Precipio, Inc. Makes Significant Progress Towards Financial Independence

Specialty cancer diagnostics company Precipio, Inc. (NASDAQ:PRPO) has announced impressive financial results, showcasing its commitment to achieving financial independence. Through a combination of revenue growth and cost-cutting initiatives, the company has successfully reduced its Cash Burn From Operations (CBFO) by 59% compared to the same quarter last year. This reduction has led to a decrease in cash burn from approximately $2.5 million per quarter to $1 million per quarter.

Precipio’s management has set a target of reaching financial independence using its current cash reserves, eliminating the need for capital raises to fund cash burn. The company defines success in this regard through the term CBFO, a non-GAAP metric calculated by considering the total net change in cash, excluding net proceeds from equity raises or the use of the ATM.

Continued revenue growth, coupled with ongoing cost reduction initiatives, has been instrumental in driving down the company’s CBFO. In August, Precipio achieved its breakeven target for the Pathology division, generating $1.2 million in revenues. The company expects September revenues to exceed $1.4 million, positioning the division to continue surpassing its breakeven target and generating cash flow, further reducing the CBFO. Additionally, the Products division has received several new orders from new customers and is making progress towards its breakeven target.

With a clear pipeline visibility in both the pathology and products divisions, a reduced threshold for products breakeven, and the continued impact of cost reduction initiatives, Precipio’s management anticipates having sufficient cash to reach breakeven without resorting to significantly dilutive capital raise transactions.

Ilan Danieli, CEO of Precipio, expressed confidence in the company’s progress towards financial independence, stating, “We are rapidly moving towards our goal of financial independence. Our business needs to stand on its own feet, unsupported by external cash raises, and generate a profit. It’s as simple as that.” Danieli believes that achieving this goal will lead to increased shareholder value, given Precipio’s IP-protected leading products, a large total addressable market (TAM), and significant impact on the healthcare system and patients’ lives.

Precipio, Inc. is a specialty cancer diagnostics company that has developed a platform aimed at eradicating the problem of misdiagnosis. By leveraging the expertise and technology from academic institutions, Precipio delivers quality diagnostic information to physicians and patients worldwide. The company also offers proprietary products serving laboratories globally.

For more information about Precipio, please visit their website at www.precipiodx.com. Stay updated by following them on LinkedIn, Twitter (@PrecipioDx), and Facebook.

Please note that this article contains forward-looking statements, subject to risks and uncertainties. Investors are advised to refer to Precipio’s filings with the Securities and Exchange Commission (SEC) for a comprehensive discussion of these risks and uncertainties. The forward-looking statements in this press release are based on management’s current views and speak only as of the date of publication. Precipio undertakes no obligation to update or revise any forward-looking statements, except as required by law.