Precipio, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Precipio, Inc. filed its 2023 10-K, detailing financial positions and equity information.</b>

AI Summary

Precipio, Inc. (PRPO) filed a Annual Report (10-K) with the SEC on March 29, 2024. Precipio, Inc. filed its 2023 Form 10-K on March 29, 2024, reporting on its fiscal year ended December 31, 2023. The filing details financial data including Additional Paid-In Capital, Retained Earnings, and Common Stock for fiscal years 2021, 2022, and 2023. Key dates related to equity incentive plans and sales agreements are noted, including the AGP 2023 Sales Agreement effective January 1, 2024. The report includes information on warrant liabilities, with specific inputs like risk-free interest rates and price volatility detailed for 2022 and 2023. Precipio, Inc. was formerly known as Transgenomic Inc., with a name change occurring on January 19, 2000.

Why It Matters

For investors and stakeholders tracking Precipio, Inc., this filing contains several important signals. The 10-K filing provides a comprehensive overview of Precipio's financial health and equity structure as of December 31, 2023, crucial for investors assessing the company's stability and growth potential. Details on warrant liabilities and sales agreements offer insights into potential future dilution and financing activities, which are key considerations for stakeholders.

Risk Assessment

Risk Level: — Precipio, Inc. shows moderate risk based on this filing. The company's financial disclosures, particularly regarding equity and warrant liabilities, suggest potential complexities and future financial activities that warrant careful investor scrutiny.

Analyst Insight

Investors should review the detailed financial statements and notes in the 10-K to understand the company's equity structure, warrant obligations, and any associated risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-29 — Filing Date (Date of submission)
• 0001043961 — Central Index Key (Company identifier)

Key Players & Entities

• Precipio, Inc. (company) — Filer name
• Transgenomic Inc. (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-29 (date) — Filing date
• 2023-01-19 (date) — Date of name change

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-29: Filing Date — Date the 10-K was officially filed with the SEC.
• 2000-01-19: Name Change — Date Precipio, Inc. was formerly known as Transgenomic Inc.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the primary financial and operational overview of Precipio, Inc. for the fiscal year 2023.)

Warrant Liability

A financial obligation related to warrants, which are securities that give the holder the right to purchase a company's stock at a specified price within a certain timeframe. (Understanding warrant liabilities is crucial for assessing potential future stock dilution and the company's financial obligations.)

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share PRPO The Nasdaq
• $750 billion — agnosis within the healthcare system is $750 billion annually. Most importantly, however, pa
• $20 b — arket, is currently estimated to exceed $20 billion, with an estimated compound annua
• $14 billion — mated to have annual revenues exceeding $14 billion by 2025. The annual growth rate of each
• $1 million — tial capital investment that can exceed $1 million), purchase multiple single-gene assays

Filing Documents

• prpo-20231231x10k.htm (10-K) — 2127KB
• prpo-20231231xex21d1.htm (EX-21.1) — 4KB
• prpo-20231231xex23d1.htm (EX-23.1) — 4KB
• prpo-20231231xex31d1.htm (EX-31.1) — 13KB
• prpo-20231231xex31d2.htm (EX-31.2) — 13KB
• prpo-20231231xex32d1.htm (EX-32.1) — 6KB
• prpo-20231231xex32d2.htm (EX-32.2) — 7KB
• prpo-20231231xex97d1.htm (EX-97.1) — 33KB
• 0001558370-24-004365.txt (&nbsp;) — 10339KB
• prpo-20231231.xsd (EX-101.SCH) — 70KB
• prpo-20231231_cal.xml (EX-101.CAL) — 85KB
• prpo-20231231_def.xml (EX-101.DEF) — 318KB
• prpo-20231231_lab.xml (EX-101.LAB) — 606KB
• prpo-20231231_pre.xml (EX-101.PRE) — 517KB
• prpo-20231231x10k_htm.xml (XML) — 1826KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 44 Item 1C. Cybersecurity 44 Item 2.

Properties

Properties 45 Item 3.

Legal Proceedings

Legal Proceedings 45 Item 4. Mine Safety Disclosures 45 PART II. 46 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 46 Item 6. [Reserved] 46 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 53 Report of Independent Registered Public Accounting Firm (PCAOB ID# 688 ) 53 Consolidated Balance Sheets as of December 31, 2023 and 2022 55 Consolidated Statements of Operations for the Years Ended December 31, 2023 and 2022 56 Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2023 and 2022 57 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022 58 Notes to the Consolidated Financial Statements for the Years Ended December 31, 2023 and 2022 60 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 87 Item 9A.

Controls and Procedures

Controls and Procedures 87 Item 9B. Other Information 88 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 88 PART III. 89 Item 10. Directors, Executive Officers and Corporate Governance 89 Item 11.

Executive Compensation

Executive Compensation 89 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 89 Item 13. Certain Relationships and Related Transactions, and Director Independence 89 Item 14. Principal Accountant Fees and Services 89 PART IV. 90 Item 15. Exhibits, Financial Statement Schedules 90 Item 16. Form 10-K Summary 92

Signatures

Signatures 93 1 Table of Contents PART I.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (this "Annual Report"), including the sections entitled "Risk Factors" "Management's Discussion & Analysis of Financial Condition and Results of Operations" and "Our Business" contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. These statements are based on management's current views, assumptions or beliefs of future events and financial performance and are subject to uncertainty and changes in circumstances. Readers of this report should understand that these statements are not guarantees of performance or results. Many factors could affect our actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements. These factors include, among other things: our expected revenue, income (loss), receivables, operating expenses, supplier pricing, availability and prices of raw materials, insurance reimbursements, product pricing, foreign currency exchange rates, sources of funding operations and acquisitions, our ability to raise funds, sufficiency of available liquidity, future interest costs, future economic circumstances, business strategy, industry conditions and key trends, our ability to execute our operating plans, the success of our cost savings initiatives, competitive environment and related market conditions, our ability to comply with the listing requirements of the Nasdaq Capital Market, expected financial and other benefits from our organizational restructuring activities, geopolitical uncertainties including the ongoing Russia and Ukraine conflict and the Israel-Hamas war, actions of governments and regulatory factors affecting our business, projections of future earnings, revenues, synergies, accretion or other financial items, any statements of the plans, strategies and objectives of management for future operations, re

Business

Item 1. Business Business Description Precipio, Inc., and its subsidiaries, (collectively, "we", "us", "our", the "Company" or "Precipio") is a healthcare biotechnology company focused on cancer diagnostics. Our mission is to address the pervasive problem of cancer misdiagnoses by developing solutions in the form of diagnostic products and services. Our products and services aim to deliver higher accuracy, improved laboratory workflow, and ultimately better patient outcomes, which reduce healthcare expenses. We develop innovative technologies in our laboratory where we design, test, validate, and use these products clinically. We believe these technologies improve diagnostic outcomes across various diseases within the hematologic field. We then commercialize these technologies as proprietary products that serve the global laboratory community in furtherance of our mission to eliminate or greatly reduce the prevalence of misdiagnosis. To deliver our strategy, we have structured our organization to develop diagnostic products, including our laboratory and research and development ("R&D") facilities located in New Haven, Connecticut and Omaha, Nebraska, respectively, which house teams that collaborate on the development of new products and services. We operate CLIA laboratories in both New Haven, Connecticut and Omaha, Nebraska where we provide essential blood cancer diagnostics to office-based oncologists in many states nationwide. To deliver on our strategy of mitigating misdiagnoses we rely heavily on our CLIA laboratory to support R&D beta-testing of the products we develop, in a clinical environment. The development of laboratory products involves a qualified facility; highly skilled laboratory staff; and access to viable patient specimens to conduct development and testing. Our CLIA laboratory in New Haven, which is operated by our pathology services division, encapsulates these components, and also generates revenue for us which covers costs associated wit

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View this 10-K filing on SEC EDGAR