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)

6 Months Ended

Jun. 30, 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)

	June 30, 2020
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	15,106		$	-			$	15,106
Accounts receivable, net of allowance for doubtful accounts of $275 and $25, respectively		7,239			-				7,239
Other current assets		3,751			-				3,751
Total current assets		26,096			-				26,096
Property and equipment, net		7,249							7,249
Other intangible assets, net		31,439			(17,820	)	(a) (c)		13,619
Goodwill		8,433			-				8,433
Operating lease right of use assets		5,172			-				5,172
Other long-term assets		42			-				42
Total assets	$	78,431		$	(17,820	)		$	60,611

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,348		$	-			$	3,348
Accrued salary and bonus		2,247			-				2,247
Other accrued expenses		9,737			-				9,737
Current liabilities from discontinued operations		766			-				766
Total current liabilities		19,498			-				16,098
Contingent consideration		2,207			-				2,207
Operating lease liabilities, net of current portion		3,940			-				3,940
Line of credit		3,400			-				3,400
Other long-term liabilities		4,557			-				4,557
Total liabilities		30,202			-				30,202

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 4,036,595 shares issued and outstanding, respectively;		402			-				402
Additional paid-in capital		182,980			-				182,980
Accumulated deficit		(179,919	)		(17,820	)	(a) (c)		(197,739	)
Treasury stock, at cost (11,781 shares)		(1,770	)		-				(1,770	)
Total stockholders’ equity		1,693			(17,820	)			(16,127	)
Total liabilities and stockholders’ equity	$	31,895		$	(17,820	)		$	14,075

Total liabilities, preferred stock and stockholders’ equity	$	78,431		$	(17,820	)		$	60,611

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three Months Ended June 30, 2020										Three Months Ended June 30, 2019
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated

Revenue, net	$	5,446		$	-			$	5,446		$	6,270		$	-			$	6,270
Cost of revenue (excluding amortization of $1,115 and $897 for the three months , respectively)		3,850			-				3,850			3,031			-				3,031
Gross profit		1,596			-				1,596			3,239			-				3,239
Operating expenses:
Sales and marketing		1,596			-				1,596			2,959			-				2,959
Research and development		550			-				550			647			-				647
General and administrative		4,107			-				4,107			2,788			-				2,788
Acquisition related expense		-			-				-			1,295			-				1,295
Acquisition related amortization expense		1,031			84		(a)		1,115			813			84		(a)		897
Total operating expenses		7,284			84		(a)		7,368			8,502			84		(a)		8,586

Operating loss		(5,688	)		(84	)	(a)		(5,772	)		(5,263	)		(84	)	(a)		(5,347	)
Interest accretion		(167	)		-				(167	)		(91	)		-				(91	)
Other income (expense), net		438			-				438			74			-				74
Loss from continuing operations before tax		(5,417	)		(84	)	(a)		(5,501	)		(5,280	)		(84	)	(a)		(5,364	)
Provision for income taxes		13			-				13			5			-				5
Loss from continuing operations, net of tax		(5,430	)		(84	)	(a)		(5,514	)		(5,285	)		(84	)	(a)		(5,369	)
Less adjustment for preferred stock deemed dividend		-			-				-			-			-				-
Loss from continuing operations attributable to common stockholders		(5,430	)		(84	)	(a)		(5,514	)		(5,285	)		(84	)	(a)		(5,369	)

(Loss) income from discontinued operations, net of tax		(66	)		-				(66	)		65			-				65

Net loss attributable to common stockholders	$	(5,496	)	$	(84	)	(a)	$	(5,580	)	$	(5,220	)	$	(84	)	(a)	$	(5,304	)


Basic and diluted loss per share of common stock:
From continuing operations	$	(1.35	)	$	(0.02	)		$	(1.37	)	$	(1.39	)	$	(0.02	)		$	(1.41	)
From discontinued operations		(0.01	)		-				(0.01	)		0.02			-				0.02
Net loss per basic and diluted share of common stock	$	(1.36	)	$	(0.02	)		$	(1.38	)	$	(1.37	)	$	(0.02	)		$	(1.39	)
Weighted average number of common shares and
common share equivalents outstanding:
Basic		4,033			4,033				4,033			3,813			3,813				3,813
Diluted		4,033			4,033				4,033			3,813			3,813				3,813

	Six Months Ended June 30, 2020										Six Months Ended June 30, 2019
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated

Revenue, net	$	14,645		$	(141	)	(c)	$	14,504		$	12,280		$	-			$	12,280
Cost of revenue (excluding amortization of $2,230 and $1,794 for the six months, respectively)		9,963			-				9,963			5,654			-				5,654
Gross profit		4,682			(141	)	(c)		4,541			6,626			-				6,626
Operating expenses:
Sales and marketing		4,077			-				4,077			5,369			-				5,369
Research and development		1,360			-				1,360			1,175			-				1,175
General and administrative		8,993			6		(c)		8,999			5,299			(177	)	(c)		5,122
Acquisition related expense		-			-				-			1,696			-				1,696
Acquisition related amortization expense		2,062			168		(a)		2,230			1,626			168		(a)		1,794
Total operating expenses		16,492			174		(a) (c)		16,666			15,165			(9	)	(a) (c)		15,156

Operating loss		(11,810	)		(315	)	(a) (c)		(12,125	)		(8,539	)		9		(a) (c)		(8,530	)
Interest accretion		(276	)		-				(276	)		(220	)		-				(220	)
Other income (expense), net		485			-				485			123			-				123
Loss from continuing operations before tax		(11,601	)		(315	)	(a) (c)		(11,916	)		(8,636	)		9		(a) (c)		(8,627	)
Provision for income taxes		28			-				28			10			-				10
Loss from continuing operations, net of tax		(11,629	)		(315	)	(a) (c)		(11,944	)		(8,646	)		9		(a) (c)		(8,637	)
Less adjustment for preferred stock deemed dividend		(3,033	)		-				(3,033	)		-			-				-
Loss from continuing operations attributable to common stockholders		(14,662	)		(315	)	(a) (c)		(14,977	)		(8,646	)		9		(a) (c)		(8,637	)

(Loss) income from discontinued operations, net of tax		(130	)		-				(130	)		7			-				7

Net loss attributable to common stockholders	$	(14,792	)	$	(315	)	(a) (c)	$	(15,107	)	$	(8,639	)	$	9		(a) (c)	$	(8,630	)

Basic and diluted loss per share of common stock:
From continuing operations	$	(3.65	)	$	(0.08	)		$	(3.73	)	$	(2.36	)	$	-			$	(2.36	)
From discontinued operations		(0.03	)		-				(0.03	)		-			-				-
Net loss per basic and diluted share of common stock	$	(3.68	)	$	(0.08	)		$	(3.76	)	$	(2.36	)	$	-			$	(2.36	)
Weighted average number of common shares and common share equivalents outstanding:
Basic		4,018			4,018				4,018			3,665			3,665				3,665
Diluted		4,018			4,018				4,018			3,665			3,665				3,665

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(unaudited, in thousands)

	As Previously Reported										As Restated
	For The Six Months Ended					Restatement			Restatement		For The Six Months Ended
	June 30, 2020					Amount			Reference		June 30, 2020
	Shares		Amount								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
Common stock issued		-		-								-		-
Balance at June 30		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	)
Treasury stock purchased		7		(49	)		-					7		(49	)
Balance at June 30		19		(1,770	)		-					19		(1,770	)
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
Common Stock issued				-			-							-
Stock-based compensation expense				400			-							400
Balance at June 30				182,980			-							182,980
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	)
Net loss				(5,496	)		(84	)		(a)				(5,580	)
Balance at June 30				(179,919	)		(17,820	)						(197,739	)

Total stockholders’ equity			$	1,693		$	(17,820	)					$	(16,127	)

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(unaudited, in thousands)

	As Previously Reported										As Restated
	For The Six Months Ended					Restatement			Restatement		For The Six Months Ended
	June 30, 2019					Amount			Reference		June 30, 2019
	Shares		Amount								Shares		Amount
Common stock:
Balance at January 1		2,877	$	287		$	-					2,877	$	287
Common stock issued		9		1			-					9		1
Common stock issued through offerings		933		94			-					933		94
Balance at March 31		3,819		382			-					3,819		382
Common stock issued		10		1								10		1
Balance at June 30		3,829		383			-					3,829		383
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	)
Treasury stock purchased		-		-			-					-		-
Balance at June 30		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
Stock-based compensation expense				266			-							266
Balance at March 31				181,954			-							181,954
Common Stock issued				72			-							72
Stock-based compensation expense				205			-							205
Balance at June 30				182,231			-							182,231
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	)
Net loss				(5,220	)		(84	)		(a)				(5,304	)
Balance at June 30				(150,073	)		(17,483	)						(167,556	)

Total stockholders’ equity			$	30,829		$	(17,483	)					$	13,346

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

	For The Six Months Ended June 30,
	2020							2020
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated

Cash Flows From Operating Activities
Net loss	$	(11,759	)	$	(315	)	(a) (c)	$	(12,074	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		2,540			168		(a)		2,708
Interest accretion		276			-				276
Mark to market on warrants		(49	)		-				(49	)
Stock-based compensation		818			-				818
Bad debt expense		250			-				250
Other gains and expenses, net		-			-				-
Other changes in operating assets and liabilities:
Decrease (increase) in accounts receivable		2,708			141		(c)		2,849
(Increase) decrease in other current assets		(788	)		-				(788	)
(Decrease) increase in accounts payable		(1,464	)		103		(c)		(1,361	)
(Decrease) increase in accrued salaries and bonus		(94	)		-				(94	)
(Decrease) increase in accrued liabilities		856			(97	)	(c)		759
Increase in long-term liabilities		33			-				33
Net cash used in operating activities		(6,673	)		-				(6,673	)

Cash Flows From Investing Activity
Purchase of property and equipment		(913	)		-				(913	)
Sale of property and equipment		-			-				-
Net cash provided by investing activity		(913	)		-				(913	)

Cash Flows From Financing Activities
Issuance of common stock, net of expenses		434			-				434
Borrowings on Line of Credit, net		400			-				400
Issuance of Series B preferred stock, net of expenses		19,537			-				19,537
Net cash provided by financing activities		20,371			-				20,371

Net increase in cash and cash equivalents		12,785			-				12,785
Cash and cash equivalents – beginning		2,321			-				2,321
Cash and cash equivalents – ending	$	15,106		$	-			$	15,106

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

	For The Six Months Ended June 30,
	2019							2019
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated

Cash Flows From Operating Activities
Net loss	$	(8,639	)	$	9		(a) (c)	$	(8,630	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,749			168		(a)		1,917
Interest accretion		220			-				220
Mark to market on warrants		(45	)		-				(45	)
Stock-based compensation		990			-				990
Bad debt expense		499			-				499
Other gains and expenses, net		18			-				18
Other changes in operating assets and liabilities:
Decrease (increase) in accounts receivable		(3,982	)		-				(3,982	)
(Increase) decrease in other current assets		(252	)		-				(252	)
(Decrease) increase in accounts payable		530			-				530
(Decrease) increase in accrued salaries and bonus		(141	)		(120	)	(c)		(261	)
(Decrease) increase in accrued liabilities		1,154			(57	)	(c)		1,097
Increase in long-term liabilities		114			-				114
Net cash used in operating activities		(7,785	)		-				(7,785	)

Cash Flows From Investing Activity
Purchase of property and equipment		(48	)		-				(48	)
Sale of property and equipment		13			-				13
Net cash provided by investing activity		(35	)		-				(35	)

Cash Flows From Financing Activities
Issuance of common stock, net of expenses		5,962			-				5,962
Borrowings on Line of Credit, net		-			-				-
Issuance of Series B preferred stock, net of expenses		-			-				-
Net cash provided by financing activities		5,962			-				5,962

Net decrease in cash and cash equivalents		(1,858	)		-				(1,858	)
Cash and cash equivalents – beginning		6,068			-				6,068
Cash and cash equivalents – ending	$	4,210		$	-				4,210