Predictive Oncology Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the three months at $345,686, down from $676,626 in the same period of 2023, marking a decrease of $330,940. For the nine months ended September 30, 2024, revenue totaled $1,012,232, compared to $1,308,102 in the prior year, a decrease of $295,870. The revenue drop was primarily attributed to reduced sales of tumor-specific 3D cell culture models from the Pittsburgh segment, although this was partially offset by increased sales of the STREAMWAY® System from the Eagan segment.

Gross profit for the three months ended September 30, 2024, was $148,767, down from $578,758 in the same quarter of 2023, reflecting a gross profit margin decline from approximately 86% to 43%. For the nine-month period, gross profit decreased to $476,721 from $940,641, with a margin decline from 72% to 47%. The increase in cost of sales, which rose to $196,919 for the third quarter from $97,868 a year earlier, contributed to this decline.

Operating expenses for the three months ended September 30, 2024, were $2,462,743, down from $3,317,755 in the prior year, while for the nine months, they decreased to $9,292,543 from $10,035,710. The company reported an operating loss of $(2,313,976) for the third quarter, slightly improved from $(2,738,997) in 2023, and a nine-month operating loss of $(8,815,822), compared to $(9,095,069) in the previous year.

Net loss for the three months ended September 30, 2024, was $(3,094,690), compared to $(3,163,450) in 2023. For the nine months, the net loss was $(10,494,794), a marginal improvement from $(10,508,620) in the prior year. The net loss per share for the third quarter was $(0.48), down from $(0.78) in 2023, and $(2.08) for the nine months, compared to $(2.63) in the previous year.

As of September 30, 2024, the company reported total assets of $7,498,234, a decrease from $14,417,249 at the end of 2023. Cash and cash equivalents also fell to $3,078,955 from $8,728,660. The accumulated deficit increased to $178,256,677 from $167,761,883 at the end of 2023.

Strategically, Predictive Oncology has discontinued its Birmingham operating segment, which has been classified as discontinued operations. The company is exploring funding alternatives, including equity financing and debt issuance, to maintain operations amid substantial doubt regarding its ability to continue as a going concern. Additionally, the company received a Nasdaq notice of non-compliance due to its stock price falling below $1.00 for 30 consecutive business days, with a deadline to regain compliance by March 18, 2025.