Q3 Revenue up 81% year over year
TORONTO, Nov. 15, 2018 /PRNewswire/ - GeneNews Limited (TSX:GEN) ("GeneNews" or the "Company") today announced operational and financial results for the three-month and nine-month periods ended September 30, 2018 and provided a progress update on its business.
"Billing revenue is up markedly (+81%) from a year ago when we began the process of switching billing companies, and very significantly from last quarter (654%) as the new process gains traction," commented James R Howard-Tripp, GeneNews' Chairman and CEO. "Q3 tests started aggressively, with test volume up 40% during July, but the full quarter was impacted by the hurricanes that affected the South and South East of the U.S., our larger customer states. Test volume in October is again showing growth, with testing of High-Risk employees contributing."
Howard-Tripp further commented, "GeneNews and LifeX this morning announced a partnership which has two specific near-term objectives: the first is to expand the adoption and use of GeneNews' 'liquid biopsy', for the early diagnosis of cancer into large, multi-entity healthcare systems; the second objective is to fully develop and market GeneNews' Aristotle platform, specifically, the first-in-class early detection of ten cancers from a single sample of blood. It is GeneNews' and LifeX's intent to have a transformational effect on early cancer screening and diagnosis."
Q3 2018 Financial Results
All amounts are expressed in U.S. dollars unless otherwise stated and results are reported in accordance with International Financial Reporting Standards.
For the three-month period ended September 30, 2018, we reported a consolidated net loss of $0.7 million, or $0.01 loss per common share, as compared with a consolidated net loss of $0.6 million, or $0.01 loss per common share, for the three-month period ended September 30, 2017. The $0.07 million increased loss results from the $0.07 million impact of the revaluation of warrants, $0.02 change in fair value of conversion liability, the $0.01 increase in finance costs, the $0.1 million increase in cost of goods sold, offset by the $0.04 million increase in revenue and $0.1 million reduction in general and administrative costs.
For the nine-month period ended September 30, 2018, we reported a consolidated net loss of $3.9 million, or $0.03 loss per common share, as compared with a consolidated net loss of $2.6 million, or $0.04 loss per common share, for the nine-month period ended September 30, 2017. The $1.3 million increased loss results from the $0.7 million impact of the revaluation of warrants, $0.6 million change in fair value of conversion liability, the $0.6 million increase in finance costs and the $0.2 million decline in test revenue, offset by $0.6 million lower general and administrative expenses and $0.2 million lower cost of goods sold.
During the third quarter of 2018, we leveraged the significant financing initiatives in Q2, 2018 to support our Four Primary Growth Area initiatives including: small independent practices, high-risk populations/employers, telemedicine and large healthcare systems. JTS continues to assist with the new billing process at IDL which has improved our cash collections on a quarter-over-quarter basis. Revenue from tests was $98 thousand this quarter compared to $54 thousand in Q3 2017 and the $13 thousand in Q2, 2018. Invoicing for tests run but not billed during our transition to the new billing process continues to be submitted to payers and followed up with patients, and we expect collections on these amounts to continue to be collected over the next few quarters.
The Company's financial statements and management's discussion and analysis are available on www.sedar.com.
GeneNews, an innovator in the liquid biopsy space, is committed to becoming a leader in advanced diagnostics and personalized medicine, serving as a strong commercialization outlet for early detection of cancer and other chronic diseases. Our mission is to identify, assess and make commercially available a comprehensive menu of diagnostics that provide physicians and patients with personalized clinical intelligence and actionable information to improve health out-comes through the early diagnosis of disease. Our Richmond, Virginia-based Innovative Diagnostic Laboratory clinical reference lab specializes in traditional and advanced clinical evidence-based blood testing that helps find, understand, and address cancer risk in patient populations. Currently, IDL offers risk assessment blood tests for four prevalent cancer types - colon, lung, prostate and breast. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'. More information on GeneNews and IDL can be found at www.GeneNews.com and www.myinnovativelab.com, respectively.
This press release contains forward-looking statements identified by words such as "expects", "will" and similar expressions, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties that could cause the Company's actual events to differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements, except as required by law.
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SOURCE GeneNews Limited
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