accounts receivable		148			141			(c)		289
(Increase) decrease in other current assets		(1,125	)		-					(1,125	)
(Decrease) increase in accounts payable		(356	)		103			(c)		(253	)
(Decrease) increase in accrued salaries and bonus		(476	)		-					(476	)
(Decrease) increase in accrued liabilities		(1,052	)		(97	)		(c)		(1,149	)
Increase in long-term liabilities		16			-					16
Net cash used in operating activities		(7,122	)		-					(7,122	)

Cash Flows From Investing Activity
Purchase of property and equipment		-			-					-
Sale of property and equipment		-			-					-
Net cash provided by investing activity		-			-					-

Cash Flows From Financing Activities
Issuance of common stock, net of expenses		434			-					434
Payments on Line of Credit		(1,800	)		-					(1,800	)
Issuance of Series B preferred stock, net of expenses		19,537			-					19,537
Net cash provided by financing activities		18,171			-					18,171

Net increase in cash and cash equivalents		11,049			-					11,049
Cash and cash equivalents – beginning		2,321			-					2,321
Cash and cash equivalents – ending	$	13,370		$	-				$	13,370

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

	For The Three Months Ended March 31,
	2019								2019
	As Previously Reported			Restatement Amount			Restatement Reference		As Restated

Cash Flows From Operating Activities
Net loss	$	(3,419	)	$	93			(a)(c)	$	(3,326	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		873			84			(a)		957
Interest accretion		129			-					129
Mark to market on warrants		(3	)		-					(3	)
Stock-based compensation		538			-					538
Bad debt expense		-			-					-
Other gains and expenses, net		18			-					18
Other changes in operating assets and liabilities:
Decrease (increase) in accounts receivable		(1,738	)		-					(1,738	)
(Increase) decrease in other current assets		11			-					11
(Decrease) increase in accounts payable		93			-					93
(Decrease) increase in accrued salaries and bonus		325			(120	)		(c)		205
(Decrease) increase in accrued liabilities		156			(57	)		(c)		99
Increase in long-term liabilities		57			-					57
Net cash used in operating activities		(2,960	)		-					(2,960	)

Cash Flows From Investing Activity
Purchase of property and equipment		(12	)		-					(12	)
Sale of property and equipment		13			-					13
Net cash provided by investing activity		1			-					1

Cash Flows From Financing Activities
Issuance of common stock, net of expenses		6,015			-					6,015
Net cash provided by financing activities		6,015			-					6,015

Net increase in cash and cash equivalents		3,056			-					3,056
Cash and cash equivalents – beginning		6,068			-					6,068
Cash and cash equivalents – ending	$	9,124		$	-				$	9,124