Interpace Biosciences®, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Restatement of Unaudited Quarterly Results

Restatement of Unaudited Quarterly Results

12 Months Ended

Dec. 31, 2024

Restatement Of Unaudited Quarterly Results

Restatement of Unaudited Quarterly Results

22. Restatement of Unaudited Quarterly Results

The financial results data, presented on a quarterly basis for the years ended December 31, 2024 and 2023 are unaudited. This data has been prepared in accordance with U.S. GAAP for interim financial information and, in the opinion of management, reflect all adjustments necessary for a fair statement of the results of operations for the periods presented.

We have restated herein our previously issued unaudited quarterly financial results for the quarters ended March 31, 2024 and 2023, June 30, 2024 and 2023 and September 30, 2024 and 2023. The information has been prepared on the same basis as the consolidated financial statements. The related adjustments to the unaudited quarterly financial information resulting from similar adjustments discussed in Note 2 are also presented below. See Note 2 for descriptions of the misstatements in each category of restatements referenced by (a) and (b).

Presented below are the restated condensed consolidated balance sheets, condensed consolidated statements of operations, consolidated statements of stockholders’ deficit and condensed consolidated statements of cash flows for each of the interim periods within the years ended December 31, 2024 and 2023.

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	March 31, 2023
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	5,596		$	-			$	5,596
Accounts receivable		4,715			102		(b)		4,817
Other current assets		2,173			-				2,173
Total current assets		12,484			102				12,586
Property and equipment, net		506			-				506
Other intangible assets, net		544			-				544
Operating lease right of use assets		2,298			-				2,298
Other long-term assets		45			-				45
Total assets	$	15,877		$	102			$	15,979

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	1,582		$	-			$	1,582
Accrued salary and bonus		888			-				888
Other accrued expenses		8,323			(5,042	)	(a)		3,281
Note payable at fair value, current
Line of credit - current		2,200			-				2,200
Current liabilities of discontinued operations		858			-				858
Total current liabilities		13,851			(5,042	)			8,809
Contingent consideration		368			-				368
Operating lease liabilities, net of current portion		1,748			-				1,748
Note payable at fair value		11,132			-				11,132
Other long-term liabilities		4,780			-				4,780
Total liabilities		31,879			(5,042	)			26,837

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

Stockholders’ deficit:
Common stock, $.01 par value; 100,000,000 shares authorized; 4,390,826 shares issued and 4,311,414 shares outstanding;		405			-				405
Additional paid-in capital		187,708			-				187,708
Accumulated deficit		(248,666	)		5,144		(a) (b)		(243,522	)
Treasury stock, at cost (79,412 shares)		(1,985	)		-				(1,985	)
Total stockholders’ deficit		(62,538	)		5,144				(57,394	)
Total liabilities and stockholders’ deficit		(30,659	)		102				(30,557	)

Total liabilities, preferred stock and stockholders’ deficit	$	15,877		$	102			$	15,979

The accompanying notes are an integral part of these condensed consolidated financial statements

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For the Three Months Ended March 31, 2023
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
Revenue, net	$	9,826		$	(171	)	(b)	$	9,655
Cost of revenue		3,848			(334	)	(a)		3,514
Gross profit		5,978			163				6,141
Operating expenses:
Sales and marketing		2,342			-				2,342
Research and development		149			-				149
General and administrative		2,494			-				2,494
Acquisition related amortization expense		318			-				318
Total operating expenses		5,303			-				5,303

Operating income from continuing operations		675			163				838
Interest accretion expense		(35	)		-				(35	)
Note payable interest expense		(225	)		-				(225	)
Other expense, net		19			-				19
Income from continuing operations before tax		434			163				597
Provision for income taxes		4			-				4
Income from continuing operations		430			163				593

Loss from discontinued operations, net of tax		(79	)		-				(79	)

Net income	$	351		$	163			$	514

Basic net income (loss) per share of common stock:
From continuing operations	$	0.10		$	0.04			$	0.14
From discontinued operations		(0.02	)		-				(0.02	)
Net income (loss) per basic share of common stock	$	0.08		$	0.04			$	0.12

Diluted net income (loss) per share of common stock:
From continuing operations	$	0.10		$	0.04			$	0.14
From discontinued operations		(0.02	)		-				(0.02	)
Net income (loss) per diluted share of common stock	$	0.08		$	0.04			$	0.12

Weighted average number of common shares and common share equivalents outstanding:
Basic		4,307			4,307				4,307
Diluted		4,308			4,308				4,308

The accompanying notes are an integral part of these condensed consolidated financial statements

Consolidated Statements of Stockholders’ Deficit (unaudited)

										Additional
										Paid in		Accumulated
	Shares		Amount		Shares		Amount			Capital		Deficit			Total
Balance -March 31, 2023 as reported		4,390,826	$	405		79,412	$	(1,985	)	$	187,708	$	(248,666	)	$	(62,538	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		4,981			4,981
Cumulative adjustments to net income		-		-		-		-			-		163			163

Balance -March 31, 2023 as restated		4,390,826	$	405		79,412	$	(1,985	)	$	187,708	$	(243,522	)	$	(57,394	)

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For The Three Months Ended March 31,
	2023							2023
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
Cash Flows From Operating Activities
Net income	$	351		$	163		(a) (b)	$	514
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization		356			-				356
Interest accretion expense		35			-				35
Amortization of deferred financing fees		14			-				14
Stock-based compensation		192			-				192
Bad debt expense reversal
Credit loss expense
Change in fair value of note payable		(33	)		-				(33	)
Amortization on operating lease right of use asset
Other changes in operating assets and liabilities:									-
Accounts receivable		317			171		(b)		488
Other current assets		107			-				107
Operating lease right of use assets
Accounts payable		532			-				532
Accrued salaries and bonus		(568	)		-				(568	)
Other accrued expenses		(249	)		(334	)	(a)		(583	)
Operating lease liabilities
Long-term liabilities		79			-				79
Net cash provided by operating activities		1,133			-				1,133

Cash Flows From Investing Activity
Proceeds from sale of Interpace Pharma Solutions, net
Working capital adjustment on sale of Interpace Pharma Solutions
Purchase of property and equipment		(65	)		-				(65	)
Net cash used in investing activities		(65	)		-				(65	)

Cash Flows From Financing Activities
Payments made on note payable
Payments on line of credit		(300	)		-				(300	)
Net cash (used in) provided by financing activities		(300	)		-				(300	)

Net increase in cash and cash equivalents		768			-				768
Cash and cash equivalents from continuing operations– beginning		4,828			-				4,828
Cash and cash equivalents from discontinued operations– beginning		-			-				-
Cash and cash equivalents – beginning	$	4,828		$	-			$	4,828
Cash and cash equivalents from continuing operations– ending	$	5,596		$	-			$	5,596
Cash and cash equivalents from discontinued operations– ending		-			-				-
Cash and cash equivalents – ending	$	5,596		$	-			$	5,596

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	June 30, 2023
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	5,079		$	-			$	5,079
Accounts receivable		5,529			121		(b)		5,650
Other current assets		2,367			-				2,367
Total current assets		12,975			121				13,096
Property and equipment, net		606			-				606
Other intangible assets, net		226			-				226
Operating lease right of use assets		2,090			-				2,090
Other long-term assets		45			-				45
Total assets	$	15,942		$	121			$	16,063

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	1,689		$	-			$	1,689
Accrued salary and bonus		1,127			-				1,127
Other accrued expenses		8,391			(5,407	)	(a)		2,984
Line of credit - current		1,500			-				1,500
Current liabilities of discontinued operations		858			-				858
Total current liabilities		13,565			(5,407	)			8,158
Contingent consideration		231			-				231
Operating lease liabilities, net of current portion		1,646			-				1,646
Note payable at fair value		11,307			-				11,307
Other long-term liabilities		4,863			-				4,863
Total liabilities		31,612			(5,407	)			26,205

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

Stockholders’ deficit:
Common stock, $.01 par value; 100,000,000 shares authorized; 4,390,826 shares issued and 4,311,414 shares outstanding;		405			-				405
Additional paid-in capital		187,865			-				187,865
Accumulated deficit		(248,491	)		5,528		(a) (b)		(242,963	)
Treasury stock, at cost (79,412 shares)		(1,985	)		-				(1,985	)
Total stockholders’ deficit		(62,206	)		5,528				(56,678	)
Total liabilities and stockholders’ deficit		(30,594	)		121				(30,473	)

Total liabilities, preferred stock and stockholders’ deficit	$	15,942		$	121			$	16,063

The accompanying notes are an integral part of these condensed consolidated financial statements

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For the Three Months Ended June 30, 2023										For the Six Months Ended June 30, 2023
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated
Revenue, net	$	11,026		$	19		(b)	$	11,045		$	20,853		$	(152	)	(b)	$	20,701
Cost of revenue		4,191			(365	)	(a)		3,826			8,039			(699	)	(a)		7,340
Gross profit		6,835			384				7,219			12,814			547				13,361
Operating expenses:
Sales and marketing		2,605			-				2,605			4,947			-				4,947
Research and development		186			-				186			335			-				335
General and administrative		2,894			-				2,894			5,389			-				5,389
Acquisition related amortization expense		318			-				318			635			-				635
Total operating expenses		6,003			-				6,003			11,306			-				11,306

Operating income from continuing operations		832			384				1,216			1,508			547				2,055
Interest accretion expense		(31	)		-				(31	)		(66	)		-				(66	)
Note payable interest expense		(228	)		-				(228	)		(453	)		-				(453	)
Other expense, net		(174	)		-				(174	)		(156	)		-				(156	)
Income from continuing operations before tax		399			384				783			833			547				1,380
Provision for income taxes		4			-				4			8			-				8
Income from continuing operations		395			384				779			825			547				1,372

Loss from discontinued operations, net of tax		(220	)		-				(220	)		(299	)		-				(299	)

Net income	$	175		$	384			$	559		$	526		$	547			$	1,073

Basic net income (loss) per share of common stock:
From continuing operations	$	0.09		$	0.09			$	0.18		$	0.19		$	0.13			$	0.32
From discontinued operations		(0.05	)		-				(0.05	)		(0.07	)		-				(0.07	)
Net income (loss) per basic share of common stock	$	0.04		$	0.09			$	0.13		$	0.12		$	0.13			$	0.25

Diluted net income (loss) per share of common stock:
From continuing operations	$	0.09		$	0.09			$	0.18		$	0.19		$	0.13			$	0.32
From discontinued operations		(0.05	)		-				(0.05	)		(0.07	)		-				(0.07	)
Net income (loss) per diluted share of common stock	$	0.04		$	0.09			$	0.13		$	0.12		$	0.13			$	0.25

Weighted average number of common shares and common share equivalents outstanding:
Basic		4,311			4,311				4,311			4,309			4,309				4,309
Diluted		4,316			4,316				4,316			4,313			4,313				4,313

The accompanying notes are an integral part of these condensed consolidated financial statements

Consolidated Statements of Stockholders’ Deficit (unaudited)

										Additional
	Common Stock				Treasury Stock					Paid in		Accumulated
	Shares		Amount		Shares		Amount			Capital		Deficit			Total
Balance -March 31, 2023 as reported		4,390,826	$	405		79,412	$	(1,985	)	$	187,708	$	(248,666	)	$	(62,538	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		4,981			4,981
Cumulative adjustments to net income		-		-		-		-			-		163			163

Balance -March 31, 2023 as restated		4,390,826	$	405		79,412	$	(1,985	)	$	187,708	$	(243,522	)	$	(57,394	)

Balance -June 30, 2023 as reported		4,390,826	$	405		79,412	$	(1,985	)	$	187,865	$	(248,491	)	$	(62,206	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		5,144			5,144
Cumulative adjustments to net income		-		-		-		-			-		384			384

Balance -June 30, 2023 as restated		4,390,826	$	405		79,412	$	(1,985	)	$	187,865	$	(242,963	)	$	(56,678	)

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For The Six Months Ended June 30,
	2023							2023
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
Cash Flows From Operating Activities
Net income	$	526		$	547		(a) (b)	$	1,073
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization		714			-				714
Interest accretion expense		66			-				66
Amortization of deferred financing fees		28			-				28
Stock-based compensation		349			-				349
Change in fair value of note payable		142			-				142
Other changes in operating assets and liabilities:									-
Accounts receivable		(497	)		152		(b)		(345	)
Other current assets		(101	)		-				(101	)
Operating lease right of use assets		349			-				349
Accounts payable		610			-				610
Accrued salaries and bonus		(329	)		-				(329	)
Other accrued expenses		(138	)		(699	)	(a)		(837	)
Operating lease liabilities		(337	)						(337	)
Long-term liabilities		162			-				162
Net cash provided by operating activities		1,544			-				1,544

Cash Flows From Investing Activity
Working capital adjustment on sale of Interpace Pharma Solutions		(117	)		-				(117	)
Purchase of property and equipment		(176	)		-				(176	)
Net cash used in investing activities		(293	)		-				(293	)

Cash Flows From Financing Activities
Payments on line of credit		(1,000	)		-				(1,000	)
Net cash used in financing activities		(1,000	)		-				(1,000	)

Net increase in cash and cash equivalents		251			-				251
Cash and cash equivalents from continuing operations– beginning		4,828			-				4,828
Cash and cash equivalents from discontinued operations– beginning		-			-				-
Cash and cash equivalents – beginning	$	4,828		$	-			$	4,828
Cash and cash equivalents from continuing operations– ending	$	5,079		$	-			$	5,079
Cash and cash equivalents from discontinued operations– ending		-			-				-
Cash and cash equivalents – ending	$	5,079		$	-			$	5,079

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	September 30, 2023
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	5,032		$	-			$	5,032
Accounts receivable		4,830			246		(b)		5,076
Other current assets		1,576			-				1,576
Total current assets		11,438			246				11,684
Property and equipment, net		762			-				762
Other intangible assets, net		27			-				27
Operating lease right of use assets		1,978			-				1,978
Other long-term assets		45			-				45
Total assets	$	14,250		$	246			$	14,496

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	1,352		$	-			$	1,352
Accrued salary and bonus		1,299			-				1,299
Other accrued expenses		8,815			(5,710	)	(a)		3,105
Current liabilities of discontinued operations		858			-				858
Total current liabilities		12,324			(5,710	)			6,614
Operating lease liabilities, net of current portion		1,556			-				1,556
Note payable at fair value		11,565			-				11,565
Other long-term liabilities		4,949			-				4,949
Total liabilities		30,394			(5,710	)			24,684

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

Stockholders’ deficit:
Common stock, $.01 par value; 100,000,000 shares authorized; 4,407,492 shares issued and 4,321,772 shares outstanding;		405			-				405
Additional paid-in capital		188,017			-				188,017
Accumulated deficit		(249,105	)		5,956		(a) (b)		(243,149	)
Treasury stock, at cost (85,720 shares)		(1,997	)		-				(1,997	)
Total stockholders’ deficit		(62,680	)		5,956				(56,724	)
Total liabilities and stockholders’ deficit		(32,286	)		246				(32,040	)

Total liabilities, preferred stock and stockholders’ deficit	$	14,250		$	246			$	14,496

The accompanying notes are an integral part of these condensed consolidated financial statements

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For the Three Months Ended September 30, 2023										For the Nine Months Ended September 30, 2023
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated
Revenue, net	$	9,078		$	125		(b)	$	9,203		$	29,931		$	(27	)	(b)	$	29,904
Cost of revenue		4,124			(303	)	(a)		3,821			12,163			(1,002	)	(a)		11,161
Gross profit		4,954			428				5,382			17,768			975				18,743
Operating expenses:
Sales and marketing		2,498			-				2,498			7,444			-				7,444
Research and development		149			-				149			484			-				484
General and administrative		2,124			-				2,124			7,515			-				7,515
Acquisition related amortization expense		199			-				199			834			-				834
Total operating expenses		4,970			-				4,970			16,277			-				16,277

Operating (loss) income from continuing operations		(16	)		428				412			1,491			975				2,466
Interest accretion expense		(26	)		-				(26	)		(92	)		-				(92	)
Note payable interest expense		(230	)		-				(230	)		(682	)		-				(682	)
Other expense, net		(252	)		-				(252	)		(408	)		-				(408	)
Loss (income) from continuing operations before tax		(524	)		428				(96	)		309			975				1,284
Provision for income taxes		4			-				4			12			-				12
(Loss) income from continuing operations		(528	)		428				(100	)		297			975				1,272

Loss from discontinued operations, net of tax		(86	)		-				(86	)		(385	)		-				(385	)

Net (loss) income	$	(614	)	$	428			$	(186	)	$	(88	)	$	975			$	887

Basic net income (loss) per share of common stock:
From continuing operations	$	(0.12	)	$	0.10			$	(0.02	)	$	0.07		$	0.23			$	0.29
From discontinued operations		(0.02	)		-				(0.02	)		(0.09	)		-				(0.09	)
Net income (loss) per basic share of common stock	$	(0.14	)	$	0.10			$	(0.04	)	$	(0.02	)	$	0.23			$	0.21

Diluted net income (loss) per share of common stock:
From continuing operations	$	(0.12	)	$	0.10			$	(0.02	)	$	0.07		$	0.22			$	0.29
From discontinued operations		(0.02	)		-				(0.02	)		(0.09	)		-				(0.09	)
Net income (loss) per diluted share of common stock	$	(0.14	)	$	0.10			$	(0.04	)	$	(0.02	)	$	0.22			$	0.20

Weighted average number of common shares and
common share equivalents outstanding:
Basic		4,319			4,319				4,319			4,313			4,313				4,313
Diluted		4,319			4,319				4,319			4,355			4,355				4,355

The accompanying notes are an integral part of these condensed consolidated financial statements

Consolidated Statement of Stockholders’ Deficit (unaudited)

										Additional
	Common Stock				Treasury Stock					Paid in		Accumulated
	Shares		Amount		Shares		Amount			Capital		Deficit			Total
Balance -March 31, 2023 as reported		4,390,826	$	405		79,412	$	(1,985	)	$	187,708	$	(248,666	)	$	(62,538	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		4,981			4,981
Cumulative adjustments to net income		-		-		-		-			-		163			163

Balance -March 31, 2023 as restated		4,390,826	$	405		79,412	$	(1,985	)	$	187,708	$	(243,522	)	$	(57,394	)

Balance -June 30, 2023 as reported		4,390,826	$	405		79,412	$	(1,985	)	$	187,865	$	(248,491	)	$	(62,206	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		5,144			5,144
Cumulative adjustments to net income		-		-		-		-			-		384			384

Balance -June 30, 2023 as restated		4,390,826	$	405		79,412	$	(1,985	)	$	187,865	$	(242,963	)	$	(56,678	)

Balance -September 30, 2023 as reported		4,407,492	$	405		85,720	$	(1,997	)	$	188,017	$	(249,105	)	$	(62,680	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		5,528			5,528
Cumulative adjustments to net income		-		-		-		-			-		428			428

Balance -September 30, 2023 as restated		4,407,492	$	405		85,720	$	(1,997	)	$	188,017	$	(243,149	)	$	(56,724	)

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For The Nine Months Ended September 30,
	2023							2023
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
Cash Flows From Operating Activities
Net (loss) income	$	(88	)	$	975		(a) (b)	$	887
Adjustments to reconcile net (loss) income to net cash
used in operating activities:
Depreciation and amortization		954			-				954
Interest accretion expense		92			-				92
Amortization of deferred financing fees		42			-				42
Stock-based compensation		501			-				501
Change in fair value of note payable		400			-				400
Other changes in operating assets and liabilities:									-
Accounts receivable		202			27		(b)		229
Other current assets		176			-				176
Operating lease right of use assets		461			-				461
Accounts payable		228			-				228
Accrued salaries and bonus		(157	)		-				(157	)
Other accrued expenses		(118	)		(1,002	)	(a)		(1,120	)
Operating lease liabilities		(292	)						(292	)
Long-term liabilities		248			-				248
Net cash provided by operating activities		2,649			-				2,649

Cash Flows From Investing Activity
Proceeds from sale of Interpace Pharma Solutions, net		500			-				500
Working capital adjustment on sale of Interpace Pharma Solutions		(117	)		-				(117	)
Purchase of property and equipment		(328	)		-				(328	)
Net cash provided by investing activities		55			-				55

Cash Flows From Financing Activities
Payments on line of credit		(2,500	)		-				(2,500	)
Net cash used in financing activities		(2,500	)		-				(2,500	)

Net increase in cash and cash equivalents		204			-				204
Cash and cash equivalents from continuing operations– beginning		4,828			-				4,828
Cash and cash equivalents from discontinued operations– beginning		-			-				-
Cash and cash equivalents – beginning	$	4,828		$	-			$	4,828
Cash and cash equivalents from continuing operations– ending	$	5,032		$	-			$	5,032
Cash and cash equivalents from discontinued operations– ending		-			-				-
Cash and cash equivalents – ending	$	5,032		$	-			$	5,032

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	March 31, 2024
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	2,812		$	-			$	2,812
Accounts receivable		5,006			-				5,006
Other current assets		1,598			-				1,598
Total current assets		9,416			-				9,416
Property and equipment, net		925			-				925
Operating lease right of use assets		1,756			-				1,756
Other long-term assets		45			-				45
Total assets	$	12,142		$	-			$	12,142

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	1,363		$	-			$	1,363
Accrued salary and bonus		878			-				878
Other accrued expenses		8,574			(6,373	)	(a)		2,201
Note payable at fair value, current		7,498			-				7,498
Current liabilities of discontinued operations		660			-				660
Total current liabilities		18,973			(6,373	)			12,600
Operating lease liabilities, net of current portion		1,359			-				1,359
Note payable at fair value		1,343			-				1,343
Other long-term liabilities		5,072			-				5,072
Total liabilities		26,747			(6,373	)			20,374

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

Stockholders’ deficit:
Common stock, $.01 par value; 100,000,000 shares authorized; 4,487,157 shares issued and 4,376,398 shares outstanding;		406			-				406
Additional paid-in capital		188,224			-				188,224
Accumulated deficit		(247,747	)		6,373		(a)		(241,374	)
Treasury stock, at cost (110,759 shares)		(2,024	)		-				(2,024	)
Total stockholders’ deficit		(61,141	)		6,373				(54,768	)
Total liabilities and stockholders’ deficit		(34,394	)		-				(34,394	)

Total liabilities, preferred stock and stockholders’ deficit	$	12,142		$	-			$	12,142

The accompanying notes are an integral part of these condensed consolidated financial statements

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For the Three Months Ended March 31, 2024
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
Revenue, net	$	10,273		$	(95	)	(b)	$	10,178
Cost of revenue		4,202			(335	)	(a)		3,867
Gross profit		6,071			240				6,311
Operating expenses:
Sales and marketing		2,821			-				2,821
Research and development		137			-				137
General and administrative		2,239			-				2,239
Total operating expenses		5,197			-				5,197

Operating income from continuing operations		874			240				1,114
Interest accretion expense		(19	)		-				(19	)
Note payable interest expense		(197	)		-				(197	)
Other expense, net		(82	)		-				(82	)
Income from continuing operations before tax		576			240				816
Provision for income taxes		4			-				4
Income from continuing operations		572			240				812

Loss from discontinued operations, net of tax		(104	)		-				(104	)

Net income	$	468		$	240			$	708

Basic net income (loss) per share of common stock:
From continuing operations	$	0.13		$	0.05			$	0.19
From discontinued operations		(0.02	)		-				(0.02	)
Net income (loss) per basic share of common stock	$	0.11		$	0.05			$	0.16

Diluted net income (loss) per share of common stock:
From continuing operations	$	0.13		$	0.05			$	0.19
From discontinued operations		(0.02	)		-				(0.02	)
Net income (loss) per diluted share of common stock	$	0.11		$	0.05			$	0.16

Weighted average number of common shares and
common share equivalents outstanding:
Basic		4,370			4,370				4,370
Diluted		4,384			4,384				4,384

The accompanying notes are an integral part of these condensed consolidated financial statements

Consolidated Statement of Stockholders’ Deficit (unaudited)

	Shares		Amount		Shares		Amount			Capital		Deficit			Total
										Additional
	Common Stock				Treasury Stock					Paid in		Accumulated
	Shares		Amount		Shares		Amount			Capital		Deficit			Total
Balance -March 31, 2024 as reported		4,487,157	$	406		110,759	$	(2,024	)	$	188,224	$	(247,747	)	$	(61,141	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		6,133			6,133
Cumulative adjustments to net income		-		-		-		-			-		240			240

Balance -March 31, 2024 as restated		4,487,157	$	406		110,759	$	(2,024	)	$	188,224	$	(247,507	)	$	(54,768	)

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For The Three Months Ended March 31,
	2024							2024
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
Cash Flows From Operating Activities
Net income	$	468		$	240			$	708
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization		52			-				52
Interest accretion expense		19			-				19
Bad debt expense reversal		(100	)		-				(100	)
Stock-based compensation		79			-				79
Credit loss expense		26			-				26
Change in fair value of note payable		98			-				98
Amortization on operating lease right of use asset		108							108
Other changes in operating assets and liabilities:									-
Accounts receivable		(49	)		95		(b)		46
Other current assets		343			-				343
Accounts payable		(176	)		-				(176	)
Accrued salaries and bonus		(1,091	)		-				(1,091	)
Other accrued expenses		176			(335	)	(a)		(159	)
Operating lease liabilities		(115	)						(115	)
Long-term liabilities		104			-				104
Net cash used in operating activities		(58	)		-				(58	)

Cash Flows From Investing Activity
Purchase of property and equipment		(28	)		-				(28	)
Net cash used in investing activities		(28	)		-				(28	)

Cash Flows From Financing Activities
Payments made on note payable		(600	)		-				(600	)
Net cash used in financing activities		(600	)		-				(600	)

Net decrease in cash and cash equivalents		(686	)		-				(686	)
Cash and cash equivalents from continuing operations– beginning		3,498			-				3,498
Cash and cash equivalents from discontinued operations– beginning		-			-				-
Cash and cash equivalents – beginning	$	3,498		$	-			$	3,498
Cash and cash equivalents from continuing operations– ending	$	2,812		$	-			$	2,812
Cash and cash equivalents from discontinued operations– ending		-			-				-
Cash and cash equivalents – ending	$	2,812		$	-			$	2,812

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	June 30, 2024
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	2,019		$	-			$	2,019
Accounts receivable		6,206			-				6,206
Other current assets		1,941			-				1,941
Total current assets		10,166			-				10,166
Property and equipment, net		1,126			-				1,126
Operating lease right of use assets		1,635			-				1,635
Other long-term assets		45			-				45
Total assets	$	12,972		$	-			$	12,972

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	1,761		$	-			$	1,761
Accrued salary and bonus		1,243			-				1,243
Other accrued expenses		8,582			(6,748	)	(a)		1,834
Note payable at fair value, current		6,784			-				6,784
Current liabilities of discontinued operations		660			-				660
Total current liabilities		19,030			(6,748	)			12,282
Operating lease liabilities, net of current portion		1,286			-				1,286
Other long-term liabilities		5,146			-				5,146
Total liabilities		25,462			(6,748	)			18,714

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

Stockholders’ deficit:
Common stock, $.01 par value; 100,000,000 shares authorized; 4,487,157 shares issued and 4,376,398 shares outstanding;		406			-				406
Additional paid-in capital		188,277			-				188,277
Accumulated deficit		(245,685	)		6,748		(a)		(238,937	)
Treasury stock, at cost (110,759 shares)		(2,024	)		-				(2,024	)
Total stockholders’ deficit		(59,026	)		6,748				(52,278	)
Total liabilities and stockholders’ deficit		(33,564	)		-				(33,564	)

Total liabilities, preferred stock and stockholders’ deficit	$	12,972		$	-			$	12,972

The accompanying notes are an integral part of these condensed consolidated financial statements

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For the Three Months Ended June 30, 2024										For the Six Months Ended June 30, 2024
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated
Revenue, net	$	12,042		$	-			$	12,042		$	22,314		$	(95	)	(b)	$	22,219
Cost of revenue		4,611			(375	)	(a)		4,236			8,812			(710	)	(a)		8,102
Gross profit		7,431			375				7,806			13,502			615				14,117
Operating expenses:
Sales and marketing		2,887			-				2,887			5,707			-				5,707
Research and development		146			-				146			283			-				283
General and administrative		2,141			-				2,141			4,381			-				4,381
Total operating expenses		5,174			-				5,174			10,371			-				10,371

Operating income from continuing operations		2,257			375				2,632			3,131			615				3,746
Interest accretion expense		(12	)		-				(12	)		(30	)		-				(30	)
Note payable interest expense		(176	)		-				(176	)		(373	)		-				(373	)
Other expense, net		71			-				71			(12	)		-				(12	)
Income from continuing operations before tax		2,140			375				2,515			2,716			615				3,331
Provision for income taxes		4			-				4			8			-				8
Income from continuing operations		2,136			375				2,511			2,708			615				3,323

Loss from discontinued operations, net of tax		(74	)		-				(74	)		(178	)		-				(178	)

Net income	$	2,062		$	375			$	2,437		$	2,530		$	615			$	3,145

Basic net income (loss) per share of common stock:
From continuing operations	$	0.49		$	0.09			$	0.57		$	0.62		$	0.14			$	0.76
From discontinued operations		(0.02	)		-				(0.02	)		(0.04	)		-				(0.04	)
Net income (loss) per basic share of common stock	$	0.47		$	0.09			$	0.56		$	0.58		$	0.14			$	0.72

Diluted net income (loss) per share of common stock:
From continuing operations	$	0.49		$	0.09			$	0.57		$	0.62		$	0.14			$	0.76
From discontinued operations		(0.02	)		-				(0.02	)		(0.04	)		-				(0.04	)
Net income (loss) per diluted share of common stock	$	0.47		$	0.09			$	0.55		$	0.58		$	0.14			$	0.72

Weighted average number of common shares and common share equivalents outstanding:
Basic		4,376			4,376				4,376			4,373			4,373				4,373
Diluted		4,401			4,401				4,401			4,393			4,393				4,393

The accompanying notes are an integral part of these condensed consolidated financial statements

Consolidated Statement of Stockholders’ Deficit (unaudited)

	Shares		Amount		Shares		Amount			Capital		Deficit			Total
										Additional
	Common Stock				Treasury Stock					Paid in		Accumulated
	Shares		Amount		Shares		Amount			Capital		Deficit			Total
Balance -March 31, 2024 as reported		4,487,157	$	406		110,759	$	(2,024	)	$	188,224	$	(247,747	)	$	(61,141	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		6,133			6,133
Cumulative adjustments to net income		-		-		-		-			-		240			240

Balance -March 31, 2024 as restated		4,487,157	$	406		110,759	$	(2,024	)	$	188,224	$	(247,507	)	$	(54,768	)

Balance -June 30, 2024 as reported		4,487,157	$	406		110,759	$	(2,024	)	$	188,277	$	(245,685	)	$	(59,026	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		6,373			6,373
Cumulative adjustments to net income		-		-		-		-			-		375			375

Balance -June 30, 2024 as restated		4,487,157	$	406		110,759	$	(2,024	)	$	188,277	$	(245,310	)	$	(52,278	)

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For The Six Months Ended June 30,
	2024							2024
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
Cash Flows From Operating Activities
Net income	$	2,530		$	615		(a)	$	3,145
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization		119			-				119
Interest accretion expense		30			-				30
Bad debt expense reversal		(100	)		-				(100	)
Stock-based compensation		132			-				132
Credit loss expense		26			-				26
Change in fair value of note payable		41			-				41
Amortization on operating lease right of use asset		229							229
Other changes in operating assets and liabilities:									-
Accounts receivable		(1,249	)		95		(b)		(1,154	)
Other current assets		-			-				-
Accounts payable		(13	)		-				(13	)
Accrued salaries and bonus		(726	)		-				(726	)
Other accrued expenses		337			(710	)	(a)		(373	)
Operating lease liabilities		(188	)						(188	)
Long-term liabilities		178			-				178
Net cash provided by operating activities		1,346			-				1,346

Cash Flows From Investing Activity
Purchase of property and equipment		(225	)		-				(225	)
Net cash used in investing activities		(225	)		-				(225	)

Cash Flows From Financing Activities
Payments made on note payable		(2,600	)		-				(2,600	)
Net cash used in financing activities		(2,600	)		-				(2,600	)

Net decrease in cash and cash equivalents		(1,479	)		-				(1,479	)
Cash and cash equivalents from continuing operations– beginning		3,498			-				3,498
Cash and cash equivalents from discontinued operations– beginning		-			-				-
Cash and cash equivalents – beginning	$	3,498		$	-			$	3,498
Cash and cash equivalents from continuing operations– ending	$	2,019		$	-			$	2,019
Cash and cash equivalents from discontinued operations– ending		-			-				-
Cash and cash equivalents – ending	$	2,019		$	-			$	2,019

The accompanying notes are an integral part of these condensed consolidated financial statements

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED BALANCE SHEET

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	September 30, 2024
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	2,113		$	-			$	2,113
Accounts receivable		7,293			-				7,293
Other current assets		1,704			-				1,704
Total current assets		11,110			-				11,110
Property and equipment, net		1,352			-				1,352
Operating lease right of use assets		1,532			-				1,532
Other long-term assets		45			-				45
Total assets	$	14,039		$	-			$	14,039

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	1,701		$	-			$	1,701
Accrued salary and bonus		1,687			-				1,687
Other accrued expenses		9,033			(7,144	)	(a)		1,889
Note payable at fair value, current		5,688			-				5,688
Current liabilities of discontinued operations		660			-				660
Total current liabilities		18,769			(7,144	)			11,625
Operating lease liabilities, net of current portion		1,189			-				1,189
Other long-term liabilities		5,227			-				5,227
Total liabilities		25,185			(7,144	)			18,041

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

Stockholders’ deficit:
Common stock, $.01 par value; 100,000,000 shares authorized; 4,532,991 shares issued and 4,404,795 shares outstanding;		406			-				406
Additional paid-in capital		188,363			-				188,363
Accumulated deficit		(244,405	)		7,144		(a)		(237,261	)
Treasury stock, at cost (128,196 shares)		(2,046	)		-				(2,046	)
Total stockholders’ deficit		(57,682	)		7,144				(50,538	)
Total liabilities and stockholders’ deficit		(32,497	)		-				(32,497	)

Total liabilities, preferred stock and stockholders’ deficit	$	14,039		$	-			$	14,039

The accompanying notes are an integral part of these condensed consolidated financial statements

INTERPACE BIOSCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATION

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

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For the Three Months Ended September 30, 2024										For the Nine Months Ended September 30, 2024
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated			As Previously Reported			Restatement Amount			Restatement Reference	As Restated


Revenue, net	$	12,295		$	-			$	12,295		$	34,610		$	(95	)	(b)	$	34,515
Cost of revenue		4,789			(396	)	(a)		4,393			13,602			(1,106	)	(a)		12,496
Gross profit		7,506			396				7,902			21,008			1,011				22,019
Operating expenses:
Sales and marketing		2,864			-				2,864			8,571			-				8,571
Research and development		199			-				199			483			-				483
General and administrative		2,538			-				2,538			6,918			-				6,918
Total operating expenses		5,601			-				5,601			15,972			-				15,972

Operating income from continuing operations		1,905			396				2,301			5,036			1,011				6,047
Interest accretion expense		(4	)		-				(4	)		(34	)		-				(34	)
Note payable interest expense		(141	)		-				(141	)		(514	)		-				(514	)
Other expense, net		(394	)		-				(394	)		(406	)		-				(406	)
Income from continuing operations before tax		1,366			396				1,762			4,082			1,011				5,093
Provision for income taxes		4			-				4			12			-				12
Income from continuing operations		1,362			396				1,758			4,070			1,011				5,081

Loss from discontinued operations, net of tax		(82	)		-				(82	)		(260	)		-				(260	)

Net income	$	1,280		$	396			$	1,676		$	3,810		$	1,011			$	4,821

Basic net income (loss) per share of common stock:
From continuing operations	$	0.31		$	0.09			$	0.40		$	0.93		$	0.23			$	1.16
From discontinued operations		(0.02	)		-				(0.02	)		(0.06	)		-				(0.06	)
Net income (loss) per basic share of common stock	$	0.29		$	0.09			$	0.38		$	0.87		$	0.23			$	1.10

Diluted net income (loss) per share of common stock:
From continuing operations	$	0.31		$	0.09			$	0.40		$	0.92		$	0.23			$	1.15
From discontinued operations		(0.02	)		-				(0.02	)		(0.06	)		-				(0.06	)
Net income (loss) per diluted share of common stock	$	0.29		$	0.09			$	0.38		$	0.87		$	0.23			$	1.09

Weighted average number of common shares and common share equivalents outstanding:
Basic		4,393			4,393				4,393			4,380			4,380				4,380
Diluted		4,423			4,423				4,423			4,404			4,404				4,404

The accompanying notes are an integral part of these condensed consolidated financial statements

Consolidated Statement of Stockholders’ Deficit (unaudited)

	Shares		Amount		Shares		Amount			Capital		Deficit			Total
										Additional
	Common Stock				Treasury Stock					Paid in		Accumulated
	Shares		Amount		Shares		Amount			Capital		Deficit			Total
Balance -March 31, 2024 as reported		4,487,157	$	406		110,759	$	(2,024	)	$	188,224	$	(247,747	)	$	(61,141	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		6,133			6,133
Cumulative adjustments to net income		-		-		-		-			-		240			240

Balance -March 31, 2024 as restated		4,487,157	$	406		110,759	$	(2,024	)	$	188,224	$	(247,507	)	$	(54,768	)

Balance -June 30, 2024 as reported		4,487,157	$	406		110,759	$	(2,024	)	$	188,277	$	(245,685	)	$	(59,026	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		6,373			6,373
Cumulative adjustments to net income		-		-		-		-			-		375			375

Balance -June 30, 2024 as restated		4,487,157	$	406		110,759	$	(2,024	)	$	188,277	$	(245,310	)	$	(52,278	)

Balance -September 30, 2024 as reported		4,532,991	$	406		128,196	$	(2,046	)	$	188,363	$	(244,405	)	$	(57,682	)

Cumulative adjustments to accumulated deficit in prior years		-		-		-		-			-		6,748			6,748
Cumulative adjustments to net income		-		-		-		-			-		396			396

Balance -September 30, 2024 as restated		4,532,991	$	406		128,196	$	(2,046	)	$	188,363	$	(244,009	)	$	(50,538	)

INTERPACE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

	As Previously Reported			Restatement Amount			Restatement Reference	As Restated
	For The Nine Months Ended September 30,
	2024							2023
	As Previously Reported			Restatement Amount			Restatement Reference	As Restated

Cash Flows From Operating Activities
Net income	$	3,810		$	1,011		(a)	$	4,821
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization		205			-				205
Interest accretion expense		34			-				34
Bad debt expense reversal		(100	)		-				(100	)
Credit loss expense		26			-				26
Stock-based compensation		218			-				218
Change in fair value of note payable		445			-				445
Amortization on operating lease right of use asset		332							332
Other changes in operating assets and liabilities:									-
Accounts receivable		(2,336	)		95		(b)		(2,241	)
Other current assets		237			-				237
Accounts payable		137			-				137
Accrued salaries and bonus		(320	)		-				(320	)
Other accrued expenses		870			(1,106	)	(a)		(236	)
Operating lease liabilities		(355	)						(355	)
Long-term liabilities		259			-				259
Net cash provided by (used in) operating activities		3,462			-				3,462

Cash Flows From Investing Activity
Purchase of property and equipment		(747	)		-				(747	)
Net cash provided by investing activities		(747	)		-				(747	)

Cash Flows From Financing Activities
Payments made on note payable		(4,100	)		-				(4,100	)
Net cash used in financing activities		(4,100	)		-				(4,100	)

Net decrease in cash and cash equivalents		(1,385	)		-				(1,385	)
Cash and cash equivalents from continuing operations– beginning		3,498			-				3,498
Cash and cash equivalents from discontinued operations– beginning		-			-				-
Cash and cash equivalents – beginning	$	3,498		$	-			$	3,498
Cash and cash equivalents from continuing operations– ending	$	2,113		$	-			$	2,113
Cash and cash equivalents from discontinued operations– ending		-			-				-
Cash and cash equivalents – ending	$	2,113		$	-			$	2,113

The accompanying notes are an integral part of these condensed consolidated financial statements